Rooibos warned of potential class action suit

Rooibos Limited, which controls 70% of the global rooibos tea market, could face a class action suit by other local processors if it is found guilty of abusing its market dominance, says Nick Altini, a competition lawyer with Baker McKenzie. According to a Business Day report, Altini said if Rooibos Limited admitted a contravention of the Competition Act and settled with the Competition Commission, other local processors could launch damages claims against Rooibos Limited. The report notes that although the commission has successfully prosecuted many cases of anti-competitive conduct, the opportunities for class action have been limited as companies were prepared to pay settlement fines, but not admit guilt.