US Judge Allows Price-Fixing Lawsuits Against Fragrance Giants to Proceed

A U.S. federal judge has ruled that four major fragrance manufacturers must face lawsuits alleging they conspired to inflate the prices of key ingredients used in cosmetics, cleaning supplies, and other household products. According to a decision by U.S. District Judge William Martini in New Jersey, Switzerland-based Givaudan and Firmenich (now merged with DSM Group), U.S.-based International Flavors & Fragrances, and Germany’s Symrise failed to have the cases dismissed.

Per the ruling, the lawsuits stem from a broader antitrust investigation launched by European regulators in 2023, which scrutinized the practices of several major players in the fragrance industry. While Judge Martini dismissed some state-based claims, he granted plaintiffs the opportunity to amend and refile those portions of the lawsuit within 30 days.

The legal battle involves multiple groups of plaintiffs, including consumers, direct purchasers who bought fragrance ingredients from the defendants, and indirect buyers who obtained products containing those ingredients from third-party sellers. According to the plaintiffs, the fragrance industry is highly concentrated, making it vulnerable to collusive and anti-competitive practices. They pointed to the industry’s $9.1 billion market size in 2022 as evidence of its economic significance.

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The defendant companies sought to have the cases dismissed, arguing that the plaintiffs failed to present substantial evidence of price-fixing. In their defense, the fragrance makers claimed that the allegations were primarily based on reports of government inquiries rather than concrete proof of an unlawful agreement.

In response to the ongoing scrutiny, DSM-Firmenich stated on Monday that it is cooperating with the previously disclosed investigations by both U.S. and European competition authorities. However, the company, along with the other defendants, has denied any wrongdoing. Givaudan, Symrise, and International Flavors & Fragrances did not immediately provide comments on the ruling.

The European Commission confirmed in June 2024 that its investigation into potential antitrust violations within the fragrance industry remains active. Meanwhile, the legal proceedings in the U.S. continue under the case titles In re: Fragrance Direct Purchaser Antitrust Litigation, In re: Fragrance Indirect Purchaser Antitrust Litigation, and In re: Fragrance End-User Plaintiff Antitrust Litigation, all before the U.S. District Court for the District of New Jersey.

Source: Fashion Network