Laura Pennington  |  April 15, 2019

Category: Caustic Soda Price-Fixing

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small pile of lyeLye, also known as caustic soda, is the common name for sodium hydroxide. The material earns its name because it is corrosive or caustic. Caustic soda can easily absorb water and is often sold for the purposes of making soap or candles, but it is also used in processes like water purification and treatment or as a cleaning agent.

However, corporate consumers of caustic soda have been accusing producers of price-fixing, saying that some large U.S. producers of the product colluded to increase the chemical’s price in violation of antitrust laws.

How is Lye Made?

Lye for industrial use is obtained from salt electrolysis. A process like electroplating is used to take ordinary salt and turn it into lye. Cold water is used to dissolve salt (brine) until the salt crystals fall to the bottom of the solution.

At that point, a graphite rod is then inserted into the salt solution and hit with electricity until crystals are created on those rods and  before the lye is poured into glass pans. The liquid then evaporates, leaving the lye crystals behind. Soapmakers point out that the process of making lye is important for purification purposes.

What Are the Most Common Uses of Caustic Soda?

In addition to being used for soap and candle making, sodium hydroxide has many uses, and can be used for chemistry experiments, making foods, creating homemade biodiesel and frosting glass.

Anyone who handles lye should always do so with care because, when used improperly, it can leave burns on skin or burn holes in clothing.

How Do People Buy Lye?

It is much more difficult to get a hold of lye or caustic soda than it was in the past. It is important for anyone who is purchasing this item to make sure that it is 100 percent sodium hydroxide. Impure lye products can contain dangerous contaminants.

Some common sources of lye can be candle or soap making stores, online chemical supply stores and drain cleaner.

Increasingly, some people have turned to using lye as lye for criminal activities and it may be required when you purchase this item that you sign a statement that you are not using it for illegal purposes.

Why is Lye in the News?

Caustic soda is one of the most common chemicals used in commerce today, found everywhere from major industrial processes to laboratory research. However, some lawsuits have argued that the biggest producers of this substance across the United States have conspired to fix the price of the chemical, leading to difficulties for those who purchase it on a regular basis.

These legal claims argue that the price of lye has been fixed since at least 2015, a practice that allegedly has violated U.S. antitrust laws. One lawsuit argues that the firms that produce lye on a mass basis have participated in the exchange of non-public information, secret agreements, and manipulation of a price index to push the price up by over 50 percent.

Since that point in time, additional caustic soda lawsuits have been filed against the makers of these products, arguing that a price fixing conspiracy has been present for some time. Those businesses that have purchased sodium hydroxide since 2015 could be eligible to participate in an ongoing class action investigation.

Join a Free Caustic Soda Class Action Lawsuit Investigation

If your business has purchased caustic soda since 2015, you may have been affected by this alleged price-fixing scheme. Participating in this free caustic soda price-fixing class action lawsuit investigation may help you get compensation.

Learn More

This article is not legal advice. It is presented
for informational purposes only.

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One thought on What is Lye?

  1. Robert Goudin says:

    add me

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