Case Description
From 1989 to 1995, American Cyanamid entered contracts with several dealers pursuant to Defendant’s ‘Cash Reward on Performance’ program or a similar program named ˜Award for Professional Excellence.” These programs established a floor price to be charged by the dealers when making retail sales of CPC if the dealers wished to receive rebates from Defendant. To coerce compliance, dealers would realize profits on retail sales of CPC only by earning rebates in connection with those sales or by charging prices that exceeded the floor price. Thus, the Plaintiff States alleged that the dealers conspired with American Cyanamid to maintain the resale price of CPC’s specified in American Cyanamid’s pricing policy in order to receive the benefits of the rebates. The parties entered into a settlement agreement providing that American Cyanamid pay $7.3 to Plaintiff States and comply with an injunction restraining the company from conditioning any rebate on the resale price at which the dealer may offer for sale or sell any CPC. A portion of the settlement went to States to benefit their agricultural communities (distributed cy pres) and to reimburse investigative costs and attorneys fees. FTC also settled case with American Cyanamid.
