Danish Christmas Tree Growers Association Explained

The Danish Christmas Tree Association is a trade association in Denmark which represents the growers of natural Christmas trees.

2007 price fixing scandal

See also: Christmas tree production in Denmark.

On December 17, 2007 the Danish Christmas Tree Growers Association was charged with price fixing by the state prosecutor for serious economic crimes. The association was accused of sending price guidelines to its members suggesting a price increase of 10 to 25 percent.[1] In 2007, prices eventually rose 25 percent for Nordmann firs,[2] the most popular variety in Denmark and most of Europe.[3] Charges were handed down after the Danish Competition Authority warned the DCTGA in 2001 and 2005 about the same practices.[4] [5] Both the association itself and the association's director at the time Kaj Østergaard were charged in the case.[6]

On September 24, 2009, the Eastern High Court handed down a judgement in the price fixing case. The Danish Christmas Tree Growers Association was fined. The court ruled that the DCGTA had published price statistics and a price calculation model, as well as other tools which were used to guide member pricing, including minimum prices.[7] The Eastern High Court's original fines took into account the repeated warning the association had been given. The Danish Supreme Court eventually reviewed the case and imposed even stiffer fines that the Eastern High Court had. The Supreme Court fined the DCTGA 500,000 kroner and increased the fines against members of the executive committee from 15,000 kroner to 25,000 kroner.[4] Both the association and its "manager" were convicted in the case.[7] With the allegations and conviction the DCTGA has been repeatedly referred to as a cartel.[2] [8] [9] [10]

Leadership

External links

Notes and References

  1. Cockcroft, Lucy and Simpson, Aislinn. "Danish accused of Christmas tree price fix", The Telegraph, December 20, 2007, accessed September 23, 2012.
  2. Tagliabue, John. "Denmark: Christmas-Tree Growers Face Cartel Charges", The New York Times, December 20, 2007, accessed September 23, 2012.
  3. Frampton, John and McKinley, Craig. "Christmas Trees and Greenery in Denmark: Production and Tree Improvement," American Christmas Tree Journal, 1999, Vol. 43(2):4-11, accessed September 23, 2012.
  4. "The Danish Supreme Court Increases Fines for Price Fixing", Eversheds, September 30, 2010, accessed September 23, 2012.
  5. "In Denmark, price fixing on Christmas trees?", USA Today via Associated Press, December 20, 2007, accessed September 23, 2012.
  6. "Christmas tree growers in Denmark are needled by price fixing probe", independent.ie, December 20, 2007, accessed September 23, 2012.
  7. Bertleson, Erik, and others. "Denmark ", (pdf, book chapter), from Competition Law, Aspen Publishers, 2011, p. Denmark-85,, accessed September 23, 2012.
  8. "Danish Christmas-Tree Growers Face Cartel Charges (Update1)", December 18, 2007, Bloomberg, accessed September 23, 2012.
  9. "Danes chop down tree cartel ", canada.com via Ottawa Citizen, December 19, 2007, accessed September 23, 2012.
  10. Anderson, Robert. "Fir flies as Xmas tree growers are charged with price fixing, Financial Times, December 19, 2007, accessed September 23, 2012.
  11. "History", Danish Christmas Tree Growers Association, official site, accessed September 23, 2012.

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