Crushing Competition: How Price-Fixing Stifles Innovation in America

The United States has long been admired for its robust and competitive marketplace. This environment, where businesses vie for customers through quality, efficiency, and innovation, fuels economic growth and benefits consumers. However, a hidden threat lurks beneath the surface, sometimes hiding in plain sight – price-fixing.

Price-Fixing: A Dishonest Agreement with Devastating Consequences

Price-fixing occurs when competitors illegally agree to set prices for goods or services. This eliminates the natural competition that drives down costs and incentivizes innovation. Instead of focusing on developing better products or services, companies involved in price-fixing schemes can simply maintain the status quo and reap higher profits.

Innovation Stifled: The Ripple Effect of Price-Fixing

The consequences of price-fixing extend far beyond inflated prices. When competition is stifled, there's less pressure for businesses to innovate. Research and development efforts stagnate, leading to a lack of new products, services, and technologies. Consumers lose out on the benefits of innovation, such as greater efficiency, improved functionality, and potentially lower prices.

A Case in Point: Protecting Innovation in Competitive Cheer

The Joseph Saveri Law Firm is currently representing cheer families in a lawsuit against Varsity Brands, LLC, which alleges price-fixing in the competitive cheer market. Just as innovation fuels progress in other industries, it's essential in competitive cheer. As lead attorney Joseph Saveri commented:

“When we think of competitive cheer, we think of healthy, fun activities that benefit our children’s lives. We don’t think of corporations abusing their monopoly power and dominance of this industry. Unfortunately, that’s what Varsity and their co-conspirators are engaged in here, forcing athletes and their families to pay inflated prices for Varsity’s competitions, camps, and uniforms. Without relief, cheer families will continue to be financially impacted by this monopolistic behavior.”

By investigating potential price-fixing in this area, we aim to ensure a fair and competitive market that allows innovation to flourish within the world of competitive cheer. Learn more about this case here.

In addition to Varsity Cheer, we are currently handling and have successfully litigated many other price-fixing cases, including Capacitors price-fixing antitrust litigation, which resulted in $604.55 million total settlement relief awarded to our clients. 

Protecting Consumers and Fostering Innovation: The Joseph Saveri Law Firm's Commitment

Our firm understands competition's critical role in a healthy economy. We are committed to fighting on behalf of consumers to protect them from the harmful effects of price-fixing. Together, we can ensure a fair and competitive marketplace that rewards innovation and benefits all participants.