Businesses that produce certain goods typically depend on vendors and suppliers to provide those businesses with materials or ingredients. These types of arrangements are often beneficial to all parties, but if a company believes that a supplier has taken steps to somehow cheat the company, a business dispute could arise. Minnesota readers may be interested to note that this type of scenario is currently affecting poultry producers and fast-food restaurants like McDonald’s.
Alleged price fixing
According to reports, Tyson Foods and other chicken producers are suspected of price fixing and charging more for products than necessary. Recently, McDonald’s announced that the company would be working toward getting back the excessive funds paid to Tyson Foods over the last decade. The accusation indicate that the price fixing may have affected purchases from Jan. 2008 through the beginning of 2019.
Though McDonald’s is pursuing the dispute, this is not one that has just started. The price-fixing allegations began in 2016 against multiple chicken producers, including Pilgrim’s Pride and Koch Foods. Class action lawsuits came against these companies from over a dozen restaurant chains. Reports indicated that Tyson Foods and Pilgrim’s Pride came to settlements earlier this year with the U.S. Department of Justice over charges relating to the alleged price fixing, but the civil claims continue.
Fighting unfair practices
There are laws in place to help prevent unfair business practices. If Minnesota business owners believe that they are facing illegal actions from vendors, suppliers, other companies or individuals, exploring their legal options may be warranted. In some cases, a business dispute could help negatively affected companies obtain compensation for damages resulting from illegal practices.