The Wall Street Journal is reporting today that the Supreme Court has ruled that manufacturers can legally set the minimum prices on their products and force retailers to refrain from discounting. Previously, manufacturers that punished retailers that discounted by cutting off shipments risked violating anti-trust laws. This Supreme Court ruling changes that. While it is still illegal for a group of manufacturers or retailers to band together and fix prices, the court ruled manufacturers have a right to enforce minimum prices on their own products.
One concern from the retail perspective is that price minimums make it difficult for retailers to compete in the marketplace.