Brief

Summary:

The Competition Board has concluded a preliminary inquiry into claims that several undertakings in the cosmetics, personal care, and food supplements industry with direct sales methods may have violated Article 4 of the Act no 4054 by determining resale prices and/or restricting online sales. The Board has decided to open an investigation into five specific undertakings: Amway Tu00c3u00bcrkiye Ltd, Ersau00c4u0178 Organizasyon, Hunca Life, Oriflame Kozmetik, and Tiens u00c4u00b0u00c3u00a7 ve Du00c4u00b1u00c5u0178 Ticaret Limited. The investigation aims to determine whether these undertakings have violated Article 4 by restricting the ability of their resellers to set their own prices and sell online.

The Competition Board concluded the preliminary inquiry conducted about the claim that undertakings operating in the cosmetics, personal care and food supplements industry with direct sale method have violated the Article 4 of the Act no 4054 by determining the resale prices of the resellers and/or restricting their online sales.

 

After discussing the information and documents acquired and observations made in the preliminary inquiry in its meeting on 17.08.2023, the Board considered the findings significant and sufficient and decided to open an investigation

 

  • with the decision no 2339/734-M(1) to determine whether Amway Türkiye Ltd. (Headquarters in Delaware, USA) Izmir Branch has violated article 4 of the Act no 4054 by determining the resale prices of its resellers and/or restricting their online sales

 

  • with the decision no 2339/734-M(2) to determine whether ErsaÄŸ Organizasyon Temizlik Kozmetik Ãœrünleri Pazarlama Sanayi ve Ticaret Limited Åžirketi has violated article 4 of the Act no 4054 by determining the resale prices of its resellers and/or restricting their online sales 

 

  • with the decision no 2339/734-M(3) to determine whether Hunca Life Kozmetik Pazarlama Dağıtım Ticaret Anonim Åžirketi has violated Article 4 of the Act no 4054 by determining the resale prices of its resellers and/or restricting their online sales

 

  • with the decision no 2339/734-M(4) to determine whether Oriflame Kozmetik Ãœrünleri Ticaret Limited Åžirketi has violated article 4 of the Act no 4054 by determining the resale prices of its resellers and/or restricting their online sales

 

  • with the decision no 2339/734-M(5) to determine whether Tiens İç ve Dış Ticaret Limited Åžirketi has violated article 4 of the Act no 4054 by determining the resale prices of its resellers and/or restricting their online sales

 

 *Investigation decisions taken by the Competition Board are announced to the public after the decision is notified to the undertakings or associations of undertakings about which an investigation has been initiated. Those announcements are made within the framework of informing the public about the decisions of the Competition Board and cannot be interpreted to mean that the undertakings or associations of undertakings under investigation violated the Act no 4054, or they are or will be subject to penal sanctions under the Act.

 

Highlights content goes here...

Summary

On August 17, 2023, the Competition Board of Turkey concluded a preliminary inquiry into allegations that certain undertakings operating in the cosmetics, personal care, and food supplements industry with direct sales methods had violated Article 4 of the Act No. 4054. The article prohibits undertakings from determining resale prices and restricting the online sales of their resellers.

The Board conducted a preliminary inquiry and gathered information and documents from the undertakings and associations of undertakings under investigation. After reviewing the findings and observations made during the inquiry, the Board deemed the evidence sufficient to launch an investigation into the allegations.

The Board issued five separate investigation decisions, each targeting a different undertaking operating in the industry:

1. Amway Tu00c3u00bcrkiye Ltd., headquartered in Delaware, USA, and its Izmir Branch.
2. Ersau00c4u0178 Organizasyon Temizlik Kozmetik u00c3u0153ru00c3u00bcnleri Pazarlama Sanayi ve Ticaret Limited u00c5u017eirketi.
3. Hunca Life Kozmetik Pazarlama Dau00c4u0178u00c4u00b1tu00c4u00b1m Ticaret Anonim u00c5u017eirketi.
4. Oriflame Kozmetik u00c3u0153ru00c3u00bcnleri Ticaret Limited u00c5u0161irketi.
5. Tiens u00c4u00b0u00c3u00a7 ve Du00c4u00b1u00c5u0178 Ticaret Limited u00c5u017eirketi.

The investigation aims to determine whether these undertakings have violated Article 4 of the Act No. 4054 by determining resale prices and/or restricting the online sales of their resellers.

It is essential to note that the investigation decisions announced by the Competition Board do not imply that the undertakings under investigation have violated the Act or will be subject to penal sanctions. The announcements are solely intended to inform the public about the decisions of the Competition Board.

Turkish Competition Authority

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