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Polish consumer watchdog fines Kia Polska over PLN 405 million for price-fixing scheme

01.10.2024 15:45
Poland’s consumer protection watchdog, UOKiK, has imposed fines totaling over PLN 405 million (USD 104.7 million) on Kia Polska and 11 of its dealers for colluding on car prices and dividing the market.
A KIA showroom.
A KIA showroom.Shutterstock/Tricky_Shark

According to a statement issued by UOKiK on Tuesday, the agency found that Kia Polska and its dealers had engaged in illegal practices, preventing consumers from freely choosing their car dealer and limiting competition on prices. The dealers had not only agreed on vehicle prices, but also divided geographical areas for sales, further restricting customer options.

The statement from UOKiK explained: "Kia Polska provided dealers with price lists and informed them about the maximum allowable discounts. The dealers complied with these arrangements and refused to offer potential customers any deals better than those offered at other showrooms."

Additionally, Kia Polska monitored compliance through regular visits and email communications, reprimanding dealers who sold vehicles at lower prices. Dealers also informed each other about any breaches of this illegal agreement.

Furthermore, dealers were instructed to only sell vehicles to customers from their local area. If a customer from another region inquired about a vehicle, they were redirected to the dealer nearest to them. In some cases, customer contact details were even shared between dealers.

Kia Polska was fined PLN 331 million (USD 85.6 million), while the dealers received a collective fine of PLN 74 million (USD 19.1 million).

(jh)

Source: PAP