Management agrees to end
exclusionary tactics
NEW YORK – State Attorney General Eric Schneiderman announced a settlement with Simon Property Group, owner of Woodbury Common, that prohibits the company from using anti-competitive tactics to thwart the development of competing outlet centers in New York City.
He said those restrictions have impeded new outlet centers from opening, harming retailers and consumers that would have benefited from outlet locations in New York City.
The settlement will allow for the opening of outlet malls in Brooklyn, the Bronx, Queens and Staten Island, creating competitive choice for retailers and consumers while boosting the New York economy, Schneiderman said on Monday.
“At a time when retail stores face increasing challenges from online competitors, Woodbury Common remains an economic engine for Orange County, the Lower Hudson Valley an New York State,” a statement from Simon said. “That is why it was always hard to understand the reason the New York Attorney General would undertake an unnecessary distraction. We believe the company’s time is best focused on providing the best shopping and working environment to the Woodbury Common community.”
The Simon statement said it has “never sought to limit competition.”
The settlement has two main elements in addition to a $945,000 monetary payment to the state. One will end exclusive agreements with retailers. Simon has agreed to revise existing leases to remove radius restrictions that would otherwise prevent outlet center development. The other provision would prohibit future interference with outlet retail. For the next 10 years, Simon has agreed to end using radius restrictions, or other exclusionary tactics, that might deter retailers from opening additional outlet stores.
