When companies conspire to control prices ...
Big businesses know that it is against the law to get together and agree on a price for a certain type of product. They know that it is against the law to agree in secret on standards that cause consumers to get less value for their money. But it happens. Class action lawsuits give consumers a voice in the courtroom and help put a stop to antitrust violations.
ClassAction.com: Fighting Back Against Price Fixing
Honest, straightforward competition between companies selling the same type of product assures that, as consumers, we can choose the price to pay and the quality we want to buy. When there is a conspiracy among the companies, prices are fixed and there is no incentive to produce better quality.
If you are aware of or suspect price fixing or standards fixing in the marketplace, contact ClassAction.com and tell us about it.
- Price fixing, higher profits: When there is an industry-wide conspiracy to fix prices, that means manufacturers can count on a certain level of profits. They don't need to worry about finding better ways to manufacture the product. They don't need to be concerned about the competition selling for less. Price fixing stifles competition — and the consumer pays more.
- Flat panel TVs, for example: By fixing prices, manufacturers were able to maintain an artificially high price for the new HDTVs. As manufacturing costs went down, prices stayed at the fixed-price level. Consumers did not benefit from the industry's lower costs.
- Fixing standards, the "hot gas" case: Gas retailers agreed to ignore the "hot gas" phenomenon — when the weather is hot, consumers get less gas for their money at the pump. A small gadget added to the pump would measure the gas correctly, but retailers preferred the extra bonus of hot weather sales. Fixing industry standards meant consumers got less for their money.
The excuse used in antitrust cases is often "everybody's doing it." There's a reason for that — antitrust conspiracy. And that's illegal. Contact ClassAction.com if you know of or suspect price fixing.
