Screw U Consumer

The "consumer" is overrated. Waaay overrated.

..."But, but, I'm THE CONSUMER!!!"...

..."The consumer is always right!"...

Get over yourself.

Price Fixing is Legal wrote:

Why is legal price fixing allowed under the guise of Minimum Advertised Price (MAP)?

This causes no competition for pricing on these products. America, the home of capitalism?

The retailer has the right to sell shoes at any price they want.

The wholesaler has the right to discontinue any business relationship they want.

theJeff wrote:

Price Fixing is Legal wrote:

Why is legal price fixing allowed under the guise of Minimum Advertised Price (MAP)?

This causes no competition for pricing on these products. America, the home of capitalism?

The retailer has the right to sell shoes at any price they want.

The wholesaler has the right to discontinue any business relationship they want.

MAP says if they sell below MAP they lose the right to sell the product.

a rose is a rose is a rose until you are blind and smell something else

The story regarding MAP’s legality is that retailers are still technically allowed to sell at any price they want. They just can’t advertise a price below MAP. So theoretically you can contact a retailer and ask for a lower price, and they could grant it to you. Whether that actually happens in the real world is another question.

Lester Nope wrote:

theJeff wrote:

The retailer has the right to sell shoes at any price they want.

The wholesaler has the right to discontinue any business relationship they want.

MAP says if they sell below MAP they lose the right to sell the product.

a rose is a rose is a rose until you are blind and smell something else

Retailers can sell below MAP with no penalty. They just can't ADVERTISE lower than MAP. Some retailers get around this by showing you the actual selling price once it is in the shopping cart. The FTC says that the price displayed in a secure or encrypted shopping cart isn’t subject to MAP because it’s technically not advertising.

So it isn't fixed pricing, retailers can sell for whatever price they want, they are restricted as to what price they can advertise.

I think it depends on the contract. The manufacturer wants a minimum "fair" price, so that all retailers can have a "fair" chance at customers.

But if you don't have a contract, then you can simply be a reseller and put any price you want. This is what happens on ebay auctions.

MAP is evidence that the followers of Milton Friedman and the Chicago School of Economics are total charlatans with no principles. Free markets are supposed to be efficient because the "invisible hand" of the market (i.e. consumers, manufacturers and retailers) will set the most efficient price for goods and services. MAP allows retailers and manufacturers to collude to prevent customers from being able to effectively negotiate price. In most consumer transactions, save and except for cars and houses and a few other large purchases, the price is the price. The only way a consumer can get a better price is by looking for a sale. MAP effectively precludes retail sellers from competing with each other by offering consumers sales. Yet, you do not hear a peep from the CATO institute or any other free marketers about MAP. But the free marketers then scream when people form labor unions. This is conspiring with other employees to set the price of labor and should be banned by the government. MAP is nothing more than retailers and manufacturers conspiring to set the price for goods and services. The argument that there is no violation of the law because the retail seller is free to discount the price in a face to face transaction with the consumer is just bull because in most consumer transactions there is no one at the store who has the authority to discount the price. You bring the product to the cash register and pay.