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Maybe some of the lawyers here can clarify a few questions I have about this
1. Where does that fine money go to?
2. What's to stop the company from raising the price to offset the fine?
3. Wouldn't a more fair solution be that the company must lower their prices X% below cost until the losses equal the fine amount? that way the company "pays" the fine and the consumers that were screwed with high prices get some reparations in the form of cheap tuna?
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SAN FRANCISCO (AP) — StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion investigation of the canned tuna industry, the U.S. Department of Justice announced Thursday.
The DOJ said StarKist faces up to a $100 million fine when it is sentenced. Prosecutors allege that the industry’s top three companies conspired between 2010 and 2013 to keep prices artificially high.....
The scheme came to light when Thai Union Group’s Chicken of the Sea attempt to buy San Diego-based Bumble Bee failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to shield the company from criminal prosecution in exchange for cooperation.
Bumble Bee Foods last year pleaded guilty to the same charge and paid a $25 million fine, $111 million lower than prosecutors said it should have been.
Prosecutors said they feared putting the financially struggling Bumble Bee out of business with a high fine and agreed to let the company make interest-free payments for five years.
Two former executives of Bumble Bee and one from StarKist have also each pleaded guilty to price-fixing charges. None of them have been sentenced...………...
https://apnews.com/4d7ff131998048f387f77dc89d70f068
1. Where does that fine money go to?
2. What's to stop the company from raising the price to offset the fine?
3. Wouldn't a more fair solution be that the company must lower their prices X% below cost until the losses equal the fine amount? that way the company "pays" the fine and the consumers that were screwed with high prices get some reparations in the form of cheap tuna?
========================================================================================================================
SAN FRANCISCO (AP) — StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion investigation of the canned tuna industry, the U.S. Department of Justice announced Thursday.
The DOJ said StarKist faces up to a $100 million fine when it is sentenced. Prosecutors allege that the industry’s top three companies conspired between 2010 and 2013 to keep prices artificially high.....
The scheme came to light when Thai Union Group’s Chicken of the Sea attempt to buy San Diego-based Bumble Bee failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to shield the company from criminal prosecution in exchange for cooperation.
Bumble Bee Foods last year pleaded guilty to the same charge and paid a $25 million fine, $111 million lower than prosecutors said it should have been.
Prosecutors said they feared putting the financially struggling Bumble Bee out of business with a high fine and agreed to let the company make interest-free payments for five years.
Two former executives of Bumble Bee and one from StarKist have also each pleaded guilty to price-fixing charges. None of them have been sentenced...………...
https://apnews.com/4d7ff131998048f387f77dc89d70f068
