Thursday, February 18, 2010

Gibson Accused of Price Fixing

Gibson, who made the news a few months ago regarding a controversy about the source of their wood, and then more recently because if a layoff sparked by "slow sales", makes the headlines again, this time for price fixing. I can't say this would be a huge surprise if it's true. They have narrowed their retailer base quite a bit in recent years, and forced those that did remain to stop advertising prices on the internet, mostly to stop price wars. How is this much different/worse if it's true?

http://www.tennessean.com/article/20100218/BUSINESS01/2180331/Gibson+Guitar+faces+price-fixing+lawsuits


Gibson Guitar Corp., which laid off about 50 people a year ago, may be subjected to even more financial pain this year, but the blame can't be pinned all on the recession.

The Nashville-based manufacturer is being hammered in a number of class action lawsuits accusing Gibson and other groups of fixing the retail prices on guitars.

The litigation comes on the heels of Gibson being investigated by federal authorities on whether it uses wood protected under U.S. law at its manufacturing facility in Nashville.

Gibson has denied wrongdoing in both cases.


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