Menu
Login
CRESTA FURNITURE COMPLAINS TO OFFICE OF FAIR TRADING ABOUT PRICE FIXING OF NATUZZI FURNITURE
Retailer notifies competition watch-dog about “consumers being ripped-off”
Preston furniture retailer Cresta Furniture Limited has today complained to the Office of Fair Trading that consumers are paying artificially inflated prices for Natuzzi furniture because of unlawful price fixing arrangements operated in the United Kingdom by the Italian furniture manufacturer.
The Office of Fair Trading has been provided with evidence of how Natuzzi took steps to ensure that consumers could not obtain furniture at prices lower than those set by Natuzzi, including a secret recording of a meeting of distributors in Manchester on 9 April 2008 where Natuzzi sought agreement that consumers would not be offered Natuzzi furniture at prices less that the recommended retail price less 20%.
Cresta has also brought a claim against Natuzzi for unlawful price fixing as Natuzzi has tried to stop Cresta selling its furniture at prices lower than those set by Natuzzi. At a hearing in the High Court Mr Justice Briggs remarked to Cresta’s legal advisors “Take it as read that your materials have thus far persuaded me that it is an arguable case that they are trying to force you as a reluctant independent into a price fixing arrangement which they wish to have in place with all their UK distributors…..”
Cresta has distributed Natuzzi furniture for the last seventeen years. “We have always sought to provide our customers with what they want – high quality furniture at the best price” remarked Cresta spokesman Neil Stewart `We believe in the benefits of free competition, price fixing is unlawful, Cresta will not be party to ripping off customers`
The Office of Fair Trading has the power to investigate and fine any company engaging in unlawful price fixing. Consumers who have suffered loss as a result of unlawful price fixing may seek compensation for their loss. “Thousands of consumers may have paid thousands of pounds more than they needed to for the Natuzzi furniture that they have bought. We have asked the Office of Fair Trading to take immediate action to end unlawful price fixing by Natuzzi. Consumers must be protected” remarked Mr.Stewart.
Natuzzi SpA is Italy’s largest furniture manufacturer with a turnover of €660m. Cresta is an independent retailer based in Preston, Lancashire .Natuzzi sells its furniture through Harrods, Selfridges, House Of Fraser, Barker and Stonehouse, Natuzzi owned stores and various other independent retailers.
The complaint has been investigated and resolved to the customer’s satisfaction.
I am not surprised about this. My cousin was ripped off by the Natuzzi Finchley Rd store. He asked them for their best price and they told him £3800, so he rang round the other dealers for a price. He got a lower quote of £3225, but when he told the Finchley Rd store, they told him it was a mistake. being a bit dumb, he told them which store it was, and yes, youve guessed it, when he called them back later, they denied giving him the lower price.!
In the end he didnt buy natuzzi, cos someone else told him that the prices are fixed by natuzzi in italy. Any dealer that doesnt toe the line is put out of business. Go Office of Fair Trading! Yayyyyy!
I'm sorry you appear to have fallen foul of this too, we have tried very hard to get the story out to the mainstream media so consumers are aware os the price fixing allegations. If your cousin is still looking for the furniture he wants then by all means take a look at what we've got at http://www.cresta.co.uk and if he see's anything he likes then let me know - I'm sure we can still help him. Neil Stewart, Cresta Furniture Ltd.
I am appalled at this news. I always thought Natuzzi was a reputable company.
At least this explains why I was always quoted the same price, no matter which store I went to!
I hope they get really sorted out by the US DoJ. Italian companies operating in the US really need to understand that we will not be ripped off like the shoppers in Europe.
Hope they extradite a couple of their Directors and stick em in Parchman for a while...that will stop their antics.!
Hey guys this type of illegal activity is taken seriously in the UK and Europe too...
The Office of Fair Trading may impose a financial penalty on an undertaking which has intentionally or negligently committed an infringement of Article 81 or the Chapter I prohibition. The amount of the penalty imposed may be up to 10% of the undertaking's worldwide turnover. Natuzzi SpA is Italy's largest furniture manufacturer with a turnover of EUR660m. Consumers who have suffered loss as a result of unlawful price fixing may seek compensation for their loss.
So lets hope the OFT stampt this out ASAP to prevent more people getting ripped off.
Santeramo in Colle, Italy – November 30th, 2009 - We refer to the open letter of Cresta Furniture Limited dated 27 November 2009. Natuzzi would like to draw to your attention that there is an existing case between Cresta Furniture and Natuzzi in the High Court in England. The Court will deal with all matters raised, including any allegations of resale price maintenance; allegations that Natuzzi are vigorously defending against.
