Rent-to-Own Operators Settle Charges that They Restrained Competition through Reciprocal Purchase Agreements

Rent-to-own operators Aarons Inc., Buddys Newco, LLC, and Rent-A-Center, Inc. have agreed to settle FTC charges that they negotiated and executed reciprocal purchase agreements in violation of federal antitrust law.

Metadata

Provider:

FTC

URL:

https://www.ftc.gov/news-events/press-releases/2020/02/rent-own-operators-settle-charges-they-restrained-competition

Retrieved on:

Friday, February 21, 2020

Information

Tags:

Contract law, Private law, Law, Economy, Franchising, Rent-to-own, Rent-A-Center, Competition law, Non-compete clause

Summary

Key Points:

Rent-to-own operators Aarons Inc., Buddys Newco, LLC, and Rent-A-Center, Inc. have agreed to settle FTC charges that they negotiated and executed reciprocal purchase agreements in violation of federal antitrust law.
These reciprocal agreements likely led to store closures that may not have occurred otherwise, resulting in reduced competition for quality and service in the remaining stores, according to the complaints.
The FTCs orders get rid of the agreements, reopen affected markets to competition, and bar these companies from doing this again.
The FTCs consent agreements prohibit the three RTO companies and their franchisees from entering into any reciprocal purchase agreement or inviting others to do so, and from enforcing the non-compete clauses still in effect from the past reciprocal purchase agreements.