In People of the State of New York v. Tempur-Pedic International Inc., New York State is appealing a decision dismissing a case challenging Tempur-Pedic’s policy of informing retailers that it stop selling to them, with limited exceptions, if they undercut the mattrace manufacturer’s suggested retail price. Although federal antitrust law permits such a policy, the state is arguing New York law does not.
The defendant has argued that the applicable state law prohibits enforcing resale price fixing agreements, but does not make Tempur-Pedic’s policy illegal. Trial Judge Joan B. Lobis agreed and dismissed the suit. Appellate Justices Dianne Renwick, David Saxe, Angela Mazzarelli, Karla Moskowitz and Helen Freedman will decide the appeal.