Cosmetics Maker Can't Ban Discounting: Judge

Law360, New York (February 8, 2007, 12:00 AM EST) -- An Australian court has fined a premium cosmetics company $3.4 million for a decade of price-fixing, ruling the conduct was excusable but still illegal.

The Federal Court of Australia ruled Jurlique and its founder, Dr. Jurgen Klein, technically violated the Trade Practices Act by inducing retailers and franchisees not to harm its high-end image by discounting its products.

But the Honorable Justice Spender acknowledged Thursday the company’s deliberate, longstanding policy of keeping prices at a specified level was understandable for a luxury brand.

“The founder of...
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