Contracted restrictive trading

[scoota]

Can anyone please shine any light on the legality of this:
I am an internet seller of mobility products and due to the downturn in the industry some high street retailers are complaining to my suppliers that they can not compete with people like myself selling products cheap on the internet.
My supplier has requested that we should all agree to a minimum suggested selling price. I have been told by my rep that the company intends to start a new system that will penalise dealers who do not stick to the minimum suggested selling price MSSP.
They are to class dealers as a,b or c and dealers that sell for less than the MSSP will be charged more for the product.
Could this be classed as a cartel and is it legal?

Anyone got opinions?

 

[paultnl]

found this on the net.
In 1964 the Resale Prices Act was passed, which now considered all resale price agreements to be against public interest unless proven otherwise. However, practices such as the Net Book Agreement continued to prevent discounting in some market segments.
In relation to competition, Article 81 and Article 82 of the EC Treaty are paramount over all member states' national laws relating to competition. The ECJ and the Commission have both held that Resale Price Maintenance is generally prohibited. UK law must apply this interpretation when dealing with inter member-state agreements between undertakings.

 

[scoota]

Thanks for that Paul.
I have seen several articles about price maintenance but most of them seem to be American. I cant seem to find what UK trading laws have to say about it.

 

[Lime One]

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074014670 Covers this by links to the primary legislation under the Enterprise Act and Competition Act.

There is nowhere near enough information in your post to determine how the law applies to your business and legal advice should be sought before signing any agreement which attempts to fix costs or impose penalties.

 

[scoota]

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074014670 Covers this by links to the primary legislation under the Enterprise Act and Competition Act.

There is nowhere near enough information in your post to determine how the law applies to your business and legal advice should be sought before signing any agreement which attempts to fix costs or impose penalties.

Thank you so much.
That is just the sort of thing i have been looking for.
Now how do i mark you as helpful?