New Maryland Law Prohibits Minimum Pricing Agreements
April 29, 2009
Following is an excerpt and summary of a Wall Street Journal article on this topic:
Maryland has passed a law prohibiting minimum pricing agreements.
The law takes effect Oct. 1, 2009, and prohibits manufacturers from forcing retailers to charge minimum prices on certain products.
Minimum pricing agreements have become much more common since a controversial 2007 U.S. Supreme Court ruling (Leegin Creative Leather Products, Inc. v. PSKS, Inc.)Â That case held minimum pricing agreements do NOT automatically violate federal antitrust law.
Under the new Maryland law, retailers doing business in Maryland and Maryland state officials can sue manufacturers that impose minimum-pricing agreements.
The law also covers transactions in which Maryland consumers buy goods on the Internet, even when the retailer is based out of state. Consequently, the law could potentially affect manufacturers throughout the country.
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