Posted by Mark Goodge on 06/18/07 15:10
Andrew Heenan wrote:
> "Mark Goodge" <usenet@listmail.good-stuff.co.uk> wrote...
>> That depends where you are. It may still be legal in the US, but
>> setting a minimum retail price has been illegal in most of Europe for
>> quite some time.
>
> Everyone in the UK thinks 'resale price maintenance' has benn banned. But
> Tesco had to remove Levis from shelves when they undercut the affiliated
> partners; Superdrug had to up the price of perfumes.
That's because Tesco and Superdrug were breaking a contractual
restriction on geographic distribution territories by buying on the
"grey" market. Geographic selling restrictions are still legal[1], so
suppliers are entitled to enforce them even if that means resellers
can't get hold of their products at a cheaper price.
[1] Although they have as much rational basis now as RPM did before it
was abolished.
Mark
--
http://mark.goodge.co.uk
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