Resale Prices Act 1976

Mair Sadler

The Act• The Resale Prices Act 1964 c. 53 was a consolidation

Act which when passed, now considered all resale price agreements to be against public interest unless proven otherwise. 

• Minimum resale price maintenance (MRPM) had ensured that retailers could only sell a product at a price determined by the manufacturer. The abolition of MRPM allowed such retailers to expand; for Instance Comet Group transformed from a small electrical retail chain in Yorkshire to a national discount retailer.

• The Resale Prices Act 1976 was repealed on 1 March 2000 UK Competition law having been previously incorporated into the Competition Act 1998

Collective agreement by suppliers.• It is unlawful for any two or more persons carrying on business in the United

Kingdom as suppliers of any goods to make or carry out any agreement or arrangement by which they undertake— .

• to withhold supplies of goods for delivery in the United Kingdom from dealers (whether party to the agreement or arrangement or not) who resell or have resold goods in breach of any condition as to the price at which those goods may be resold ; .

• to refuse to supply goods for delivery in the United Kingdom to such dealers except on terms and conditions which are less favourable than those applicable in the case of other dealers carrying on business in similar circumstances; or .

• to supply goods only to persons who undertake or have undertaken— .• to withhold supplies of goods as described in paragraph (a) above; or .• to refuse to supply goods as described in paragraph (b) above. .• It is unlawful for any two or more such persons to make or carry out any

agreement or arrangement authorising— .• the recovery of penalties (however described) by or on behalf of the parties to

the agreement or arrangement from dealers who resell or have resold goods in breach of any such condition as is described in paragraph (a) of subsection above ; or .

• the conduct of any domestic proceedings in connection therewith.

Collective agreement by dealers.• It is unlawful for any two or more persons carrying on business in

the United Kingdom as dealers in any goods to make or carry out any agreement or arrangement by which they undertake— .

• to withhold orders for supplies of goods for delivery in the United Kingdom from suppliers (whether party to the agreement or arrangement or not)— .

• who supply or have supplied goods otherwise than subject to such a condition as is described in paragraph of section 1above; or .

• who refrain or have refrained from taking steps to ensure compliance with such conditions in respect of goods supplied by them ; .

• or, • to discriminate in their handling of goods against goods supplied by

such suppliers. .• It is unlawful for any two or more such persons to make or carry out

any agreement or arrangement authorising— .• the recovery of penalties (however described) by or on behalf of the

parties to the agreement or arrangement from such suppliers ; or .• the conduct of any domestic proceedings in connection therewith.

The law • Businesses’ that are found guilty of

breaking the agreement of this act can be fined up to 10 per cent of their annual worldwide turn over and demanded to change their behaviour.

• Individuals can be sentenced up to five years in prison and/ or fined.

• Company directors can be disqualified from managing a company for up to 15 years.