The Commerce Commission is surprised at incorrect claims that North Island meat company Benmore Products faces $20 million penalties for allegedly price fixing with other North Island meat companies.

Commission General Manager John Feil said that the maximum penalty under the Commerce Act is $5 million. Furthermore, the matter is still before the courts and no penalty has been imposed at this point.

Mr Feil said the Commission has had discussions with lawyers representing the companies it is taking court action against. This has included discussion of suggested appropriate levels of penalties if the companies consent to judgment being entered against them, saving all concerned a lot of time and money.

The companies have not accepted this option.

Media contact: General Manager John Feil

Phone work (04) 498 0963

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on the its web site, http://www.comcom.govt.nz