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Jurlique fined for price fixing!
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tiger_tim
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Thu Feb 08, 2007 12:14 am      Reply with quote
Just stumbled over this on the news.com.au website:


Skincare maker fined for price fixing
February 08, 2007 05:26pm
Article from: Agence France-Presse


LUXURY skincare manufacturer Jurlique has been fined $3.4 million after pleading guilty to illegal price fixing.

The Australian Competition and Consumer Commission (ACCC) acted against Jurlique and its founder Dr Jurgen Klein in August last year after allegations were made of illegal price maintenance on skincare, cosmetic and herbal products.

The Federal Court in Brisbane today ordered penalties totalling $3.4 million against four Jurlique companies and Dr Klein.

The court declared that the Jurlique companies and Dr Klein engaged in resale price maintenance in the sale of Jurlique products between 1991 and 2003.

It found the company's policy, which prevented retailers from discounting their products, was deliberate and affected retailers in Australia and internationally.

The court also declared that one of the Jurlique companies, in operating its day spa stores, entered into an arrangement with Melbourne franchisees in March 2001 to fix prices for Jurlique treatments.

The court further granted injunctions for five years restraining the Jurlique companies and Dr Klein from engaging in price fixing in relation to Jurlique products.

The injunctions also restrain J&J Franchising from engaging in price fixing in relation to Jurlique treatments.

The court ordered the Jurlique companies to pay $125,000 in costs.

Dr Klein individually was ordered to pay a penalty of $200,000, and $20,000 in costs.

ACCC chairman Graeme Samuel described Jurlique's policy as "serious anti-competitive activity", saying the ultimate losers were consumers.

"This is a case of deliberate conduct occurring over several years, and involved the most senior executive of the companies," Mr Samuel said.

He said the outcome of the case should sound a warning to business suppliers generally who put pressure on their retailers not to discount that such behaviour would not be tolerated.

But he said he was pleased the company and Dr Klein admitted the conduct and had saved the time and costs of a trial.

Dr Klein is no longer a shareholder nor involved in the management of Jurlique.

The current management of the Jurlique companies has said it is committed to complying with the law and has offered a court-enforceable undertaking to the ACCC to implement a trade practices law compliance training program.

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bushy
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Thu Feb 08, 2007 12:29 am      Reply with quote
I think this is why Jurlique prices were so high. However, they still are relatively high compared to other lines of a similar nature. Perhaps now that it has been to court and settled, some of the retailers may start to bring their prices down. (I wish).

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Wild Cat
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Thu Feb 08, 2007 12:47 am      Reply with quote
Thanks for posting. A little disappointing though... Rolling Eyes

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dalguy
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Thu Feb 08, 2007 1:32 am      Reply with quote
Thanks for posting! Interesting to say the least.
sarahb
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Thu Feb 08, 2007 2:19 am      Reply with quote
So the prices will probably go up as they need to pay their fines!
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Thu Feb 08, 2007 2:23 am      Reply with quote
what does "resale price maintenance" mean? isn't it legal for the manufacturer to have a retail price and not allow any discounts?
catski
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Thu Feb 08, 2007 3:09 am      Reply with quote
Interesting. I've noticed their prices are so high and they are never on special offer or have any special offers. Very strict marketing like that does put me off.
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Thu Feb 08, 2007 3:11 am      Reply with quote
sarahb wrote:
So the prices will probably go up as they need to pay their fines!


That would suck for us! Crying or Very sad Rolling Eyes
catski
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Thu Feb 08, 2007 3:40 am      Reply with quote
They must be rolling in dosh, the prices they charge. If they upped their prices would people still buy it?
Mabsy
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Thu Feb 08, 2007 6:46 am      Reply with quote
Seems like a good result for Jurlique actually, because they were facing potential of $10M http://www.essentialdayspa.com/forum/viewthread.php?tid=16954

Around about when that decision was made last year, a previous Australian stockist that was refused stock of Jurlique products because they were slightly discounting them, started selling them again. This is about the only outcome that I have seen from the courtcase. Jurlique prices haven't gone up (and they would have known for a while that there is a good chance that they will have to pay) so hopefully we will not see this happen.
tiger_tim
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Thu Feb 08, 2007 7:14 am      Reply with quote
OK, how did I miss your original post back in October?! I even did a search for the topic before I put this up today... Laughing I must need to go to Search Skills 101

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Thu Feb 08, 2007 7:51 am      Reply with quote
I think they are overpriced!
John C. Hill
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Thu Feb 08, 2007 9:11 am      Reply with quote
Our company is familiar with Jurlique. We have a distributor in Australia that visits them from time to time to try to sell our raw materials to them. We've been told that Jurlique has been "struggling" for years. And, they are referred to as a "revolving door for employees". Doesn't sound like a good place to work that's for sure. All of that probably translates to the high prices you all have experienced. I wouldn't be surprised if they go under in the future, or get bought up by a better run company.

John

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Thu Feb 08, 2007 9:58 am      Reply with quote
John C. Hill wrote:
Our company is familiar with Jurlique. We have a distributor in Australia that visits them from time to time to try to sell our raw materials to them. We've been told that Jurlique has been "struggling" for years. And, they are referred to as a "revolving door for employees". Doesn't sound like a good place to work that's for sure. All of that probably translates to the high prices you all have experienced. I wouldn't be surprised if they go under in the future, or get bought up by a better run company.

