EU Targets Luxury Fashion Price Manipulation
The European Commission fined Gucci, Chloé, and Loewe a total of €157 million for illegally controlling how retailers priced their products. The decision follows a major investigation that found the brands blocked retailers from offering discounts or setting their own sales schedules, creating an uneven playing field in the luxury market.
European Commissioner for Competition Teresa Ribera stated, “All consumers, wherever they buy, deserve the benefits of genuine price competition.”
Inside the Price-Fixing Scheme
Between 2015 and 2023, the three fashion houses were found to have created an artificial price floor across Europe. Retailers were pressured to follow “recommended” prices and discouraged from running independent promotions.
The Commission reported that these brands limited competition both online and offline. Some retailers were banned from offering discounts altogether, while others were closely monitored to ensure they followed strict pricing guidelines. The goal was to maintain a sense of exclusivity and protect brand prestige, even if it meant higher prices for consumers.
Gucci Faces the Largest Fine
Gucci received the largest penalty at €119 million, followed by Chloé at €19 million and Loewe at €18 million. Gucci’s violations went further than the others, as the brand also restricted certain retailers from selling products online.
The fines were determined under the EU’s 2006 antitrust guidelines, factoring in the scale and duration of the violations. All three companies cooperated with investigators, resulting in reduced penalties: 50% reductions for Gucci and Loewe, and a 15% reduction for Chloé.
What It Means for Consumers
For years, luxury shoppers have paid inflated prices, unaware that these brands were quietly dictating how much retailers could charge. The Commission’s ruling gives consumers and competitors legal grounds to seek compensation.
Under the EU’s Antitrust Damages Directive, anyone who overpaid for Gucci, Chloé, or Loewe products before 2023 can file a damages claim. If your Loewe Puzzle Bag or Chloé boots felt overpriced, you may now have a case to get some of that money back.