FOR IMMEDIATE RELEASE

Contact: Todd Hallidy
Phone: (302) 577-8314
Date: October 24, 2001
 

A.G. BRADY PRESENTS CHECK TO CONTACT DELAWARE
 

(Wilmington, DE) - Attorney General M. Jane Brady today presented a $15,000.00 check from the Department of Justice to Patricia Tedford, the Executive Director of CONTACT Delaware. The money is a portion of Delaware's share of the multi-state price-fixing settlement reached last year with shoe manufacturer Nine West Group, Inc., and will pay for operations and staffing at Contact Delaware's 24 hour rape crisis hotline.

According to Attorney General Brady, "The unfair pricing of women's shoes hurt women squarely in their pocketbooks, so I'm delighted that proceeds from this settlement are going to CONTACT Delaware and other programs that benefit women and girls."

CONTACT Delaware is recognized as the preeminent provider of helpline services in Delaware, serving as a catalyst for the personal growth of clients and volunteers through direct services and prevention/education programs. Executive Director Patricia Tedford observed, "This support will help continue the valuable assistance we provide to the silent victims in our community. However, I hope that someday we won't need to fund these services because they will no longer be needed." In New Castle County, the helpline number is 761-9100 and TDD service for the hearing impaired is available by dialing 761-9700. In Kent and Sussex Counties, the toll-free helpline number is 1-800-262-9800.

In the legal action brought against the Nine West Group, Delaware and the 54 other states and U.S. territories, and the District of Columbia, alleged that the business entered into illegal agreements with retailers to fix the retail price of women's shoes between January 1988 and July 1999. Working with the Federal Trade Commission, the states uncovered evidence that various Nine West divisions, including Easy Spirit, Enzo Angiolini, and Nine West, prohibited retailers from discounting certain shoes. Nine West allegedly granted discounts to retailers that cooperated with their terms, and withheld discounts or threatened to refuse to take orders from retailers that did not comply. As a result, state and federal authorities alleged consumers were denied a competitive market for certain Nine West shoes, and therefore paid higher prices for them. Under terms of the settlement announced in March, 2000, Nine West agreed to pay $34 million into a settlement fund. Of this amount, $3.5 million was reserved to repay the states for attorneys fees and investigative costs. The balance was to be divided among the states to fund women's health, educational, vocational and safety programs in each state.

Although Nine West Group has not admitted liability or wrongdoing, the settlement terms require that, for the next five years, it must refrain from such business practices that are designed to control the price at which retailers choose to sell Nine West shoes to customers, and Nine West must notify its retailers that it is their right to independently determine the price at which they wish to sell Nine West products. Nine West Group was purchased in 1999 by Jones Apparel Group, Inc.

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