OT- Cosmetics

March 11, 2004

I am an avid Lancome and Origins user...so this interested me. Thought I'd pass

it along.

Cosmetics Settlement Could Mean Free Makeup

Cosmetic Business Sued For Price Fixing

UPDATED: 3:23 p.m. EST March 10, 2004

The settlement of a lawsuit in California could mean some free name-brand makeup

for women all across the country.

Under the agreement, a customer would not have to buy anything and would not

need a voucher or coupon. They would only have to show up when the giveaway is

announced.

Mogin, the attorney for the plaintiffs in the lawsuit, accused cosmetic

manufacturers and retailers of conspiring to keep prices artificially high.

" There were no discounts anywhere in the country, not by as much as a penny. It

didn't matter what store you went into; it didn't matter what state you were

in, " Mogin said. " We've got an old-fashioned price fix, and that's how we allege

the antitrust and consumer protection laws were violated. "

The defendants in the case denied any wrongdoing and said they agreed to the

settlement to avoid costly litigation.

A hearing for the settlement's final approval is scheduled for June 8. If a

judge approves it, $175 million worth of cosmetics would be given away at

department store counters on a first-come, first-served basis. Consumers would

be able to request one free item worth between $18 and $25.

To qualify for the giveaway, a person must live in the United States and have

purchased a cosmetic on the settlement list made or sold by the defendants

between May 29, 1994, and July 16, 2003. Some of the retailers among the

defendants include Foley's, Dillard's, Nordstrom, Saks Fifth Avenue, Macy's, and

Neiman Marcus. Manufacturers include Clinique, Estee Lauder, Chanel, M.A.C., and

L'Oreal.

To see the entire list and find out more about the settlement, visit the Web

site cosmeticssettlement.com.

Recommended Posts