An action class claims it was the result of a massive price fixing scheme operated by the largest producers, marketers and distributors of telescopes which caused customers across Canada to be charged a premium cost for the telescopes.
Consumers Allegedly Paid Inflated Prices for Telescopes
The plaintiff I. Baban states that the Celestron 21024 FirstScope telescope from Amazon as a Christmas present to his son in the year 2016 and then bought the same telescope for a birthday celebration of a friend in December of 2016. The man reportedly purchased $68.97 every time for each of the telescopes.
According to the price fixing class action lawsuit Baban was charged an exaggerated cost for his telescope owing to unfair conduct by the defendants.
Baban was the one to file the price-fixing class action suit in behalf of him and the proposed Class composed of Quebec residents who bought the telescope manufactured or purchased by the defendants, or their alleged co-conspirators prior to January. 1st the year 2005. Baban seeks refunds on behalf of himself and the proposed Class in the amount of the difference between the artificially-inflated price they paid for their telescopes and what they would have paid in a competitive market.
The defendants in the class action suit include: Synta Technology Corporation of Taiwan, Synta Canada International Enterprises Ltd., Suzhou Synta Optical Technology Co. Ltd., Nanton Schmidt Opto-Electrical Technology Co. Ltd., SW Technology Corporation, Sky-Watcher USA, Pacific Telescope Corp., Celestron Acquisition LLC, Celestron International, Olivon Manufacturing Co. Ltd., Olivon International Enterprise Inc., Olivon USA LLC and Ningbo Sunny Electronic Co. Ltd.
Class Action Lawsuit: Companies Colluded to Fix Telescope Prices
According to the price-fixing for telescopes class action suit, Synta and Sunny are basically the two sole telescope manufacturers in Canada and their products are offered under the brands: Celestron, Meade, Sky-Watcher, Olivon and Synta.
The class action for fixing the price of telescopes lawsuit Canada states the two companies Sunny and Synta have around 80percent of the world manufacturing market for telescopes. Both companies are said to be capable to manufacture all types of consumer telescopes. However, they are said to “have an illegal agreement or understanding that Synta only manufactures higher-end products while Sunny manufactures lower-end products.”
The allegedly illegal agreement allows the firms to charge prices that are excessively high as well as limit their supply as well as engage in other unfair behavior that result in consumers paying high price for the telescopes they purchase.
Sunny and Synta both reportedly have more than 80percent of the market for distribution telescopes within North America. According to the price-fixing of telescopes class action suit that was filed in 2005, there is a “vast majority” of consumer telescopes that are sold within North America are sold by Celestron which was purchased through Synta during 2005 as well as Meade which Sunny has reportedly purchased with the help of Synta.
Baban asserts that defendants engaged in various anticompetitive practices, including collectively determining the prices at which consumers can purchase telescopes, conjointly establishing credit and trade conditions for the purchase of telescopes, collectively refusing to make specific telescope products, agreeing to split the market in the production as well as distribution of telescopes as well as telescope products, and working together to ensure defendants purchasing of Meade.
Because of the defendants’ anticompetitive practices it is claimed that there has been an increase to the total number of producers of consumer telescopes. This has led to an reduction in new players entering the market, thereby forcing the existing independent distributors and manufacturers to leave the marketplace, and a stifling to price-competition, as well as artificially increased the prices of consumer-grade telescopes.
History of Antitrust Concerns in Consumer Telescope Market
The class action for fixing the price of telescopes lawsuit reveals the fact that there’s been complaints from antitrust regulators over the market for consumer telescopes over many years.
“Approximately 30 years ago, the [U.S. Federal Trade Commission] investigated a proposed joint venture between Meade and Celestron that it charged would have created a virtual monopoly in the manufacture and sale of certain telescopes,” the price-fixing class action lawsuit says.
In 1991 the FTC has reportedly given its an approval final to the settlement which obliged the former parents of Meade and Celstron to get FTC approval before acquiring any company that makes or sells certain telescopes in United States.
in 2002 Meade reported that she tried to buy Celestron but decided to drop the plan following a temporary restraining order and a preliminary injunction was granted by a federal judge.
“According to the FTC complaint, Meade’s acquisition of Celestron assets would adversely impact the performance telescope market by eliminating substantial actual competition between the two companies and by creating a monopoly in the telescope market,” the class action lawsuit involving price fixing for telescopes claims.
The industry of telescopes isn’t the only one to be subject to accusations of anticompetitive conduct. A class action lawsuit for price fixing was recently brought against companies that manufacture doors because they allegedly conspired to raise the price of doors made from interior molding.
What are your thoughts on the price-fixing of telescopes in this class action lawsuit? Do you have an instrument? Please share your experience in the comments section below!
Baban is represented by Andrea Grass of Consumer Law Group Inc.
The Telescope Price-Fixing Class Action Lawsuit is I. Baban v. Synta Technology Corporation of Taiwan and others. The case is No. 500-06-001095-203, in the Superior Court of Quebec, District of Montreal, Canada.
