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Sat Dec 29, 2012, 03:47 PM

 

Dial (soap) sues Fox for Mafia-like business practices

News Corp – the parent corporation of Fox News – is finding itself in even more hot water, with new accusations filed in court this morning. The Dial Corp, makers of soap, personal-care and household cleaning products, have filed suit against News Corp along with subsidies News America, News America Marketing FSI, and News America Marketing In-Store Services, alleging that the company engaged in anti-competitive and illegal practices in order to monopolize the market, even forcing competition out of business through its illegal and immoral tactics. The accusations are lengthy, detailed, and specific, and paints a picture of a company out of control.

The new lawsuit opens up a can of worms, looking into the heart of the News Corp advertising divisions and finding tactics which even News America Inc.’s Chief Operating Officer, Paul Carlucci, compared to those used by Al Capone in the movie “The Untouchables.” The allegations continue, detailing out threats by Mr. Carlucci to fire anyone “concerned about doing the right thing” and not supporting the firms aims of eliminating competition in the retail advertising space..

How the tactic worked was as simple as it was devastating to the market. There are only a handful of nationwide print advertisement firms. These firms set up the inserts which go in newspapers nationwide. These inserts are key to promotions for many businesses, including Dial. In addition, there are in-store promotions also handled through these agencies. What the lawsuit alleges is that News Corp is doing is using its numerous other businesses, such as its extensive newspaper holdings, to force companies into exclusive advertising contracts. This locks these businesses out from advertising elsewhere. If enough businesses are forced to a News Corp advertising contract, they can now go to their newspapers competitors and force those into exclusive contracts...

http://www.addictinginfo.org/2012/12/26/fox-parent-company-being-sued-for-using-mafia-like-business-tactics/

BTW, I wonder if Paul Carlucci is any relation to Frank...

http://en.wikipedia.org/wiki/Frank_Carlucci




22 replies, 3420 views

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Arrow 22 replies Author Time Post
Reply Dial (soap) sues Fox for Mafia-like business practices (Original post)
HiPointDem Dec 2012 OP
Last Stand Dec 2012 #1
AnotherMcIntosh Dec 2012 #2
pacalo Dec 2012 #7
csziggy Dec 2012 #16
dixiegrrrrl Dec 2012 #3
otohara Dec 2012 #4
HiPointDem Dec 2012 #5
pacalo Dec 2012 #6
otohara Dec 2012 #22
valerief Dec 2012 #9
TahitiNut Dec 2012 #20
DirkGently Dec 2012 #8
Rain Mcloud Dec 2012 #10
yends21012 Dec 2012 #14
Marr Dec 2012 #11
DollarBillHines Dec 2012 #12
1KansasDem Dec 2012 #19
DollarBillHines Dec 2012 #21
OnyxCollie Dec 2012 #13
JDPriestly Dec 2012 #15
libodem Dec 2012 #17
Berlum Dec 2012 #18

Response to HiPointDem (Original post)

Sat Dec 29, 2012, 03:55 PM

1. Like ticketmaster does

by having exclusive contracts with certain arenas.

Same slimeball anti-free-market bullshit.

These companies only cry free-market when it suits them.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 04:09 PM

2. Good. More details can be found here:

 

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Response to AnotherMcIntosh (Reply #2)

Sat Dec 29, 2012, 04:35 PM

7. This...

In the first market, in-store promotions, Dial claims News Corp. used exclusive contracts to deny competitors access to distribution through retail chains.


... may explain why it's such a hit & miss to find Dial's cherry/almond scented hand soap on Winn Dixie's or Walmart's shelves.

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Response to pacalo (Reply #7)

Sat Dec 29, 2012, 05:49 PM

16. Or Dial Basics hypoallergenic soap practically anywhere!

I used to be able to find it at a lot of different stores, though I mostly bought it where I shopped for groceries. Then that store stopped carrying Basics and only Dollar Stores carried it in my area. Dollar quit selling it and we could not find it anywhere except Big Lots.

I called Dial and they claim they are not discontinuing the soaps, but the only place they say it is now sold here is Harvey's supermarket chain. I have no idea where there is one of those in this area!

My husband has been cleaning out the bars sold at Big Lots. At one bar per month, I have something like a 15-20 year supply. Since it is the only soap I have been able to use for the last 20 years, I hope soaps stores well!

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 04:11 PM

3. Don't you just love when the sharks start fighting each other?

and of course the motive is always money.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 04:15 PM

4. I'd Like To Sue Dial

for making products that make people sick, and stop with the disgusting fragrances.

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Response to otohara (Reply #4)

Sat Dec 29, 2012, 04:17 PM

5. link to the part about making people sick? (they make fragrance-free, you know...)

 

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Response to HiPointDem (Reply #5)

Sat Dec 29, 2012, 04:27 PM

6. Fragrance-free, absolutely. I happen to love Dial's cherry-almond scented hand soap.

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Response to HiPointDem (Reply #5)

Sat Dec 29, 2012, 09:45 PM

22. Here - Triclosan

http://www.nytimes.com/2011/08/20/business/triclosan-an-antibacterial-chemical-in-consumer-products-raises-safety-issues.html?pagewanted=all&_r=0

I don't use petroleum based soaps period. Not on my body, dishes, laundry, shampoo, etc.....the fragrances are also petro based. Dryer sheets are bad news too, the film left on clothes will catch fire if it's too thick.

