Ralph Lauren Corp. Made Illegal Overseas Payments

Ralph Lauren Corp. (New York) has agreed to pay about $1.6 million to resolve charges that it made illegal payments and gifts to foreign officials.

The company said it discovered, through an internal audit, a series of bribes paid to officials in Argentina from 2005 to 2009, including perfume, dresses and handbags. According to court filings, it promptly reported those violations of the Foreign Corrupt Practices Act to the U.S. government.

The violation is similar to the one being charged against Walmart Stores Inc. (Bentonville, Ark.), related to potential bribery in its Mexican operations.

The Argentine subsidiary of Ralph Lauren apparently paid custom officials about $593,000 in bribes over a four-year period to import its goods into the country while avoiding customs inspections and related paperwork. A number of Argentine government officials were also said to have been given gifts, including the company’s Ricky handbag, which today retails for as much as $22,500.

Argentina is said to have unusually strict import controls and is considered a difficult place for American corporations to do business. Federal regulators have brought several anti-bribery actions in recent years against companies doing business in Argentina. Ralph Lauren Corp. has since closed its Argentine operations.