Global fragrance makers must face price-fixing case, US judge rules (updated)
24/02/2025 19:41
(Adds comment from DSM-Firmenich in paragraph 5)
By Mike Scarcella
Feb 24 (Reuters) - Four European and American fragrance
makers must face lawsuits accusing them of conspiring to inflate
prices of ingredients used to make cosmetics, cleaners and other
household products, a federal judge in New Jersey has ruled.
U.S. District Judge William Martini on Friday rejected
efforts by the companies — Switzerland-based Givaudan and
Firmenich, which has merged with DSM Group; U.S.-based
International Flavors & Fragrances and Germany's Symrise — to
dismiss three proposed class action lawsuits filed in 2023 by
consumers and other buyers.
The lawsuits, alleging an illegal price-fixing conspiracy,
came after EU investigators in 2023 announced an antitrust
investigation of some major fragrance makers.
The judge dismissed some state-based allegations but will
allow those plaintiffs to file an amended lawsuit within 30
days.
Givaudan, Symrise and International Flavors & Fragrances did
not immediately respond to requests for comment. DSM-Firmenich
in a statement on Monday said it was cooperating with previously
disclosed investigations by U.S. and European competition
authorities. The companies have denied wrongdoing.
Attorneys for buyers did not immediately respond to similar
requests.
Martini is presiding over cases filed by consumers,
companies that purchased products directly from the defendants,
and “indirect” buyers that purchased fragrance ingredients and
compounds from sellers other than the defendants.
Sales of fragrance ingredients reached $9.1 billion in 2022,
according to the plaintiffs, who alleged that the fragrance
market was highly concentrated and “more susceptible to
collusion and other anticompetitive practices.”
The fragrance companies in seeking dismissal of the lawsuits
argued that the plaintiffs failed to offer adequate evidence of
a conspiracy to fix prices.
“The ambition of plaintiffs’ claims stands in sharp contrast
to the paucity of their factual allegations,” the companies told
the judge.
They said the lawsuits were “based on nothing more than
reports of government inquiries into the fragrance industry.”
European antitrust investigators said in June 2024 that
their fragrance industry probe was ongoing.
The cases are In re: Fragrance Direct Purchaser Antitrust
Litigation, U.S. District Court for the District of New Jersey,
No. 2:23-cv-02174-WJM-JSA; In re: Fragrance Indirect Purchaser
Antitrust Litigation, No. 2:23-cv-03249-WJM-JSA; and In re:
Fragrance End-User Plaintiff Antitrust Litigation, No.
2:23-cv-16127-WJM-JSA.
Read more:
Fragrance companies ask court to toss ‘threadbare’ US
price-fixing lawsuits
Flavor, fragrance makers face wave of US antitrust lawsuits
after EU cartel raids