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Does a media interview raise the price in the supermarket? - Walla! Of money

2021-11-10T08:57:29.044Z


The Competition Authority's investigations against the largest food bodies in Israel, raise questions that go far beyond fair trade matters.


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Does a media interview raise the price in the supermarket?

The investigation with the warning of Noam Weiman, CEO of Diplomat and the investigation of Victory CEO, Eyal Ravid - Continuation of the investigation against Strauss and Shufersal, raises questions concerning not only competition laws but also freedom of expression and publicity, in the face of fears that someone will use the media stage to Coordinate prices

Tags

  • Shufersal

  • Strauss

  • victory

  • diplomat

  • Shestowitz

  • Rami Levi

Sonia Gorodisky

Wednesday, 10 November, 2021, 10:18 Updated: 10:50

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Can a candid statement made to the media become evidence of price coordination?

At least according to the competition authority, the answer is yes.



It is common to say that sunlight is the best antiseptic, that is, everything that is conducted openly indicates, ostensibly, a blessed transparency.

But at least according to the investigation of Noam Weiman, CEO of Diplomat - one of the largest importers in Israel (imports the brands to Israel: Gillette, Heinz, Eli, Starkist, Tide and many others) and Eyal Ravid, CEO of the Victory chain, it is possible that the opposite is true. Right.



According to the Competition Authority, the two used public statements about the expected price increases to coordinate prices illegally.

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Noam Weiman, CEO of Diplomat, interrogated with warning and released (Photo: Keren Ben Zion)

The two companies today announced the Stock Exchange of investigations against CEOs - and at least for this Weimann known that became interrogations warning, even though the end was released without restrictive conditions.



The two companies announced as expected that they operate in accordance with the law and securities that as deepen the investigation it turns out that not There was a flaw in their actions, but the investigation, following the one opened against Shufersal and Strauss, raises the question of what a CEO of a public company is allowed to say.



Apparently these are acts that on the face of it seem legitimate: the public is the shareholder of the companies and as such deserves to know whether the company intends to raise prices to repair its profitability which has been harmed, ostensibly, by changes in world trade conditions.



On the other hand, there is concern that the heads of large food companies (manufacturers, importers and retailers) are actually using the media and public statements to convey messages - even if between the lines - that are intended to prepare the ground for rising prices.

Eyal Ravid, CEO of the Victory chain, was also questioned by the Competition Authority (Photo: Omer Wieder)

In other words: last week everyone echoed the tweet of Victory CEO Eyal Ravid, in which he warned of a "tsunami of price increases", but did the said tweet express Ravid's real concern, or was it meant to train hearts, even if by Waving a red flag, to a "tsunami".



How does the method seem to work? understanding, if not relieved.



it should address two events that were released this week:



the first is to communicate the intent of the reports Schestowitz, major importers in Israel, raising the price by tens of percent. later on Company announced that it intends to raise the price "at an average rate of about 5.5 % ". Correction to unreliable information published in the media or" increase for decrease "? Will be judged by the public (and the Competition Authority).



The second incident to be addressed is the words of Rami Levy, the controlling owner of "Rami Levy Sycamore Marketing", according to which "the talk about price increases is only in the media."

Rami Levy, before being removed from the discussion that took place in the Economics Committee.

Yesterday he said that the increase in prices is only in the media, today he blamed the state for it (Photo: Image Processing, Yonatan Zindel)

In any case, there is no doubt that the current investigation conducted by the Competition Authority is interesting not only from a purely consumer point of view, but also concerns aspects of the publicity of the hearing, the public's right to know and freedom of expression.

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Source: walla

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