CEA Praises Supreme Court Decision on Minimum Prices
The Consumer Electronics Association on Thursday praised a decision by the U.S. Supreme Court that overturned a long-standing ban on price floors by manufacturers and retailers.
In the antitrust case Leegin Creative Leather Products v. PSKS, Inc., the high court found that manufacturers can agree on minimum prices, so long as they promote competition. The 5-4 ruling overturned a nearly century-old precedent, which had stood since the court’s 1911 decision in the case of Dr Miles Medical Co. v. John D. Park and Sons that price floors violated anti-trust law.
“CEA applauds the Supreme Court decision today reversing the per se rule against resale price maintenance,” CEA president and CEO Gary Shapiro said in a statement. “The Supreme Court holding that the ‘rule of reason’ should apply to the legality of manufacturer pricing decisions, means simply that all the facts will be examined before a finding of illegality – replacing a black and white rule of illegality in every case.”