In June a high-profile Supreme Court case held the attention of retailers and manufacturers alike. In a five-to-four ruling the high court overturned a lower-court decision to award $1.2 million to a Dallas-area clothing store that was cut off by a supplier Leegin Creative Leather Products because the retailer refused to abide by the manufacturer’s retail price maintenance (RPM) or no-discount policy. The decision means that manufacturers no longer face a blanket prohibition against implementing an RPM policy. The case has spurred concern among consumer groups who claim it overturns a century of precedent and will lead to price fixing and unjustifiably higher prices. But Wharton faculty suggest that any changes will be gradual and may ultimately benefit consumers.
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