(Reuters) Feds Subpoena Mercedes on Price Fixing
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(Reuters) Feds Subpoena Mercedes on Price Fixing
http://story.news.yahoo.com/news?tmp..._mercedes_dc_1
Does anyone know what the specific allegations are? Also, what is the reference to a 1999 lawsuit?
Does anyone know what the specific allegations are? Also, what is the reference to a 1999 lawsuit?
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Joined: Nov 2001
Posts: 2,065
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From: Florida
2002 CLK 55 AMG Coupe ;)
The suit was filed on behalf of Mercedes-Benz
customers from as far back as 1992, but has not yet been certified as a class
action, according to Donna Boland, a spokeswoman for the automaker.
The genesis for the lawsuit was the termination of a Toms River, N.J., dealer
"for performance deficiencies," Boland said. The dealer, whom Boland did not
name, filed a price-fixing lawsuit which is still making its way through the
courts.
"When the news came out, some lawyers said if the allegations are correct, it
would follow there would be a customer component and a class-action lawsuit
could be feasible," said Boland.
In May, Mercedes-Benz was served with a subpoena from the Justice
Department requesting documents regarding the allegations.
"We believe we've complied with what they requested," Boland said.
She said it might be two to three months before a ruling is made on class
action certification.
customers from as far back as 1992, but has not yet been certified as a class
action, according to Donna Boland, a spokeswoman for the automaker.
The genesis for the lawsuit was the termination of a Toms River, N.J., dealer
"for performance deficiencies," Boland said. The dealer, whom Boland did not
name, filed a price-fixing lawsuit which is still making its way through the
courts.
"When the news came out, some lawyers said if the allegations are correct, it
would follow there would be a customer component and a class-action lawsuit
could be feasible," said Boland.
In May, Mercedes-Benz was served with a subpoena from the Justice
Department requesting documents regarding the allegations.
"We believe we've complied with what they requested," Boland said.
She said it might be two to three months before a ruling is made on class
action certification.
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Joined: Nov 2001
Posts: 3,600
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From: Earth
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here's the nytimes article on it:
http://www.nytimes.com/2002/07/20/business/20AUTO.html
"The suit contends that Mercedes gave "explicit directives" to the dealers to refrain from competing with each other on prices and that it made "threats to punish dealers who did not comply."
Under federal law, auto companies cannot require consumers to pay specific prices, only recommend to dealers what they should charge, which is known as the manufacturer's suggested retail price. Dealers generally offer discounts on all but the industry's most popular vehicles, with the help of cash incentives from the auto companies."
the article also mentions that the so called "haggle-free" policy has been discontinued. when i got mine, i was told that mb does not haggle...
http://www.nytimes.com/2002/07/20/business/20AUTO.html
"The suit contends that Mercedes gave "explicit directives" to the dealers to refrain from competing with each other on prices and that it made "threats to punish dealers who did not comply."
Under federal law, auto companies cannot require consumers to pay specific prices, only recommend to dealers what they should charge, which is known as the manufacturer's suggested retail price. Dealers generally offer discounts on all but the industry's most popular vehicles, with the help of cash incentives from the auto companies."
the article also mentions that the so called "haggle-free" policy has been discontinued. when i got mine, i was told that mb does not haggle...
