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South Africa: Class action against price-fixing bread companies hits roadblock

By  |  November 8, 2012

The nation’s Supreme Court has raise concerns over efforts to bring a class action suit against several of the nation’s bread producers who were charged with running a price-fixing cartel. Tiger Brands, Pioneer Foods and Foodcorp were found guilty of running a cartel by the Competition Tribunal, and, as a result, several entities brought a class-action suit against the companies in representation of consumers affected by the price-fixing. The Supreme Court, however, raised concerns over how the awards would be distributed to the plaintiffs should the suit end successfully for them. The Children’s Resource Centre, the Black Sash Trust, the Congress of South African Trade Unions and the National Consumer Forum had attempted to bring the case to court but was rejected by the Western Cape High Court. They are now appealing to the Supreme Court of Appeals. Lawyers for the plaintiffs have stated any awards won would be kept in a trust and “distributed to feeding schemes.”

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