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Herman Miller & the NY Attorney General  

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barrympls
(@barrympls)
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Joined: 15 years ago
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29/03/2008 5:43 pm  

I wonder what this means?

ZEELAND, Mich., March 25 /PRNewswire-FirstCall/ -- Herman Miller, Inc. announced today that it has reached a settlement agreement with the New York Attorney General (NYAG), on all matters related to an inquiry led by the NYAG of the Minimum Advertised Price Program maintained by the Herman Miller for the Home division. The States of Michigan and Illinois also participated in the investigation and settlement. The investigation began in 2003.
The settlement is implemented through a consent decree that was signed by the parties on March 21, 2008 and filed with the United States District Court in New York. The consent decree applies only to the Herman Miller for the Home division and prohibits Herman Miller for the Home from entering into agreements with its retail distributors relating to the Minimum Advertised Price Program until December 31, 2010. Additionally the company agreed to pay $750,000 to be divided between the states of New York, Michigan and Illinois. The amount had earlier been provided for in the company's prior financial statements.
In reaching the settlement, all parties acknowledge that the agreement does not constitute either an admission or denial of liability or wrongdoing. Independent of the agreement, Herman Miller categorically denies any wrongdoing.


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Modern Love
(@modern-love)
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30/03/2008 7:43 am  

Herman miller says retailers can't advertise an Aeron chair for less than
$949. If they do, they'll penalize their retailers by cutting their shipments.
Punishing your retailers like this, is against the law.
Eliot Spitzer started the investigation in 2003..... yes Eliot Spitzer.
http://www.mlive.com/news/index.ssf/2008/03/herman_miller_states_settle_...


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LRF
 LRF
(@lrf)
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30/03/2008 7:54 am  

This is a good thing t...
This is a good thing this has happened to long with to many products ,
It was he who has the gold makes the golden rule, well the golden rule just became less golden, sorry Herman miller that you had to get slapped in the Ass to make the example, other products will soon follow.


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barrympls
(@barrympls)
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Posts: 2649
30/03/2008 8:06 am  

Thanks for the info
because the high-end furniture business is one of the most price fixed businesses around.
Herman Miller, Knoll, Cassina, Fritz Hansen, Artek, Vitra and any other companies of any of the "good stuff" controls the price the distributors and dealers are allowed to sell their items for.
I do wish these companies would have sales promotions, other than Herman Miller and Knoll's measley 10% sale each spring for three weeks.


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LRF
 LRF
(@lrf)
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Posts: 2967
30/03/2008 8:12 am  

there is a original ...
there is a original
saarine kanagroo chair from Knoll on ebay the seller told me she has a 1100. reserve on it.
i know you love that chair
is that a good
price? if you could get it for that? It needs to be recovered, that would cost around 500 bucks even for me with fabric,


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HPau
 HPau
(@hpau)
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Posts: 2534
30/03/2008 8:28 am  

if you were to turn this on i...
if you were to turn this on its head and had a designer or company who wanted to ensure its products were affordable (as Starck once tried to do, I think) and demanded its retailers sold at as low a possible a price would a judgement like this prevent them form doing so?
I've no head for business but would hate to see something that was designed to be affordable taken up by a predatory retailer and marked up to the point where the original good intentions were wrecked.


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william-holden-...
(@william-holden-3)
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30/03/2008 9:12 am  

It may be against the law, but there's NOTHING unethical about it
I'll preface this by saying that I know nothing more about this case than what's been written here.
The flipside of Herman Miller's "punishing retailers" (for advertising lower-than-recommended retail price) is that they're protecting their smaller retailers, who're unable to compete with those prices.
What's more, they've got an image to protect, and probably would rather these popular chairs aren't the object of a price war. But, WHATEVER their reasons, the upshot is that they'd rather not sell to retailers who advertise discounts.
Retailers who don't like it have the option of not ordering the chairs. Who's been harmed?


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LRF
 LRF
(@lrf)
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30/03/2008 9:20 am  

Here in America it is...
Here in America it is called price fixing, tons of case law going back to Ford and GM and lots of the cereal companies all out of Michigan for some reason.
Here in America we are for free trade, free markets, so this is one of the prices we pay, It is not a about a great chair being discounted to 2000 bucks when the store down the street sells it for 3500. it is about the retailers option to sell for 2000 bucks, and not being told that you have to sell it for 3500. or you are off our radar,
You all are smart enough to know that is what is going to happen, no chairs for you !!!!! we are out of supply ...... just like the soup Nazi on Sinefeld says No Soup for you!!!!!!!


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william-holden-...
(@william-holden-3)
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30/03/2008 9:30 am  

Copied verbatim from Wikipedia:
"Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. The principal feature is any agreement on price, whether express or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging."
From what I gather, Herman Miller merely requests that retailers not advertise discounted prices. How do you construe this as "price fixing", here in America?


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HPau
 HPau
(@hpau)
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30/03/2008 9:33 am  

.
The US economy is not so healthy right now, for all its laissex faire idealism (when it suits).
A good dose of European regulation might have saved a lot of trouble.


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william-holden-...
(@william-holden-3)
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30/03/2008 9:50 am  

Okay, so the government...
Okay, so the government needs to "regulate" Herman Miller, because HM has the audacity to impose certain terms on how their products are sold, even though retailers enter into this agreement voluntarily.
You're right. Without government intervention all hell would break loose. Chaos.


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LRF
 LRF
(@lrf)
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30/03/2008 9:53 am  

that is really the correct ...
that is really the correct form of price fixing,
But,
any retailer that gives a msrp is not allowed to hold back cause one wants to discount, they can choose not to do business, with the Vendor in the future and i think that was what Herman miller was saying,
Price fixing in the purest form has existed for a very long time,
when Niemans calls Macys and says we are selling the chair for 2500 we think it it is in your best interest to sell it for that, when the manufacture gets involved and says no chairs for either of you Bloomingdales is gonna sell it for 3000. with no discount , that is when the problem comes in.


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william-holden-...
(@william-holden-3)
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30/03/2008 10:03 am  

You're simply parroting the law
"But, any retailer that gives a msrp is not allowed to hold back cause one wants to discount"
Now, tell me WHY it's unethical for a manufacturer to not sell to a retailer who refuses to abide by their (the manufacturer's) terms. Why? Who's harmed?


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HPau
 HPau
(@hpau)
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Joined: 6 years ago
Posts: 2534
30/03/2008 10:09 am  

.
*no comment* desperate to point out a few things about the US economy and what its responsible for...but it is off topic and I suspect I'd get lynched.


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william-holden-...
(@william-holden-3)
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Posts: 370
30/03/2008 10:11 am  

Passive aggressive
and off-topic.


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