Violated Competition Law: Huge Fine for Well-Known Fashion Brand

Hugo Boss will pay a fine of 12 million Danish kroner for breaching competition law.

This was revealed by the National Unit for Special Crimes (NSK) in a press release.

According to the press release, the fashion conglomerate Hugo Boss Nordic ApS (Hugo Boss) has accepted a fine of 12 million Danish kroner issued by the National Unit for Special Crimes (NSK) for violating competition law.

From January 2014 to April 2018, Hugo Boss has continually disclosed confidential information such as prices, discounts, and sale times in its own retail stores to competitors Ginsborg and Kaufmann. This exchange of information allowed competitors to adjust their sales strategies.

In addition to the fine of 12 million Danish kroner, two senior employees from Hugo Boss have agreed to personal fines of 120,000 Danish kroner each for their involvement in the violations. Kaufmann had previously paid a fine of six million Danish kroner in connection with the case.

The case was reported by the Danish Competition and Consumer Authority in August 2021.

“I am pleased that Hugo Boss has chosen to accept the fine. It is crucial to maintain a healthy and fair competition that companies adhere to competition laws. It is considered a serious violation of competition law when competing companies exchange confidential information about prices and discounts in the manner done in this case. Such a violation can adversely affect consumers, who risk paying higher prices for products,” said prosecutor Christian Brynning Petersen from the NSK.