Laundry detergent cartel do the dirty – fined $18 million
Colgate-Palmolive has been fined $18 million having been found guilty of conspiring to manipulate the laundry detergent market with two rivals and supermarket Woolworths.
Colgate entered into an agreement with competitors Unilever and Cussons in 2008-09 to phase out standard concentrated laundry detergents and to bring in ultra concentrates. All parties stood to significantly profit from the arrangement due to ulta concentrates being cheaper to make, store and transport. All parties agreed to not pass on the savings.
When a similar change from standard concentrated laundry detergents to ultra concentrates occurred in New Zealand, consumers enjoyed discounts which saw them paying the price of a smaller pack for that of a larger pack.
Unilever tipped off the competition watchdog and received immunity under the ACCC's Immunity Policy for Cartel Conduct.
$18 million is around one tenth of the extra profit they made. Our corporate watchdog rules are useless.