OREANDA-NEWS. April 06, 2009. The Federal Antimonopoly Service (FAS Russia) will check whether agreements between the largest suppliers of perfumery and cosmetic products are acceptable under Articles 12 and 13 of the Federal Law "On Protection of Competition". FAS Russia arrived to this decision upon completing the inspections of compliance of the largest suppliers of perfumery and cosmetic products, including "Chanel" Ltd., "L'Oreal" CJSC and "Procter and Gamble Prestige Products" Ltd., with the antimonopoly legislation, started in 2008, reported the press-centre of FAS Russia.

The Antimonopoly Service has established that "Chanel" Ltd., "Estee Lauder" Ltd. and "Procter and Gamble Prestige Products" Ltd. generally fix two types of prices for retail sellers - purchasing prices and recommended retail prices.

Trade networks or retail sellers buy the goods at the purchasing prices; recommended retail prices are the prices at which suppliers of perfumery and cosmetic products suggest the chains sell the goods.

Recommended retail price, fixed for retail sellers, is the same for all sellers, while purchasing price for retail sellers varies depending on the amount and range of the purchased goods.

The difference between purchasing and recommended retail prices can reach 60%; it represents the cost of goods sold and the profit gained by the retail chains.

In 2008 "L'Oreal" CJSC stopped the practice of fixing the recommended retail prices.