Cresta furniture complains to office of fair trading about price fixingof natuzzi furniture
Retailer notifies competition watch-dog about consumers beingripped-off
Preston furniture retailer Cresta Furniture Limited hastoday complained to the Office of Fair Trading that consumers are payingartificially inflated prices for Natuzzi furniture because of unlawful price fixingarrangements operated in the United Kingdom by the Italian furnituremanufacturer.
The Office of Fair Trading has been provided with evidenceof how Natuzzi took steps to ensure that consumers could not obtain furnitureat prices lower than those set by Natuzzi, including a secret recording of ameeting of distributors in Manchester on 9 April where Natuzzi sought agreementthat consumers would not be offered Natuzzi furniture at prices less that therecommended retail price less 20%. Cresta has also brought a claim against Natuzzi for unlawfulprice fixing as Natuzzi has tried to stop Cresta selling its furniture at priceslower than those set by Natuzzi. At ahearing in the High Court Mr Justice Briggs remarked to Crestas legal advisorsTake it as read that your materials have thus far persuaded me that it is anarguable case that they are trying to force you as a reluctant independent intoa price fixing arrangement which they wish to have in place with all their UKdistributors. Cresta has distributed Natuzzi furniture for the lastseventeen years. We have always sought to provide our customers with what theywant high quality furniture at the best price remarked Cresta spokesman NeilStewart `We believe in the benefits of free competition, price fixing isunlawful, Cresta will not be party to ripping off customers`
The Office of Fair Trading has the power to investigate andfine any company engaging in unlawful price fixing. Consumers who have suffered loss as a resultof unlawful price fixing may seek compensation for their loss. Thousands of consumers may have paidthousands of pounds more than they needed to for the Natuzzi furniture thatthey have bought. We have asked the Office of Fair Trading to take immediateaction to end unlawful price fixing by Natuzzi. Consumers must be protectedremarked Mr. Stewart.
Natuzzi SpA is Italys largest furnituremanufacturer with a turnover of 660m. Cresta is an independent retailer basedin Preston, Lancashire. Natuzzi sells itsfurniture through Harrods, Selfridges, House Of Fraser, Barker and Stonehouse, Natuzzi owned stores and various other independent retailers.
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