Fender Settles UK Price Fixing - Pays 5.9 Million in Fines

Discussion in 'The Backstage' started by ampmadscientist, Jan 24, 2020.

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Did you pay full price for Fender Guitars in the UK?

Poll closed Jan 31, 2020.
  1. Yes I ate it. Payed full prices.

    0 vote(s)
    0.0%
  2. No, I stepped off and stopped buying Fender.

    0 vote(s)
    0.0%
  3. Never Mind The Bollocks, I switched up to Gibson or PRS.

    0 vote(s)
    0.0%
  4. I'm so broke, I can't pay attention to this.

    100.0%
Multiple votes are allowed.
  1. ampmadscientist

    ampmadscientist Well-Known Member

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    Billboard "LONDON — Guitar maker Fender has been fined £4.5 million ($5.9 million) for breaking British competition law.
    The fine is the largest ever imposed by the U.K.'s Competition and Markets Authority (CMA) for price fixing, or what it terms as "resale price maintenance."
    In Fender's case, the company admitted breaking British competition law by restricting retailers from offering online discounts and requiring stores to sell its guitars at or above a minimum price between 2013 and 2018.
    Such restrictions are illegal in the U.K. as they prevent customers from getting the best price for a product, in this case a Fender guitar, as all retailers sell them at the same price.
    During the course of its investigation, the CMA found that Fender Europe employees deliberately tried to cover up their actions by recording as little as possible in writing."
     
  2. Frodebro

    Frodebro Well-Known Member

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    Just to clarify the misleading poll title, establishing a minimum sale price does not necessarily equate to paying "full price." Generally, the minimum is still well below MSRP, which is what most would consider to be "full price."
     
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  3. South Park

    South Park Well-Known Member

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    So how is this going to hurt fender or just pass the cost on . Some one in U.K. needs to start building guitars
     
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  4. ampmadscientist

    ampmadscientist Well-Known Member

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    From what I understand Fender UK required dealers to charge only full retail price or higher to customers.
    "MSRP" is basically a USA concept from what I understand.
    "Fender said its conduct had fallen "well below the highest standards we set ourselves and this is a matter of deep regret."
    "This is especially important for expensive and popular items like guitars, and so Fender's actions could have had a big impact on customers. Quite simply, this behavior is against the law," said the chief exec."



     
  5. Frodebro

    Frodebro Well-Known Member

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    Interesting. I know that Mesa/Boogie is quite expensive in Europe, whereas Marshalls tend to be more expensive here in America. I figured that it was something along the same lines as far as that goes, but maybe not.

    Trivia moment: Pete Townshend walked into a small music store one day in the early 1960s and asked if they could replicate his Bassman, as Fenders were very hard to come by in England at the time, and expensive when you could find them...
     
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  6. Nik Henville

    Nik Henville Well-Known Member

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    I
    buy
    used...

    ...and my MiM was stupidly cheap.

    :hippie::pirate::uk:
     
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  7. Wooferhead1

    Wooferhead1 Well-Known Member

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    And Marshall was born...
     
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  8. wakjob

    wakjob Well-Known Member

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    Still the best bang for the buck...or pound :p

    I trade my powered Kemper head for a Suhr Antique Classic.
    Traded that for a Fender FSR strat that was the same price...
    While the Fender sounded more of the way I wanted, the build quality & material wasn't even in the same solar system as the Suhr.

    Still questioning myself about that deal.
    Would've been perfectly happy with an MIM and new pickups.
    ...and about $2,000 back in my pocket.
     
    Last edited: Jan 25, 2020
  9. MarshallDog

    MarshallDog Well-Known Member Premium Member

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    I guess I don’t understand what is wrong with an MFG setting prices that are fair and the same for everyone. Why, here in the USA there are many MFGs that do this. BOSE speakers is one. You go anywhere to buy a product and it will be the same price. Ive been told by people in the business that they do not want Retails dropping prices which makes them appear to be a low cost me too product. Here in the USA its legal as long as its the same for all Retailers.
     
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  10. ampmadscientist

    ampmadscientist Well-Known Member

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    It's not illegal in USA for luxury items.
    Only essential items are protected in USA. Like food and water etc
    But in UK the law sees it differently somehow...
     
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  11. Nik Henville

    Nik Henville Well-Known Member

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    Gosh, golly and jimminy cricket... WHO'D a'thunk it !!!
    Folk in Blighty seeing things different to their chums over the Atlantic.
    Why... it's almost like we're two nations divided by a common language :cool:

    :hippie::pirate::uk:
     
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  12. ampmadscientist

    ampmadscientist Well-Known Member

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    So it goes in Albion...
     
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  13. Nik Henville

    Nik Henville Well-Known Member

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    There yah go, @ampmadscientist - fixed it for you...
    .
    .
    .

    :hippie::pirate::uk:
     
  14. Adieu

    Adieu Well-Known Member

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    How bout kicking Marshall in the pants for pressuring dealers to not give the rest of the world Eurozone pricing????
     
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  15. SkyMonkey

    SkyMonkey Well-Known Member

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    The closest I have come is my Charvel San Dimas, but I got that 2nd hand.
    Artificially inflated new prices probably prop up 2nd hand prices to some extent.
    Guitars of the past are now my future.
     
  16. South Park

    South Park Well-Known Member

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    It is all one big shell game . In the USA price fixing is done all the time it is how you control the market . All this Chinese crap is flooding the market and that is what fender is forced to do.
     
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  17. DaDoc

    DaDoc Well-Known Member

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    I just hope that Fender don't jack up their prices over here to make up for the $$ loss. :(

    Makes me glad I'm pretty well set as far as Fender gear..:D
     
  18. DaDoc

    DaDoc Well-Known Member

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    Too bad that's not the case with medicines, I guess they're not considered "essential"..:noplease:
     
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