SABC News.com - The “bread price-fixing scandal” taken to Concourt :Tuesday 7 May 2013

The “bread price-fixing scandal” taken to Concourt

Tuesday 7 May 2013 16:03

Noma Bolani

The shopkeeper wants the Concourt to allow for a class action to be served on Pioneer Foods, Tiger Consumer Brands and Premier Foods for income lost during the bread price-fixing scandal. (SABC)

The Constitutional Court has heard opening statements in the application for leave to appeal a Supreme Court of Appeals judgement by Cape Town businessman, Imraahn Mukaddam.

The shopkeeper wants the Concourt to allow for a class action to be served on Pioneer Foods, Tiger Consumer Brands and Premier Foods for income lost during the bread price-fixing scandal.

In 2007, the Competition Commission found that in the Western Cape, the three companies were guilty of being part of a cartel that fixed the price of bread for 12 years.

Mukaddam's lawyers told the Concourt that the price-fixing reduced the income of distributors by R0.30. They claim that the discount to stores was cut from R1.05 to R0.75.

The lawyers say their client couldn't pass on the costs to the consumer; for fear that he may lose customers.

The respondents say they would be happy to deal with individual cases by distributors and not a class action.

The Concourt must find exceptional reasons for a class action to be allowed including proving an infringement of the right to freedom of trade by Mukaddam and others.

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