John


Jurlique better not go under in the future Shock Shock Shock I can't live without Face Wash Cream...

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Adonis
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Thu Feb 08, 2007 12:03 pm      Reply with quote
I always thought that they had good products, but the pricing was a turn off to me. The last time I bought anything from Jurlique was when I had ran out of my Primavera cleanser. I was traveling in Hong Kong and Jurlique has a retail store over there.

Other then that I think I had read somewhere on this forum that the founder of Jurlique used to work for Dr. H. No idea if that is true. I see no reason to buy Jurlique over Dr. H, Weleda, or Primavera. There are so many new true organic brands coming out that competition must be fierce. In the end it's all good for us (the consumer)
John C. Hill
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Thu Feb 08, 2007 1:12 pm      Reply with quote
Not trying to be argumentative (really) but what is your definition of "true organic" as far as cosmetic and consumer products are concerned?

John

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Thu Feb 08, 2007 1:15 pm      Reply with quote
John C. Hill wrote:
Not trying to be argumentative (really) but what is your definition of "true organic" as far as cosmetic and consumer products are concerned?

John


My definition of true organic is when the products are cruelty-free with natural derived ingredients.
tam
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Thu Feb 08, 2007 2:44 pm      Reply with quote
That is fascinating! Shock I didn't realize that it was against the law not hold retailers to not discounting prices. I know there are other cosmetics companies that do the same thing... I just can't think of one right now.
doba
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Thu Feb 08, 2007 2:56 pm      Reply with quote
Thanks for posting!
Adonis
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Thu Feb 08, 2007 3:33 pm      Reply with quote
John C. Hill wrote:
Not trying to be argumentative (really) but what is your definition of "true organic" as far as cosmetic and consumer products are concerned?

John

No problem. Actually a very good question. I personally prefer to see a BDIH, ECO CERT, Australian Certified Organics, etc certification. Brands such as Dr. H, Lavera,Primavera, Logona, Phyt's cosmetics,Farfalla, Weleda, Santa Verde, Living Nature,etc carry such certification. Here are the guidelines that BDIH uses:
www.kontrollierte-naturkosmetik.de/en/the_guidelines.htm
Eco Cert: www.ecocert.com/index.php?id=about&l=en

The statment "made with organic ingredients" doesn't mean a whole lot to me as that can mean that a product contains 2% certified organic ingredients and the rest are synthetic fillers.

I don't want to start an argument about what's safe or not to use in cosmetics. We had enough discussions like that lately on this forum.

Personally, I only use products with minimal or no synthetic ingredients such as SLS, parabens, PEGs, etc.
If a product in addition to being non-synthetic uses certified organic ingredients and actually works, we have a winner.
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Thu Feb 08, 2007 3:36 pm      Reply with quote
Adonis wrote:
John C. Hill wrote:
Not trying to be argumentative (really) but what is your definition of "true organic" as far as cosmetic and consumer products are concerned?

John

No problem. Actually a very good question. I personally prefer to see a BDIH, ECO CERT, Australian Certified Organics, etc certification. Brands such as Dr. H, Lavera,Primavera, Logona, Phyt's cosmetics,Farfalla, Weleda, Santa Verde, Living Nature,etc carry such certification. Here are the guidelines that BDIH uses:
www.kontrollierte-naturkosmetik.de/en/the_guidelines.htm
Eco Cert: www.ecocert.com/index.php?id=about&l=en

The statment "made with organic ingredients" doesn't mean a whole lot to me as that can mean that a product contains 2% certified organic ingredients and the rest are synthetic fillers.

I don't want to start an argument about what's safe or not to use in cosmetics. We had enough discussions like that lately on this forum.

Personally, I only use products with minimal or no synthetic ingredients such as SLS, parabens, PEGs, etc.
If a product in addition to being non-synthetic uses certified organic ingredients and actually works, we have a winner.



I can't wait to get my Eco Nvey Moisturizing Mascara! I'm lemming their blushes too. Have you tried any of these? TIA!
abejita
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Thu Feb 08, 2007 3:36 pm      Reply with quote
Cellcosmet is doing the same thing, if you remember. A couple of months ago, EDS had to raise their cellcosmet prices because Cellcosmet no longer allowed resellers to sell their products below the suggested retail price.

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Thu Feb 08, 2007 3:38 pm      Reply with quote
Wow! What a shock. What's confusing to me is why exactly it was labeled price fixing. Can't a company price things whatever they want? I'm a dork when it comes to economics.

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Thu Feb 08, 2007 3:39 pm      Reply with quote
Adonis,
Sorry you mentioned Eco Cert, not Eco Nvey. Eco Nvey is also an australian organic certified makeup brand.
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Thu Feb 08, 2007 4:24 pm      Reply with quote
c4ward wrote:
Wow! What a shock. What's confusing to me is why exactly it was labeled price fixing. Can't a company price things whatever they want? I'm a dork when it comes to economics.


http://en.wikipedia.org/wiki/Price_fixing
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