Price-fix perfume giants fined €40m

Shops and deluxe brands guilty of conspiring to end competition and over-charge consumers

LUXURY perfume giants including L'Oréal, Dior, Guerlain, Chanel and shops such as Sephora and Marionnaud have been fined a total of €40 million for running a price-fixing ring.

The appeal court in Paris upheld the 2006 decision of the competition watchdog Conseil de la Concurrence (now called the Autorité de la Concurrence) to fine them for conspiring to "end any competition between retail outlets for their products".

In all, 14 companies were fined: Beauté Prestige International (Jean Paul Gaultier and Issey Miyake), Chanel, Clarance/Clarins Fragance Group (ex Thierry Mugler parfums), Comptoir Nouveau de la Parfumerie/Hermès Parfums, Parfums Christian Dior, Elco (Clinique and Estée Lauder), Guerlain, l'Oréal, LVMH Fragance Brands (Givenchy and Kenzo), Sisheido Europe, YSL Beauté plus shops Marionnaud, Nocibe and Sephora.

The case covers events from 1997 to 2000 and this is the third time it has been in front of the appeal court after the companies lodged appeals with the supreme Cour de Cassation.

Each luxury company had set recommended selling prices prix public indicatif but also set a maximim discount that could be offered - forcing customers to pay more by ending effective competition. The companies also set up "price police" to enforce the cartel which would threaten relcacitrant distributors with commercial reprisals if they refused to agree the prices.

Fines ranged from €12.8m for Marionnaud to €200,000 for Shiseido.

Here is the full list:
Marionnaud - €12,800,000
Sephora - €8,300,000
L’Oréal - €4,100,000
Nocibé - €3,150,000
Chanel - €2,636,000
Christian Dior - €2,200,000
Yves Saint Laurent €1,800,000
Guerlain - €1,700,000
Beauté Prestige International (Jean-Paul Gautier, Issey Miake) - €476,000
Elco (Clinique et Estée Lauder) - €1,240,000
LVMH (Parfums Givenchy et Kenzo Parfums) - €769,000 + Kenzo - €350,000
Clarance/Clarins (ex Thierry Mugler parfums) - €490,000
Comptoir Nouveau de la parfumerie – Hermès Parfums - €310,000
Shiseido Europe - €200,000