If you’re wondering why that Dior mascara or that Chanel nail polish is burning holes in your wallet, maybe this is a road sign.
According to WWD, the German subsidiaries of LVMH Perfumes and Cosmetics, Chanel, Estée Lauder, Clarins, L'Oréal, Coty Prestige Lancaster, Shiseido, YSL Beauté and Cosmopolitan Cosmetics Prestige (or P&G Prestige Products) have been meeting quarterly since 1995 to secretly discuss price-fixing and collusion. The secret ring, called the Schlossrunde or “elite circle,” exchanged information on advertising rates, product launches and what affects you the most – pricing. In other words, it’s a cartel made up of the beauty industry’s biggest players set to raise prices together and avoid fighting each other for consumers.
Germany’s Federal Cartel Office said last Thursday it would fine individual producers around $400,000, plus $3.3 million levied. So far, only L’Oréal denied involvement and said it will appeal the decision.
Fashionista.com asks a good question: Is this only happening in Germany?
-Grace Bahk
If you’re wondering why that Dior mascara or that Chanel nail polish is burning holes in your wallet, maybe this is a road sign.
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