Condom Distribution Battle Goes Forward in Federal Court

SAN FRANCISCO — In a battle over distribution channels and pricing of condoms, a federal judge has dismissed only one of Mayer Laboratories' 12 counterclaims in an antitrust suit against Church & Dwight, the maker of Trojan and other brand name rubbers.

The suit, filed at U.S. District Court in San Francisco, and its counterclaims hone in on the growing competitive  market of ultra-thin condoms, which purportedly comprise approximately 22 percent of the overall retail market.

New Jersey-based Church & Dwight (C&D) sued Mayer of California in November 2008 seeking declaratory judgment over the use of alleged anticompetitive activities.

But Mayer answered the suit with  12 counterclaims in February 2009 that alleged that the Trojan maker engaged in five distinct but related anticompetitive activities that have the combined effect of "greatly diminishing and in some cases eliminating competition in the relevant markets."

Mayer's countersuit included allegations of violations of the Sherman Act, California professional and business codes, violations of California laws on exclusive dealing and secret rebates, tortious interference, unfair competition and trademark violations.

U.S. District Judge Edward Chen's 34-page ruling last week means Mayer can go ahead with nearly all of its counterclaims against C&D, with the exception of one on retailer deals called "planogram agreements."

Planograms are  diagrams showing where specific products are to be positioned in the space allotted by a retail store for a particular category of products.

Mayer, known for its Kimono and Kimono MicroThin condoms made by Japan-based Sagami Rubber Industries, claims it was "instrumental in establishing the ultra-thin condom segment in the U.S. market." In fact it registered its trademark for "MicroThin" condoms in 2009.

Mayer alleged that C&D engages in five distinct but related anticompetitive activities that have the combined effect of "greatly diminishing and in some cases eliminating competition in the relevant markets."

Mayer claims C&D offers "'Condom Planogram Agreements' to large chain retailers, which together account for nearly 100 percent of condom sales nationwide."  

"Such agreements give the chain the opportunity to receive a substantial kickback or rebate on its purchases of C&D condoms," Mayer attorneys said in the suit. "Rebates are given if the retailer accepts and follows a planogram designed by C&D and guarantees that C&D's condoms occupy a specified minimum percentage of the available facings on its in-store display."

Secondly, Mayer attorneys also say that retailers allegedly have agreed to give C&D the "ability to decide and influence which brands of condoms are included in a chain's stores, where individual condom  [products] are placed in the store displays, which condom [products] are discontinued, and which new condom [products] are added."

C&D purportedly uses this position "to obtain preferential display locations for its products, to recommend replacement of competing brands with [C&D] products, and to reduce visibility for (or exclude altogether) competing brands, including Mayer Labs' products.'

Thirdly, Mayer alleges that C&D has exclusive dealing arrangements with some retail chains, including 7-Eleven, obligating them to sell only C&D condoms.

Mayer in its fourth claim asserts that in 2006 C&D began targeting the Japanese-made, ultra-thin condom market segment. C&D initially distributed "Trojan Ultrathin" condoms

Mayer asserts C&D began using the term "ultra-thin," which had previously associated with Mayer's products. C&D allegedly began using the term MicroThin for its Trojan brand Ultrathin condoms in 2007, and for its ThinTensity condoms in 2008.

Mayer as a result says its sales of Kimono Microthin condoms declined 33 percent, from $1.17 million in 2006 to $1.12 million in 2007 due to C&D's anticompetitive conduct.

Lastly, Mayer claims that in 2007, C&D tortiously induced its Japanese maker, Sagami, to begin supplying it with condoms in violation of an exclusive contract Mayer had with Sagami.

The suit has revealed some interesting numbers delivered from Mayer.

According to the company, Trojan is the largest-selling brand of condoms in the U.S. and that C&D's condoms account for more than 75 percent of all retail condom sales. The next popular brand is Durex, marketed by SSL Americas Inc., with approximately 15 percent of sales. The third largest-selling brand is Lifestyle, marketed by Ansell Healthcare, with 8 percent of the market.

"Together, condoms sold by these three companies account for over 98 percent of the nationwide market," Mayer attorneys said in the suit.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Anastasia's Bedroom Introduces 'Lightly Loved Lingerie' Collection

Anastasia’s Bedroom, a Canadian-based online retailer, has debuted its Lightly Loved Lingerie collection.

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

LELO Debuts 'Surfer 2' Anal Plug

LELO has introduced its new Surfer 2 anal plug.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

Our Erotic Journey Expands 'Cristal Collection' of Vibrators

Our Erotic Journey has introduced five new vibrators from its Cristal Collection.

Nice & Naughty Names Chris Fleiger Director of Operations

Michigan-based retail chain Nice & Naughty has appointed Chris Fleiger as its new director of operations.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

XBIZ Retreat to Make Its Cabo Comeback Aug. 17-21

XBIZ Retreat will return to Cabo San Lucas Aug. 17–21, bringing together top LATAM retail buyers and pleasure product brands for a week of dealmaking and networking.

Orion Debuts 'Oral Fun' Vibrator Collection

Orion Wholesale has introduced its Oral Fun vibrator line.

Show More