Church & Dwight bills itself as "one of the fastest growing Consumer Packaged Goods companies" and as "a leader in the Household Consumer Products and Personal Care industry, with such brands as ARM & HAMMER, Trojan, First Response, Nair, Spinbrush, Oxi Clean, Orajel and more."
Note the "Trojan" bit.
In June 2009, the Federal Trade Commission resolved to check Church & Dwight out on whether it "has attempted to acquire, acquired, or maintained a monopoly in the distribution or sale of condoms in the United States, or in any part of that commerce, through potentially exclusionary practices including, but not limited to, conditioning discounts or rebates to retailers on the percentage of shelf or display space dedicated to Trojan brand condoms and other products distributed or sold by Church & Dwight, in violation of Section 5 of the Federal Trade Commission Act." Federal Trade Comm'n v. Church & Dwight, Inc., No. 10-5383, slip op. at 3 (D.C. Cir. Dec.13, 2011).
Church & Dwight, the FTC pointed out, held more than 70 percent of the U.S. market for latex condoms.
True to its Resolution, FTC staff subpoenaed the firm to turn over documents relating to "Trojan brand condoms and other products distributed or sold by Church & Dwight". The company objected that "and other products" must mean other condom products and that therefore it could redact from documents that did concern condom products any statements about non-condom products. The FTC and district court deemed to gripe overly rigid and said no to quashing the subpoena. This week, the D.C. Circuit affirmed.
Church & Dwight seems to have thought it could win by asking the D.C. Circuit to reject what it (C&D) deemed an extreme reading of Sherman Act section 2 — the Third Circuit's en banc decision in LePage's Inc. v. 3M, 324 F.3d 141 (3d Cir. 2003) (en banc). The LePage's court ruled that the jury could have properly found, as it did, that 3M violated section 2 by bundling of products even if the bundling didn't involve predatory (below-cost) pricing.
People had "roundly criticized" the ruling in LePage's, the panel noted, but then it held:
Because LePage’s is the law in the Third Circuit, and because Church & Dwight sells both condoms and other consumer products within the Third Circuit, the Commission may lawfully investigate whether the Company’s practices would constitute a violation of the law in that circuit. Although this court might someday reach a different resolution of the issue presented in LePage’s, “a subpoena enforcement action is [generally] not the proper forum in which to litigate disagreements over an agency’s authority to pursue an investigation. Unless it is patently clear that an agency lacks the jurisdiction that it seeks to assert, an investigative subpoena will be enforced.” [FTC v. ]Ken Roberts[ Co.], 276 F.3d [583,] 584[ D.C. Cir. 2001)]. We hold, therefore, the Resolution lawfully encompasses an investigation into whether Church & Dwight has bundled discounts for condoms and other products in order to acquire or maintain a monopoly in the market for condoms in the United States.
Church & Dwight, slip op. at 8 & 9-10.