Klarinet Archive - Posting 000001.txt from 2006/08

From: Mark Charette <charette@-----.org>
Subj: Re: [kl] Buffet Pricefixing??
Date: Tue, 01 Aug 2006 08:28:43 -0400

Bill Hausmann wrote:
>
> Many manufacturers have Minimum ADVERTISED Prices, which are designed
> mostly to protect local stores from mail order/internet outlets. But
> setting minimum SELLING prices constitutes price fixing in my book.

Not according to the Supreme Court in the US (there have been a number
of cases brought before it on this subject). Setting a minimum price and
dropping dealers that sell below that price is currently perfectly
legal. Coercing dealers to not sell below that price (a policy of
dropping the dealers is different than coercing them, at least legally)
is not legal.

A number of co-ops have brought suit against distributors for this very
reason. The suits have not been fruitful unless coercion has been
demonstrated.

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