A class-action lawsuit is targeting the archery industry over the alleged collusion to fix prices on products. That proposed lawsuit was filed in federal court last week in the U.S. District Court in Utah.
That lawsuit is targeting the following companies - Hoyt, Bowtech, Mathews, PSE, Cabela's, Dick's, Bass Pro Shop, Jay's Sporting Goods, Kinsey's Outdoors, Lancaster Archery Supply, and Archery Trade Association. They also target two software companies that track MAP prices. The lawsuit alleges these companies colluded to "to fix the prices of — and eliminate price discounting and competition for — archery products."
Outdoor Life reports that the lawsuit revolves around Minimum Advertised Pricing, or MAP. The lawsuit accuses the companies of a "campaign to artificially raise prices through MAP policies."
"MAP is generally legal if it's implemented unilaterally by the manufacturer," one former archery industry insider told the outlet "Price fixing is when competitors agree to a fixed price. And of course, a manufacturer and a retailer aren't competitors: one is a supplier, one is the seller."
Lawsuit Targets Archery Industry
"MAP was completely legal," the source says. "No one was suggesting retailers fix prices and force consumers to buy X product at Z price. That never happened and never would have happened. And obviously retailers wouldn't have agreed to it. Retailers want the ability to do things their own way."
However, MAP cannot favor one store over another. That's where the issue lies. Meanwhile, one anonymous archery executive spoke with the outlet about the proposed lawsuit.
"Do I think there's price fixing? No, I've never participated in it. I know that I have dealers sell way below MAP in their store, but they do not advertise that way. And that is their decision. That is their store. I cannot dictate what they sell it for," said one archery company executive.
They continued, "It's a slippery slope because if there's no protection from an advertising standpoint, the big guys are gonna gobble up the small guys. There are shops in the country right now that sell Mathews at $50 to a $100 over cost so that they will sell every Mathews within a 150 mile radius and try to push the smaller guys out of business. I've been told that by big dealers. They don't advertise it but people just know they go in there, you know, they're gonna pay $50 to a hundred over as opposed to $350 to $400 over. So if they could start advertising on what they want and there's nothing we could do, it would drive half the shops in this country out of business."
Meanwhile, the Archery Trade Association has publicly responded to the lawsuit.
"The Archery Trade Association has learned of a recently filed lawsuit against the ATA and a group of archery manufacturers, distributors and retailers," reads the statement. "The complaint seeks relief related to Minimum Advertised Pricing (MAP) policies dating back more than a decade. The ATA is in the process of preparing an appropriate response to the complaint and looks forward to a swift and favorable conclusion to this matter."
