Chick-fil-A, a fast-food chain known for its chicken offerings, relies heavily on a consistent supply of poultry from American farms. However, the chain claims that if poultry farms unfairly increase prices, it can disrupt their operations. This has led Chick-fil-A to file a lawsuit against the poultry industry for alleged price-fixing practices.
The lawsuit targets 17 poultry farmers, including industry giants like Tyson, Perdue, and Pilgrim’s Pride. Chick-fil-A alleges that these producers colluded by sharing pricing information and inflating their prices when dealing with Chick-fil-A. The aim was to compel the chain to pay more than justified for their supplies. Chick-fil-A seeks unspecified damages and legal fees coverage as a result of these claims.
Chick-fil-A sued major poultry producers, accusing them of price-fixing that the chain says led to inflated prices for billions of dollars worth of its chicken purchases https://t.co/cKRX6QoBpw
— The Wall Street Journal (@WSJ) December 6, 2020
While most poultry producers named in the lawsuit have remained silent, a spokesperson from Perdue has spoken out.
“We believe these claims are unfounded and plan to contest the merits,” said Andrea Staub, a representative from Perdue.
2020 has been a turbulent year for the US poultry industry, with several legal issues surfacing. Multiple industry executives faced indictments in separate cases, and several suppliers were suspected of price manipulation in the broiler chicken market. In a recent incident, Pilgrim’s Pride admitted guilt in conspiring to restrict competition in chicken sales and was fined $110.5 million in October.
