A recent Supreme Court ruling makes way for Manufacturer to significantly dictate retail pricing on their products. (Leegin Creative Leather Products v PSKS, Inc. docket 06-480)

The Sherman Act (1890) brought on a barrage of court challenges days after it was passed. From the beginning the court did not feel comfortable applying the Sherman Act when considering a single manufacturer setting a retail price. The Sherman Act has been mainly concerned with curtailing consortiums, monopolies or syndicates, forming within industries to control and set prices in order to eliminate competition.   Past rulings demonstrate that the courts did not feel there was enough empirical data to know how this type of restraint would affect free trade. Hence, with few exceptions (see Compact Disc MAP anti-trust decision 2004), most cases involving single manufacturers were dismissed from the higher court. Interestingly enough, the court realized that similar products may not be the same in quality or value, which has bearing on how distribution brings similar products to market. Imports, quality brands, mid-market and low priced products are all choices that consumers have access to. It is important to distinguish between the “value” manufacturer and the “discounted” manufacturer, and one way for the consumer to recognize these additional values is by price.

This is what this latest Supreme Court decision has tried to rectify without losing the ability to rein in potential monopolies.

Consumers should be protected when it comes to monopolies and the manufacture need to see the potential, financially, to “build the better mouse trap”. The Supreme Court has made it clear with this decision that the free market will determine what price will be set, per the “rule of reason” threshold.

Miz Liza Data solution www.MizLiza.com has launched two timely, inexpensive products designed for the manufacturer and the online store.  These products provide an easy to read, intuitive and interactive tool which automatically monitors pricing on the SKU’s and products you choose.

Because of this landmark decision, NOW is the time to act and secure your sales channels before your competition does. Come visit our site www.Mizliza.com now to see how easy and cost effective price monitoring can be!

If you have any additional questions you would like to discuss please contact Paul Ramos direct at 323-422-4077 or lizasales@mizliza.com