Monday, August 18, 2008

Allow Discounts or Maintain Minimum Pricing?

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[price control]
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Today's WSJ has an excellent article about the tug-of-war between manufacturers and retailers over pricing. Some brands want to cut off retailers that do not stick to a minimum MSRP. Some retailers complain that this is price fixing.

A 2007 Supreme Court ruling said that manufacturers' price restraints should be evaluated case by case. Meanwhile, some state AGs are urging Congress to make "resale price maintenance" illegal.

The battle is not just in the courts--consumers are in a great position to influence the outcome by voting with their wallets.

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