LG has made a mistake by making price agreements with stores for televisions, while this is prohibited. Despite the company’s objections, it must now pay a hefty fine.
It is very common for a company to give a recommended price for a product to stores. This way, sellers know what the target price is. This can also go too far, namely when pressure is exerted for that price, says the Netherlands Authority for Consumers & Markets (ACM).
Price agreements with seven stores
LG did this anyway and made price agreements with seven stores, in which the company told how much the television had to cost and promised that other stores would also charge the same high prices. If other stores did charge a lower price, LG told them that the price had to be adjusted. In this way, it kept the television prices high and the consumer paid more.
The television producer also did not allow discounts to be used in advertisements or online. Only at checkout could the seller indicate that you were getting a discount. That does not work that way either, according to the applicable laws and regulations. The fine that LG now has to pay due to these illegal price agreements is 8 million euros.
LG had objected after it became known a year ago that the company had to pay this amount, whereupon the ACM re-examined the facts. The authority has now decided that the fine will be imposed after all really needs to be paid by LG. The company can still appeal to the court in Rotterdam.
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Source: www.bright.nl
