Smells Like (Dirty) Money
Several of the world’s largest fragrance and fragrance-ingredient manufacturers are under investigation and facing class action lawsuits for alleged collusion to inflate prices. As a brand, maker or buyer of fragrance oils or scented products, the outcomes could affect ingredient costs, contracts and supply-chain transparency.
Key Takeaways
- 01Competition authorities in the U.S., the EU, the U.K. and Switzerland opened fragrance-ingredient investigations in 2023; U.S. class actions followed in federal court in New Jersey.
- 02The civil claims cover purchases from the named suppliers over a class period beginning 1 January 2018. No supplier has admitted wrongdoing.
- 03As of September 2026 the DOJ has closed its criminal file on Symrise, the U.K. and EU cases are still open, and two suppliers have proposed civil settlements.
- 04What a brand can do now: keep invoices from 2018 onward, ask suppliers for sourcing and pricing transparency, and re-read contract escalation clauses.
What’s Going On?
In 2023, regulators in Switzerland (Swiss Competition Commission / COMCO), the European Commission, the U.S. Department of Justice Antitrust Division (DOJ), and the U.K. Competition and Markets Authority (CMA) launched investigations into potential cartel behaviour in the fragrance-ingredients market. Cosmetics Business
A key class-action complaint (Crimson Candle Supplies LLC v. defendants) filed in U.S. federal court alleges that from at least January 1, 2012, major suppliers conspired to allocate customers and restrict production so they could maintain elevated prices.
Who’s Involved?
| Givaudan SA | (Switzerland) |
| DSM‑Firmenich AG | (Switzerland / Netherlands) – result of merger |
| International Flavors & Fragrances Inc. | (IFF, USA) |
| Symrise AG | (Germany) |
Other companies named include Agilex Flavors & Fragrances, Inc., Ungerer & Company, Inc., and Custom Essence Inc.. Class Action
Key Developments to Date
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February 2025: U.S. District Judge William J. Martini (District of New Jersey) denied motions to dismiss the lawsuits filed in 2023, allowing direct and indirect purchaser claims to proceed. FashionNetwork
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October 2025: IFF announced a proposed settlement of US $26 million for direct-purchaser claims covering purchases from Jan 1 2018 through Dec 31 2023, including a cooperation clause for further cases. USA Herald - The People's Voice
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The broader European investigation is ongoing and could lead to substantial fines under EU cartel rules (potentially up to ~10% of global turnover). Next In Beauty Mag
Where Things Stand as of September 2026
Three years on, the four tracks have separated. The U.S. criminal investigation has been closed as to at least one named supplier, the U.K. and EU competition files are still open, and two of the four suppliers have proposed civil settlements in New Jersey without admitting liability. This is a summary of public announcements and filings, not legal advice.
| Track | Where it stands | Source |
|---|---|---|
| U.S. DOJ (criminal) |
Closed as to Symrise. The Department of Justice wrote to the company on 5 February 2026 to say it was closing its investigation; Symrise states that no unlawful practice on its part was found. The closure speaks to Symrise, not to the other suppliers. | Symrise, 9 Feb 2026 |
| U.K. CMA (case 51257) |
Open, against Firmenich International SA, Givaudan SA and International Flavors & Fragrances Inc. The CMA closed its investigation of Symrise AG in May 2025 on administrative-priority grounds, and in January 2024 extended the case to suspected coordination over the hiring of fragrance staff. The case page schedules its next public update for September 2026. | CMA case page |
| European Commission |
Case AT.40826 has produced no published infringement decision. The one fine issued so far is procedural, not substantive: in June 2024 the Commission fined IFF €15.9 million for deleting WhatsApp messages during an inspection in the case. | Commission, 24 Jun 2024 |
| U.S. class actions |
IFF settled with all three plaintiff groups rather than proceed through discovery, for an aggregate US $44 million. DSM-Firmenich agreed a US $33 million direct-purchaser settlement, preliminarily approved 4 August 2026, stating that it does not admit liability. Givaudan and Firmenich remain defendants. The class period runs 1 January 2018 to 18 April 2023. | Greenberg Traurig · Cosmetics Business |
Two practical readings for a buyer. First, a closed investigation is not a closed case — a supplier cleared in one jurisdiction can still be a defendant in another. Second, the settlements now carry cooperation clauses, which means the record in the remaining civil claims is likely to keep growing rather than go quiet.
Why This Matters for You
Whether you’re a brand buying fragrance oils or a manufacturer formulating scented products, several implications arise:
Ingredient pricing risk: If collusion is confirmed, past overcharges may lead to repayments—while future pricing may remain volatile.
Supply-chain transparency: Brands will likely face greater scrutiny of their fragrance-ingredient sourcing and cost structure.
Documentation & audit readiness: You may be asked by retailers or regulators to demonstrate non-collusive sourcing and fair purchasing.
Contract negotiation: Review fragrance-supplier contracts, escalation clauses, and ensure you’re positioned if liabilities or rebates become available.
What You Can Do Now
- Review your fragrance-oil invoices and supplier pricing from 2018 onward for dramatic hikes or unexplained cost increases.
- Ask your fragrance supplier for transparency on sourcing, pricing, and practices (e.g., are you one of several suppliers or the only source?).
- Maintain documentation of your purchase history—dates, quantities, invoices—should you need to file a claim as a direct or indirect purchaser.
- Continue to source high-quality, well-documented oils from reliable suppliers who emphasise ethical sourcing and competitive practices (like those who provide full SDS/IFRA documentation). Explore our collection: Fragrance Oils.
Frequently Asked Questions
Am I a potential class-member if I buy fragrances?
Possibly—if you purchased fragrance oils or ingredients directly (or were invoiced in the U.S.) from one of the named suppliers between Jan 2018 and Dec 2023, you may qualify in the direct-purchaser class. Indirect purchaser classes may cover brands that bought finished scented products containing those ingredients. PYMNTS.com
Has any supplier admitted wrongdoing?
No. All named suppliers deny wrongdoing. However IFF has proposed a settlement for part of the case, while investigations continue and cooperation with authorities is ongoing. USA Herald - The People's Voice
Symrise was cleared in the U.S. — does that end the case?
No. The U.S. Department of Justice told Symrise on 5 February 2026 that it was closing its investigation, and Symrise states that no unlawful practice on its part was found. That closure covers Symrise in the United States. The U.K. CMA case remains open against Firmenich International SA, Givaudan SA and IFF; the European Commission’s case AT.40826 has produced no published infringement decision; and the U.S. civil class actions continue against the suppliers that have not settled.
Will this change fragrance ingredient availability or pricing going forward?
Possibly. If antitrust findings result in fines or structural changes, competition may increase—or suppliers may raise prices to recover. Brands should monitor ingredient market conditions closely.
How does this affect finished fragrance oils I buy as a brand or maker?
Some finished oils may be affected if their ingredients came from implicated suppliers. While your current contract remains valid, you may want to double-check supplier chain transparency and keep any rebate/claim options in mind.
In Summary
The fragrance-ingredient market is under increased regulatory and legal scrutiny for alleged price-fixing and reduced competition. While the investigations are still unfolding, brands and product makers can proactively review sourcing, pricing and supplier documentation to protect themselves—and stay ahead of potential fallout.