How To Prove A California Price Fixing Claim

 

How To Prove A California Price Fixing Claim

 

In California, a claim of Price Fixing is defined as:

The illegal establishment of prices and discount rates by a conspiracy of the people or companies who sell related goods or services.

It simply means:

Sellers who should be in competition cannot make a secret agreement to keep prices at a certain level.

There are 3 elements of the claim:

  • Element 1. The defendant and others agreed to fix, set, raise, lower, maintain, or stabilize prices charged or to be charged for a product or service. The defendant and others worked together to control the prices of a product or service, either by agreeing to raise, lower, or keep them the same, which is illegal because it limits competition and harms consumers.

    Facts that might support this element look like:

    * The defendant participated in a series of meetings with competitors where they discussed pricing strategies for their products.
    * Emails between the defendant and other companies revealed explicit agreements to raise prices on specific items.
    * The defendant’s sales reports showed a coordinated increase in prices that aligned with competitors’ pricing changes.
    * Testimonies from former employees indicated that the defendant instructed staff to adhere to agreed-upon price points set by the group.
    * Market analysis demonstrated that price fluctuations among competitors occurred simultaneously, suggesting collusion rather than independent decision-making.

  • Element 2. Plaintiff was harmed. In a price-fixing claim, the plaintiff must show that they suffered a negative impact, such as paying higher prices or losing money, because companies illegally agreed to set prices instead of letting competition determine them.

    Facts that might support this element look like:

    * The plaintiff experienced a significant increase in the prices of essential goods due to the alleged price-fixing scheme.
    * The plaintiff’s business suffered a loss of customers as consumers sought cheaper alternatives in response to inflated prices.
    * The plaintiff incurred additional costs that directly resulted from the inability to compete with artificially high prices set by the defendants.
    * The plaintiff’s profit margins were severely impacted, leading to reduced revenue and financial instability.
    * The plaintiff was forced to raise prices for their own products, resulting in decreased sales and customer dissatisfaction.

  • Element 3. Defendant’s conduct was a substantial factor in causing the plaintiff’s harm. The defendant’s actions played a significant role in causing the harm suffered by the plaintiff, meaning that what the defendant did directly contributed to the problems the plaintiff experienced, which is a key part of proving a price-fixing claim.

    Facts that might support this element look like:

    * The defendant engaged in secret meetings with competitors to set prices, directly influencing market rates.
    * Evidence shows that the defendant’s pricing strategies were communicated to other companies, leading to uniform price increases across the industry.
    * The defendant’s actions resulted in a significant reduction in competition, causing consumers to pay higher prices for goods.
    * Internal documents reveal that the defendant acknowledged the impact of their pricing decisions on market dynamics.
    * The defendant’s conduct led to a measurable decline in sales for competitors who did not participate in the price-fixing scheme.

(See California Civil Jury Instructions (CACI), No. 3400. Freeman v. San Diego Assn. of Realtors(1999) 77 Cal.App.4th 171, 188-189.)
If you’re in court without a lawyer and plan to assert a Claim of Price Fixing, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively navigate your legal journey.

Prove Your CA Price Fixing Claim

U.S. Civil Cases Only

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