‘Potato Cartel’ Accused of Conspiracy To Raise Price of Frozen Fries, Tater Tots
New lawsuits claim the coordinated efforts have been ongoing for several years.
Four major players in the American potato market are facing allegations of collusion to artificially inflate prices of frozen potato products.
The companies involved in this case — McCain Foods, Cavendish Farms, Lamb Weston, and J.R. Simplot — are accused of engaging in activities aimed at coordinating prices to the detriment of consumers, according to recent class actions filed in a U.S. District Court.
The companies allegedly exchanged sensitive pricing information and other strategic data to manipulate the market, resulting in higher prices for frozen potato goods such as french fries, hash browns, and tater tots. The lawsuits claim the coordinated efforts have been ongoing for several years, CBC News reports.
McCain Foods and Cavendish Farms, both based in Canada, were specifically named in the filings. McCain Foods, in a statement to CBC News, denied any involvement in antitrust violations. The company emphasized its commitment to defending itself vigorously against these allegations, asserting its dedication to providing high-quality, affordable food nationwide.
Under U.S. and Canadian law, companies must independently set their product prices. Any form of price-fixing, which involves coordinated pricing agreements between competitors, generally results in inflated costs to consumers and violates antitrust laws designed to foster competitive market conditions.
The document cites specific instances, such as simultaneous price increases by the companies in 2021 and 2022. An owner of a restaurant at Washington, D.C., highlighted the pattern online, noting the synchronous price hikes for french fries among all major suppliers, questioning the timing as potentially indicative of collusion.