FTC Grants Nine West's Petition to Permit Resale Price Maintenance

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In the aftermath of the U.S. Supreme Court’s landmark ruling last June in Leegin Creative

Leather Products, Inc. v. Kay’s Kloset, 127 S. Ct. 2705 (2007), the Federal Trade Commission

issued an Order last week granting shoe manufacturer Nine West’s Petition to modify a March

2000 Consent Order that prohibited Nine West from engaging in resale price maintenance

(“RPM”)?fixing minimum resale prices with its retail dealers?for 20 years. In Leegin, the

Court overturned its nearly century-old precedent in Dr. Miles Medical Co. v. John D. Park &

Sons Co., 220 U.S. 373 (1911), barring RPM as per se illegal. In light of Leegin, the FTC

modified the Consent Order to permit Nine West (now owned by Jones Apparel) to enter into

RPM agreements with its dealers.

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