Competition Bureau Investigation Concludes With $1.5 Million Fine Against Pfizer Inc. in International Price Fixing Conspiracy

OTTAWA, October 24, 2001 — An international investigation of the food preservative industry by the Competition Bureau, led to the conviction in the Federal Court of Canada today of U.S. based Pfizer Inc. (Pfizer) which pleaded guilty to a price fixing charge under the Competition Act. The company was sentenced to pay a $1.5 million fine for its part in the conspiracy.

"This conviction is another example of the Competition Bureau's effectiveness in fighting international conspiracies that target the Canadian economy," said Johanne D'Auray, Deputy Commissioner of Competition. "We will continue to protect Canadian consumers by being vigilant and aggressive in prosecuting this type of anti-competitive conduct."

The Bureau's investigation, which started in 1999, revealed that Pfizer was involved in an international price fixing conspiracy from 1992 to 1994. The conspiracy fixed prices for sodium erythorbate which is used primarily as a food preservative agent to maintain colour and flavour in meat and other processed foods commonly sold in grocery stores.

Copies of the documents filed before the Federal Court of Canada, Trial Division, in Toronto, are available by using the following link (Agreed Statement of Facts - PDF: 533 K B) - (Indictment - PDF: 160 KB). Certified copies of the filed documents may be obtained from the Court Registries - (Court File numbers 1559-01).

The Competition Bureau is an independent law enforcement agency which ensures that all Canadians enjoy the benefits of a fair and competitive economy, low prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For more information, please contact:

Charles Bergeron
Senior Communications Advisor
Competition Bureau
Tel: 819-956-0774 or 613-296-2187 (cell.)

General Public Enquiries, please contact:

Competition Bureau's Information Center
819-997-4282 or toll-free 1-800-348-5358