The New York attorney general’s office has filed a lawsuit against Lexington, Ky.–based Tempur–Pedic International. The suit seeks an injunction barring the mattress maker from enforcing its retail pricing policy. The suit also seeks restitution for New York consumers who, the attorney general says, have paid too much for the company’s mattresses because of the pricing policy.
In a statement, Tempur–Pedic Chief Executive Officer Mark Sarvary expressed disappointment with the action, noting that the company had cooperated fully in a prior antitrust investigation conducted by the state. The company also noted that the attorney general has not charged Tempur–Pedic with violating any state or federal antitrust laws, but complains that the company violated a 1975 New York law that declares certain contractual provisions to be unenforceable.
“We believe the attorney general’s claim that Tempur–Pedic violated state law is simply wrong and we intend to defend the case vigorously,” Sarvary said.
The lawsuit claims that Tempur–Pedic’s retail partner agreement has provisions that violate New York law, as well as the competitive conditions of a free market. Tempur–Pedic explicitly states it will not do business with any retailer who charges retail prices that differ from those set by the manufacturer, according to the attorney general. The complaint also details Tempur–Pedic’s enforcement methods, which include encouraging retailers to report competitors who are selling the company’s products below the minimum established price.
