Thread: Discount Code
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Unread 23-01-2007, 14:08
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Re: Discount Code

You might want to be careful on pricing. It is not only horizontal price agreements between manufacturers that are illegal. The following is from the Federal Trade Commission site in the section on illegal business practices.
http://www.ftc.gov/bc/compguide/illegal.htm - scroll down to "vertical agreements".

"Resale price maintenance agreements. Vertical price-fixing -- an agreement between a supplier and a dealer that fixes the minimum resale price of a product -- is a clear-cut antitrust violation. It also is illegal for a manufacturer and retailer to agree on a minimum resale price."

There is some latitude, but you'd have to read the fine print. If the manufacturer suggests a retail price and the seller voluntarily follows, then it may be OK. Agreements are not OK. There's a bit more discussion of this case here: http://www.michigan.gov/ag/0,1607,7-...4650--,00.html
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