Mostly these products fuck with the hormones - girls getting periods and breasts sooner and they harm the unborn child...also allergies and migraines. Shit they just are bad, the chemicals go into our water, air..bad products. Use plant based renewable oil products.

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Response to otohara (Reply #4)

Sat Dec 29, 2012, 04:54 PM

9. I hate the fragrances, too. nt

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Response to otohara (Reply #4)

Sat Dec 29, 2012, 06:58 PM

20. I refuse to purchase/use anything with added fragrances.

Soap, shampoo, deodorant, aftershave ... ONLY fragrance-free. It disgusts me how polluted indoor offices, stores, theaters, elevators, and other enclosed highly-trafficked areas are with the chemical STINKS sold as 'fragrance.' I refuse to wear cologne or ANY scent whatsoever.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 04:39 PM

8. It's almost as if consolidation is anti-free market. Or something.

Last edited Sat Dec 29, 2012, 06:55 PM - Edit history (1)

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:18 PM

10. I heard a similar story

 

from a salesman friend,who i had to promise not to tell but he has passed on so.........
A mom and pop store in a rural town decided to close the store but decided a sale would be a good way to offload their merch and to thank their loyal customers..
They slashed prices on everything and retired.
A WallyWorld mystery shopper noted the sale in the local fish wrapper and forwarded the advert to corporate.
A team of lawyers representing WallyWorld visited the CEO of USA Batteries and demanded a one million lot sale of batteries at price which set the wholesale cost at less than 50% of the cost of manufacture.

The Battery Company was stuck for it having signed a contract to provide WallyWorld with batteries at a cost based on percentile beneath competitors sales prices.

The battery company was bankrupted and WallyWorld bought them out and moved the manufacturing equipment to China.
Carville is right,Corporations want less government for the same reason that criminals want less cops.

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Response to Rain Mcloud (Reply #10)

Sat Dec 29, 2012, 05:43 PM

14. Very well said.

Corporations want less government for the same reason that criminals want less cops.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:29 PM

11. I believe they were saying something about "union thugs"...

Hmm. No wonder their minds drift so easily in that direction.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:31 PM

12. Like WalMart does with small-town newspapers

When a store opens, WalMart quickly establishes its store as the largest advertising client of the local newspaper. Then, as locally owned retailers begin to close due to WalMart's cheap crap replacement goods, WalMart closes the deal by demanding that the local newspaper not sell ads to any Mom-and-Pop that WalMart deems to be a "competitor". Then, when most of the local independent retailers have thrown in the towel, WalMart stops buying ads in the local paper.

Then, the local paper shuts down.

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Response to DollarBillHines (Reply #12)

Sat Dec 29, 2012, 06:30 PM

19. Have any links to news stories on this tactic?

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Response to 1KansasDem (Reply #19)

Sat Dec 29, 2012, 06:58 PM

21. No links, I just know a family that it happened to.

5th-generation newspaper publishers.

They were gone within three years of the local WalMart's opening.

I have nothing but contempt for the people who shop at those horrible places.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:32 PM

13. More mafia-like tactics from News Corp.

Alleged computer hacking of N.J. company by News Corp. subsidiary gets new attention
http://www.nj.com/business/index.ssf/2011/07/alleged_computer_hacking_of_nj.html

Richard and George Rebh built an innovative business advertising on floor mats in grocery stores and were named New Jersey Entrepreneurs of the Year, but then a News Corp. marketing subsidiary set out to crush FLOORgraphics by a variety of questionable methods, according to court complaints by the Rebhs—including computer hacking.

~snip~

In the middle of a trial in Trenton in 2009 regarding the lawsuit filed by the Rebhs, News Corp.’s subsidiary, News America Marketing In-Store Services, settled the case and then bought the Hamilton Township company in a 2009 deal worth about $30 million that requires the Rebhs to keep quiet about the case.

~snip~

"News employed numerous illicit tactics in a prolonged and concerted effort to destroy (FLOORgraphics)," said a complaint filed by the company in 2006.

The complaint alleged that among other tactics, News America Marketing engaged in illegal computer espionage by breaking into FLOORgraphics’ password-protected computer system and obtaining proprietary information.

...

Want to hear something funny*?

Viet Dinh, the author of the USA PATRIOT Act (which allowed domestic eavesdropping), is on News Corp's board of directors.

News Corp newspapers commit widespread phone hacking overseas.

Barack Obama was the top recipient of News Corp campaign contributions this year.

Barack Obama approves legislation extending Bush era domestic surveillance.

*Not "funny ha ha"

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:44 PM

15. A court might find these practices to be unfair and, if so, News Corp might be forced to sell some

assets off. That would mean it would have less monopolistic clout, be less of a vertical monopoly, feeding products to itself to the extent that it squeezed out upstarts -- i.e., creativity.

We shall see how this turns out, but there is a small chance this lawsuit could change our advertising scene somewhat. Maybe not that much of a chance, but a small chance.

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 05:52 PM

17. Nice to know

What the Supreme Court, considers people. People like, Rmoney's vulture capitalism, are now human. No conscience, no feelings, no morals, no ethics, no consequences, no law, no judgement, no jail, but they are 'people', with all the constitutional rights and protections, for citizens. But we go to jail. They don't.

No wonder people justify shitty behavior. Look at what making money at any human cost, gets you. This is the real rape culture.


FUCK CORPORATE PERSONHOOD. Are they male or female persons? Huh? What sex are these humans?

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Response to HiPointDem (Original post)

Sat Dec 29, 2012, 06:28 PM

18. Fox (R) embodies Republican Family Criminal Values

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