Code: 21-01

Authors: Ennis S and Kuhn KU

Date: 31 Mar 2021


Minimum Advertised Prices: How they Differ from RPM

Ennis S and Kuhn KU

Minimum advertised price (MAP) policies constrain retailers to advertise prices above the minimum level set by a product manufacturer. As a vertical restraint on pricing they are often considered by law and economic theory as a type of resale price maintenance (RPM). We argue in this paper that there are core differences between MAP and RPM because MAP applies only to advertising but places no restriction on in-store retail pricing. As a result MAP has different implications from RPM and merits a distinct legal treatment.

CITATION: Ennis S and Kuhn KU (2021) "Minimum Advertised Prices: How they Differ from RPM". CCP Perspectives Policy Papers 21-01

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