[Pitlove]

Yes Aquarianqt is right, that is what I’m referring to and the Federal Trade Commission governs it.

https://www.naw.org/govrelations/advisory.php?articleid=532

“In a sharply divided 5-4 decision, the U.S. Supreme Court has overruled its own 1911 decision in the Dr. Miles case and held that a manufacturer does not necessarily violate the antitrust laws by establishing a minimum resale price for its products and enforcing the policy by terminating a wholesaler-distributor or other reseller who sells below the minimum price. (Leegin Creative Products, Inc. v. PSKS, Inc. d/b/a Kay’s Kloset…Kay’s Shoes, Docket No. 06-480)

The Court ruled that “vertical agreements establishing minimum resale prices can have either procompetitive or anticompetitive effects, depending upon the circumstances in which they are formed.” Thus, these agreements should no longer be per se (or automatically) unlawful, as previously ruled in the Dr. Miles case. Rather, courts should apply the “rule of reason” standard to decide, on a case-by-case basis, whether a particular vertical price restraint violates federal antitrust law. It should be emphasized that the Court’s decision still leaves vertical minimum resale price restraints open to antitrust challenge under federal and state antitrust laws.”

https://en.wikipedia.org/wiki/Unilateral_policy

“Under a Unilateral Policy (or “Colgate Policy” or “Unilateral Minimum Retail Price Policy”) a manufacturer, without any agreement with the reseller, announces a minimum resale price and refuses to make further sales to any reseller that sells below the announced price”

Some of this is also covered with the Antitrust Law

• This reply was modified 10 years, 3 months ago by Pitlove.