House Panel Approves Price-Fixing Bill
The House Judiciary Courts and Competitive Policy Subcommittee voted Thursday to prohibit agreements that set minimum prices on goods or services, reversing a 2007 U.S. Supreme Court decision. On a voice vote, the subcommittee agreed to the bill and sent it to the full committee, which is not expected to take it up before fall. Courts and Competitive Policy Subcommittee Chairman Hank Johnson, D-Ga., said the Supreme Court upset 96 years of law that will make consumers pay higher prices. "This bill takes a stand for the consumer," said Johnson. Read more about the split decision in Leegin Creative Leather Products, Inc. v. PSKS, Inc. here.
Internet auction giant eBay, which has emerged on the front lines of the movement to restore the vertical price fixing ban, lauded the subcommittee's action. "When large manufacturers and their biggest retail partners enact price-fixing policies they burden consumers with inflated prices and rob the economy of the value provided by small business competition," eBay Vice President Tod Cohen said. But Rep. Darrell Issa, R-Calif., said there may be occasions when minimum resale price maintenance is important, such as to preserve warranties or to protect small retailers against giant discounters. He was assured by Johnson that the bill would be developed further before the full committee takes it up.
Read CongressDaily's full mark up report for H.R. 3190 here (subscription required).
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