Friday, April 2, 2010

Why go to DTI at all?

Nestle chose private mediation.

The aggrieved distributor chose mediation under government.

Why different? Because of bad faith by the former.

And they do not want the government involved who will now more about Nestle and their operations.

It’s unfortunate that Nestle doesn’t want to participate. Their non-participation shouldn’t stop government from pursuing because there are real issues. FDI reserves the right to file the case because of MO #69. Because mediation is voluntary they cannot compel Nestle to participate.

MO #69 gives DTI jurisdiction.

The original complaint is pursued upon investigation develop a resolution a formulation of regulatory rules. That is prospective. The reason why it is filed as a predatory pricing case with DTI is because it is linked directly to what is happening.

Predatory pricing – an act of sacrifice to control the market and recoup benefits later -- carries a penal code. The dynamics of the second case are simply Distributors absorb losses on behalf.

They are afraid that if it goes to DTI and they lose that will open the floodgates to more aggrieved distributors taking them to court or whatever. But in their greed, they chose to bully and bully some more.

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