What is price-fixing and how is it illegal?

Price-fixing is an antitrust violation that occurs when two or more competitors agree to set the price of a product or service. The goal of price-fixing is to increase profits, but it also has the effect of eliminating competition and keeping prices artificially high. It is illegal in the United States because it violates antitrust law, which is designed to protect consumers and promote fair competition. In Florida, the Florida Antitrust Act prohibits businesses from agreeing to “fix prices, allocate markets, or divide customers to lessen competition.” When businesses are found guilty of price-fixing, they may be subject to fines of up to $10,000 per violation as well as up to three years of jail time. Price-fixing is a serious offense and should be avoided by businesses. It hurts consumers by limiting their choices and keeping prices artificially high. Competition should be encouraged between businesses so that consumers can get the best price for the product or service that they are buying. Therefore, it is important for businesses to understand the legal ramifications of price-fixing and ensure that they are not participating in any agreements that may violate the law.

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What is price-fixing and how is it illegal?

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