Canada’s Competition Bureau has filed criminal charges against three companies and three individuals accused of conspiracy under the Competition Act for their role in fixing the price of chocolate confectionery products in Canada.

The three companies charged are Nestlé Canada Inc., Mars Canada Inc., and ITWAL Limited (ITWAL), a national network of independent wholesale distributors.

The Canadian investigation uncovered evidence suggesting that the accused conspired, agreed or arranged to fix prices of chocolate products.

“We are fully committed to pursuing those who engage in egregious anti-competitive behavior that harms Canadian consumers,” said John Pecman, Interim Commissioner of Competition. “Price-fixing is a serious criminal offense and today’s charges demonstrate the Competition Bureau’s resolve to stop cartel activity in Canada.”

The three individuals charged are Robert Leonidas, former President of Nestlé Canada, Sandra Martinez, former President of Confectionery for Nestlé Canada, and David Glenn Stevens, President and CEO of ITWAL.

Prosecutors became aware of the conduct through its the Competition Bureau’s immunity program.

Under the program, the first party to disclose to the Bureau an offense not yet detected or to provide evidence leading to a referral of evidence may receive immunity, provided that it fully cooperates with authorities.

Subsequent cooperating parties may receive lenient treatment under the Bureau’s leniency program.

Hershey Canada Inc. (Hershey) cooperated with the Bureau’s investigation and thus the Bureau recommended Hershey receive lenient treatment.

It is expected that Hershey will plead guilty on June 21, 2013, for its role in the conspiracy to fix the price of chocolate confectionery products in Canada.

Under the current conspiracy provision in the Competition Act, it is a criminal offense for two or more competitors or potential competitors to conspire, agree or arrange to fix prices, allocate customers or restrict the output of a product.

An offense under this provision is punishable by a fine of $25 million and/or imprisonment for a term of up to 14 years.

In this case, the conduct occurred under the former conspiracy provision and the accused face the possibility of a fine of up to $10 million and/or imprisonment for a term of up to five years.