MSRP and "price fixing"

[greenthumbs777]

What is the name of your state?What is the name of your state?What is the name of your state? Indiana

Hi all,

I have an online business and recently offered a small (less than 10%) promotional limited time discount on a particular item and was told by the manufacturer to remove it and, "We will be very strict this year with MSRP's".

Then I found this -
from: http://www.mortcrim.com/biz/YB20040810.htm

THE BOTTOM LINE - Be Aware of Price Fixing

There is a fine line between going-rate pricing and price fixing, an illegal practice in which competing biz owners decide together how much a product or service is going to run. Pay attention to following guidelines from Michigan Attorney General Mike Cox:

* MSRP: While the manufacturer may suggest a retail price, it cannot coerce a retailer into agreeing to it. If an agreement between the manufacturer and retailer is obtained, then the agreement is illegal.
* Manufacturers: A number of different manufacturers may not agree to set prices for their products. Agreements between manufacturers to set prices are illegal.
* Retailers: Similarly, a number of different retailers cannot agree to set prices for their products. Agreements between retailers to set prices are illegal.

To learn more about Michigan consumer laws, click here.

My question is, is this company in violation and what can be done if they are?
Thank you.

GreenThumbs

[email protected]

 

[TTHarboo]

MSRP Pricing Issues

Our state location: Ohio

We too are in this very predicament. The manufacturer (which is not the manufacturer but has the product privately labeled) has told us if we don't raise our retail pricing to match ours, they will not sell to us anymore.

We are a bit confused on what legal rights we have because we just do not think this is right. We have done business with this company for years, but now they added a new person to the company and they are telling us this. They even tried to tell us we couldn't even run a sale and then they retracted that and said we couldn't run a sale on the product for longer than a couple weeks.

 

[dallas702]

That's been addressed numerous times at the federal level, but seems to be abused somewhat. The bigger scam is the states (like NV) who use MSRP to determine taxes and fees for registration instead of actual documented sales price. And, those get paid every year you own the vehicle.

 

[matti422]

Price fixing by requiring enforcing an MSRP may be against the antitrust requirements of the Sherman Act. Contracts which require acts which violate the Sherman Act may be unenforceable.

What can be done? Sell the parts for what you want. Do nothing until they sue - if/when the company sues, use the antitrust requirements as an affirmative defense. Or, sue them for declaratory judgment saying you can sell the parts for below MSRP.

PS - the do nothing defense is often cheaper.

 

[BelizeBreeze]

What is the name of your state?What is the name of your state?What is the name of your state? Indiana

Hi all,

I have an online business and recently offered a small (less than 10%) promotional limited time discount on a particular item and was told by the manufacturer to remove it and, "We will be very strict this year with MSRP's".

Then I found this -
from: http://www.mortcrim.com/biz/YB20040810.htm

THE BOTTOM LINE - Be Aware of Price Fixing

There is a fine line between going-rate pricing and price fixing, an illegal practice in which competing biz owners decide together how much a product or service is going to run. Pay attention to following guidelines from Michigan Attorney General Mike Cox:

* MSRP: While the manufacturer may suggest a retail price, it cannot coerce a retailer into agreeing to it. If an agreement between the manufacturer and retailer is obtained, then the agreement is illegal.
* Manufacturers: A number of different manufacturers may not agree to set prices for their products. Agreements between manufacturers to set prices are illegal.
* Retailers: Similarly, a number of different retailers cannot agree to set prices for their products. Agreements between retailers to set prices are illegal.

To learn more about Michigan consumer laws, click here.

My question is, is this company in violation and what can be done if they are?
Thank you.

GreenThumbs

[email protected]

The only legal question you have is in regard to the company fixing their OWN pricing and conditions for distributorship and the answer is YES, they have that right and NO this is NOT price fixing.