> Articles > Dupont Accused of Price Fixing
of price fixing in Canada
By Christopher Cundy 14/02/2006
Engineering polymer supplier says claims are
14 February 2006 – A Canadian moulder has begun
legal action against DuPont, claiming the engineering polymer
supplier has been fixing the prices of Delrin and Zytel resins in
conspiracy with Tier 1 automotive suppliers.
Lawyers representing Axiom Plastics have filed a
class action lawsuit on behalf of all Tier 2 plastics processors in
Canada. In a statement posted to the Ontario courts in December, it
alleges that DuPont linked with Tier 1 suppliers so that Tier 2
moulders were forced the to use DuPont materials.
According to the claim, DuPont would fix prices
for its resins with its authorised distributors. Tier 1 suppliers
would monitor the purchase volumes among Tier 2 suppliers and anyone
suspected of buying from outside the authorised routes would be
reported to DuPont. For their troubles, the Tier 1 suppliers would
receive a kickback from DuPont.
DuPont has rejected completely the claims
contained in the action initiated by Axiom Plastics. In a statement
the company said: “Quite simply, the claims are baseless. The
picture of DuPont that they present is contrary to the facts, and
does not reflect the manner in which the company and our employees
strive to conduct business. We intend to defend ourselves
The court will consider within the next few months
whether the action can proceed to the next stage.