Leather company fights for right to fix process

26/03/2007

US-based Leegin Creative Leather Products, Inc., which produces the Brighton line of clothing will return to court in the

USA

on March 26, to appeal a decision against it and attempt to overturn a law that has stood since 1911, preventing manufacturers from setting a minimum price for its goods at retail. The company is fighting for the right to be able to fix the minimum sale price of its products following the discovery that one of its customers, PSKS, was selling its products at a discount.

Leegin requires its retailers to agree not to sell this clothing at a discount, in spite of a 1911 law that states that manufacturers can only impose a ‘suggested retail price’, however, having discovered that PSKS was violating the agreement by placing all Brighton clothing on sale, Leegin suspended all shipments to the retailer. As a result, PSKS sued claiming a violation of federal anti-trust laws and was awarded $1.2 million.

Leegin is now arguing that the Supreme Court should overrule the case, claiming that the court should use the ‘rule of reason’ which requires an analysis of whether the vertical price fixing in fact was anti-competitive.

Leather company fights for right to fix process - leatherbiz: Leading

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Leather company fights for right to fix process