Resale Prices Acts
Resale Prices Acts (1964, 1976)a body of UK legislation providing for the control of RESALE PRICE MAINTENANCE by suppliers of a product. The Acts make the practice of rpm illegal unless it is specifically exempted by the OFFICE OF FAIR TRADING, usually after investigation by the Restrictive Practices Court (now the COMPETITION COMMISSION). Under the Acts, suppliers must satisfy the Court that not only does rpm benefit buyers in one or more specified ways (for example through greater convenience, or the provision of after-sales services) but that, on balance, these benefits are greater than any detriments (for example higher prices resulting from the elimination of retail price competition). The Acts make one concession to manufacturers, allowing them legally to prevent a retailer from pricing products as a LOSS LEADER (i.e. selling the product at below bought-in cost). See COMPETITION POLICY (UK), RECOMMENDED RESALE PRICE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson