Nine West Caught Engaging In Price Fixing

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Nine West Caught Engaging In Price Fixing

Nine West Caught Engaging In Price Fixing

Nine West Caught Engaging in Price Fixing
Nine West, a large supplier of women's shoes, was accused of price fixing, among retailers, of various Nine West brands. On March 6th, 2000 Nine West agreed to pay $34 million; all of the money collected will be used to fund various women's health programs. The settlement barred Nine West from any further illegal activity. Not only had the company initiated price fixing, but they had also effectively restricted the times in which retailers could run promotions. Any retailer that attempted to go against the policies, set forth by Nine West, was threatened. The settlement barred Nine West from fixing the price at which dealers may advertise, promote, offer for sale or sell any product. Nine West was also barred from requiring, coercing or otherwise pressuring dealers to maintain, adopt, or adhere to any resale price. Finally, the settlement stated that Nine West was not to notify dealer that their supply of the product would be decreased if they did not sell at a minimum price. The Commission voted to accept the agreement with a 5-0 vote. Nine West must issue a disclaimer that will let retailers know that they now have the freedom to set their own prices for Nine West products. Included in the settlement, was a provision that gave the FTC the right to monitor Nine West, by reviewing their record keeping. It was noted in the article that Nine West was acquired by Jones Apparel Group, after the alleged price fixing occurred.

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