Consumers International Member wins historic victory in price fixing case in South Africa

Consumers International’s Member in South Africa, the National Consumer Forum, acting together with civil society organisations, has successfully concluded a historic victory in a major price fixing case against Premier Foods in South Africa, leading to a settlement between the company and civil society organisations. 

The settlement brings to an end the longstanding claims brought by consumers of price fixing activities by major bread companies that were aimed at putting small-scale bread producers out of business.

Acting as a whistleblower, a member of the National Consumer Forum, Imraahn Ishmael Mukaddam, found evidence of price fixing and reported their findings to the Competition Commission who decided to investigate the matter.

They then began a process of class action against Premier Foods in the Constitutional Court, effectively asking for permission to sue Premier Foods for its role in the 2006 Western Cape bread cartel‚ with Tiger Brands and Pioneer Foods.

The National Consumer Forum played a key role in the settlement that was recently reached, alongside other civil society organisations including Black Sash, COSATU and the Children’s Resources Centre. 

Competition Commissioner Tembinkosi Bonakele said: “The bread cartel was the lowest point in the history of collusion in South Africa. We hope this settlement will pave the way for other respondents to do the right thing.