North Myrtle Beach, October 23, 2025
News Summary
Cherry Grove Beach Gear is pursuing a legal challenge against North Myrtle Beach, alleging that the city’s ordinance against beach chair and umbrella rentals violates federal antitrust laws. The ordinance, enacted in June 2022, aims to ensure safety while limiting competition in the beach gear rental market. Although city-managed rentals are expected to generate significant revenue, the case raises questions about the balance between regulation and competition for private businesses. The legal dispute is set to escalate if no settlement is reached.
North Myrtle Beach is facing a legal challenge from Cherry Grove Beach Gear, which claims the city is violating federal antitrust laws. The company alleges that North Myrtle Beach’s ordinance prohibiting beach chair and umbrella rentals along nine miles of public beach constitutes an “anticompetitive, profit-motivated scheme.” Cherry Grove Beach Gear argues that the ordinance restricts competition and limits consumer choice in the beach gear rental market.
The city’s ordinance aims to ensure the safety of rental equipment and financially support certified lifeguards and beach patrols. Although the city permits businesses to solicit rentals door-to-door or on adjacent streets, setting up rental equipment directly on the beach is banned. City attorney Elbert Dorn emphasized the complexities involved in managing a beach rental business compared to running an operation from a private location.
Cherry Grove Beach Gear’s legal challenge targets a city ordinance enacted in June 2022, which the company contends violates the Sherman Antitrust Act. In December 2022, U.S. District Judge Joseph Dawson III ruled that North Myrtle Beach had immunity from the antitrust claim, citing South Carolina laws that empower municipalities to regulate public beach industries. The company subsequently appealed, arguing that the city is not merely regulating the market but actively participating in it, thus contesting the district judge’s decision to grant immunity.
During the appeal process, U.S. Circuit Judge Roger Gregory raised concerns about whether the city’s use of rental revenue to fund lifeguards affects the ordinance’s anticompetitive nature. Under South Carolina law, municipalities are permitted to grant exclusive rights for beach rentals to companies that also provide lifeguard services. This position aligns with a previous Fourth Circuit case, where municipalities asserted their right to prohibit competition for specific services, akin to emergency medical services.
The essential question in the appeal is whether North Myrtle Beach’s ordinance is focused solely on safety or if it constitutes an unlawful monopoly in the beach gear rental market. Established in 2019, Cherry Grove Beach Gear was previously denied franchise applications to set up rental operations on the beach. The city’s regulatory framework for beach rentals has been active since 1990, with periodic modifications.
In the current context, city-managed rentals are projected to bring in $2.6 million in revenue as part of the 2022 budget. Customers have the option to rent various types of equipment at different fee structures based on rental duration. If an amicable settlement is not reached, the legal dispute may escalate to a jury trial, with a tentative trial date set for December 7.
In addition to antitrust claims, Cherry Grove Beach Gear could face fines totaling $20,500 for operating without franchise approval in violation of the city ordinance. Previous allegations related to the 14th Amendment and defamation have been dismissed, but the business still has the opportunity to pursue other legal claims.
FAQ
What is the legal challenge Cherry Grove Beach Gear is pursuing against North Myrtle Beach?
Cherry Grove Beach Gear claims North Myrtle Beach is violating federal antitrust laws by prohibiting rentals of beach chairs and umbrellas on nine miles of public beach.
What does the city ordinance aim to ensure?
The city’s ordinance aims to ensure the safety of rental equipment while funding certified lifeguards and beach patrols.
What is the projected revenue from city-managed rentals for the 2022 budget?
City-managed rentals are expected to generate $2.6 million in revenue in the 2022 budget.
What are the potential consequences Cherry Grove Beach Gear could face?
Cherry Grove Beach Gear faces fines totaling $20,500 for operating without franchise approval in violation of the city ordinance.
Key Features
| Feature | Description |
|---|---|
| Legal Challenge | Cherry Grove Beach Gear claims North Myrtle Beach is violating federal antitrust laws. |
| City Ordinance | Bans rental equipment setup on the beach; allows door-to-door solicitation. |
| Revenue Generation | Projected $2.6 million from city-managed rentals in 2022. |
| Potential Fines | Cherry Grove Beach Gear may incur $20,500 in fines for ordinance violations. |
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Additional Resources
- Courthouse News: North Myrtle Beach Defends Exclusive Beach Gear Rentals
- WBTW: North Myrtle Beach Prevails in Yearslong Legal Case
- Myrtle Beach Online: Legal Battle Over Beach Gear Rentals
- Google Search: North Myrtle Beach beach gear rental lawsuit
- Myrtle Beach Online: Political Implications of Beach Gear Lawsuit
- Wikipedia: Antitrust Law
Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
