The UK Office of Fair Trading takes the view that bilateral communications of retail prices between manufacturers and retailers are problematic (Sports Bras)
When do retail price communications between retailers and manufacturers become RPM?* Introduction
Commercial negotiations between manufacturers and retailers necessarily involve a discussion of wholesale prices, but they may also involve a discussion of potential retail prices, including recommendations of retail prices by manufacturers (RRPs). Retail prices not only determine how much money a retailer will make, but also how much product the manufacturer will sell. Furthermore large retailers may have little idea of how to price specialist products, something on which manufacturers have often undertaken significant amounts of research.
While these communications are generally beneficial and efficient, there are two main concerns with price communications between retailers and
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