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Fender class action lawsuit overview:
- Who: Plaintiff Elisabetta Sciallis filed a class action lawsuit against Fender Musical Instruments Europe Inc.
- Why: Fender allegedly engaged in a price-fixing conspiracy to set a minimum price for guitars sold online.
- Where: The Fender class action lawsuit was filed with the Competition Appeals Tribunal.
Fender Musical Instruments Europe Ltd. faces a class action lawsuit alleging the guitar maker improperly conspired with resellers to fix the price for guitars sold online.
Elisabetta Sciallis, a consumer rights lawyer, filed the proposed Fender class action lawsuit with the Competition Appeals Tribunal. She is asking Fender to reimburse people who purchased Fender guitars from 2013 and 2019.
Sciallis filed the Fender class action lawsuit following a 2020 Competition and Markets Authority ruling that found Musical Instruments Europe Ltd. engaged in resale price maintenance to pressure retailers to set a minimum sale price for instruments.
Fender reportedly admitted to breaking UK competition law by prohibiting retailers from offering discounts on their online prices from January 2013 to April 2018, according to guitar.com. In some cases, Fender also reportedly pressured retailers to increase the prices of instruments sold online, the CMA found.
As a result of this alleged Fender price-fixing, customers who sought to purchase guitars did not find a price difference among retailers who sold the instruments, according to the Fender class action.
The CMA investigation also found that some Fender employees attempted to conceal their role in pressuring retailers not to lower their prices for Fender instruments, guitar.com reports.
Fender class action says millions may have overpaid for their guitars
Fender is not the only instrument maker to face allegations conspiring to set minimum prices for its instruments. The CMA also investigated Roland, Korg and Casio for allegedly pressuring retailers not to sell their instruments at a discounted price, according to the Fender class action.
Millions of musicians may have paid more than they should have for their Fender guitars, the Fender class action lawsuit states. Sciallis is seeking opt-out status for the case, meaning that those affected by the alleged Fender price-fixing scheme will automatically be included in the action unless they opt out.
“It is absolutely essential that companies do not prevent people from being able to shop around to buy their products at the best possible price,” CMA Chief Executive Andrea Coscelli told guitar.com. “This is especially important for expensive and popular items like guitars, and so Fender’s actions could have had a big impact on customers.”
Have you purchased Fender instruments online? Tell us your thoughts about this proposed Fender class action lawsuit in the comments!
The Fender class action lawsuit overview is Elisabetta Sciallis v. Fender Musical Instruments Europe Ltd., et al., Case No. 1437/7/7/22, in the Competition Appeal Tribunal.
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