Collective resale price maintenance is prohibited under Sections 17, 22, 23 and 24 of the Act. Resale price maintenance (RPM) by individual enterprises is prohibited under sections 17, 20, 25 and 27. Under Sections 22, 23, 24, 25 and 27, RPM is a “per se” breach of the Act. This means that the fact that RPM is practised is sufficient evidence that a breach has occurred and there is no need to assess and prove the negative impact on competition.
There are many ways in which prices can be fixed. It may involve fixing the components of a price, setting a minimum price below which prices are not to be reduced, establishing the amount or percentage by which prices are to be increased, or establishing a range outside which prices are not to move. The prohibitions extend to agreements that affect the price to be charged only indirectly. Indirect means of resale price maintenance include discounts or allowances, transport charges, payments for additional services, the terms of guarantees or credit terms. While resale price maintenance is a practice that is often associated with suppliers, it is also unlawful for dealers to collectively agree to withhold orders from suppliers who refuse to impose minimum resale prices on other dealers.