Canadian Plastics

Du Pont Performance Elastomers fined $4 million for price fixing (July 30, 2007)

Du Pont Performance Elastomers L.L.C. (DPE) pleaded guilty and was fined $4 million by the Superior Court of Justic...

July 30, 2007   Canadian Plastics

Du Pont Performance Elastomers L.L.C. (DPE) pleaded guilty and was fined $4 million by the Superior Court of Justice in Ottawa for its role in an international conspiracy to fix prices of polychloroprene rubber, according to Competition Bureau Canada.

Under section 45 of Canadas Competition Act, it is a criminal offence to agree with competitors to fix prices or share markets.

Polychloroprene rubber, a specific type of synthetic rubber, is used in the manufacture of a wide range of consumer products in the automotive, adhesive and construction industries, such as hoses, transmission belts and cables. It is also known as chloroprene rubber, polychloroprene, PCP or neoprene.

“The Competition Bureau protects consumers and businesses against price fixing agreements and does not hesitate to prosecute any business, whether located in Canada or abroad, that engages in these illegal activities affecting the Canadian market,” said Denyse MacKenzie, Senior Deputy Commissioner of Competition. “Price fixing agreements harm Canadian businesses and consumers by forcing them to pay higher prices for the goods and services they purchase.”

From August 1999 to April 2002, DPE and co-conspirators agreed to fix the prices of polychloroprene rubber sold in the North American market, the Competition Bureau said. Sales of the product were approximately $50 million for the relevant period and DPE’s share of the market represented approximately 70 per cent.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality services. It oversees the application of the Competition Act, the Consumer Packaging and Labeling Act, the Textile Labeling Act and the Precious Metals Marking Act.


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