Overview of Miller-Tydings Resale Price Maintenance Act of 1937
The Miller-Tydings Resale Price Maintenance Act of 1937 is a United States federal law which regulates the practice of price maintenance by manufacturers and distributors. The law allows manufacturers to set a minimum resale price for their products, and prohibits distributors from reselling these products at a lower price. The law was enacted in an effort to protect small businesses from predatory pricing by larger competitors.
What is Resale Price Maintenance?
Resale price maintenance (RPM) is the practice of manufacturers or distributors setting a minimum resale price for their products. This practice is used to prevent distributors from selling the products at a lower price than what the manufacturer or distributor sets.
Purpose of Miller-Tydings Resale Price Maintenance Act of 1937
The Miller-Tydings Resale Price Maintenance Act of 1937 was designed to protect small businesses from predatory pricing by larger competitors. It allowed manufacturers to set a minimum resale price for their products, while preventing distributors from reselling these products at a lower price. The law was intended to promote competition among small businesses by ensuring that they could not be undercut by larger competitors.
Examples of Miller-Tydings Resale Price Maintenance Act of 1937
The Miller-Tydings Resale Price Maintenance Act of 1937 applies to a wide range of products, including:
- Household goods
- Pharmaceuticals
- Food products
- Automotive parts
- Clothing
- Electronics
The Act also applies to services, such as professional services, repair services, and transportation services.
Conclusion
The Miller-Tydings Resale Price Maintenance Act of 1937 is a United States federal law which regulates the practice of price maintenance by manufacturers and distributors. The law allows manufacturers to set a minimum resale price for their products, and prohibits distributors from reselling these products at a lower price. The law was enacted in an effort to protect small businesses from predatory pricing by larger competitors.
References
- Miller-Tydings Resale Price Maintenance Act of 1937, Federal Trade Commission
- Miller-Tydings Resale Price Maintenance Act of 1937, Cornell Law School