Tuesday, June 22, 2010

Why do cosmetic companies get to FIX PRICES for their products?

I thought this was against the law in the US?Why do cosmetic companies get to FIX PRICES for their products?
This is called ';Resale price maintenance'; and is legal. The Supreme Court recently ruled (in 2007...look it up) that this was legal--within reason.





The trick to doing this legally is to work with retailers to set pricing and NOT competitors. Working with competitors to set pricing is called collusion, and will put you in jail.





Roger!Why do cosmetic companies get to FIX PRICES for their products?
it's not so much as the companies ';fix'; prices but pressure stores to sell it at the recommended retail price. if stores vary from this, the brand pulls it's merchandise and the retailer misses out. it's a power thing...

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