Jurlique, a luxury skincare maker, was fined $3.
4 million following the recognition of illegal price manipulation.
Competition and Consumer Council of Australia (ACCC)
In last August, it was alleged that Dr. Jurlique and his founder, Dr. Jurgen Klein, illegally maintained the prices of skin care products, cosmetics and herbal products.
The Brisbane Federal Court today ordered a total fine of $3.
4 million of the four Jurlique companies and Dr. Klein.
The court announced that Jurlique and Dr. Klein engaged in resale price maintenance when selling Jurlique products between 1991 and 2003.
It found that the company's policy to prevent retailers from discount their products was deliberate and affected retailers in Australia and the world.
The court also announced that a company in Jurlique, while operating its Day Spa store, entered into an arrangement with Melbourne franchisees in March 2001 to determine the price of Jurlique treatment.
The court also approved a five-year ban on Jurlique and Dr. Klein's participation in the pricing of Jurlique products.
The bans also limit the participation of J & J franchises in pricing in Jurlique treatment.
The court ordered Jurlique to pay $125,000.
Dr. Klein was personally ordered to pay a fine of $200,000 and a fee of $20,000.
Graeme Samuel, president of ACCC, described Jurlique's policy as "serious-
"The ultimate loser is the consumer.
"This is a case of deliberate conduct that has taken place over the past few years, involving the company's most senior executives," Mr Samuel said . ".
He said that the outcome of the case should be a warning to commercial suppliers, who often put pressure on retailers to refrain from ignoring such behavior is intolerable.
But he said he was happy with the company, and Dr. Klein acknowledged the act and saved the time and cost of the trial.
Dr. Klein is no longer a shareholder of Jurlique and no longer a participant in the administration of Jurlique.
Jurlique's current management has indicated that it is committed to compliance with the law and has provided the court-
Enforceable commitment to ACCC to implement the trade practice legal compliance training program.
Originally released as a skincare maker, a fine of $3.