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Jacobs v. Tempur-Pedic Int'l., Inc., No. 08-12720

By FindLaw Staff on December 03, 2010 2:37 PM

Dismissal of Antitrust Action Affirmed

In Jacobs v. Tempur-Pedic Int'l., Inc., No. 08-12720, an antitrust action claiming that defendant illegally enforced vertical retail price maintenance agreements with its distributors and engaged with its distributors in horizontal price fixing, the cout affirmed the dismissal of the complaint where 1) the complaint failed to adequately plead a relevant market and thus did not show actual harm to competition; and 2) the potential costs of fixing prices with defendant's distributors would outweigh any benefits that defendant would realize by doing so, particularly where independent economic activity would yield the same benefits with none of the costs.

 

As the court wrote:  "Tempur-Pedic North America, Inc. ("TPX") manufactures visco-elastic
Tempur-Pedic foam mattresses and sells them to consumers nationwide through distributors and its own website. These sales amount to eighty to ninety percent of the visco-elastic foam mattresses sold in the United States. 1 TPX sets the minimum retail prices the distributors can charge for its mattresses; TPX adheres to those minimum prices in the sales it makes through its website."

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