Competition & Trade Practices
8. Resale Price Maintenance
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 11 Jul 2015
- This refers to the situation where a supplier puts pressure on a reseller to charge a minimum resale price for their goods or services. It also applies where a supplier prohibits a reseller from advertising those goods or services above or below a certain price.
- Although a supplier can suggest that resellers charge an appropriate price for the goods or services they cannot impose a minimum resale price or prevent resellers from advertising or selling below that price.
- For example it is legal to recommend a retail price (RRP) but against the law for the supplier to put pressure on a reseller to charge their RRP. On the other hand a supplier will generally be permitted to specify a maximum price above which their goods and services should not be sold.
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