Chemtura Corp. (CEM) is being sued for price fixing, allegedly for keeping the prices of materials used to make rubber artificially high. The most fascinating thing to me about this case is that the plaintiffs are asking for both damages and full refunds for the prices paid.
As a consumer advocate, I'm all for seeking a full refund when a customer feels that a company has not acted appropriately in a business transaction. It will be interesting to see if a court rules (if indeed it gets to that level and is not settled out of court first) that the plaintiffs (three tire companies - Bridgestone Corp., Bandag Inc., and Pirelli Tire LLC.) have a right to get back the money paid, even that portion which could be legitimately shown to have been spent on what prices would have been without the alleged price fixing.
Reading about this case brings three thoughts to mind:
1 - Will the tire companies now refund money to auto manufacturers and consumers?
2 - If so, who will administer all these refunds and pay the costs of the administration?
3 - Whatever happened to all those blustery political pronouncements that there would be inquires into alleged gasoline price fixing by oil companies?
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