Notwithstanding the above, as of today, the interim injunction that was initially granted to Cresta has subsequently been discharged by the Court, while Cresta has at the same time been condemned to pay all of Natuzzi's costs in connection to the same.
About Natuzzi
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With 2008 consolidated revenues of EUR 666, 0 million on, Natuzzi is Italy's largest furniture manufacturer. The Natuzzi group exports its innovative high-quality sofas and armchairs to 123 markets on five continents under two brands. Design, superior Italian craftsmanship, and advanced, vertically integrated manufacturing operations underpin the Company's market leadership. Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001 certified.
HEY NATUZZI>>>>THIS IS A CONSUMER FORUM SITE SO ...BUTT OUT!
GO SELL YOUR STORY TO THE US DEPT OF JUSTICE OR THE SEC, NOT HERE!
You should all know that its been reported today that;
'Cary Benson has resigned as president of Natuzzi Americas, a spokeswoman for the Italy-based upholstery manufacturer confirmed. The company has not announced a replacement. Officials could not immediately be reached for comment.'
http://www.furnituretoday.com/article/395177Cary_Benson_resigns_as_president_of_Natuzzi_Americas.php
How convenient not having ANY Officials available for comment. Couldn't possibly be because Natuzzi have been reported to the SEc, and the US Dept of Justice and the UK's Office of Fair Trading, facing potential fines which could total up to $200m, and extradition and imprisonment for Italian directors? Resigning does not escape from a jail sentence or at least it shouldn't!
You get what you pay for. And if you want NATUZZI quality you're going to have to pay for it. Bottom line.
Become a better negotiator and you won't have these issues.
Hey RobMarc
Which bit of fixed-price scam do you not understand buddy? The whole point of the scam is that you CANT negotiate, because Natuzzi operates a fixed price list, and all the stores talk to each other so you cant get a redusction by negotiating.
I tried 7 stores and every one called me back later...with exactly the same price!
And hey, have you SEEN the inside of a natuzzi sofa, and the chipboard and pallet wood inside? Search Natuzzi on this site and see the level of complaint they get!
Live free or Die!
check this out, www.retail-week.com reported today;
December 4, 2009
Upmarket furniture retailer Natuzzi has denied involvement in alleged price fixing, for which it has been reported to the Office of Fair Trading.
The Italian-based retailer has been reported by independent Preston furniture retailer Cresta. The indie store claims Natuzzi tried to prevent it from selling goods more cheaply than Natuzzi does in its stores.
In a statement Natuzzi said: “The court will deal with all matters raised, including any allegations of resale price maintenance; allegations that Natuzzi are vigorously defending against.”
A Cresta spokesman said: “We will not be bullied into anything by Natuzzi. Consumers should be able to get the best price they can get.”
Cresta, which has been selling Natuzzi goods for 17 years, claims it has taped conversations with Natuzzi which it will pass to the court.
An email from Natuzzi sent on October 12, 2007, by then managing director Nick Moore who is now managing director of Conran Shop, which has been seen by Retail Week, said he wanted Cresta to operate a fixed price policy, with a maximum discount in Sale periods of 20%, to match its own policy.
The Natuzzi executive wrote:
“I would ask you do the same. It is obviously not in our interests to get into a price war!”
Cresta has been granted an injunction preventing Natuzzi from drawing on its bank guarantee at present.
The OFT would not comment and Moore was unavailable.
http://www.retail-week.com/retail-sectors/home-and-diy/furniture/natuzzi-accused-in-price-fixing-case/5008548.article
So you think my recommend is silly?
Ok lets go thro it again for the slower people...
1. Natuzzi get sued in the UK Supreme Court for illegal price-fixing
2. The evidence is emails and secret tape-recordings of their UK MD and UK Country Manager issuing threats to close the account of a retailer who would not play ball
3. This evidence is handed over to the UK Office of Fair Trading
4. They are also reported to:
a) The US SEC
b) The US Dept of Justice
c) The Bundeskartellampt (German
Competition authorities)
d) The Autorita Garante della
Concorrenza e del Mercato
Italian competition
authorities)
5. Within 24 hours, their US
President resigns suddenly. No
comment from Natuzzi. No
announcement of a replacement
6. The fines for illegal price-
fixing are 10% of global
turnover. $66m ! And thats just the UK, never mind the SEC penalties for misleading SEC filings, or the US Dept of Justice extraditing Italian Directors (what price amanda knox treatment now?)
And you know what? How come they arent counter-suing these guys? If they are innocent, why arent they saying so>>
And you still think my recommend is silly? Then I suggest you put your money into Natuzzi buddy, as well as putting your life savings on the next horse to run at Kentucky!
Share price isnt all about value, its about public perception. This company didnt play by the rules, so it can expect to get hurt. the fact its Italian right now is just unlucky cos the average US citizen aint feeling so good about Italy right now.
