PITTI UOMO 87: THE SPREZZENING

[unbelragazzo]



Legally it's only price fixing if a bunch of retailers groups together and decides on a minimum retail price. That's very illegal. If it's the manufacturer who does it, it's not illegal, it is allowed and very common.

Really, in the US? You can actually write into a contract what prices are allowed, and courts will enforce that contract?

 

[LA Guy]

Really, in the US? You can actually write into a contract what prices are allowed, and courts will enforce that contract?

A lawyer in this area should probably jump in and correct me if I'm wrong, but my understanding is that in the US, the Sherman Act is the law around which all of this revolves, and that @Leaves is in fact, correct, as of 2007, when the de facto ban on any type of vertical price control was overturned, since it was deemed that resale price maintenance was not, in every case, a horizontal cartel.

The second is completely illegal, but often still practiced in the fashion industry. Things like agreements between retailers on "turf", and collusions between retailers and suppliers to protect "turf", are, to my understanding, illegal.

 

[burghler]

Really, in the US? You can actually write into a contract what prices are allowed, and courts will enforce that contract?

I had thought MSRP was allowed because it was only suggested, not required. Even though, for all intents and purposes, the manufacturing was requiring it be honored.

But I thought it was interesting, so I just googled it and here is how Michigan.gov explains it.

Quote:

 

[LA Guy]

I had thought MSRP was allowed because it was only suggested, not required. Even though, for all intents and purposes, the manufacturing was requiring it be honored.

But I thought it was interesting, so I just googled it and here is how Michigan.gov explains it.

Essentially, a horizontal cartel has not, and will unlikely ever be allowed. However, a manufacturer requiring a minimum resale price is not always illegal (depending on the jurisdiction.)

 

[rydenfan]

really fascinating conversation. I have loved the depth of knowledge portrayed here; thanks for enlightening me a bit more (not too difficult a task I realize)