France’s highest appeals court ordered the 15 perfume retailers and makers including LVMH and L’Oreal SA to pay $62 million as a fine after they lost a legal battle. After the findings of regulator’s report which was referred by the Cour de Cassation it asked the Paris Appeals court to rehear the case about the fine imposed.
The Cour de Cassation got back the regulator’s fine for restrictions on competitions and also said that the Appeals court violated the civil and commercial code without going through the merits of the claim and also for giving protection to those who responded.
The regulator said the perfume retailers and makers made joint venture to fix a retail price which resulted in the enforcement of a pricing control system. So the regulator did not do anything right.
The Cosmetics maker L’Oreal stated about its involvement that it had never been part of price fixing agreement. LVMH, the prestigious luxury products manufactures in the world, did not come forward to comment on the ruling. After the lower court ruling the perfume companies were repaid by the regulator. It has come as a blow to the fashion and luxury industry, who are already suffering due to price control systems.