IFF Denies Wrongdoing but Seeks Closure
IFF, based in New York City, emphasized in a statement Friday that the settlement includes no admission of liability or wrongdoing. The company said it aims to resolve related claims brought by indirect purchasers and end users “in the near future” and continues to cooperate with authorities investigating the global fragrance industry.
“The settlement allows the company to put these matters and the burden of litigation behind and focus its attention on innovation and serving its customers,” IFF said. “It avoids the costs, distraction, and uncertainty of prolonged litigation.”
IFF added that it “will continue to seek resolution of these matters with expediency” and remains in contact with global competition regulators.
Background: A Global Investigation Spurs U.S. Litigation
The Fragrance Antitrust Litigation, filed in 2023, followed coordinated international investigations by antitrust authorities in the U.S., Europe, Switzerland, and the U.K. into alleged collusion among the world’s largest fragrance ingredient suppliers.
The first complaint was filed in April 2023 by Our Own Candle Co. Inc., a New York-based manufacturer of candles, soaps, and fragrance oils, which accused the companies of fixing prices, dividing markets, and limiting supply. Separate groups of indirect purchasers and end users soon filed similar suits.
In February 2024, Judge Martini largely denied the defendants’ motion to dismiss, allowing the core conspiracy claims to proceed while trimming some state law counts from the indirect purchaser and end-user cases.
The litigation gained further momentum after the European Commission fined IFF €15.9 million ($17 million) for obstructing its probe by deleting a senior employee’s WhatsApp messages, which plaintiffs cited as evidence of collusion.
Meanwhile, the U.S. Department of Justice intervened in June 2024 to protect the integrity of its ongoing criminal investigation into the fragrance sector.
