Chile: CMPC rejects consumer watchdog lawsuit over price-fixing damages

Chilean paper products company CMPC has responded to the country’s consumer watchdog CONADECUS, who had earlier last week sued the company demanding compensation for millions of consumers affected by the company’s price-fixing scheme, which affected dozens of products in the Tissue paper sector.

“The actions referred to have expired under any of the applicable terms for this cause” was CMPC’s blunt reply to CONADECUS’ call for compensation. The consumer protection agency has calculated damages over the 11-year period of the cartel’s operation to amount to around $510 million USD.

The company has doubled down, saying “the actions referred to fall beyond the scope of the national Consumer Protection laws, as CMPC Tissue cannot be considered a ‘provider’ under the terms of this legislation.” The now infamous case of price-fixing, where CMPC demonstrably participated with others to manipulate prices, was shelved last week by the country’s National Economic Prosecutor (FNE), having found the terms to have expired. The decision has sparked the anger of several in the paper sector and among consumer advocates across the region.

Full Content: Diario Financiero

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