Is it legal for a company to enforce price minimums in the USA? When exporting from Europe to the USA but not sourcing directly from the manufacturer, it is common to receive communications from companies along the lines (1) in the USA we have a minimum price policy, which you are breaking/you have to source from our US supplier (2) We forbid export of this product to the USA/it can only be done through authorized channels. Is it the case that a company is allowed to prevent export of an identical product from a different country. Or is this anticompetitive behaviour which legislation prevents?
It didn’t work for Nintendo Nintendo used to have a policy of setting minimum retail prices for its products. If retailers didn’t comply, Nintendo would decrease or eliminate their supply. In 1991, the FTC investigated Nintendo for price fixing, and Nintendo agreed to pay some money back and to reframe the minimum price as more of a “suggestion.” Technically, this was a settlement, so the courts didn’t actually rule against (or in favor of) Nintendo. But being investigated by the FTC is already pretty serious. https://www.upi.com/amp/Archives/1991/04/10/Nintendo-gives-coupons-to-settle-price-fixing-case/5169671256000/
I've found Commission Decision 2003/675/EC which sheds light on what exactly happened here (more digestable press release here). Basically, there was a dispute involving Nintendo and its various independent distributors who had exclusive distribution rights in their respective territories, Bergsala AB for Sweden. Note this wasn't simply a matter of Bergsala's rights being violated, but rather a scheme to reduce parallel imports/exports which the Commission found to be anti-competitive. For most parties, this was brought to an end in December 1997 (see section 2.2.11 on pgs. 54-55). So no, there was no change in the law, but the anti-competitive scheme stopped in late 1997. Weirdly this should have resulted in the possibility for more imports, but since those imports would no longer have artificially higher prices, perhaps the advertisements and/or imports were no longer worth economically worth it. Or perhaps Bergsala pivoted to greater enforcement the exclusive rights it did have, even if this didn't include the ability to block parallel imports according to EU competition law. In any case, trade of Nintendo products in Europe was greatly altered in late 1997. Please take my summary with a grain of salt, I'm not very well versed in the field of commerce and I've already misunderstood the decision at least once; check the cited decision for proper details.
You paid a higher amount so you got to drive the latest model for a year. I can buy a lower amount right now, but I only get to drive last year's model. Or I can pay a higher amount to drive the latest model again. That's life. I have a Wii. I didn't buy it when people queued up for it, but when the shop was selling them off for half the price. That's life. You pay more for the latest and greatest, and then it gets cheaper. The protection you are talking about is this: If the shop advertises a motorbike for £8,000 and when you go into the store the price is suddenly £10,000 then there is some protection in place. The protection means the shop will get a major telling off from trading standards if you complain, and possibly a fine. It doesn't mean you get the motorbike for £8,000. And it most definitely doesn't mean you get money back when they reduce the price a year later.
Yes. Contracts do not excuse a site from obeying the law, and the law requires sites to obey court orders. "It violates my contract with a third party" is not a valid reason to disobey a court, and disobeying a court order is contempt. On the other hand, contract law (at least in the U.S. and U.K.) says that contracts that violate the law or public policy are invalid, and so you could not win a breach of contract suit if the defendant could not legally comply with the contract. Now, a contract might require the company to attempt all possible legal ways to get the court to revoke its order, or to avoid the order in the first place (for instance, if Google does no business in China, a U.S. court might not excuse them from a contract because they capitulated to the Chinese government). However, when push comes to shove, private contracts are lower priority than court orders.
A business is free to set its pricing model in whatever way it chooses, unless there is a specific law restring this. As no country or jurisdiction is mentioned in the question, there is no way to judge if some specific law applies. (In the US that would probably be a matter of state law.) A business could set its prices at 10 per user, but with a Minimum charge of 100 if it chose to do it that way. It is up to a potential customer to decide if this is a fair price or not. As long as the price plan was disclosed in advance, the customer has no ground for a legal complaint. The customer could always ask the business to change its policy, but there would be no legal duty to make a change.
If a business literally has an &quot;exact change only&quot; policy, that can't be enforced in post-pay situations. But if they have a &quot;you are free to overpay, but we won't give you change back&quot;, that's different, especially if it's communicated from the beginning. If they tell you they don't give change, then you're taking their goods/services implicitly agreeing to their terms.
A business owner can normally refuse service for any reason unless anti-discrimination law, or some other specific law, applies. &quot;Critic of the business&quot; is not a protected class. Whether a business would act in such a way I cannot say if it would risk significant negative publicity. But I see no legal reason why they could not.
Yes. A company from one member state may do business in any E.U. state so long as it complies with local law in the course of doing so. For example, a Dutch company doing business in Germany must still pay German taxes and comply with German labor laws for its German employees. But, it doesn't have to form a German subsidiary to do business in Germany.