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Jury Rules in Favor of Philip Morris USA in Antitrust Trial
RICHMOND, VA (July 13, 2005) -
A federal jury in Nashville today found that Philip Morris USA acted lawfully when it discontinued a trade program for vending machine operators in 1998.
"Philip Morris USA designs and implements its trade programs to meet consumers' needs in a highly competitive marketplace, said Denise Keane, Philip Morris USA executive vice president and general counsel. "The jury decided this case on the evidence, which clearly demonstrated that vending machines do not compete with convenience stores, grocery stores, and other retail outlets, and therefore Philip Morris USA's business decision not to have a trade program for vending machines was lawful."
A group of vending machine operators filed the suit against Philip Morris USA after the company ended a merchandising program for vending machine operators, while keeping a promotional and merchandising program for retailers. The plaintiffs claimed this was unfair and led to declining sales.
The country's largest cigarette manufacturer, Philip Morris USA is an operating company of Altria Group, Inc.
