New Lawsuit Has Idaho’s Potato Giant J.R. Simplot Under Fire

J.R. Simplot finds itself at the center of a legal storm as allegations of price-fixing in the frozen potato market come to light. They aren't the only company under fire; McCain Foods, Cavendish Farms, and Lamb Weston have all been accused of conspiring to inflate the prices of popular frozen potato products like french fries, browns, and tater tots in the United States.

According to the lawsuit filed in the U.S. District Court, J.R. Simplot, McCain Foods, Cavendish Farms, and Lamb Weston allegedly coordinated to manipulate and stabilize prices in the frozen potato sector. The claims suggest that beginning in early 2021, the companies secretly shared pricing data and implemented "matching, simultaneous or near-simultaneous price increases." The lawsuits accuse the "potato cartel" of harming businesses and everyday consumers by raising the cost of frozen potato goods. The companies control 98% of the U.S. frozen potato market, and the alleged price manipulation left buyers with little choice but to pay the inflated prices.

One of the lawsuits highlighted an incident from April 2022 when the owner of a Washington, D.C. restaurant posted on social media about the suspicious timing of price hikes among all major suppliers. This and claims of company directives to discuss only via text further fueled allegations against J.R. Simplot and its competitors.

While McCain Foods has publicly denied wrongdoing and pledged to vigorously defend itself, J.R. Simplot has yet to issue a formal response to the lawsuits as of now. The legal system will ultimately determine the validity of these claims, but the publicity surrounding the issue underscores the intense scrutiny faced by large corporations in highly consolidated industries.