Sentiment : Strong Sell
Ive been following this story with some interest as I am a past customer of Cresta, and would recommend them to anyone for good friendly service and they are very keen to do a deal with you.
I didnt buy Natuzzi from them as I had heard so many bad reports about the structure under the 'beautiful' leather and seen so many negative reports about their lousy after-care service.
Anyway, as a consumer, I think we should all be standing up and asking why the authorities arent investigating and fining Natuzzi big-style. The reports Ive read say that the evidence given to the authorities includes secret tape-recordings of their Managing Director threatening sanctions if the store doesnt do as its told and only sell at cost times a factor of 3.1.
Come on citizens, lets show the big retail giants that people power rules...
Lancashire Evening Post: Published Date:
30 January 2010
By Matthew Squires
Furious customers who paid out thousands of pounds for new furniture have been left in limbo because of a row between a Preston firm and its supplier.
Italian company Natuzzi is involved in a long running dispute with Ribbleton-based company Cresta – leaving customers out of pocket. Now, after paying up to £3, 100 for the goods, customers have received a letter from Natuzzi saying they may never receive them.
The row centres over allegations of price fixing made by Cresta about Natuzzi and subsequent ongoing high court action.
College lecturer Paul Jones, 32, from Penwortham, is among the customers who has not received his furniture.
He staged a four-hour sit-in protest at the Cresta store after waiting more than 20 weeks for his £1, 150 of furniture.
He said: "On September 12 I went to Cresta and purchased a three-seater sofa and a single chair. They estimated that the delivery date would be December 19 and I was assured that it would be before Christmas."
After it failed to show up on that date, he was told bad weather had affected deliveries and he would have his goods by the middle of January.
But on January 8 he got the letter from Natuzzi. He rang Cresta again
who insisted the furniture would arrive within seven days.
"It didn't add up so I went into the store and there were two other customers there with the same letter, very irate."
"My problem is not with Natuzzi, my contract is with Cresta. The most frustrating thing is they keep saying my furniture is going to come when I have a letter from the maker saying it isn't."
Another customer, Brian Wareing, 57, from Bamber Bridge, bought almost £2, 000 worth of Natuzzi goods in August last year.
He said: "As soon as July comes the bank will be asking us to pay the money for the suite and we won't have any goods the way it is looking."
Cresta has apologised and says the problem has been caused by a dispute between the firms after it refused to sell Natuzzi furniture at pre-fixed higher prices.
High Court action, and reporting Natuzzi to the Office of Fair Trading, has led to orders being delayed, the company claims.
A spokesman said: "Cresta is currently still working to reach a settlement with Natuzzi which it hopes will result in outstanding deliveries being made and some compensation to customers who have waited."
A spokesman for Natuzzi said: "The court will deal with all matters raised, including any allegations of resale price maintenance – allegations that Natuzzi are vigorously defending against."
Jim Potts, Lancashire's chief trading standards officer, said: "Clearly while it is laudable they are seeking to sell furniture at a good price, at the end of the day if they have a contract to sell furniture at a certain price, it remains the responsibility of Cresta to make sure they either get the goods for customers or refund them in the event of non-supply." :( :( :( WHY TAKE CUSTOMERS ORDERS AND MONEY WHEN YOU CRESTA KNEW YOU HAD A PROBLEM AND THE CUSTOMERS WOULDN'T GET THERE SOFAS! CRESTA MADE THIS PROBLEM BIGGER JUST TO GIVE BAD PRESS TO NATUZZI!
Natuzzi is a high class retailer selling beautiful designer sofas and accessories to the top end consumer. As a member of staff I am fed up with customers telling us that they have bought a Natuzzi sofa outside of Natuzzi and at stupid prices, plus after buying from an independent retailer the customers then conplains of many problems from customer service and damaged furniture that the retailer will not put right or repair! The customer then calls the Natuzzi stores thinking we can help, but we can’t - they didn’t buy from the main dealer!
At the end of the day you can’t buy a Louis Vuitton handbag outside of Louis Vuitton, so if you bought a designer handbag on eBay and think it is rubbish then you are probable right! You get what you pay for! Why should we be in a price war with ourselves? Natuzzi should pull out of all retailers and just run their own stores, that way we will keep the high standard and image of Natuzzi (HIGH CLASS AND NOT CHEAP!)
I brought my sofa direct from Natuzzi & have not had anything resolved on a bad product.
They are not a high class retailer. They look beautiful but they are not good sofa. Dont know how you can type that.
