With all the complaints about LDS controlling pricing (at least trying to) by trying to withhold warranties etc., I have not seen two issues raised.
1. Implied warranties... Many states, including Idaho have an "implied warranty" of usability by businesses selling products for profit. Even though the manufacturer/vendor says they do not warranty an item the state can and will step in under certain circumstances.
2. The Sherman Act legislated in 1890. What they are doing is a direct violation of this Federal Law. Here is an brief explanation and link to an article:
Price Fixing Price Fixing
Price fixing is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. It is not necessary that the competitors agree to charge exactly the same price, or that every competitor in a given industry join the conspiracy. Price fixing can take many forms, and any agreement that restricts price competition violates the law. Other examples of price-fixing agreements include those to:
Establish or adhere to price discounts.
Hold prices firm.
Eliminate or reduce discounts.
Adopt a standard formula for computing prices.
Maintain certain price differentials between different types, sizes, or quantities of products.
Adhere to a minimum fee or price schedule.
Fix credit terms.
Not advertise prices.
In many cases, participants in a price-fixing conspiracy also establish some type of policing mechanism to make sure that everyone adheres to the agreement.
Many of the "policies" of large vendors/manufacturers meet these qualifiers.
Refusaling to allow discounting.
Using warranty loss as a means of controlling price.
Agreeing to price in a certain manner or established level.
Not allowing the advertising of prices.
Seems like a pretty close match to me. Either way the LDS looses when they try to control pricing using these methods.
1. Implied warranties... Many states, including Idaho have an "implied warranty" of usability by businesses selling products for profit. Even though the manufacturer/vendor says they do not warranty an item the state can and will step in under certain circumstances.
2. The Sherman Act legislated in 1890. What they are doing is a direct violation of this Federal Law. Here is an brief explanation and link to an article:
Price Fixing Price Fixing
Price fixing is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. It is not necessary that the competitors agree to charge exactly the same price, or that every competitor in a given industry join the conspiracy. Price fixing can take many forms, and any agreement that restricts price competition violates the law. Other examples of price-fixing agreements include those to:
Establish or adhere to price discounts.
Hold prices firm.
Eliminate or reduce discounts.
Adopt a standard formula for computing prices.
Maintain certain price differentials between different types, sizes, or quantities of products.
Adhere to a minimum fee or price schedule.
Fix credit terms.
Not advertise prices.
In many cases, participants in a price-fixing conspiracy also establish some type of policing mechanism to make sure that everyone adheres to the agreement.
Many of the "policies" of large vendors/manufacturers meet these qualifiers.
Refusaling to allow discounting.
Using warranty loss as a means of controlling price.
Agreeing to price in a certain manner or established level.
Not allowing the advertising of prices.
Seems like a pretty close match to me. Either way the LDS looses when they try to control pricing using these methods.