Red Carpet Threads

Looks like the beauty industry was hoping to cover up it’s flawed business practices: In a huge class action settlement, several department stores have agreed to give away $175 million in cosmetics starting early January 2009. Macy’s, Bloomingdale’s, Filene’s, Lord & Taylor, Neiman Marcus, Nordstrom, and Saks Fifth were all named in the lawsuit that found department stores & designer brands had violated antitrust laws & conspired to fix prices.

“The lawsuit alleged that department stores and cosmetics companies conspired to sell products at the manufacturers’ suggested price only - never at a discount. It also alleged that special promotions were coordinated in a way that ensured there would be no competition among stores.

In addition to the $175 million giveaway, the department stores and cosmetics companies agreed to pay up to $24 million in attorney fees, and enter a court order that prohibits them from engaging in price-fixing schemes and certain marketing practices.”

The giveaways will be handed out first-come-first served. Customers will not need a proof of purchase or a recipet, but will be asked to sign a form stating that they purchased specific brands of makeup, moisturizers, and fragrance products at their stores between May 29, 1994 and July 16, 2003.

To see what brands were names & more information regarding the settlement, you can visit the website at www.cosmeticssettlement.com. Visitors to the website can register to receive an e-mail alert informing them when the products will be given away.

To read more, Boston Globe has you covered, click HERE for all the deets.

SOURCE