Search for Compromise Elusive In Legislative Price-Fixing War; Consumer Groups, Discounters See Abuses Rising
The bombardment of conflicting lobbyist language, legal jargon, political punditry and editorial ink surrounding the battle over the proposed Consumer Protection Against Price-Fixing Act of 1991 is enough to confuse and confound even the most stalwart shopper.</br></br>The legislation, moving through Congress, is designed to strengthen the laws against vertical price-fixing, which occurs when manufacturers and retailers conspire to fix retail prices to drive competition from the marketplace.</br></br>That's been illegal for decades, but consumer advocacy groups and discounters claim that recent Supreme Court decisions and lack of enforcement by federal agencies have seriously weakened the antitrust laws and allowed price-fixing abuses to flourish in the marketplace.</br></br>Consumer advocacy groups say this is a fight over the ability of retailers to buy products from manufacturers and sell them for any price. In other words, cheap sneakers.</br></br>Manufacturers, full-price retailers and some business organizations beg to differ, claiming that off-price retailers are stronger than ever these days. If legislation giving discounters even more clout passes, they say, it will ultimately mean the end of traditional retailers that provide service, selection and quality guarantees to consumers.