Fair Trade Acts

Fair Trade Acts

State laws in the United States allowing manufacturers or distributors of goods to require retailers to charge a minimum price. Fair trade acts were designed to protect manufacturers from retailer price-cutting, which otherwise would reduce manufacturers' profits. Fair trade acts are currently rare to nonexistent.
References in periodicals archive ?
The McGuire Fair Trade Act, passed to overcome the Supreme Court's ruling that previous fair trade acts were unconstitutional, was hailed by manufacturers as a boon to small retailers--since it forbade "cut-price" retailers from underselling them--according to a story in Retailing Daily on July 16, 1952.