What is price-fixing and how is it illegal?

Price-fixing is an illegal practice where competitors agree to charge the same price for goods or services. This anti-competitive behavior is illegal under antitrust laws, like the Sherman Antitrust Act of 1890, which applies in Tennessee. Price-fixing reduces competition and harms consumers by eliminating price competition and stifling innovation. Without competition, companies can charge higher prices, reduce the quality of products, and prevent new businesses from entering the market. Price-fixing is a form of collusion between competitors. It is illegal because it goes against the main goal of antitrust laws, which is to promote competition and protect consumers. Price-fixing goes against the most basic principles of free-market economics, where businesses compete for customers by offering the lowest prices, the best quality, or the most innovative products. Price-fixing is considered a serious offense and can be prosecuted as a crime, carrying potential jail sentences and hefty fines. The U.S. Department of Justice Antitrust Division is responsible for enforcing antitrust law in Tennessee and other states and will often investigate instances of price-fixing reported by consumers or competitors. Businesses or individuals found guilty of price-fixing may face civil and criminal penalties and businesspeople could be banned from ever running a business again.

Related FAQs

What is the role of the Federal Trade Commission (FTC) in antitrust enforcement?
What are the key concepts of antitrust law?
What challenges might antitrust laws face in the future?
What antitrust laws are specific to the EU?
What are the implications of antitrust law for new technology?
Are foreign companies subject to US antitrust laws?
What are the differences between civil and criminal antitrust violations?
What are the rights of consumers under antitrust law?
How do antitrust laws apply to restrictive covenants?
How does antitrust law protect consumers?

What is price-fixing and how is it illegal?

Related FAQs

Related Blog Posts