Facts

The Attorney General of the State of California filed a complaint against DermaQuest Inc., manufacturer of beauty care products, alleging vertical price fixing or "resale price maintenance" in violation of California's antitrust law.

PLAINTIFF'S CONTENTIONS:
The State alleged that the company entered into several contracts with its distributors providing that distributors may not resell any DermaQuest products at a price below the company's suggested retail price or that the distributor may not resell DermaQuest products in a manner that yields a price below the company's suggested retail price.

Result

DermaQuest agreed to pay $70,000 in civil penalties and $50,000 in attorney fees. Further, the company agreed to abstain from entering into such agreements in the future.