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resale price maintenance

noun

  1. the practice by which a manufacturer establishes a fixed or minimum price for the resale of a brand product by retailers or other distributors US equivalentfair trade rpm
“Collins English Dictionary — Complete & Unabridged” 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012


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“The removal of the decree on resale price maintenance is another step in the death knoll of the independent, regional chains, and small theaters in rural and metropolitan areas,” said the Trinity Theater in Weaverville, California.

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The practice, known as resale price maintenance, is illegal and makes it difficult for customers to find good deals.

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The fines against Mercedes-Benz were the latest in a series of actions taking aim at automakers and parts suppliers, most of which have focused on so-called resale price maintenance.

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The OFT alleges the four companies infringed competition law by entering into resale price maintenance agreements, setting fixed or minimum resale prices for sports bras in the popular Shock Absorber range.

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Resale price maintenance limits competition between retailers and can lead to consumers paying higher price.

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