Beauty Industry

Beauty Firms Fined for Price Fixing

Companies include Colgate, Henkel, Unilever, P&G, Gillette, L'Oreal, and Beiersdorf.

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By: Marie Redding

Senior Editor

A watchdog agency in France is going after a group of beauty and personal care companies, with fines totalling 950 million Euros, for price fixing between 2003 and 2006.

According to Malay Mail Online, the companies were found guilty of coordinating “their trade policies with retailers and in particular working together on price increases,” the authority said.

The companies named are the makers of household products and personal care products, including: Colgate-Palmolive, Henkel, Unilever, P&G, Reckitt Benckiser, Sara Lee, SC, Laboratoires Vendôme, Gillette, L’Oreal, Beiersdorf, Johnson & Johnson and Vania.

The majority of the companies involved do not contest the accusations against them. Two of them, SC Johnson and Colgate-Palmolive, received full or partial exoneration for exposing the collusion.

L’Oreal received the highest fine – 189 million Euros, due to its majority stake in the cosmetics sector at the time, followed by Unilever at 173 million Euros.

L’Oreal says it will appeal, and said it a statement, reported by Reuters: “L’Oreal is extremely surprised by this decision and the amount of the fine, which are totally out of proportion.”

Both Reckitt Benckiser and Johnson & Johnson said they have already cooperated with the authorities.


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