Legal Definitions - resale-price maintenance

Resale-price maintenance is a type of price-fixing where a manufacturer forces or convinces different retailers to sell their product at the same price, which eliminates competition. This practice is illegal under antitrust law, but a manufacturer can suggest a retail price without forcing retailers to sell at that price.

• A manufacturer of electronics products forces all retailers to sell their products at the same price, preventing any competition between retailers.
• A clothing brand convinces several retailers to sell their products at a fixed price, which eliminates price competition and ensures that the brand's products are sold at a consistent price across different stores.

These examples illustrate how resale-price maintenance can harm competition and limit consumer choice by forcing retailers to sell products at a fixed price, regardless of market conditions or consumer demand.