The Rotten Smell of Corporate Corruption
Jan
31
Written by:
31/01/2012 13:59
Fined upheld against thirteen French perfume companies for price fixing
In Paris yesterday a court of appeal upheld the decision by the French Competition Watchdog to fine thirteen French perfume companies along with three distributing companies for price fixing allegations dating back to 1997.
Christian Dior, Chanel, and LVMH Fragrance Brands are among the group fined 40million Euros for colluding to keep prices high between 1997 and 2000. The French Competition Watchdog had said that the companies involved had reached illicit agreements on price fixing; enforced by procedures to monitor prices in outlets and backed up by commercial threats for non-compliance.
In the original ruling the competition watchdog said those companies involved had arrangements with the distributors and that the agreements saw 'price police' ensuring distributors were sticking by the deal. The watchdog stated that the companies had applied pressure and threats of commercial reprisals for those distributors that refused to apply the prices imposed by the brands.
Discover more about perfume companies in our free buyers' guides' guide to perfumes.
This story has been added to our corporate database. The database powers all our live buyers' guides, giving the score for each company on our rankings tables.