A PYMNTS Company

US: DOJ charges G Nova of Taiwan with price fixing conspiracy; Netbrands settles

By  |  January 31, 2019
US: DOJ charges G Nova of Taiwan with price fixing conspiracy; Netbrands settles

The US government is pursuing charges against Taiwanese company G Nova Corp and its CEO over allegations of fixing prices for promotional items marketed on the internet, while a second company, Netbrands Media Corp and two executives agreed to plead guilty.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    A grand jury in Texas handed up an indictment on Wednesday, January 30, against G Nova and CEO Yeh Fei Chu, the Department of Justice announced in a statement. They are accused of participating in a conspiracy to fix the prices of foam or fabric sleeves to insulate beverage cans or bottles, the DOJ stated.

    Neither G Nova nor the executive could immediately be reached for comment outside of business hours in Taiwan.

    Earlier in January, Netbrands, which makes lanyards, temporary tattoos and other promotional items, agreed to plead guilty and pay a US$6 million criminal fine, the DOJ stated.

    Its top executives, Mashnoon Ahmed and Mueen Akhter, also agreed to plead guilty, the DOJ said.

    “The results announced today are the latest in a series of charges against eleven defendants filed in the division’s ongoing investigation into conspiracies that corrupted the online marketplace,” Makan Delrahim, the head of the DOJ’s Antitrust Division, said in a statement.

    Including Netbrands and G Nova, five companies and six executives in the customized promotional products industry have faced charges related to price fixing, the DOJ stated.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.