Case Description
Salton manufactures, sells, and distributes contact grills, also known as George Foreman Grills. Plaintiff States alleged that as early as 1997 Defendant violated state and federal antitrust laws by setting the minimum price at which the retailers would sell the grills and by preventing retailers from selling contact grills other than its own. Noncompliance with the terms of Defendant’s pricing policy and exclusionary tactics resulted in, among other things, suspensions of shipments of the GF grills until retailers agreed to Defendant’s terms. In order to continue to sell Salton’s grills, many dealers complied with its pricing policy, thus establishing a conspiracy. The Plaintiff States alleged that these anticompetitive practices (a) prevented consumers from purchasing lower priced grills; (b) denied consumers access to marketplace options; and (c) hindered competitors from selling contact grills of equal or greater quality. Furthermore, Defendant was accused of acting with an intent to monopolize and exclude competition in the market for contact grills sold to consumers. The parties settled for $7.654 million and Salton was further enjoined from initiating or participating in anti-competitive practices. In addition, Salton agreed to pay the sum of $200,000 to reimburse the Plaintiff States for investigative costs and attorneys fees. The settlement fund was distributed cy pres to food and nutrition programs among the Plaintiff States on a pro rata basis.
