Miller-Tydings Resale Price Maintenance Act of 1937
The Miller-Tydings Resale Price Maintenance Act of 1937 was a United States federal law that allowed manufacturers to dictate the minimum retail price of a product to resellers. This meant that retailers were not allowed to sell the product below the set price by the manufacturer. The act was passed in response to concerns about price-cutting and unfair competition among retailers.
Under the Miller-Tydings Act, manufacturers could enter into agreements with retailers to set the minimum resale price of a product. This was seen as a way to protect small retailers from larger competitors who might engage in price-cutting to drive them out of business. The act was intended to promote fair competition and prevent price wars that could harm the overall economy.
However, the Miller-Tydings Act was eventually overturned by the Supreme Court in 1951, in the case of Schwegmann Bros. v. Calvert Distillers Corp. The court ruled that resale price maintenance agreements violated antitrust laws and were anti-competitive. As a result, manufacturers were no longer allowed to dictate minimum resale prices to retailers.
Despite its eventual repeal, the Miller-Tydings Act remains an important piece of legislation in the history of antitrust law in the United States. It sparked debates about the balance between competition and consumer protection, and its impact on retail pricing practices continues to be felt today.
Examples of the Miller-Tydings Act in action:
- A manufacturer of high-end electronics enters into a resale price maintenance agreement with a chain of specialty retailers, requiring them to sell the products at a certain price to maintain the brand’s image.
- A cosmetics company sets a minimum resale price for its products to prevent discount retailers from undercutting its premium pricing strategy.
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