Domtar and Cascades will soon be shelling out an unprecedented amount of money to pay off fines for price fixing. B…
Domtar and Cascades will soon be shelling out an unprecedented amount of money to pay off fines for price fixing. Both companies are being forced to pay $12.5 million each after pleading guilty to fixing prices for carbonless paper. The firms have a total of six and a half years to pay off the sum.
A third party, Unisource Canada, was also implicated in the scheme and was subjected to the same fines.
In addition to the monetary penalization, an Ontario Superior Court judge also ordered the three companies to determine and demote those executives involved in the scheme.
According to a report by the Montreal Gazette, price fixing schemes such as this force customers to fork over anywhere between 20-30% more for the products in question.
In response to the outcome of the case, both Domtar and Cascades confirmed the decision to enter a guilty plea was to ‘avoid potentially lengthy and costly litigation.’ According to the Gazette’s report, the guilty pleas, which were entered in the middle of the investigation, moderate the fines, and save the companies involved from being subjected to the details of the price-fixing scheme from being made public.
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