The Associated Press

ALBANY, N.Y. - The adage that Macy's doesn't tell Gimbel's its business didn't hold true in the lucrative world of bridal registries and tableware sales, according to a settlement announced Tuesday.

Cincinnati-based Federated Department Stores, which operates Macy's and Bloomingdale's; May Department Stores, which owns Lord & Taylor; tableware-maker Lenox Inc., and crystal manufacturer Waterford Wedgwood crystal will pay $2.9 million in civil penalties to the state of New York under the settlement with Attorney General Eliot Spitzer.

The companies are accused of conspiring to restrict competition by national retailer Bed, Bath & Beyond by keeping it from selling Lenox and Waterford products.

The result, Spitzer said, was to restrict consumers' choice of the products, although no cost to consumers has been calculated.

"When two companies conspire to prevent a third retailer from offering the same products, knowing that would drive prices down, the two retailers are conspiring to keep that price up," Spritzer said.

The case dates to 2001, when Bed, Bath & Beyond sought to introduce Lenox and Waterford products as "anchors" for the company's new tableware department. Federated will pay civil penalties of $900,000 and May will pay $800,000; Lenox and Waterford will pay $700,000 and $500,000, respectively.