Categories: Headlines

Playing Fair?

Nike Inc. (Beaverton, Ore.) is under investigation by the Florida attorney general's office for possibly fixing the retail price of shoes and clothing.

Nike received a notice of a civil investigation in January “in regard to issues of pricing of products at retail,” company spokesman Vada Manager said Tuesday. Nike denies the allegations and is “cooperating fully,” Manager said.

Major sporting goods retailers are being asked by Florida's attorney general whether Nike withheld items because its most expensive shoes, such as the top Air Jordan and Shox lines, weren't being sold at prices the company considered suitable.

Sports Authority Inc. (Ft. Lauderdale, Fla.) received a letter dated Jan. 3, 2003, from the attorney general requesting information, said Frank Bubb, the company's general counsel. He declined to provide further details. Sports Authority operates 200 sporting goods superstores in the U.S., 43 in its home state of Florida.

Joann Carrin, spokeswoman for the Florida attorney general's office, said she couldn't confirm or deny the investigation because state antitrust law prohibits it.

Last year, Nike said it would halt shipments of Air Jordan and Shox to the 3600-store Foot Locker Inc. (New York), its biggest U.S. customer and retailer, due to a pricing dispute.

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