Herman Miller Settles Minimum Advertised Price Dispute
Herman Miller Settles Minimum Advertised Price Dispute with New York Attorney General
March 2008
Herman Miller, Zeeland, Mich., announced Tuesday it will pay $750,000 to settle an inquiry by New York’s Attorney General into the manufacturer’s Minimum Advertised Price Program.
According to press reports, New York launched an inquiry in 2003 into Herman Miller’s actions to cut shipments to retailers that sold its popular Aeron chair for less than $949. With the consent decree announced Tuesday, Herman Miller for the Home agreed to pay $750,000 that will be divided between the states of New York, Michigan and Illinois, Herman Miller’s announcement stated. The company is prohibited from entering into agreements with retailers related to its Minimum Advertised Program until Dec. 31, 2010.
Herman Miller CEO Brian Walker said, “Our determination to settle was a purely pragmatic business decision that will allow us to eliminate the continuing distraction and expense of the investigation and instead focus on sustaining the success we’ve enjoyed with the Herman Miller for the Home business.”
According to press reports, New York launched an inquiry in 2003 into Herman Miller’s actions to cut shipments to retailers that sold its popular Aeron chair for less than $949. With the consent decree announced Tuesday, Herman Miller for the Home agreed to pay $750,000 that will be divided between the states of New York, Michigan and Illinois, Herman Miller’s announcement stated. The company is prohibited from entering into agreements with retailers related to its Minimum Advertised Program until Dec. 31, 2010.
Herman Miller CEO Brian Walker said, “Our determination to settle was a purely pragmatic business decision that will allow us to eliminate the continuing distraction and expense of the investigation and instead focus on sustaining the success we’ve enjoyed with the Herman Miller for the Home business.”
