Ace Hardware and software provider Epicor Software Corp. have been named in a proposed federal class-action lawsuit alleging the companies coordinated retail pricing among thousands of Ace-affiliated stores in violation of U.S. antitrust law.
Filed May 7 in the U.S. District Court for the Northern District of Illinois, the lawsuit claims Ace Hardware Corporation and related entities used shared pricing systems, sales data and geographic market controls to suppress competition and raise prices for consumers over more than a decade.
The complaint was brought by Illinois resident Sean Twomey, who alleges he purchased products from two Ace stores in suburban Chicago that participated in the alleged pricing scheme.
The lawsuit argues that Ace — structured as a retailer-owned cooperative rather than a traditional franchise chain — unlawfully coordinated pricing among independently owned member stores through localized “Price Zones” and tiered “Price Levels.” According to the filing, stores within the same zones received pricing guidance designed to move prices “in unison” with nearby Ace competitors.
Epicor, which provides Ace’s point-of-sale and inventory management software, is accused of facilitating the system by collecting store-level pricing, sales and inventory data and distributing reports and pricing alerts to member stores.
The complaint alleges Ace stores shared “competitively sensitive” information, including SKU-level pricing and sales data, through systems including Epicor’s Eagle software and a reporting platform known as Mango Report.
Plaintiffs further allege Ace used “Critical Price Change” alerts to encourage stores to raise prices when they fell below Ace-recommended pricing thresholds.
The filing also accuses Ace of allocating markets geographically by restricting where new member stores could open in order to limit competition between nearby Ace locations.
The lawsuit contends that the practices contributed to higher profits for Ace and its member stores. The complaint cites Ace revenue reaching approximately $10 billion in 2025, with gross profits increasing more than 250% over the last decade.
Named defendants include Ace Hardware Corporation, Ace Retail Holdings LLC, Ace Retail Group Inc. and Epicor Software Corp.
The suit seeks injunctive relief and damages on behalf of consumers who purchased products from Ace-affiliated stores nationwide.
