resale price maintenance

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Related to Price Maintenance: Minimum advertised price, Maintenance cost

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 ?
Furthermore, I show that resale price maintenance does not increase the upstream firm's profit.
Resale price maintenance (RPM) programs involve agreements between a supplier and its retailers that require the retailers to charge resale prices determined by the supplier.
The court has also noted that minimum retail price maintenance by new product sellers may be particularly pro-competitive, as minimum pricing by emerging brands is likely to increase inter-brand competition in competitive markets by allowing new brands to entice well-reputed retailers to "make the kind of investment of capital [i.e., promotion] and labor [i.e., point-of-sale service] that is often required in the distribution of products unknown to the consumer."
EU and UK competition authorities have been very active in investigating resale price maintenance in recent years and have together issued several infringement decisions.
Kahn (maximum resale price maintenance) and in 2007 under Leegin (minimum resale price maintenance).
Netherlands' Philipps, Japan's Pioneer and Denon and Marantz, and Taiwan's Asus engaged in so-called "fixed or minimum resale price maintenance" by restricting the ability of their online retailers to set their own retail prices for widely used consumer electronics products such as kitchen appliances, notebooks and hi-fi products, said the EU's executive body.
Based on the anti-monopoly authority's findings, the dairy and the retail chains were engaged in anti-competitive behaviour in the form of resale price maintenance.Such agreements are prohibited under the Act on the Protection of Competition, in the wording in force until June 30, 2014, and under the Treaty on the Functioning of the European Union, the PMUacute wrote.
M2 PHARMA-March 8, 2018-MabVax Therapeutics Meets NASDAQ's USD 1.00 Minimum Bid Price Maintenance Requirement
The enquiry found that the company appeared to have entered into an agreement with dealers imposing an obligation of 'Minimum Resale Price Maintenance (RPM)' on them for the sale of its products.
In a 44- page order, the regulator said the company's anti- competitive conduct include putting in place arrangements that resulted in resale price maintenance by way of monitoring of maximum permissible discount level.
They address competition law in the context of globalization; the substantive provisions in competition law regimes, including the concept of the market, the threshold issue, the content of horizontal agreements, the issue of market power, intellectual property rights, merger law, and non-price restraints and resale price maintenance in vertical restraints; enforcement issues, namely the criminalization of cartel conduct and the increasing use of private enforcement; and the emergence and growth of competition regimes in Chile, Brazil, Japan, China, and Colombia.
EU competition law, vertical restraints, block exemption, black list, market integration, harmonization, resale price maintenance