FREE ESSAY ON 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.