Maryland passes law to prohibit minimum-pricing agreements

New York City In a move that could lead to lower prices for consumers across the country, Maryland has passed a law barring manufacturers from requiring retailers to charge minimum prices for their goods, The Wall Street Journal reported. The new law takes effect Oct. 1.

In 2007, in a controversial decision, the U.S. Supreme Court struck down a nearly 100-year-old antitrust rule that it was not automatically unlawful for manufacturers and distributors to agree on minimum retail prices.

Under the new law, retailers doing business in Maryland can sue manufacturers that impose minimum-pricing agreements. The law also covers transactions in which consumers in Maryland buy goods on the Internet, even when the retailer is based out of state.

Maryland's legislation is one of a series of recent initiatives aimed at getting around the Supreme Court decision. A congressional subcommittee is scheduled to hold a hearing Tuesday in which several opponents of minimum-pricing agreements are expected to testify.

Also, Sen. Herb Kohl (D-WI), has introduced a bill called the Discount Pricing Consumer Protection Act, which seeks to once again make minimum-pricing agreements between manufacturers and retailers illegal under federal law. Hearings on the bill are scheduled to begin in May.