Japanese Fair Trade Commission ends LVMH investigation

02/09/2005

Coach, Inc., a marketer of modern classic American accessories, announced that the Japanese Fair Trade Commission (JFTC) has ended its investigation regarding LVMH (Moet Hennessy Louis Vuitton)  harassment and anti-competitive practices in Japan without taking any action.

Coach filed the complaint in Tokyo in March describing a pattern of conduct going back over the previous year, in which LVMH engaged in inappropriate and threatening behaviour by exerting pressure on common business partners. At the time, Coach noted that while they had not suffered any material damages, even the suggestion of anti-competitive behaviour required decisive action.

Lew Frankfort, chairman and CEO of Coach, Inc., said, "We believe our filing with the JFTC and the subsequent investigation served our primary goal, which was to send a strong message that we will not tolerate any actions that limit consumer choice."

While LVMH attempted to pressure Coach's retail partners in Japan, JFTC representatives apparently determined that the department stores used their independent judgment regarding all sales space and were not influenced by LVMH's  behaviour. Mr. Frankfort added, "This finding is surprising because it contradicts what department stores repeatedly reported to Coach executives prior to the filing of the complaint."