Supreme Court Looks at Pricing Agreements

The United States Supreme Court has taken on a case involving the legality of minimum pricing agreements. A small retailer in Texas cut prices on womens’ fashion accessories in response to similar discounting by competitors. The manufacturer threatened to cut off supplies to those stores selling below MSRP. The retailers sued, and won, invoking a precedent from 1911 which stated that minimum pricing agreements are always anticompetitive. (Minimum advertised pricing policies are generally considered legal.) This issue raises interesting pricing, legal, and philosophical questions, and passionate views both for and against the legality of these arrangements. Share your thoughts in the comments.

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