Department Stores Give Away Cosmetics to Settle Lawsuit
New York City Several department store retailers are faced with giving away free cosmetics in order to settle legal claims.
Starting next week, department stores such as Macy’s and Nordstrom will give away $175 million worth of free high-end cosmetics including such brands as Estee Lauder and L’Oreal to consumers as part of a class-action settlement alleging that the stores planned to fix prices.
The retailers will distribute the free cosmetics as long as supplies last to shoppers who bought certain cosmetics between May 29, 1994 and July 16, 2003 to settle claims that the stores violated antitrust laws and tried to fix prices.
The offer is part of an agreement to settle a lawsuit filed in 2003 in a California federal court. The suit alleges stores tried to limit sales and scale back on the amount of cosmetics in their inventory, thereby keeping both prices and competition high.
The department stores involved in the matter have denied any wrongdoing.
Stores participating in the settlement include: Bergdorf Goodman; Bergner’s, Bloomingdale’s; Boston Store; Carson Pirie Scott; Dillard’s; Gottschalks; Herberger’s; Macy’s; Neiman Marcus; Nordstrom; Parisian; Saks Fifth Avenue and Younkers.
Giant Food names East region ops head
CARLISLE, Pa. Doug Sternberger has been named director of operations and merchandising in the East region for Giant Food Stores.
Sternberger joined Giant in 1980 and most recently served as grocery specialist for the East Region.
FTC seeks end to Whole Foods, Wild Oats integration
WASHINGTON The Federal Trade Commission continued its battle with Whole Foods over its acquisition of Wild Oats, asking the U.S. District Court for the District of Columbia to be a stop to all integration activities and to have the acquired stores rebranded as Wild Oats, with an independent management team to supervise them.
“The FTC believes that this preliminary injunctive relief is necessary and reasonable to preserve interim competition and maintain the commission’s ability to fashion an effective remedy should it be warranted,” the FTC said in its filing.