Fragrance Industry Suppliers Again Being Investigated For Anticompetitive Practices
An Investigation is currently being conducted amid renewed allegations of price fixing and other antitrust violations in the fragrance industry. The investigation centers around fragrance products for use in the manufacture of consumer products such as household and personal care products.
What Is Price Fixing And Why Is It Illegal?
Price fixing is a type of anti competitive behavior that occurs when two or more companies agree to set prices at a certain level, rather than allowing prices to be determined by market forces. Price fixing is illegal under U.S. antitrust laws because it reduces competition and harms consumers by leading to higher prices and reduced product innovation.
Price fixing in the fragrance industry can have serious consequences for consumers as it allows prices to be manipulated by other than market forces -harming both consumers and businesses in the long run.
The fragrance industry is particularly susceptible to price fixing due to the high concentration of suppliers and manufacturers. There are a limited number of suppliers of key fragrance ingredients, and many fragrance companies rely on these suppliers for their products. This creates an environment where collusion between suppliers and manufacturers can occur more easily.
What Products Are Affected By Price Fixing In The Fragrance Industry?
The fragrance industry supplies ingredients and scents for a wide range of products across various industries. Here are some examples of household, personal care, pharmaceutical, food, and beverage products that rely on the fragrance industry:
- Perfumes and colognes – These products are the most obvious and direct use of fragrances. Fragrance manufacturers produce a wide range of scents that are used in the production of perfumes and colognes.
- Soaps and body washes – Fragrance is often added to soaps and body washes to give them a pleasant scent.
- Shampoos and conditioners – Fragrances are added to hair care products to make them more appealing to consumers.
- Cleaning products – Fragrances are added to many cleaning products, such as laundry detergents, fabric softeners, and all-purpose cleaners, to make them more pleasant to use.
- Candles and air fresheners – Fragrances are commonly used in candles and air fresheners to give off a pleasant scent.
- Personal care products – Fragrances are used in a wide range of personal care products, such as deodorants, lotions, and moisturizers, to add a pleasant scent.
- Makeup – Fragrances are sometimes added to makeup products, such as powders and blushes, to give them a pleasant scent.
Who Supplies Fragrance Products To the US Market?
Below are some of the major suppliers of fragrance products in the United States:
- Givaudan: Givaudan is a Swiss company that is one of the largest suppliers of fragrances in the world. They have a significant presence in the United States and supply fragrances for a wide range of products, including perfumes, personal care products, and household goods.
- International Flavors & Fragrances (IFF): IFF is a global corporation that supplies flavors and fragrances for a variety of industries, including food and beverage, personal care, and household products.
- Firmenich: Firmenich is a privately-owned company that supplies fragrances, flavors, and other ingredients to the food, beverage, and personal care industries. They have a significant presence in the United States, with offices and manufacturing facilities throughout the country.
- Symrise: Symrise is a German company that supplies fragrances, flavors, and cosmetic ingredients to a wide range of industries, including food and beverage, personal care, and household products.
- Robertet: Robertet is a US-based fragrance company that supplies fragrances for a variety of products, including perfumes, personal care products, and air fresheners.
- Ashland Global Holdings: Ashland Global Holdings is a global specialty chemicals company that supplies ingredients for a variety of industries, including personal care, household, and industrial products. Their fragrance products are used in a wide range of applications, from perfumes and colognes to cleaning products and air fresheners.
- Ingredion Inc.: Ingredion Incorporated is a global ingredient solutions provider that supplies ingredients for the food, beverage, and personal care industries. Their fragrance products are used in a variety of food and beverage applications, as well as personal care products.
- Koehler Innovative Solutions: Koehler Innovative Solutions is a US-based company that specializes in fragrance encapsulation technology. They supply micro encapsulated fragrances for a range of applications, including air fresheners, personal care products, and cleaning products.
- Midocaps: Mikocaps is another supplier of fragrance encapsulation technology, offering a range of products for use in personal care, household, and industrial applications. Their products are designed to provide long-lasting fragrance release and can be customized to meet specific customer needs.
An Appeal For Information
If you know of an entity that purchased Fragrance Products directly from any of the above suppliers over the past four years, we are interested in speaking with you and/or your contacts.
Tags: anticompetitive practices   antitrust   fragrance industry   Price Fixing