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 Breaking Headlines

NY Attorney General Raps GSI Commerce's Pricing Practices

SEPTEMBER 19, 2005 -- Eliot Spitzer, New York's attorney general, has slammed GSI Commerce for manipulating the prices of competing sporting goods web sites it manages. This is according to a report in Newsday. GSI is said to agree to adopt reforms that enhance competition among retailers and protect consumers under an agreement with Spitzer's office.

GSI manages many of the industry largest retailers' web sites, including The Sports Authority, Dick's, Sport Chalet, Modell's, Dunham's and MC Sporting Goods. What Spitzer found objectionable was that GSI had the final word on pricing on the web site. This allowed GSI to set prices among competitors. In some cases, in-store discounts and sale offers of the retail clients were not offered to online customers.

Under the agreement, GSI will provide greater information to consumers about its role in the Web sites and make sure it doesn't discourage competition. Specifically, GSI agreed not to transmit price information between competitors or coordinate pricing. The company will also allow consumers to see in-store prices and will be barred from requiring retailers to market their products online through GSI. It will also pay $30,000 for the cost of the investigation.


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Quick links: One-click access to topics in this article.

Categories
Sporting goods industry
Prices
Business

Companies
GSI Commerce Inc.
The Sports Authority Inc.
Sport Chalet Inc.
Dunham Company
MC Sporting Goods

Concepts
sporting goods
price information
competing sporting goods web sites
retail clients
in-store prices

People
Eliot Spitzer
New York's
Modell





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