Price-fixing investigation at IUPUI

IU-Purdue University at Indianapolis is refunding an estimated $500,000 to current and previous students who were enrolled in classes between July 2001 and December 2002. \nIn November 2002, a routine internal audit revealed possible price-fixing activity at two IUPUI bookstore locations, which means two or more businesses agree to set a certain price in a particular market, thereby destroying competition and restricting the market from dictating price. \nSince IUPUI bookstores are owned and operated by the university, the school is offering refunds to its students. IUPUI students who were enrolled during the 18-month time period can visit a Web site where claims are calculated. \n"Students seem pleased that the issue was reported by the university and that a restitution plan is now being implemented," said Cheryl Sullivan, IUPUI vice chancellor of external affairs. "The refunds are based on enrollment, credit hours and the textbooks needed for each class. Most students get about a $5 refund." \nThe elimination of a 10 percent sale on health and science textbooks along with an overall 2 percent increase on all textbooks at the IUPUI bookstores led IU auditors to believe that illegal price fixing had occurred at the bookstores during an 18-month period in 2001 and 2002. \nIn the late fall of 2002, IUPUI authorities contacted the U.S. Department of Justice and reported the incident. The Department of Justice Antitrust Division is handling the case currently and investigating the presence of third-party involvement. \nAccording to a May 23 article in the Indianapolis Star, the Justice Department "has granted IUPUI conditional amnesty under a corporate leniency program available to businesses and organizations that report antitrust activity and cooperate with the government's investigation. In return, IUPUI will not be prosecuted." \nAs for an internal investigation, "IUPUI is currently dealing with personnel matters," Sullivan said. \nAccording to Sullivan, IUPUI bookstores will include "anti-trust information in their future training of employees." \nWhen asked what IU-Bloomington authorities do to prevent such activities from occurring at Bloomington bookstores, IU spokeswoman Jane Jankowski said IU conducts internal audits to monitor businesses. \n"Just because (price fixing) happened at IUPUI doesn't mean it happened here," she said. \nThe IU Internal Auditor office, which handles the finances of both IUPUI and IUB, could not comment on the case since the investigation is ongoing. \n"I just hope that this stuff does not happen here, because we pay a lot already when it comes to books," said IUB sophomore Jordan Seeder. "I expect that the University is making sure that this type of activity does not play out again at IU"