Archived posting to the Leica Users Group, 1999/12/29
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Gaifana wrote: "Leica does fix their prices within a very narrow range. Smacks of illegal resale price maintenance to me, but no one seems to care - or maybe the Antitrust Division has bigger fish to fry (Microsoft?)." The Antitrust Division of the US Department of Justice does not generally bring vertical resale price maintenance suits. They have been openly hostile to the economic theory that underlies making resale price maintenance illegal. The Federal Trade Commission has been a little more inclined to be involved in such areas, but not significantly so. Leica is free to announce a resale price for the product, and then refuse to deal with any dealer who does not follow the price list. They cannot, however, coerce the dealer into charging the price. It is sort of one chance and you are out. It is very expensive to be a Leica dealer. Imagine the investment in inventory you must make, and sometimes exceptionally long time it takes to sell some items (note the presence of 10 year old "unsold" lenses in original boxes.) Further, your sales people must be trained to demonstrate the cameras and their features. That all costs lots of money. If you are going to have to discount on top of that, well you get the picture. Robert Rose Trial Attorney, Antitrust Division of the US Department of Justice 1975-1980