Corteva, Inc. has agreed to end its crop loyalty program and pay $35 million to 12 states to settle its part of a Federal Trade Commission lawsuit.
Here's what to know
DTN reported that the lawsuit accuses Corteva of paying distributors to limit farmers' access to cheaper generic pesticide products.
Under the consent order, customers no longer have to buy more than half of certain pesticides from Corteva to earn benefits. The company also can't penalize buyers who choose competing products.
The order bans rewards tied to purchase targets across several active ingredients. It also eliminates terms that make one year's rewards depend on buying again the next year.
The order lasts 10 years, and Corteva must send compliance reports to the FTC and the states and give its employees antitrust training.
More background
Attorneys general in the 12 states could use the money to pay farmers, including as restitution, if they see fit, per DTN. The settlement doesn't guarantee farmers will get a payment, though.
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The lawsuit also names Syngenta, and that case is still active. The court heard oral arguments on Syngenta's motion for summary judgment on July 30.
What's being done?
The settlement also requires Corteva to cooperate with the FTC and the states in their case against Syngenta. That includes supplying as many as three witnesses for trial, helping plaintiffs line up former employees to testify, and helping verify documents and other data for use in court.
In a statement to DTN, Corteva said it was "pleased to reach a resolution in the FTC matter."
Where can I learn more?
Other manufacturers who make pesticides and more have had to take accountability for their actions.
• Bayer agreed to a $7.25 billion payout to settle Roundup weedkiller lawsuits.
• Monsanto faced a lawsuit for civil rights violations after a worker was excluded from a settlement due to her citizenship status.
• In New Jersey, 3M reached a historic contamination settlement over toxic water claims.
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