08-16-2020, 08:11 PM
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Craftsman
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Join Date: Mar 2008
Posts: 173
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Quote:
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Originally Posted by ghrocketman
I noticed in the beginning of the catalog it states that jobber and retailer prices are fixed.
They must sell for "retail" to the public.
Courts in modern times have ruled such arrangements are anti competitive and illegal.
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You are correct, setting a minimum selling price is illegal under US law. However, is is perfectly legal for a manufacturer or distributor to mandate a minimum ADVERTISED price to their resellers. They can use MAP along with a co-op advertising rebate scheme to control reseller pricing behavior.
A reseller in the US can sell at any price they wish. Advertising the availability of a product below that price may cut off the flow of critical advertising or marketing support, though.
James |