Dial (soap) sues Fox for Mafia-like business practices [View all]

[HiPointDem]

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