LAWSUITS NEWS & LEGAL INFORMATION
Price War Ended
Zeeland, MI: (Mar-25-08) New York authorities brought charges against Herman Miller Inc., a furniture maker, alleging that it falsely advertised its products, limiting retail price competition. The suit was filed after an investigation into the Minimum Advertised Price Program maintained by the Herman Miller for the Home division, revealed that the program limited retail price competition by barring retailers from advertising furniture at prices below the company's set price. Records show that MI and IL state authorities also took part in the investigation, which began in 2003, and the subsequent settlement.
Sources on both sides said that the parties had reached a settlement agreement, in which Herman Miller agreed to pay $750,000, which will be divided between the states of NY, MI and IL. Additionally, Herman Miller for the Home can retain its Minimum Advertised Pricing policy, and has the authority to terminate a retailer who violates the policy. The company can suspend for one year their distribution of the wrongly advertised product. However, any action must be taken unilaterally by Herman Miller; the company can't first discuss or negotiate the issue with the retailer, but act only to enforce a penalty.
Sources said that the consent decree would apply only to the Herman Miller for the Home division and will prohibit Herman Miller for the Home from entering into agreements with its retail distributors related to the Minimum Advertised Price Program until Dec. 31, 2010. Herman Miller denies any wrongdoing, and states that it accepts no liability as part of its decision to settle. [BUSINESS WEEK: HERMAN MILLER AGREES TO $750,000 FINE]
Published on Mar-26-08
Sources on both sides said that the parties had reached a settlement agreement, in which Herman Miller agreed to pay $750,000, which will be divided between the states of NY, MI and IL. Additionally, Herman Miller for the Home can retain its Minimum Advertised Pricing policy, and has the authority to terminate a retailer who violates the policy. The company can suspend for one year their distribution of the wrongly advertised product. However, any action must be taken unilaterally by Herman Miller; the company can't first discuss or negotiate the issue with the retailer, but act only to enforce a penalty.
Sources said that the consent decree would apply only to the Herman Miller for the Home division and will prohibit Herman Miller for the Home from entering into agreements with its retail distributors related to the Minimum Advertised Price Program until Dec. 31, 2010. Herman Miller denies any wrongdoing, and states that it accepts no liability as part of its decision to settle. [
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