A federal judge in New Jersey has ruled that four major fragrance companies must face lawsuits alleging they conspired to inflate prices of ingredients used in cosmetics and household products. The companies involved are Givaudan and Firmenich from Switzerland, International Flavors & Fragrances from the US, and Symrise from Germany.
Judge William Martini rejected the companies’ efforts to dismiss three class action lawsuits filed in 2023. These lawsuits claim that the companies engaged in an illegal price-fixing conspiracy. The decision comes after European Union investigators launched an antitrust investigation into major fragrance makers in 2023.
The judge allowed some state-based allegations to be dismissed but gave plaintiffs 30 days to file an amended lawsuit. Givaudan, Symrise, and International Flavors & Fragrances did not immediately comment. DSM-Firmenich stated it is cooperating with ongoing investigations by US and European competition authorities. The companies deny any wrongdoing.
The lawsuits involve consumers, direct buyers of fragrance products, and indirect buyers who purchased ingredients from other sellers. The fragrance ingredient market was valued at $9.1 billion in 2022. Plaintiffs argue that the market’s high concentration makes it more susceptible to collusion.
The companies argued that the plaintiffs lacked sufficient evidence of a conspiracy. They claimed the lawsuits were based on government inquiries rather than concrete evidence. European antitrust investigators confirmed that their probe into the fragrance industry is ongoing as of June 2024.
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