Felder’s Collision Parts v. All Star Advertising

Felder's filed an antitrust suit against All Star and GM, alleging that GM's "Bump the Competition" program, which lowers the consumer price for GM-manufactured parts below the prices of equivalent "generic" auto parts manufactured by others, is an unlawful predatory pricing scheme. GM lowers the price by providing rebates to dealers like All Star that sell GM-manufactured parts for the reduced prices. The court concluded that the effect of this rebate in deciding whether Felder's can meet one of the essential elements of a predatory pricing claim - that defendant is selling its products at a price below average variable cost - should be considered. Accordingly, the court affirmed the district court's dismissal of the antitrust claims based on Felder's failure to adequately define the relevant geographic market and its earlier finding that Felder's did not allege below-cost pricing. View "Felder's Collision Parts v. All Star Advertising" on Justia Law