In April 2011, Procter & Gamble and Unilever Received Fines

question 155

Multiple Choice

In April 2011, Procter & Gamble and Unilever received fines of 315 million euros by the European Commission for fixing the price of laundry detergent in eight European countries. They admitted to this cartel, which resulted in a 10 percent discount in the fines. The 3-year investigation started because of a tip-off by another competitor, Henkel, who was also part of the price-fixing scheme. Henkel received no fine because of its cooperation with investigators. Besides the fines, how did investigators make maintaining this cartel difficult to continue?

• A) by offering a 10 percent discount on the fine if the parties admit to wrongdoing
• B) by investigating the cartel for 3 years so they could prosecute
• C) by reminding consumers that laundry detergent has a lot of long-run substitutes
• D) by waiving the fine for just Henkel, which encouraged Henkel to cheat

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Definitions:

Clothing

Items worn on the body, typically made from fabrics or textiles, but can include garments made of animal skin or other thin sheets of materials, serving purposes of modesty, protection, and expressing personal style.

Attractiveness

The quality of being appealing, pleasing, or desirable to others, often influenced by physical appearance, personality, and other factors.

Symmetrical Faces

A characteristic of facial structure where both halves of the face are identical in terms of shape and size, often associated with attractiveness.

Perceived

Regarded in a certain way; the interpretation or impression of something based on one's own understanding or assessment.