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Some major players in the American guitar market are being sued, along with the National Association of Music Merchants (NAMM), in several lawsuits that claim the defendants conspired to artificially boost prices on their products in violation of the federal Sherman Antitrust Act.

Defendants include Gibson Guitar Corp., instrument makers Fender and Yamaha, the merchants association and national chain retailer Guitar Center.

Most of the defendants have issued statements denying the allegations.

“Gibson Guitar Corp. is one of many manufacturers and organizations in the musical instrument industry that has been named a party to approximately 30 lawsuits that claim they conspired to artificially increase and fix the prices of musical instruments,” Gibson said in a prepared statement. “These lawsuits stemmed from an investigation by the Federal Trade Commission that lasted several years and was not pursued by the FTC after they concluded the investigation.”

Gibson goes on to say: “The allegation that Gibson participated in any scheme to artificially inflate or fix prices is wholly without merit. Gibson strives to provide customers with the best musical instruments in the world and to build lifelong relationships with musicians who choose the Gibson brand.

“Gibson believes in the American system of justice and believes that through that system, the claims against Gibson will show to have no merit. Unfortunately, that process will undoubtedly result in high costs to many organizations that, like Gibson, strive to provide music lovers everywhere with quality instruments, and aggressively compete on price. They provide true and accurate information to their consumers, continue to innovate and provide great value in product offerings overall.”

Through Washington, D.C.-based attorney Paul Cuomo, the trade association also denied the allegations, according to a report published in the Nashville (Tenn.) Business Journal.

The Nashville publication said some of the suits stem from the FTC investigation, which ended with a 2009 agreement between the government and the industry group. The group agreed not to in any way encourage the sharing of price information or other cooperation on such matters, according to the agreement, which stipulates that it is not an admission of guilt.

Authorities are in the process of consolidating the various allegations into one class-action lawsuit for pre-trial proceedings in California, attorneys told the Nashville publication.

Related Links

Gibson Guitar Corp.
Nashville Business Journal