Telescope manufacturers face class action lawsuit for alleged price fixing
A settlement totaling $32 million has been reached in a class action lawsuit involving major telescope producers that are accused of price fixing within the U.S. amateur telescope market. The Chinese family-run companies, Synta Technologies and Ningbo Sunny, are at the center of the allegations, claiming that they engaged in monopolistic practices, price fixing, and market division to suppress competition and control prices. This legal battle has impacted a range of popular telescope brands like Celestron, Meade, Olivon, and Sky-Watcher, causing concern among amateur astronomers who may have unknowingly purchased products under these circumstances. Individuals who acquired telescopes made by Synta-related companies within the specified period from January 1, 2005, to September 6, 2023, can claim compensation from the settlement until May 20, 2025. The U.S. District Court in San Jose approved this class action settlement in November, allowing affected users to pursue reimbursement.
A significant discovery in the telescope industry occurred when the now-defunct Orion Technologies filed a lawsuit in 2016, exposing the unethical practices of the Taiwan-based Synta Technology. This legal battle culminated in a victory for Orion in 2019, holding Synta Technology and its Chinese counterpart, Ningbo Sunny, accountable for manipulating the amateur telescope market in the U.S. Legal documents from the class action highlight the intricate connections between the companies, controlled primarily by David Shen and the Synta family, which enabled them to exert undue influence in the industry. Despite the discovery and subsequent accountability for their actions, Synta Technology and Ningbo Sunny managed to acquire reputable telescope brands and control market segments without facing significant consequences, leading to a detrimental impact on the competitive landscape and the pricing structure of the market.
The Federal Trade Commission intervened when Synta attempted to acquire Meade, a prominent telescope manufacturer, due to antitrust concerns in 2013. Despite the regulatory efforts to prevent monopolistic control over the market, Ningbo Sunny succeeded in acquiring Meade with the assistance of Synta. Through strategic agreements, Synta and Ningbo Sunny planned to divide the market segments and avoid direct competition with each other. Synta focused on premium products through the Celestron brand, while Ningbo Sunny targeted cost-effective solutions under the Meade label, effectively eliminating viable competition within the industry. The absence of healthy market competition resulted in consumers overpaying for telescopes, as the conspiring companies controlled prices and product offerings in their favor, disadvantaging other competitors.
The detrimental impact of the price-fixing conspiracy has driven several companies out of business or forced them to divest their telescope divisions due to the inability to sustain operations in the monopolistic market. The closure of prominent telescope manufacturers, like Orion in 2024, signifies a distressing trend in the industry, highlighting the consequences of anticompetitive practices. The recent class action settlement aims to address the grievances of consumers who unknowingly fell victim to the price-fixing scheme perpetuated by Synta Technology and Ningbo Sunny within the U.S. amateur telescope market. By providing affected individuals with the opportunity to receive compensation, the settlement seeks to rectify the injustices caused by these companies’ unethical actions and restore integrity to the telescope industry, paving the way for a fair and competitive marketplace for amateur astronomers.
