LEGO Group’s German subsidiary has been fined 130,000 euros (£98,000) by Germany’s
federal competition authority, the Bundeskartellamt, because the company stopped stores
offering discounts on its popular toys.
Incidents occurred during 2012 and 2013 when sales representatives of LEGO GmbH forced
retailers to raise the prices of approximately twenty LEGO sets. The products concerned where
known as “highlight articles” and expected to be among LEGO’s best selling sets.
Bundeskartellamt stated : “In some cases the retailers were threatened with either a reduction in
supply or even with the refusal to supply if they offered articles at retail prices below those set in
the lists. In other cases the level of discount on the retailers’ purchase prices granted by LEGO
GmbH was made conditional on the maintenance of the listed resale prices by the retailers.”
In an internal investigation, LEGO found these practises not only non-compliant with German
law but also with LEGO Group’s own procedures. As result of the internal investigation,
sanctions have been imposed on all the employees found to be involved, with some being
dismissed from the company.
John Goodwin, LEGO Group’s Chief Financial Officer, stated: “While this non-compliant
behaviour only involved a small number of employees in a restricted part of Germany, we want
to make it clear that it is unacceptable and not representative of what the LEGO brand stands
for”.
LEGO Group has accepted the decision, despite the fact it can appeal to the Düsseldorf Higher
Regional Court.