SEPT. 29 I NAMM, FENDER, GUITAR CENTER I LEGAL
NAMM Calls Class Action Suit ‘Groundless’

NAMM recently issued a statement calling the antitrust class action civil suit filed against the organization “groundless.” The complaint, filed on Sept. 11, accused NAMM, Guitar Center and Fender of promoting unfair competition. The suit follows on the heels of the Federal Trade Commission’s (FTC) investigation of NAMM and several of its member companies. That investigation was settled in March 2009.

“NAMM believes that the recent lawsuits filed by plaintiffs making antitrust claims against the association are without any merit and reflect an incorrect understanding of the consent agreement that NAMM entered into with the FTC in March of this year,” the statement read. “These types of legal actions based on misinformation divert industry resources to defending against frivolous lawsuits and away from supporting the making and enjoyment of music. They are a detriment to the music industry, to music makers and to music lovers everywhere.”

Specifically, the suit alleges that NAMM, Guitar Center and Fender imposed minimum retail price and minimum advertised price policies that promoted unfair competition, resulting in artificially inflated prices.

“My question is: What did the plaintiff buy and how much did he pay for it?” said music industry attorney Ron Bienstock of Bienstock & Michael. “Compared to what we have seen in the past, many guitars today are less expensive and offer higher quality at present price points.”

namm.org