Two BMW dealers settle price-fixing allegations
By MATT GLYNN
News Business Reporter
8/12/2005
Two upstate BMW dealers have agreed to a settlement with state Attorney General Eliot Spitzer over allegations of price-fixing and customer allocation involving two ex-employees.
Towne BMW in Amherst and Holtz House of Vehicles in Rochester each agreed to pay $5,000 to the state for the costs of the investigation.
Each also agreed to implement an antitrust compliance program, but did not admit to any wrongdoing or violation of law in the settlement.
The investigation centered on allegations that a then-employee of Towne BMW and a then-general manager of Holtz House tried to suppress competition by verifying prices they had quoted to potential customers at their respective dealerships.
Spitzer's office said the communications aimed to discourage competition between the two dealerships.
The employees no longer work for the dealerships, and the dealerships said they did not condone the employees' actions, Spitzer's office said.
Both dealerships cooperated when they learned of the investigation, according to the state's report.
By MATT GLYNN
News Business Reporter
8/12/2005
Two upstate BMW dealers have agreed to a settlement with state Attorney General Eliot Spitzer over allegations of price-fixing and customer allocation involving two ex-employees.
Towne BMW in Amherst and Holtz House of Vehicles in Rochester each agreed to pay $5,000 to the state for the costs of the investigation.
Each also agreed to implement an antitrust compliance program, but did not admit to any wrongdoing or violation of law in the settlement.
The investigation centered on allegations that a then-employee of Towne BMW and a then-general manager of Holtz House tried to suppress competition by verifying prices they had quoted to potential customers at their respective dealerships.
Spitzer's office said the communications aimed to discourage competition between the two dealerships.
The employees no longer work for the dealerships, and the dealerships said they did not condone the employees' actions, Spitzer's office said.
Both dealerships cooperated when they learned of the investigation, according to the state's report.