Price fixing: Difference between revisions
Theme article started, make sure to read the FTC articles linked to expand this! |
see also - financial censorship, etc. |
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Price fixing is determined by the Federal Trade Commission (FTC) as<blockquote>An agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels.<ref name=":0">{{Cite web |last=Federal Trade Commission |title=Price Fixing |url=https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing |access-date=Mar 24, 2025 |website=ftc.gov}}</ref></blockquote>This agreement often is used as a [[dark pattern]] among companies established among various industries to harm consumers, despite its illegal status within the United States and its territories.<ref name=":0" /> | '''Price fixing''' is determined by the Federal Trade Commission (FTC) as<blockquote>An agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels.<ref name=":0">{{Cite web |last=Federal Trade Commission |title=Price Fixing |url=https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing |access-date=Mar 24, 2025 |website=ftc.gov}}</ref></blockquote>This agreement often is used as a [[dark pattern]] among companies established among various industries to harm consumers, despite its illegal status within the United States and its territories.<ref name=":0" /> | ||
==How it works== | ==How it works== | ||
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==Why it is a problem== | ==Why it is a problem== | ||
=== Elimination of competition === | ===Elimination of competition=== | ||
In the current economic landscape, competition drives the benefit of the consumer, be it by driving down prices, providing better quality products, and more. The elimination of this competition means events such as [[shrinkflation]] may occur. | In the current economic landscape, competition drives the benefit of the consumer, be it by driving down prices, providing better quality products, and more. The elimination of this competition means events such as [[shrinkflation]] may occur. | ||
=== Refusal of service === | ===Refusal of service=== | ||
Cases, such as in Puerto Rico with optometrists,<ref name=":1">{{Cite web |last=Federal Trade Commission |date=Sep 11, 2007 |title=Colegio de Optometras, Edgar Davila Garcia, O.D., and Carlos Rivera Alonso, O.D., In the Matter of |url=https://www.ftc.gov/legal-library/browse/cases-proceedings/051-0044-colegio-de-optometras-edgar-davila-garcia-od-carlos-rivera-alonso-od-matter |access-date=Mar 24, 2025 |website=ftc.gov}}</ref> have occurred where unless contracts were on collectively agreed-upon terms from the companies, that these contracts were refused or threatened to be refused. This can corner consumers to agree to unfavorable terms, such as [[forced arbitration]], to access a product or service. | Cases, such as in Puerto Rico with optometrists,<ref name=":1">{{Cite web |last=Federal Trade Commission |date=Sep 11, 2007 |title=Colegio de Optometras, Edgar Davila Garcia, O.D., and Carlos Rivera Alonso, O.D., In the Matter of |url=https://www.ftc.gov/legal-library/browse/cases-proceedings/051-0044-colegio-de-optometras-edgar-davila-garcia-od-carlos-rivera-alonso-od-matter |access-date=Mar 24, 2025 |website=ftc.gov}}</ref> have occurred where unless contracts were on collectively agreed-upon terms from the companies, that these contracts were refused or threatened to be refused. This can corner consumers to agree to unfavorable terms, such as [[forced arbitration]], to access a product or service. | ||
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Some examples of price fixing include: | Some examples of price fixing include: | ||
* [[Payscore]] - a service that multiple apartment managers and rental companies use to fix the price of rent, thus harming affordable housing | *[[Payscore]] - a service that multiple apartment managers and rental companies use to fix the price of rent, thus harming affordable housing | ||
* Colegio de Optometras, Edgar Davila Garcia, O.D., and Carlos Rivera Alonso, O.D., In the Matter of<ref name=":1" /> | *Colegio de Optometras, Edgar Davila Garcia, O.D., and Carlos Rivera Alonso, O.D., In the Matter of<ref name=":1" /> | ||
== Further reading == | |||
* [[Value based pricing|Financial censorship]] | |||
* [[Value based pricing]] | |||
* [[Whaling (gaming industry term)]] | |||
==References== | ==References== | ||