The Consumer Protection and Fair Trade Authority announced its intention or to issue an administrative order to end the breach of the Consumer Protection Law for the three largest producers of soft drinks in Israel: Central Bottling Company (Coca-Cola Israel); Tempo and Javora Tabori. The authority calls on companies to cancel the price increases they announced in the past few months and immediately return prices to their previous levels. The share price of Kerur Holdings, which is controlled by Shlomo Rudav and Roni Gat, which owns 70% of Javura Tabori, fell more than 3% on the Tel Aviv Stock Exchange.
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“The companies’ decision to raise their prices to the consumer at the same time, when the three control the vast majority of this market, harms the consumer’s freedom of choice, and consumers are forced to buy products despite the high prices, which represents an unfair impact on the Israeli consumer.”
In March-April 2023, the three companies, which dominate the soft drink category in Israel, announced an increase in the prices of the various soft and carbonated drinks they produce.
The Consumer Protection and Fair Trade Authority addressed particularly harsh words to the central bottling company: “Over the years, the company has become a key and strong player in the soft drink market, through a set of measures, some of them aggressive, that it took to promote its products in the market, and its practical and psychological impact on the consumer is harmful.” consumers and their contractual freedom”.
The authority is seeking to impose a financial penalty on the companies, and it has seven days to present its case in writing against issuing an administrative order.
Minister of Economy and Industry Nir Barkat said: “The step taken by the Consumer Protection and Fair Trade Authority joins our measures against monopolies and cartels that used to lock up the country and abuse the public unhindered. Those days are gone. Our policy is clear: We will not allow harm to the citizens of Israel, we will not allow By raising prices without deterrence and abusing the public. The Ministry of Economy and Industry will use all the tools at its disposal to fight cartels and monopolies that abuse the public, raise prices for no reason, and deal with the people of Israel as a cash cow.
Published by Globes, Israel business news – en.globes.co.il – on June 21, 2023.
© Copyright Globes Publisher Itonut (1983) Ltd., 2023.
