State Antitrust Settlement With Long Island Dress Store To End Anticompetitive Practices

State Attorney General Spitzer today announced a settlement with a Farmingdale dress company and its owner that will effectively end the company's anticompetitive conduct in the sale of formal women's apparel on Long Island.

Under the settlement, McReg, Industries, Inc., d/b/a Estelle's Dressy Dresses, and the company's owner Martin Schlossberg, will pay the state $65,000, and will agree to a court order ending its anticompetitive conduct. The company sells formal dresses for proms, weddings, and other occasions.

"This settlement is intended to protect an important local market," Spitzer said. "My office will continue to enforce the antitrust laws vigorously to preserve an honest marketplace in which economic activity is conducted in a competitive manner for the benefit of consumers."

According to the suit, which was simultaneously settled with the filing of a consent judgment, the defendants caused various manufacturers and wholesalers of women's apparel to agree to refrain from doing business with, or to curtail shipments to, a competing retail store selling women's apparel on Long Island.

The settlement, which is subject to court approval, includes a proposed court order prohibiting similar anticompetitive activity. It also requires the defendants to provide reports to the Attorney General for five years to assure compliance with the settlement. In agreeing to the settlement, neither defendant admitted wrongdoing.

The case is being handled by Assistant Attorney General Gary P. Weinstein, of the Attorney General's Antitrust Bureau.