Refusal to deal

 

Institution Definition

The practice of refusing or denying supply of a product to a purchaser, usually a retailer or wholesaler. The practice may be adopted in order to force a retailer to engage in resale price maintenance (RPM), i.e., not to discount the product in question, or to support an exclusive dealing arrangement with other purchasers or to sell the product only to a specific class of customers or geographic region. Refusal to deal/sell may also arise if the purchaser is a bad credit risk, does not carry sufficient inventory or provide adequate sales service, product advertising and display, etc. The competitive effects of refusal to deal/sell generally have to be weighed on a case-by-case basis. © OECD

 
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