Supreme Court lifts ban on minimum pricing

ARLINGTON, Va. In the case of Leegin Creative Leather v. PSKS Inc., the Supreme Court decided today that retailers and manufactures can set minimum resale prices. This decision overrules the Court’s previous declaration in the case of Dr. Miles Medical v. John D. Park and Sons Co., which claimed that setting limits on resale prices was in violation of antitrust laws.

In the case of Leegin v. PSKS, PSKS sued Leegin for breaking antitrust laws by forming vertical agreements with retailers to set minimum resale prices. The Court found in favor of Leegin, saying that the “rule of reason” test would be used to determine the illegality of individual cases rather than a set rule for all cases.

Commenting on the Supreme Court’s decision, Gary Shapiro, president and ceo of the Consumer Electronics Association said, “Reasonableness has come back to the antitrust laws, and in the consumer electronics industry, where sales training, industry marketing, and after-sales service are highly valued by manufacturers and reputable retailers, it makes perfect sense to consider these factors when evaluating a manufacturer's requirement that threshold prices be maintained."