resale price maintenance
The fixing by a supplier of the price at which his goods may be sold by others. This may be attempted by contractual arrangements or by non-legal means, such as blacklisting by trade associations. Resale price maintenance is now prohibited by the Competition Act 1998 and (in the EU) Article 101 of the Treaty on the Functioning of the European Union. Provisions in contracts of sale between suppliers and dealers fixing minimum prices are void, and it is illegal to withhold supplies on the grounds of adverse pricing. Fines of 10% of turnover can be imposed for breach of these provisions. Formerly, resale price maintenance was permitted for books and certain non-prescription drugs, but even these exceptions have now been declared illegal. In 2020 the UK-based company Fender Europe was fined £4.5 million by the Competition and Markets Authority for fixing the price of guitars in breach of the Competition Act 1998.

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