[Hasbro] Fined by UK Office of Fair Trading

[dpmcalister]

Just seen on the ITN news that Hasbro have been fined £4.95M by the Office of Fair Trading (UK) for price-fixing their products. The fine was originally £9M but was reduced because Hasbro assisted with inquiries! The same news report said that Hasbro made a loss of £146K in the last quarter.

Of course, Hasbro are appealing

 

[trancejeremy]

Here's an article on it

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20021129/ap_on_bi_ge/britain_hasbro_fined_2

I love how Hasbro is described "The Office of Fair Trading found that Hasbro UK, maker of Sindy, Action Man and My Little Pony"

I still think if they were to make a d20 version of My Little Pony, it would sell.

And if they were to make a Barbie (or whatever the Hasbro equivalent is) of Lidda, people would buy it.

 

[Blacksad]

Another funny thing, is that the European Union version of the U.K office of fair trading is in the process of doing the same thing (like they did with Nintendo).

 

[JacktheRabbit]

It is amazing some of the stupid stuff that is illegal these days.

 

[dpmcalister]

It is amazing some of the stupid stuff that is illegal these days.

I disagree. I think price-fixing is theft from the consumer, and theft is illegal. It's like the book trade. At one time they set the price (listed on the back of the book/inside front cover) and that was what you had to pay. Then the law was changed and now you can pick up books cheaper.

If Hasbro are fined often enough, they will have to change their policy and we might see retailers offering "special" deals on RPG material. It wouldn't make any difference to Hasbro (the wholesalers and retailers would still pay them the same amount) and it might actually help the smaller retailer - if he offers his copies of the PHB for $3/£2 less than everyone else, he might sell more and be able to stay in business. Of course, that last bit is very theoretical (sp?)

 

[JacktheRabbit]

Theft?

give me a break. I make a product I should have 100% control over the price that I sell it at. Especially when the items in question are non-essential items.

Sounds like a pretty socialistic point of view to say a company should not have control over the price their own products sell at.

Of course you don't really care about price practices. You are only interested in getting Hasbro to sell you gaming gear at a reduced price.

I disagree. I think price-fixing is theft from the consumer, and theft is illegal. It's like the book trade. At one time they set the price (listed on the back of the book/inside front cover) and that was what you had to pay. Then the law was changed and now you can pick up books cheaper.

If Hasbro are fined often enough, they will have to change their policy and we might see retailers offering "special" deals on RPG material. It wouldn't make any difference to Hasbro (the wholesalers and retailers would still pay them the same amount) and it might actually help the smaller retailer - if he offers his copies of the PHB for $3/£2 less than everyone else, he might sell more and be able to stay in business. Of course, that last bit is very theoretical (sp?)

 

[Blacksad]

In the EU case, Hasbro fixed different prices between countries, and disallowed trade between those countries on their product, i.e. they broke the core law of the EU.

It's theft because presure on free trade in EU means less taxes for the states.

Also in EU you can't price items the way you like, you have to price them so that you get money on them (to not crush concurence when a company cover several domains, because they might be able to give away product for free). I thought similar laws existed in the USA.

 

[RSKennan]

Not that I know of, but IANAL... It seemed like we were moving in that direction with the Microsoft Antitrust suit, but that's pretty much over. In fact, Microsoft sold the Xbox over here at a cost of four billion dollars, knowing they could make it back later. (their projections show about 4 years after they released it was when they would show a profit.)



Edited typos and for clarification

 

[JacktheRabbit]

Aint socialism great.

It's theft because presure on free trade in EU means less taxes for the states.

Also in EU you can't price items the way you like

 

[Blacksad]

Not that I know of, but IANAL... It seemed like we were moving in that direction with the Microsoft Antitrust suit, but that's pretty much over. In fact, Microsoft sold the Xbox over here at a cost of four billion dollars, knowing they could make it back later. (their projections show about 4 years after they released it was when they would show a profit.)

A bit more clarification, the Xbox is underpriced in EU too, but the part that allow the company to make it back later is part of the same market.

So a car seller could sell underpriced cars, if he sells pieces of car separatly which would cover his expense.

What is forbiden, is a food multinational, deciding to go into the car market and seling all of its cars at $1.

Also the part on taxes for DocMoriartty, presure on free trade means less exchange, so less money for inovation, so the market doesn't grow while your population do, and you do not have the money to take care of the sick that you normally get with a growing economic. It is what Karl Marx predicted would happens to society if it did not became communist, though it did not happened.

That's why presure on trade in the EU is badly considered (I think Nintendo got a 160M€ fine).

PS: this thread will probably be closed in 9...8...