Competition Bureau Investigation Results in Guilty Plea for Price Maintenance of Isostatic Graphite

OTTAWA, April 15, 2003 — The Competition Bureau announced today that Toyo Tanso USA Inc. (Toyo Tanso) has pleaded guilty to charges of attempting to maintain the price of isostatic graphite, used to make molds and dies for various industries including autoparts and semi-conductors.

"Price maintenance artificially raises prices because resellers can't sell at the price they think is best," said Richard Taylor, Acting Senior Deputy Commissioner of Competition. "In the end, it is the consumer who suffers."

Oregon-based Toyo Tanso was fined $200,000 by the Federal Court of Canada in Toronto under the price maintenance provisions of the Competition Act. A Bureau investigation had revealed that Toyo Tanso met with its independent distributor, Electrodes Canada Inc., and attempted to raise the price of unmachined and semi-machined isostatic graphite in Canada.

Toyo Tanso, an indirect subsidiary of Toyo Tanso Co., Ltd. of Osaka, is the second corporation to be convicted as a result of the Competition Bureau's investigation into the supply and sale of isostatic graphite in Canada. In 2001, Carbone of America Industries Corp. pleaded guilty for its role in an international isostatic graphite price-fixing cartel.

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 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.

Court Documents
Indictment (PDF: 271 KB)
Agreed Statement of Facts (PDF: 653 KB)

If the following documents are not accessible to you, please contact the Competition Bureau's Information Centre Toll free: 1-800-348-5358, Phone: 819-997-4282 TDD (hearing impaired): 1-800-642-3844 for alternate print formats.

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