Thursday, May 19, 2011
Posted by D. Daniel Sokol
Michael A. Lindsay (Dorsey & Whitney) explores Recent RPM Enforcement in NewYork and California.
ABSTRACT: Two recent enforcement actions in California and New York illustrate the continuing uncertainty that businesses face in designing and implementing resale price maintenance (RPM) programs.1 In People v. Bioelements, Inc., the California Attorney General obtained a consent decree against a Colorado company that had RPM agreements with its independent resellers.2 But in People v. Tempur-Pedic, International Inc., the New York Attorney General sought to enjoin an RPM program— and lost a contested trial court proceeding. What can companies learn from these two enforcement actions?