Investigations

GRABAR LAW OFFICE INVESTIGATES POTENTIAL FRAGRANCE PRICE-FIXING CARTEL

On March 7, 2023, dawn raids were carried out at a number of jurisdictions at the premises of businesses active in the fragrances industry to investigate possible violations of competition laws. The authorities carrying out the dawn raids were the European Commission (EC), the Antitrust Division of the US Department of Justice, the UK Competition and Markets Authority (CMA) and the Swiss Competition Commission (SCC).

The CMA and the SCC have stated that the businesses under investigation are the world’s four leading fragrance suppliers:

  • Firmenich International SA, a Swiss company
  • Givaudan SA, a Swiss company
  • International Flavors & Fragrances Inc, a US corporation, and
  • Symrise AG, a German group
  • The EC also confirmed that inspections took place at the premises of an association active in the fragrance industry in various EU member states.

The CMA and the EC have further stated that the investigations concern suspected collusion/anti-competitive conduct in relation to the supply of fragrances and fragrance ingredients for use in the manufacture of consumer products, such as household and personal care products. According to the SCC, the suspected violations include coordination of pricing policy, prohibiting competitors from supplying certain customers and limiting production of certain fragrances, which are used in cosmetics, perfumes, colognes, candles, hair care products, personal care products, detergents, air fresheners, and cleaning products.

If your company purchased fragrances directly from one of the above referenced companies, from within the United States, you may have a claim under U.S. antitrust law and can seek a return of overcharges, and a court approved incentive award if appropriate.

If you would like to learn more at no cost to you, you are encouraged to contact us at jgrabar@grabarlaw.com or call Joshua Grabar at 267-507-6085.

To join this action, read the letter below and sign off on the consent link to the right of this page. 

Re:      Fragrances Antitrust Litigation Investigation Retainer Letter

Dear Direct Purchaser:

My firm has investigated possible violations of federal antitrust law by Defendants, the nations’ largest producers of fragrances. On March 7, 2023, the European press reported unannounced inspections, dawn raids and formal requests for documents sent to the four global giants in the global fragrance industry, as well as a global industry association, related to a global investigation of price fixing, market allocation, and agreeing to limit supply. The four entities at the center of the investigation are: International Flavors & Fragrances Inc. (headquartered in New York); Symrise AG (Germany); Givaudan SA (Switzerland); and Firmenich SA (Switzerland).The investigation appears to be led by the European Commission’s antitrust authority, which is reported to have carried out the raids in conjunction with the U.S. Department of Justice Antitrust Division; the UK Competition and Markets Authority; the Swiss Competition Commission COMCO; and the competition authorities of the EU Member States where the inspections were carried out, which would add the competition authority in France. The Swiss authority stated there were suspicions that the targeted companies “have coordinated their pricing policy, prohibited their competitors from supplying certain customers and limited the production of certain fragrances.” As you are aware, fragrances are used in a long line of products, including perfumes, cosmetics, shampoos, conditioners, detergents, toothpaste, soaps, body wash, shaving gel, aftershave, household cleaners, candles, dryer sheets, fabric softeners, other personal care products, and food products.

We understand that you have made direct purchases of Fragrances since at least January 1, 2017, from at least one of the defendants referenced above and therefore may have standing to bring a claim.  Based on our investigation, we believe the matter has substantial merit.

Countersigning this letter will confirm that you have retained Grabar, LLC, d/b/a Grabar Law Office (the “Law Firm”), as your counsel to investigate, and if appropriate, bring an action alleging violations of federal law as previously described. The action will be brought as a class action on behalf of all persons and entities that we determine have been adversely affected by the violations alleged in the complaint.  The Law Firm has agreed to bring this action on a contingency basis. You will not be responsible for paying any of the Law Firm’s fees in connection with this litigation. Our attorneys' fees and reimbursement of our expenses will be paid as the Court may permit and approve out of any proceeds, by judgment or out-of-court settlement that may be obtained for the benefit of the plaintiffs and class members. The Law Firm will be working in coordination with, and may affiliate as co-counsel with, other law firms in litigating this matter.  The Law Firm together with all other such attorneys will advance the costs of the case.  You will not be responsible for paying any of the attorneys' expenses in connection with this litigation. I am forwarding the operative complaint for you to review, and I will send a draft complaint for you to review and accept prior to filing on your behalf.

By countersigning this letter, you further confirm that I have advised you that you should not destroy or alter, and that you should retain and preserve, any and all papers or electronic files which relate in any way to your interactions and transactions with the Defendants in this action, and to the claims asserted in this action generally.  This preservation confirmation includes not only preservation of hard copy paper but also of data generated by and/or stored on your electronic storage media (e.g., hard drives, floppy disks, back-up tapes or other electronic media, if any).

Please countersign this letter and return it to me via e-mail at jgrabar@grabarlaw.com or fax to 267-507-6048 to indicate your agreement and authorization to proceed with filing this case on your behalf.  If you have any questions, please do not hesitate to call me at my office or my cellular phone.  I will, of course, be pleased to answer any questions you may have.

 

 

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