Re: "Justices overturn ban on price-fixing"

Ann wrote:
"Manufacturers can set a minimum price for their products and forbid
retailers from offering discounts, the Supreme Court said Thursday in a
decision that overturned almost a century of antitrust law and could
result in higher consumer prices and fewer discounts, especially on the
Internet."
http://www.latimes.com/news/nationworld/nation/la-na-prices29jun29,1,1213308.story?track=rss http://tinyurl.com/22qp5e


I think this ruling was fairly narrow and applied to a case where a
manufacturer of high-end products wanted to be sure that the dealers
did not discount the goods and lower the perceived value. I mean
just think if the dealers of Prada shoes and purses were to start
selling on _price_? People might think they were buying only a piece
of leather instead of status. They used to call it "fair trade" pricing and dealers who sold below the "suggested retail" ran the risk
of losing the right to buy from that manufacturer. It's nothing rare.
Just buy a Sunday paper and look at the circulars from the electronic
chains -- Circus City, Beast Buy, etc. almost always sell the identical
product for the identical price -- and offer a guarantee that if you can find it advertised for less they will beat the competitor's advertised
price by 10%. The same thing goes on with automobiles -- you have to work
really hard to find a significant difference in the cost of an identically
equipped vehicle between dealers.

I don't think this ruling says that it is acceptable for two manufacturers
to get together and decide what the minimum price should be.

--
They're locking them up today they're throwing away the key
I wonder who it'll be tomorrow you or me.
.

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