Beauty Firms Avoid Fine in French Price Fixing Deal

2009-11-13 | 02:41

LVMH, L'Oréal and others side-step $68 million charge.

A Paris appeals court has dismissed a three-year-old fine of $68.7 million at current exchange, meant to be paid by 13 prestige beauty brands and France’s three leading selective perfumery retailers for alleged retail price-fixing.

In March 2006, the country’s competition watchdog, Le Conseil de la Concurrence, fined the beauty brands including some owned by LVMH Moët Hennessy Louis Vuitton and L’Oréal, and the retailers Marionnaud Parfumeries, Sephora and Nocibé for fixing retail prices between 1997 and 2000.

Under European law, retailers are free to choose their own prices in-store to encourage competition. Suppliers can suggest — but not impose — the price level at which their product are sold.