Resale price maintenance
If a supplier seeks to prevent or discourage its customers from discounting its goods or services, it may breach the law. This practice is known as resale price maintenance.
The following forms of conduct amount to resale price maintenance:
- inducing customers not to sell the goods for less than a specified minimum price
- making an agreement with customers that requires them to charge no less than a specified minimum price
- withholding supply from customers that sell goods below the specified minimum price
- using a statement of price likely to be understood as specifying minimum sale prices.
Resale price maintenance is examined further in Module 4.