Prices will rise—notably online—if the Supreme Court lifts ...
Prices will rise -- notably online -- if the Supreme Court lifts a ban on resale price maintenance (RPM), the Consumer Federation of America said in a amicus brief filed Mon. A decision in Leegin Creative Leather Products v.…
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PSKS to overturn the ban would be a “dagger aimed at the heart of the most consumer-friendly aspects of the Internet,” CFA Research Dir. Mark Cooper said. RPM, which requires distributors to sell products at the manufacturer’s price, “invariably raises consumer prices,” the brief said. It lets manufacturers set minimum prices for products, stops retailers from offering discounts and keeps shoppers from trolling for the best price, he said. Manufacturers want to kill the ban, in place since 1890 under Section 1 of the Sherman Antitrust Act, based on “bogus economic theories,” he said. The Miller-Tydings Act of 1937 legalized RPM, but the Consumer Goods Pricing Act of 1975 banned it again. The ban has helped new retailers enter the market and encouraged competition, the brief said.