Thanks to the Supreme Court, Say Goodbye To Slashed Prices on Gizmos
Reading the text of one of today's U.S. Supreme Court decisions, it seems apparent to me that those slashed discount prices some streetwise consumer electronics retailers sometimes implement are largely going to be a thing of the past.
That's because the Supreme Court ruled 5-4 today make it easier for manufacturers to require retailers stick to minimum advertised prices (MAP).
“It is a flawed anti-trust doctrine that serves the interests of lawyers,” Justice Anthony Kennedy wrote, adding the old legal standard required "manufacturers to choose second-best options to achieve sound business objectives."
TWICE (This Week in Consumer Electronics) noted, however, that dissenting justices said the ruling would likely drive up retail prices.
The Consumer Electronics Association is happy, though.
"CEA applauds the Supreme Court decision today reversing the per se rule against resale price maintenance. The Supreme Court holding that the “rule of reason” should apply to the legality of manufacturer pricing decisions, means simply that all the facts will be examined before a finding of illegality – replacing a black and white rule of illegality in every case.
"Reasonableness has come back to the antitrust laws, and in the consumer electronics industry, where sales training, industry marketing, and after-sales service are highly valued by manufacturers and reputable retailers, it makes perfect sense to consider these factors when evaluating a manufacturer’s requirement that threshold prices be maintained."
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