Sennheiser Slapped with Hefty €6M Fine for Underhanded Price Foolery!
Unlawful Transactions: Sennheiser Faces Hefty Fines Totalling Millions Due to Illegal Deals - Sennheiser faces a hefty million-dollar fine
Are you a fan of Sennheiser headphones? Well, brace yourself, because the beloved audio giant is paying a hefty price - quite literally - for their sneaky price-fixing tactics! The Federal Cartel Office in Bonn declared that they'll be fining Sennheiser a whopping €6 million due to its incessant meddling with retailers to boost in-store prices.
You read that right! For at least five years, Sennheiser, based in Hannover, has been keeping a close eye on the selling prices of their audio products. Whenever retailers dared to sell them below Sennheiser's recommended retail price (RRP), they received a nudge to adjust their prices.
The Federal Cartel Office found Sennheiser's actions intentional; they even had the audacity to train their employees on competition law yet hid their transgressions in plain sight!
It's not just Sennheiser that's facing the wrath of the law. Employees responsible for the monkey business and Sonova, the German subsidiary of hearing aid manufacturer Sonova, will also be made to feel the financial pinch. FYI, Sonova acquired Sennheiser's consumer business back in March 2022 and has been carrying on the brand ever since.
The dodgy deals persisted, to a lesser extent, even after the takeover. However, the Federal Cartel Office took a stand and launched a raid on Sennheiser in September 2022.
- Sennheiser electronic
- Federal Cartel Office
- Price Foolery
- Hefty Fine
- Misconduct
- Germany
- False Market
- Bonn
- Cartel Behavior
- Hannover
- The Federal Cartel Office in Bonn has decided to impose a hefty €6 million fine on Sennheiser electronic, based in Hannover, for their repeated illegal manipulation of in-store prices.
- Various retailers across the industry have alleged that Sennheiser had been pressuring them to adhere to the recommended retail price (RRP) of their products since at least five years.
- The Federal Cartel Office found that Sennheiser intentionally sought to create a false market by influencing retail prices, a clear violation of competition law.
- This misconduct was carried out despite Sennheiser reportedly providing training to its employees on the same competition laws they were breaking.
- Besides Sennheiser, employees involved in this misconduct and Sonova, the German subsidiary of hearing aid manufacturer Sonova, will also face financial repercussions for their roles in this incident.
