Originally Posted by
Dave Cutter
Not a lawyer here! But I thought that was called "price fixing" and was strictly regulated. At least in America.
fine line....... 2 bike shops in the same area cannot agree between them selves keep prices the same that is price fixing
or too manufactures cannot agreed to sell their top end carbon, di2 road bikes for the same price....that is price fixing
a dealer is free to set their own prices ...over or above msrp, but if they do and the manufacturer does not approve, the manufacturer can stop distribution.
from the ftc
https://www.ftc.gov/tips-advice/comp...cturer-imposed
Reasonable price, territory, and customer restrictions on dealers are legal. Manufacturer-imposed requirements can benefit consumers by increasing competition among different brands (
interbrand competition) even while reducing competition among dealers in the same brand (
intrabrand competition). For instance, an agreement between a manufacturer and dealer to set maximum (or "ceiling") prices prevents dealers from charging a non-competitive price. Or an agreement to set minimum (or "floor") prices or to limit territories may encourage dealers to provide a level of service that the manufacturer wants to offer to consumers when they buy the product. These benefits must be weighed against any reduction in competition from the restrictions.
If a manufacturer, on its own, adopts a policy regarding a desired level of prices, the law allows the manufacturer to deal only with retailers who agree to that policy. A manufacturer also may stop dealing with a retailer that does not follow its resale price policy. That is, a manufacturer can implement a dealer policy on a "take it or leave it" basis.
Limitations on how or where a dealer may sell a product (that is, customer or territory restrictions) are generally legal —
if they are imposed by a manufacturer acting on its own. These agreements may result in better sales efforts and service in the dealer's assigned area, and, as a result, more competition with other brands.