Germany’s highest court has ruled that Wal-Mart’s below-cost pricing strategy undermines competition and violates the country’s antitrust laws. Two years ago, the federal Cartel Office accused Wal-Mart and two other large supermarket chains of selling goods below cost and ordered the companies to raise their prices. The items in question included about a dozen staple products like milk, butter, and vegetable oil.… Read More
Wal-Mart admits no wrongdoing and will not pay a fine in a settlement reached with the Wisconsin Department of Agriculture, Trade, and Consumer Protection over a predatory pricing complaint filed by the agency last year. The company will, however, face double or triple fines for any future violations, according to the terms of the agreement. The complaint accused Wal-Mart of selling butter, milk, laundry detergent, and other staple goods below cost at stores in Beloit, Oshkosh, Racine, Tomah, and West Bend. … Read More
As we reported in recent issues of this Bulletin, Wal-Mart is lobbying several state legislatures to repeal laws that bar below-cost sales of gasoline. Wal-Mart is installing gas stations in the parking lots of hundreds of its superstores. By selling gas below its wholesale cost, Wal-Mart hopes to draw shoppers into its stores and eliminate independent competitors. The problem is, many states have laws that require retailers to sell gas at a minimum mark-up. … Read More
Last month, Ed Trudeau, co-owner of the Vista Gas Station in Burlington, Wisconsin, drove an 8,500 gallon tanker truck to a competing Citgo Station for a fill-up. Although he managed to pump only 343 gallons before employees cut the flow, Trudeau made his point. The Citgo had been selling gas below cost, a violation of Wisconsin state law. … Read More
In September, Wal-Mart was hit with three separate charges of predatory pricing. Government officials in Wisconsin and Germany accused the retailer of pricing goods below cost with an intent to drive competitors out of the market. In Oklahoma, Wal-Mart faces a private lawsuit alleging similar illegal pricing practices. … Read More
As the story above suggests, Wal-Mart routinely engages in predatory pricing. But the company would prefer not to break the law in the process. To this end, Wal-Mart has joined with Murphy Oil in an effort to repeal a Florida law that prohibits predatory pricing among gasoline retailers.
The two companies financed a "consumer" group, the Coalition for Lower Gas Prices, which contends the Motor Fuel Marketing Practices Act costs Florida consumers $150 million annually in higher gas prices. … Read More
