The retailer gets blacklisted if they don’t use the price set by the distributor. It’s vertical price fixing. It’s illegal in some countries, but in the US, bend over.
As an employee of an independent business competing against large chains, it benefits us. Otherwise there would be nothing stopping a huge company from selling things below cost, which they could afford to take a loss on, causing customers to go to them instead of the local, independent store where we can’t afford to sell things at a loss. Then we close up shop, and the big company no longer has competition and can raise their prices accordingly to start making a massive profit.
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u/_shaftpunk 5h ago
As someone who works retail, there are rules about advertising below MAP pricing.