Price Fixing

Supreme Court Expected to Overturn Century-old Price-Fixing Ruling

Arguments were heard before the U.S. Supreme Court this week in a landmark case that challenges the 1911 Supreme Court ruling which automatically classifies agreements to set minimum prices as anticompetitive. Ray Hartwell, a partner in the Global Competition Group at Hunton & Williams LLP (Washington) who concentrates his practice on price-fixing, says that the Court is likely to overturn that ruling in Leegin v. PSKS. “The Supreme Court is likely to overturn the hard and fast rule that, for almost a century, has made it illegal for manufacturers to set the prices at which retailers sell their products,” Mr. Hartwell says. “This is a ruling that could have a widespread and very visible impact on consumers, as it will make it easier for manufacturers to prevent discounting of their brands, while at the same time demanding that retailers invest their improved margins in improved service and sales efforts.” Mr. Hartwell also notes that 37 states have joined in opposing a change to the rule. “This broad opposition may suggest that states will take legislative or enforcement actions to preserve the rule against resale price maintenance,” he says. “If this happens — and it’s likely that it will in at least a significant number of states — then the ability of manufacturers to set resale pricing and prevent discounting could vary from state to state.” Mr. Hartwell is available for interviews on the case, as well as other matters related to price-fixing.

News Contact: Jason Milch
Email: milchj@jaffeassociates.com
Phone: 312-846-9647