February 04, 2004

By: Betty Jackson
Website: http://www.1st-in-kitchens.com

National Settlement with Salton for Anti-Competitive Practices in Sale of George Foreman Grill

Attorney General David Samson announced that the State of New Jersey, through the Division of Criminal Justice - Antitrust/Procurement Fraud Bureau, is participating in an $8.2 million nationwide settlement with appliance manufacturer Salton, Inc. The settlement resolves an antitrust lawsuit filed by New Jersey and 43 other states, Puerto Rico, and the District of Columbia.

According to Attorney General Samson, the lawsuit results from a two-year investigation which alleged that Salton coerced retailers into fixing the price for Salton’s George Foreman contact grill - a popular grill that cooks food on both sides simultaneously. The Salton anti-competitive practice had the effect of excluding competitor’s products from retail marketplace shelves. Specifically, the Salton policies challenged by the National Association of Attorneys General and the State of New Jersey, targeted Salton’s practice of identifying retailers who sold the Salton George Foreman grill at a discount or who stocked competitors’ products and then suspending them until they complied with Salton’s marketing and sales policies.

Peter C. Harvey, First Assistant Attorney General and Director of the Division of Criminal Justice noted that the terms of the national agreement require Salton to pay more than $8 million in damages, $200,000 in investigative expenses and notice costs. Additionally, Salton agreed to a court-order that prevents them from engaging in similar anti-competitive conduct in the future.

This case has nationwide implications, Criminal Justice Director Harvey said. Business operators in New Jersey, whether local or national, must understand that we will impose a zero-tolerance on fraud and anti-competitive practices that violate our laws and cheat New Jersey consumers.

Because of the difficulty and expense of identifying the many individual consumers who purchased the product and in returning funds, the settlement agreement provides that the restitution monies be distributed to charitable entities and/or government agencies for initiatives geared to improve health care and nutrition in ways that benefit the purchasers of the Salton George Foreman grill. Specific information about the distribution will be made available in March 2004 when Salton completes payment of the settlement.

Further information on the settlement, including important documents, are posted on the National Association of Attorneys General web site located at www.naag.org or through the Division of Criminal Justice. Consumers interested in the settlement are advised to check the NAAG or New Jersey Division of Criminal Justice web sites for further details.

Deputy Attorney General Basil Merenda, assigned to the Division of Criminal Justice - Antitrust/Procurement Fraud Bureau, coordinated New Jersey’s participation in the national settlement.

About The Author:

Betty Jackson is a successful author and regular contributor to http://www.1st-in-kitchens.com.  Everything for your kitchen to make it look great and make cooking a whole lot easier.