Resale price maintenance
PRACTICE WHEREBY A MANUFACTURER AND ITS DISTRIBUTORS AGREE THAT THE DISTRIBUTORS WILL SELL THE MANUFACTURER'S PRODUCT AT CERTAIN PRICES, AT OR ABOVE A PRICE FLOOR OR AT OR BELOW A PRICE CEILING
Fair-Trade Law; Re-sale price maintenance; Price Maintenance; Price maintenance; Retail price maintenance; Retail Price Maintenance
Resale price maintenance (RPM) or, occasionally, retail price maintenance is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling (maximum resale price maintenance). If a reseller refuses to maintain prices, either openly or covertly (see grey market), the manufacturer may stop doing business with it.