WELLINGTON - A class action is being considered against international vitamin manufacturers after the success of a United States billion-dollar civil suit over price-fixing.
Last November, the US Justice Department won criminal judgments in more than a dozen cases against six giants of the vitamin industry.
Settling the claims cost Roche Holding,
Hoechst, BASF, Rhone-Poulenc, Takeda Chemical Industries and Eisai $US1.05 billion ($2.24 billion).
The six account for about 80 per cent of world bulk sales of the most popular vitamins.
For nine years, top executives held secret meetings to divide up world markets, setting vitamin prices to the penny, according to Justice Department officials.
Lawyer Roger Chapman, of New Zealand law firm Johnston Lawrence, which is looking into taking up the action, said many New Zealand vitamin consumers were affected. They included animal feed and pet food manufacturers and fruit juice and food manufacturers.
"In addition to that, there are some retail chains which we also want to contact who also might be interested," he said.
Australian lawyer Bernard Murphy said professional athletes and sports clubs could also have legitimate claims.
Mr Chapman could not say exactly what rebate claimants could hope for but "the amounts involved are potentially huge."
In the United States cases, the plaintiffs got back about 20 per cent of the price they paid for bulk vitamins.
Australian litigation was believed to involve about $A100 million ($120 million).
"I don't think a New Zealand claim would be that big but potentially it's quite large all the same," Mr Chapman said.
The firm was still gauging interest from affected parties before launching the suit but Mr Chapman believed there would be enough support.
Rob Chisholm of Lower Hutt, who owned a health food shop in Naenae for 11 years, was considering joining the suit.
Vitamins made up a large part of his business - he estimated they comprised two-thirds of his sales - and said he always suspected something was amiss with the prices.
"There is something going on there, definitely. But it never crossed my mind that anything like price-fixing was going on. You think it is totally explainable."
Mr Chisholm believed he spent about $2 million on vitamins over the years.
While he was disappointed to discover he may have been charged too much for many years, he said he had sympathy for the customers who in turn paid more.
"I knew the price was $5 and I paid that $5 and sold them for $8 and I accepted that deal."
- NZPA
