German federal court bans Wal-Mart from price dumping

After German retailers complained that Wal-Mart and other large retailers were selling some items below cost, the federal court got involved. In a ruling issued this month, the courts have forbidden the retailers from selling products below their cost. The court stated that selling below cost unfairly harmed smaller retailers who couldn’t compete. The problem began in 2000 when Wal-Mart was engaged in a price war involving milk with two other stores. At that time, the Federal Cartel office ruled against the price dumping.