Firms conspired to keep foam prices high

Delta plant involved in corporate conspiracy busted by Competition Bureau

A foam production plant in Delta was part of a decade-long price-fixing scheme that has ended with the firms involved paying $12.5 million in fines.

Valle Foam Industries, which also runs a plant in Brampton, Ontario, and Montreal affiliate Domfoam International pleaded guilty to conspiring with competitors to fix the price of polyurethane foam products made at their three plants.

The products are mainly used in carpet underlay, furniture and bedding.

It was the first conviction under Canada’s amended conspiracy law, which was updated in 2010 to tighten the law regarding collaboration and cartels.

“This investigation highlights the Bureau’s reinvigorated mandate to stop consumer harm caused by price-fixing, and to secure significant fines for these serious criminal offences,” Competition Commmissioner Melanie Aitken said.

A rival foam producer based in Toronto blew the whistle on the scheme in early 2010, gaining immunity from prosecution.

The Competition Bureau launched a nearly two-year investigation that included the use of wiretaps, several searches and the seizure of thousands of documents.

More firms are still under investigation for their participation in the cartel.

“We’re grateful for the actions of the Competition Bureau,” said Bruce Cran, president of the Consumers Association of Canada, adding he hopes to see regulators investigate more crooked pricing schemes in other industries.

Just Posted

Fundraiser for teenager hit by car in Rosedale

Teen suffering multiple fractures and blood clots following incident on Yale Road

Vedder River cleanup nets bag of discarded sex toys

Chilliwack volunteers stumble on unexpected find while removing 600 lbs of trash from riverway

Hikers alert after woman approached by suspicious man in Harrison Mills

The woman and her family were hiking in the wetlands between Rowena’s Inn and Sts’ailes First Nation

Chilliwack International Spring Film Series returns to Cottonwood 4 Cinemas

Put a spring in your step with the Chilliwack International Spring Film Series’ feature titles

EDITORIAL: No think-tank report cards for the Observer

Fraser Institute’s annual school ranking isn’t a good measure of success, editor Grace Kennedy writes

Film crews descend on Agassiz for ‘Republic of Sarah’

Pioneer Avenue will be closed to traffic Monday and Tuesday

Pedestrian killed, two injured in three-vehicle crash in Coquitlam

Road closures in effect following collision

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

Indecent caller handed 18-month conditional sentence

Vancouver Island man pleaded guilty to making indecent phone and video calls to women across B.C.

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Father-son duo at B.C. Children’s Hospital helps new dads fight depression

The pair teamed up to introduce the only known research-based mindfulness workshop for new dads

Mexican restaurant in B.C. told to take down Mexican flag

General manager of Primo’s Mexican Grill in White Rock: ‘I’ve never heard of anything like this’

B.C. NDP moves to provide tax credits, tax cut for LNG Canada

Provincial sales tax break of $596 million repayable after construction

Most Read