Case Description
In 2000, after a lengthy four-year investigation led by Florida, Plaintiff States filed a complaint against Defendant distributors and retailer defendants, alleging that the defendants implemented unlawful stringent minimum advertised prices (MAP) policies in order to bring price competition for CDs from discounters to a halt. Once in place, violation of these MAP policies by retailers resulted in far-reaching economic consequences, such as loss of all promotional funds. Defendant companies agreed to a settlement amount of $67.4 million, a majority of which was distributed directly to consumers. An additional $75.7 million worth of CDs were distributed to non-profit organizations, charitable groups, and governmental entities such as schools and libraries. Defendants were also enjoined from violating state and federal antitrust laws. This case was originated by Florida in 1996. All but eight state Attorneys General participated in the settlement. The eight States not represented by Attorneys General were represented by private class action attorneys. The Federal Trade Commission brought a separate action resulting in injunctions against MAP policies.