Price Fixing

Price fixing is an agreement between two or more businesses to set the price of a product or service at a certain level. This is illegal in most countries, as it prevents competition and can lead to higher prices for consumers.

There are a few different types of price fixing. One is horizontal price fixing, which occurs when businesses in the same industry agree to set prices at a certain level. Another is vertical price fixing, which occurs when businesses at different levels of the supply chain agree to set prices at a certain level.

Price fixing can have a number of negative consequences for consumers. It can lead to higher prices, less innovation, and less choice. It can also make it difficult for new businesses to enter the market.

There are a number of laws that prohibit price fixing in the United States. The Sherman Antitrust Act of 1890 makes it illegal for businesses to conspire to restrain trade. The Federal Trade Commission Act of 1914 gives the Federal Trade Commission (FTC) the authority to investigate and prosecute price fixing cases.

The FTC has brought a number of successful price fixing cases in recent years. In 2015, the FTC fined four major airlines a total of $1.7 billion for conspiring to fix prices on airfares. In 2016, the FTC fined 10 major food companies a total of $2.2 billion for conspiring to fix prices on bread, eggs, and other products.

Price fixing is a serious crime that can have a significant impact on consumers. If you suspect that a business is engaged in price fixing, you should report it to the FTC.