Resale Prices Acts 1964, 1976
Resale Prices Acts 1964, 1976a body of UK legislation providing for the control of RESALE PRICE MAINTENANCE (RPM) by suppliers of a product. The Acts made the practice of RPM illegal unless it is specifically exempted by the OFFICE OF FAIR TRADING, usually after investigation by the COMPETITION COMMISSION (formerly by the RESTRICTIVE PRACTICES COURT). 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, 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 made one concession to manufacturers, allowing them legally to prevent a retailer from pricing their 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 Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005