Our contract was made with Cresta. When we placed an order nothing was mentioned by Cresta about Natuzzi. They knew very well that Natuzzi would not supply them with our furniture we ordered. They even sent us a letter telling us that the final payment as now due because our furniture was now 4 weeks away from being delivered.
Cresta now had Natuzzi's courtcase to pay, so they decided to get innocent customers to pay. How low can you get? We saved very hard to get money together to buy furniture. Now that the breadwinner in our family is unemployed, we have one consulation: Cresta has gone into liquidation
I don't suppose it wlll be too long before they set up business again. Unlike us, struggling to make ends meet with no hope of saving up!
I would like to know where our money has gone? Not to Natuzzi! Perhaps the retired directors from Cresta need something to live on.
..and to top up the management treat the staff in a very bad manner!
Like the one in Sheik Zaied road, if you are not Lebanese staff you are in trouble, i hear many, many time the so call manager talking in a bad meaner with the staff ! They lost me as a customer and my friends as well, but i will still walk into that show room and if i will hear her talking in the bad way with the staff again i will myself go to the Labor and bring them in to hear the same
This is a copy email/letter sent to NATUZZI 29TH December 2011 to date we have had no response and reading about previous complanants it seems highly unlikely we will receive a reply.
For Attention of Debbie Henderson: Sofa code: 2575T3010
Dear Debbie Henderson
It is with regret that we have to write to Natuzzi to day.
We purchased the Natuzzi Sofa through the outlet in House of Fraser Bluewater store on 23rd September 2011, the purchase price was £2538.00.
For this we expected a good product and good service – what we got was (we feel) a good product but the after service total incompetence.
When we made the purchase we informed the sales assistant – Lee Saker – that we had a Victorian Terrace house with a narrow 30” door and a narrow hallway with the door to our front room on the right, the sales assistant told us this would not be a problem as the sofa we were looking at to purchase came in two sections and they would definitely fit through the front door.
We emphasised these measurements as we had look at similar sofas with other stores and each store had explained the possible difficulty in negotiating the narrow door and hallway and although they were lovely sofas we knew they would not fit through the front door as they only came in as a whole item.
On the day of delivery of the Natuzzi sofa, the two delivery men brought the first section to the front door and said they could not get it through the door. They said the front door would have to be taken off to get the sofa into the house. I phoned my husband (who was at his office) to come home to see if he could help.He was willing to take the front door off (although I was reluctant for this to be done as we would have needed a professional person to put it back on).
However even though my Husband had a screw-driver in hand, the delivery men were not prepared to wait, before they left they did mention that the only other way would ne to arrange to have the arms taken of the two sections of the sofa and this would have to be done back at the warehouse, this was also confirmed by Martin Underdown.
I phoned the Natuzzi department at House of Fraser and spoke to Martin Underdown, he said that they could arrange for someone to take off the two arms, that it would cost in the region of £150-£200 and we would also have to pay a redelivery cost of £90.
I then phoned the Natuzzi customer services dept. and spoke to Amber who said there was nothing they could do to help us and that we would have to pay these charges. This was despite my telling her that we were originally told there would be no problem on access.
Needless to say, my husband and I were extremely distressed about this, my husband was so upset that he decided to drive up to Bluewater and speak to the General Store Manager of House of Fraser. After stating his reason why he had come to House of Fraser the Store Manager arranged a meeting with the sales person of Natuzzi (who I believe was Lee Saker), he suggested that if on the next delivery and the packaging was removed from the sofa and connected up to the electric cable the sections could be lowered and then manoeuvred in to the property, also the Store Manager very kindly said he would cover 50% of the redelivery charge as he could tell that we had given all the information for access on purchase of the sofa.
On the day of the second delivery the two different delivery men brought the sofa with packaging still in tact straight into the house with no problems whatsoever. We did not have to automate the back of the sections of the sofa.
If my husband had not gone to personally meet with the General Store Manager of House of Fraser, we could have ended up paying an extra £300 plus for un-necessary work.
I then phoned your Customer Service Dept. and expressed my disgust at the bad service we have received and was told by a member of your staff that the only recompense would be free cleaning kit. This is not acceptable considering the stress we have been though, phone calls we have made, delivery a week later than planned, time and journey to Bluewater Shopping Mall.
Even now since we have had delivery we still received about eight missed calls on the 21st December 2011 (which we now assumed to have been from Natuzzi seeing as we did eventually receives a call that confirmed it was Natuzzi) and messages left on the mobile about arranging delivery. When I called Natuzzi the next day they confirmed it was to arrange a delivery of a sofa we already had in our house.
It seems your administration leaves a lot to be desired and certainly some of your delivery drivers need re-training on customer relationship and service.
I feel that a compensation amount of £300 plus the free cleaning kit would be acceptable.
Yours faithfully
Pam Wilson