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CEA’s Shapiro Applauds Decision To Reverse Per Se Rule


The Supreme Court today issued a decision today in Leegin Creative Leather Products v. PSKS, Inc., replacing the longstanding per se rule against manufacturer agreements with retailers to set minimum resale prices. The Court held that vertical price restraints will now be judged by a “rule of reason” test.
The following statement can be attributed to Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA)®:

“CEA applauds the Supreme Court decision today reversing the per se rule against resale price maintenance. The Supreme Court holding that the “rule of reason” should apply to the legality of manufacturer pricing decisions, means simply that all the facts will be examined before a finding of illegality – replacing a black and white rule of illegality in every case. Reasonableness has come back to the antitrust laws, and in the consumer electronics industry, where sales training, industry marketing, and after-sales service are highly valued by manufacturers and reputable retailers, it makes perfect sense to consider these factors when evaluating a manufacturer’s requirement that threshold prices be maintained.”


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