Last month, major chocolate producers settled a class action for
$23.2 million. The class action alleged that Cadbury, Mars,
Hershey, Nestlé and distributor ITWAL had engaged in
price-fixing by artificially inflating the cost of chocolate.
Settlements with all of the defendants have resolved the
litigation, and will enable chocolate purchasers to be compensated
for a portion of their spending on chocolate. The settlement funds
are currently being held in trust.
If you purchased chocolate from October 1, 2005 to
September 30, 2007, you may be eligible to claim monetary
compensation if you file a claim by December 15,
There are two categories of chocolate purchaser: consumer and
A consumer is someone who purchased chocolate not for commercial
resale. Examples include purchasing chocolate for personal
consumption, or on behalf of sports teams or schools. Consumers
must have purchased at least $1,000 in chocolate products from
October 1, 2005 to September 30, 2007 to be eligible to claim
monetary compensation. Spouses and/or children residing in the same
household may combine their purchases to meet this threshold.
Consumers who are able to prove their purchases will
be compensated at a rate of 2.625% of their purchase.
Consumers who are not able to prove their purchases
may still be compensated at a rate of 1.875% of their
purchases, up to a maximum of $50.
2) Commercial Purchasers
Eligibility: There are three
sub-categories of Commercial Purchaser. Commercial Purchasers may
fall under any number of these categories, depending on the
2.1)Direct Commercial Purchasers
purchased chocolate directly from Cadbury, Mars, Hershey or
Nestlé for direct commercial resale to Consumers.
Purchasers purchased chocolate either directly from Cadbury,
Mars, Hershey or Nestlé or indirectly from an entity other
than Cadbury, Mars, Hershey or Nestlé for resale to entities
other than Consumers (which includes affiliates, licensees and/or
2.3)Secondary Commercial Purchasers
purchased chocolate from an entity other than Cadbury, Mars,
Hershey or Nestlé (which includes purchases from affiliates,
franchisors or licensors) for direct commercial resale to
All Commercial Purchasers must provide proof of
purchase, but may be able to rely on the Defendants' sales
records for proof.
Direct Commercial Purchasers will be compensated at a
rate of 0.875% of their purchases.
Intermediary Commercial Purchasers will be compensated
at a rate of 0.175% of their purchases.
Secondary Commercial Purchasers will be compensated at
a rate of 0.7% of their purchases.
In addition to the direct monetary compensation available to
Consumers and Commercial Purchasers, a portion of the settlement
has been set aside for distribution to consumer and public interest
organizations in Canada.
Making a Claim
Chocolate purchasers with eligible claims are encouraged to file
their claims online at www.chocolateclassaction.com. Paper claim forms
may also be requested by contacting the claims administrator at
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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