Preston furniture retailer Cresta Furniture Limited has today complained to the Office of Fair Trading that consumers are paying artificially inflated prices for Natuzzi furniture because of unlawful price fixing arrangements operated in the United Kingdom by the Italian furniture manufacturer.
The Office of Fair Trading has been provided with evidence of how Natuzzi took steps to ensure that consumers could not obtain furniture at prices lower than those set by Natuzzi, including a secret recording of a meeting of distributors in Manchester on 9 April 2008 where Natuzzi sought agreement that consumers would not be offered Natuzzi furniture at prices less that the recommended retail price less 20%.
Cresta has also brought a claim against Natuzzi for unlawful price fixing as Natuzzi has tried to stop Cresta selling its furniture at prices lower than those set by Natuzzi. At a hearing in the High Court Mr Justice Briggs remarked to Crestas legal advisors Take it as read that your materials have thus far persuaded me that it is an arguable case that they are trying to force you as a reluctant independent into a price fixing arrangement which they wish to have in place with all their UK distributors..
Cresta has distributed Natuzzi furniture for the last seventeen years. We have always sought to provide our customers with what they want high quality furniture at the best price remarked Cresta spokesman Neil Stewart `We believe in the benefits of free competition, price fixing is unlawful, Cresta will not be party to ripping off customers`
The Office of Fair Trading has the power to investigate and fine any company engaging in unlawful price fixing. Consumers who have suffered loss as a result of unlawful price fixing may seek compensation for their loss. Thousands of consumers may have paid thousands of pounds more than they needed to for the Natuzzi furniture that they have bought. We have asked the Office of Fair Trading to take immediate action to end unlawful price fixing by Natuzzi. Consumers must be protected remarked Mr.Stewart.
Natuzzi Group
Hove,#2UPDATE Employee
Thu, December 10, 2009
Santeramo in Colle, Italy - December 10th, 2009
Natuzzi would like to draw to your attention that there is an existing case between Cresta Furniture and Natuzzi in the High Court in England. The Court will deal with all matters raised, including any allegations of resale price maintenance; allegations that Natuzzi is vigorously defending against.
Notwithstanding the above, as of today, the interim injunction that was initially granted to Cresta has subsequently been discharged by the Court, while Cresta has at the same time been condemned to pay all of Natuzzi's costs in connection to the same.
As the pending case with Cresta originated from the history of poor payments for ordered goods, which has unfortunately never been remedied, Natuzzi was forced to put Cresta Furniture Ltd on order hold since last August.
Despite the repeated warnings prohibiting Cresta to collect orders for Natuzzi's goods, evidence seems to demonstrate that they have continued to take consumers' orders and deposits, despite their subjection to the formal hold.
In order to protect our customers as well as our own goodwill in the UK, we wish to inform you that a formal termination of any pre-existing relationship between our company and Cresta Furniture Ltd was served on November, 27th, while in the meantime additional protective measures have been asked for.
Media Relations:
Paola Peretti
+39 334 63 09 967
[email protected]
Natuzzi Group
Hove,#3UPDATE Employee
Thu, December 03, 2009
November 30th,
2009 -We refer to the open letter of
Cresta Furniture Limited dated
Notwithstanding the above, as of today,
the interim injunction that was initially granted to Cresta has subsequently
been discharged by the Court, while Cresta has at the same time been condemned
to pay all of Natuzzi's costs in
connection to the same.
About Natuzzi
Founded in 1959 by