It's illegal for suppliers to impose minimum prices for the resale of their goods or services.
This is known as resale price maintenance.
Resale price maintenance is illegal because it stops retailers competing on price, increasing what consumers pay.
It's also illegal for resellers to ask suppliers to stop competitors selling below a minimum price.
Example of resale price maintenance
Scenario
A jewellery wholesaler gives retailers a list of recommended prices.
It offers a 10% discount to retailers who pay their accounts on time, but the discount isn't available if the retailer sells the jewellery for less than the recommended prices.
Relevant factors
The discount is taken away from the retailer if they sell the jewellery for less than the price recommended by the wholesaler. This is resale price maintenance and is illegal.