Vertical price-fixing

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Vertical price-fixing consists of a manufacturer or wholesaler setting a minimum price for its goods to be sold by a retailer. This is also known as "resale price maintenance" (RPM).

This practice was automatically ("per se") illegal until June 28, 2007, when the U.S. Supreme Court said that a manufacturer or wholesaler may be able to justice its imposition of a minimum resale price.[1]

A decade earlier the U.S. Supreme Court legalized, if justification is shown, the practice of vertical price-fixing to establish a maximum resale price by retailers.[2]

Reference

  1. Leegin Creative Leather Prods. v. PSKS, Inc., 2007 U.S. LEXIS 8668 (2007).
  2. State Oil Co. v. Khan, 522 U.S. 3, 118 S. Ct. 275 (1997), overruling Albrecht v. Herald Co., 390 U.S. 145 (1968).
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