On June 28, the U.S. Supreme Court overturned a nearly century-old anti-trust precedent that may permit manufacturers of decorative plumbing and hardware to set minimum pricing for their products.

Leegin Creative Leather Products, Inc. is a high-end purse and leather goods manufacturer that produces products under the brand name Brighton. Its approach to retail is not dissimilar to many manufacturers of decorative plumbing and hardware.
Leegin depends exclusively upon the independent channel for its distribution. Company president Jerry Kohl believes that his best chance for success is to partner with specialty retailers whose staffs have superior knowledge and whose owners are committed to providing exceptional service. Kohl believes that independent specialty retailers treat customers better and provide a superior shopping experience than do large, multi-branch retailers or national department stores.

By the mid-1990s, Leegin expanded the Brighton line to include handbags and other accessories. One of Leegin’s 5,000 boutiques was PSKS, Inc., which operated a retail store by the name of Kay’s Kloset in Lewisville, TX. Kay’s Kloset first purchased products from Leegin in 1995. The store promoted Brighton products in its ads and held special events revolving around Brighton products in the store. The company claimed that Brighton was its most important brand, once responsible for 40-50% of its profits.

In 1997, Leegin sent Brighton retailers the “Brighton Retail Pricing and Promotion Policy,” that indicated Leegin would not provide products to anyone selling below the minimum-pricing levels it established (except for products that were not selling). Leegin wrote to its customers, “In this age of mega stores like Macy’s, Bloomingdales, etc., consumers are perplexed by the promises of product quality and support of product which we believe is lacking in these large stores. Consumers are further confused by the ever-popular sale, sale, sale.