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Cosmetics Settlement Could Mean Free Makeup

Cosmetic Business Sued For Price Fixing

Updated: 3:23 p.m. EST March 10, 2004

The settlement of a lawsuit in California could mean some free name-brand makeup for women all across the country.

Under the agreement, a customer would not have to buy anything and would not need a voucher or coupon. They would only have to show up when the giveaway is announced.

Daniel Mogin, the attorney for the plaintiffs in the lawsuit, accused cosmetic manufacturers and retailers of conspiring to keep prices artificially high.

"There were no discounts anywhere in the country, not by as much as a penny. It didn't matter what store you went into; it didn't matter what state you were in," Mogin said. "We've got an old-fashioned price fix, and that's how we allege the antitrust and consumer protection laws were violated."

The defendants in the case denied any wrongdoing and said they agreed to the settlement to avoid costly litigation.

A hearing for the settlement's final approval is scheduled for June 8. If a judge approves it, $175 million worth of cosmetics would be given away at department store counters on a first-come, first-served basis. Consumers would be able to request one free item worth between $18 and $25.

To qualify for the giveaway, a person must live in the United States and have purchased a cosmetic on the settlement list made or sold by the defendants between May 29, 1994, and July 16, 2003. Some of the retailers among the defendants include Foley's, Dillard's, Nordstrom, Saks Fifth Avenue, Macy's, and Neiman Marcus. Manufacturers include Clinique, Estee Lauder, Chanel, M.A.C., and L'Oreal.

To see the entire list and find out more about the settlement, visit the Web site cosmeticssettlement.com.

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