(Phoenix, Ariz. – May 14, 2004) Attorney General Terry Goddard announced the award of $144,222 to the Arizona Association of Food Banks at its annual conference in Phoenix on May 13. The award is part of the 2002 settlement with Salton, Inc., the maker of the George Foreman Grill.
The settlement stems from a two-year investigation into Salton for allegedly pressuring retailers into fixing the price of the George Foreman grills and keeping competing grills off store shelves. The investigation looked at the manufacturer's policy of suspending retailers who sold its product at a discount or stocked a competitor's product.
“I am confident that this award will be put to good use by the Arizona Association of Food Banks to provide emergency food to help Arizona’s children, adults and seniors in need,” Goddard said.
Because it was difficult to determine individual refunds to consumers harmed by the business practices, the settlement funds were designated to benefit health or nutrition related programs for low-income people, seniors, children and others. The Arizona Attorney General’s Office designated the food bank association as the recipient of these funds. The settlement included $8 million in penalties and an agreement from Salton that it would cease from engaging in similar anti-competitive practices.
Arizona joined 43 states, Puerto Rico and the District of Columbia in this action.