Gun Industry Punishment Probe Grows
By JOHN CHRISTOFFERSEN
Associated Press Writer
HARTFORD, Conn. (AP) — Smith & Wesson was lauded by many for exercising
corporate responsibility earlier this year for agreeing to make its weapons more
childproof
Gun groups and competitors, however, protested the deal. One group, Gun
Owners of America, even urged its 200,000 members to boycott Smith &
Wesson and to ask their dealers to stop carrying the company's products.
Now prosecutors in at least six states are investigating whether the gun industry
is illegally trying to punish Smith & Wesson. Under antitrust law, it would be illegal
for companies to collude to deprive Smith & Wesson of business opportunities.
``Exercising corporate responsibility should not be reason for your competitors
to put a bull's eye on your back,'' said Nathan Barankin, a spokesman for California Attorney General Bill Lockyer.
More than 20 subpoenas have been issued for firearms manufacturers,
distributors and others, Connecticut Attorney General Richard Blumenthal said
Wednesday. He said the federal government also is studying the issue, but the
Justice Department did not return a message seeking comment.
Smith & Wesson last month agreed to include safety locks with all handguns —
external locks at first, and internal ones within two years. New guns will not
accept magazines holding more than 10 rounds of ammunition. Additionally, the
company agreed to invest in ``smart gun'' technology that allows only the
owner to pull the trigger, and to eliminate advertising that might attract children
or criminals.
In exchange, a number of municipalities, states and the federal governments agreed not to sue the company
over gun violence.
Now, Blumenthal said he had received reports of communication among companies, Internet postings,
conversations or threats involving a ban on magazine ads for Smith & Wesson, and attempts to discourage
lawyers from representing the manufacturer.
Blumenthal and the attorneys general of New York and Maryland began the
investigation last week. Blumenthal said that California, Florida and Massachusetts
are joining the probe.
``The indications are sufficiently strong that we believe a full-scale effort is
justified,'' Blumenthal said.
Gun Owners of America spokesman John Velleco said the group is within its First
Amendment rights to call for a boycott. He said the industry is too fragmented to
collude against the company.
``Gunmakers couldn't organize a one-car funeral,'' Velleco said.
Ed Schultz, president of Springfield, Mass.-based Smith & Wesson, said his company did not ask for the
investigation, but ``we certainly disagree with the kinds of things the attorneys general think may be going on.''
Schultz said he was aware of only two dealers who stopped doing business with the company, and no problems
with distributors.
Schultz also said Smith & Wesson has not seen a decline in sales. Since the agreement, the U.S. Department of
Housing and Urban Development and the mayors of Atlanta, Detroit and Miami have taken steps to give
preference to Smith & Wesson for new weapons purchases.
In its defense, the gun industry will probably argue that any retaliation stemmed from individual decisions by gun
buyers, said University of Connecticut law professor Kurt Strasser.
A spokeswoman for RSR Group Inc., a wholesaler in Florida, said it decided independently to no longer deal with
Smith & Wesson.
``There is absolutely no activity of that sort on our part,'' Beatriz Atorresagasti said. ``We're not even
advocating that anyone stop buying Smith & Wesson products.''
By JOHN CHRISTOFFERSEN
Associated Press Writer
HARTFORD, Conn. (AP) — Smith & Wesson was lauded by many for exercising
corporate responsibility earlier this year for agreeing to make its weapons more
childproof
Gun groups and competitors, however, protested the deal. One group, Gun
Owners of America, even urged its 200,000 members to boycott Smith &
Wesson and to ask their dealers to stop carrying the company's products.
Now prosecutors in at least six states are investigating whether the gun industry
is illegally trying to punish Smith & Wesson. Under antitrust law, it would be illegal
for companies to collude to deprive Smith & Wesson of business opportunities.
``Exercising corporate responsibility should not be reason for your competitors
to put a bull's eye on your back,'' said Nathan Barankin, a spokesman for California Attorney General Bill Lockyer.
More than 20 subpoenas have been issued for firearms manufacturers,
distributors and others, Connecticut Attorney General Richard Blumenthal said
Wednesday. He said the federal government also is studying the issue, but the
Justice Department did not return a message seeking comment.
Smith & Wesson last month agreed to include safety locks with all handguns —
external locks at first, and internal ones within two years. New guns will not
accept magazines holding more than 10 rounds of ammunition. Additionally, the
company agreed to invest in ``smart gun'' technology that allows only the
owner to pull the trigger, and to eliminate advertising that might attract children
or criminals.
In exchange, a number of municipalities, states and the federal governments agreed not to sue the company
over gun violence.
Now, Blumenthal said he had received reports of communication among companies, Internet postings,
conversations or threats involving a ban on magazine ads for Smith & Wesson, and attempts to discourage
lawyers from representing the manufacturer.
Blumenthal and the attorneys general of New York and Maryland began the
investigation last week. Blumenthal said that California, Florida and Massachusetts
are joining the probe.
``The indications are sufficiently strong that we believe a full-scale effort is
justified,'' Blumenthal said.
Gun Owners of America spokesman John Velleco said the group is within its First
Amendment rights to call for a boycott. He said the industry is too fragmented to
collude against the company.
``Gunmakers couldn't organize a one-car funeral,'' Velleco said.
Ed Schultz, president of Springfield, Mass.-based Smith & Wesson, said his company did not ask for the
investigation, but ``we certainly disagree with the kinds of things the attorneys general think may be going on.''
Schultz said he was aware of only two dealers who stopped doing business with the company, and no problems
with distributors.
Schultz also said Smith & Wesson has not seen a decline in sales. Since the agreement, the U.S. Department of
Housing and Urban Development and the mayors of Atlanta, Detroit and Miami have taken steps to give
preference to Smith & Wesson for new weapons purchases.
In its defense, the gun industry will probably argue that any retaliation stemmed from individual decisions by gun
buyers, said University of Connecticut law professor Kurt Strasser.
A spokeswoman for RSR Group Inc., a wholesaler in Florida, said it decided independently to no longer deal with
Smith & Wesson.
``There is absolutely no activity of that sort on our part,'' Beatriz Atorresagasti said. ``We're not even
advocating that anyone stop buying Smith & Wesson products.''