resale price maintenance

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Related to Minimum advertised price: Retail price

resale price maintenance (rpm)

a business practice whereby a supplier stipulates the PRICE at which his product is to be sold by retailers. By establishing a uniform retail price (that is, by preventing price cutting) the supplier may aim to ensure that his product is available through most retail outlets, as well as preserving the price-quality image of the product. On the other hand, in the absence of rpm, price competition between retailers may well increase the sales of the product. Rpm is virtually prohibited by UK COMPETITION POLICY on the grounds that it deprives consumers of the benefit of lower prices and gives too much protection to inefficient retailers. See OFFICE OF FAIR TRADING, RECOMMENDED RESALE PRICE, RESALE PRICES ACTS (1964,1976).

resale price maintenance (RPM)

a type of ANTICOMPETITIVE PRACTICE/RESTRICTIVE TRADE PRACTICE whereby a supplier prescribes the PRICE at which all retailers are to sell the product to final buyers. The main objection to RPM centres on the fact that it restricts or eliminates retail price competition, and by prescribing uniform retail margins it serves to cushion inefficient retailers.

The practice of RPM (except in very special circumstances) was made illegal in the UK in 1964, and this led to the rapid expansion of mass retailers such as supermarket chains who could afford to cut prices by BULK-BUYING. See also COMPETITION POLICY (UK), OFFICE OF FAIR TRADING, RECOMMENDED RETAIL PRICE, RESALE PRICES ACTS 1964,1976.

References in periodicals archive ?
The Consent Decree allowed Herman Miller to unilaterally enforce the failure of retailers to abide by the minimum advertised price policy by cutting supplies if it had a legitimate business reason not inconsistent with the terms of the Consent Decree.
The Color imageCLASS LBP7780Cdn laser printer is expected to be available starting in late January through resellers and Canon Direct at a minimum advertised price (MAP) of $899.
Most manufacturers provide windows of opportunity during which time a retailer may go below the minimum advertised price, through coupons or other promotions (buy three dinner plates, get one free, for instance).
Jennings has a minimum advertised price on that particular model," White says.
The V322, V322-AVT and V322-PC will be available in December 2012 and ship with a 3-year parts and labor warranty, including the backlight, and have a minimum advertised price of $619, $719 and $1479, respectively.
Each movie carries a minimum advertised price of $22.
Spot Lifter has a current minimum advertised price of $59 and is expected to be the biggest floor care hit for the 1998 holiday season.
Our pricing system allows dealers a full 36 percent markup over minimum advertised price (MAP).
The title has no suggested retail price, but has a minimum advertised price of $14.
The E323, E423, E463 and E553 will be available in November 2012 at a minimum advertised price of $419, $649, $829 and $1279, respectively.
Lanes said the dishwasher lineup begins with model DWA22 (the numbers respectively signify the feature packages and the washing levels), carrying a minimum advertised price of $249.

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