Resale Price Maintenance
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Resale price maintenance (RPM) is the practice whereby a manufacturer or wholesaler of a branded good sets the minimum retail price at which it can be sold to the consumer. Antitrust laws allow suggested retail prices, but until June 28, 2007 prohibited agreements fixing retail prices because it might reduce price competition.[1] After June 28, 2007, by ruling of the U.S. Supreme Court, RPM is legal if it has a reasonable justification.
References
- â Leegin Creative Leather Prods. v. PSKS, Inc., 2007 U.S. LEXIS 8668 (2007).