L'Oreal rejects perfume price-fixing allegations

15th March 2006, Comments 0 comments

PARIS, March 15, 2006 (AFP) - The French cosmetics group L'Oreal formally rejected Wednesday all accusations of price-fixing with the distributors of its perfumes and said it is considering launching an appeal.

PARIS, March 15, 2006 (AFP) - The French cosmetics group L'Oreal formally rejected Wednesday all accusations of price-fixing with the distributors of its perfumes and said it is considering launching an appeal.

The French competition watchdog fined L'Oreal, Pinault-Printemps-Redoute, LVMH (Moet Hennessy Louis Vuitton) and other luxury perfume producers and retailers a total of 46.2 million euros (55.16 million dollars) on Tuesday for arranging to dress up their prices.

L'Oreal said in a statement that it found the ruling "surprising and unjustified" and was "examining the possibility of bringing the matter before the court of appeal in Paris".

The luxury products giant LVMH, which was fined 14.4 million euros, has already said it is planning to appeal.

The competition authority said the companies involved had reached illicit agreements on price fixing, enforced by procedures to monitor prices in the outlets concerned and backed up by commercial threats for non-compliance.

Copyright AFP

Subject: French news

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