Tire Price-Fixing Scandal: Industry Collusion Revealed

The Great Tire Price-Fixing Scandal: How Major Tire Manufacturers Colluded to Fleece Consumers

Imagine buying a new set of tires for your vehicle, only to discover that you've been paying inflated prices due to a secret cartel of tire manufacturers colluding to fix prices. This is the reality faced by countless consumers in the United States, as alleged in a recent class action lawsuit against major tire producers. The suit, Torres v. Continental Aktiengesellschaft et al., exposes a brazen scheme to artificially inflate tire prices, harming both individual consumers and small businesses. In this article, we'll delve into the details of the case, highlighting the companies involved, their alleged wrongdoings, and the potential impact on consumers.

The Companies in Question

The lawsuit names several prominent tire manufacturers, including Continental Aktiengesellschaft, Continental Tire the Americas, Michelin North America, Nokian Tyres, The Goodyear Tire & Rubber Company, Pirelli & C. SpA, Bridgestone Corporation, and Bridgestone Americas. These companies are household names, known for their supposed competition in the tire market. However, the lawsuit suggests that this competition was nothing more than a facade, as they worked together to manipulate prices and reap profits at the expense of unsuspecting consumers.

The Allegations

The class action complaint alleges that these tire manufacturers engaged in collusive pricing, ensuring that prices for replacement tires remained artificially high. This was achieved through a combination of communication, coordination, and the use of revenue management software. The defendants allegedly monitored each other's prices, adjusting their own prices accordingly to maintain a consistent profit margin. This resulted in a lack of genuine competition, which would have otherwise led to lower prices for consumers.

The lawsuit also highlights the involvement of unnamed defendants, referred to as "Does," suggesting that the scope of the conspiracy may be even broader than initially thought. The alleged activities took place between January 1, 2020, and the present, with the plaintiff seeking damages for treble damages, injunctive relief, and other remedies under the federal antitrust laws.

The European Union Investigation

The European Commission has also launched dawn raids into suspected price coordination among these companies, signaling a growing global concern about the tire industry's practices. This investigation could potentially uncover further evidence of collusion, reinforcing the allegations made in the class action lawsuit.

Damages Claims

The lawsuit seeks damages for direct purchasers of tires from the defendants between January 1, 2020, and the termination of the alleged anticompetitive conduct. This includes individuals and small businesses that purchased tires for their vehicles, as well as those who purchased tires for resale. The plaintiff argues that these parties have suffered financial harm due to the inflated prices resulting from the collusive pricing scheme.

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Jurisdictional Basis

The lawsuit invokes subject matter jurisdiction under Sections 4 and 16 of the Clayton Act, which grant federal courts the authority to hear cases related to antitrust violations. Personal jurisdiction is established due to the defendants' targeted business activity towards the Southern District of New York. Venue is appropriate per Sections 4, 12, and 16 of the Clayton Act, as the defendants conduct business and have a presence in the district.

Interstate Commerce Effects

The alleged harm to interstate commerce is a critical aspect of the lawsuit. The defendants' collusive pricing scheme has had a ripple effect throughout the tire market, impacting consumers and businesses across state lines. This interstate commerce aspect strengthens the case for federal jurisdiction and underscores the need for robust antitrust enforcement.


The Torres v. Continental Aktiengesellschaft et al. class action lawsuit sheds light on the tire industry's alleged price-fixing scheme, highlighting the harm caused to unsuspecting consumers. The collusive pricing scheme, which has been ongoing since January 1, 2020, has resulted in artificially inflated tire prices, affecting both individual consumers and small businesses. As the case progresses, it's essential for consumers to remain vigilant and aware of the potential impact on their wallets. If you've purchased tires during this timeframe, you may be eligible to join the class action lawsuit and seek compensation for the harm you've suffered.

We urge readers who have purchased tires from the defendants to consider joining the class action lawsuit. Your participation can help hold these companies accountable for their alleged wrongdoing and ensure that consumers are protected from such anticompetitive practices in the future. Don't hesitate to contact us if you have any questions or concerns about the lawsuit or the tire industry's practices. Together, we can fight against corporate greed and advocate for a fair marketplace.

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