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by jmyeet 909 days ago
This is a silly decision and should be overturned on appeal. Who knows if it will be.

Manufacturers place conditions on how their products are sold, at what price and to whom. "No online sales" is no different to requiring an authorized retailer to sell something at MSRP or no more than 1 or 2 or 3 per customer or only to local residents.

2 comments

> requiring an authorized retailer to sell something at MSRP

That's also illegal in most jurisdictions. It's called "restraint of trade" and it's illegal because it interferes with the normal functioning of a free market and disadvantages consumers.

Illegal where specifically?

It's extremely common, so I don't where it's illegal.

There are limitations if you're in a monopoly situation, but Rolex is not that.

United States:

Q: One of my suppliers marks its products with a Manufacturer Suggested Retail Price (MSRP). Do I have to charge this price?

A: The key word is "suggested." A dealer is free to set the retail price of the products it sells. A dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. However, the manufacturer can decide not to use distributors that do not adhere to its MSRP.

https://www.ftc.gov/advice-guidance/competition-guidance/gui...

Australia:

It's illegal for suppliers to impose minimum prices for the resale of their goods or services.

For example, suppliers must not:

• set minimum prices in formal policies or agreements offer retailers a discount if they sell at or above a minimum price

• refuse to supply retailers that sell below a minimum price

• punish retailers for selling below a set price, for example, by taking away a discount or sending a warning.

https://www.accc.gov.au/business/competition-and-exemptions/...

EU/UK:

Generally speaking, suppliers are entitled to recommend retail prices to their suppliers, but any attempt to restrict the price at which products are sold will constitute vertical price-fixing, which is in breach of EU law

https://www.howatavraamsolicitors.co.uk/know-illegal-supplie...

Exactly -- this is no different from lots of other restrictions manufacturers already put in place.

I'm baffled by this, and what law or legal principle they are attempting to use, and why they would apply it here but not in the thousands of other situations.