The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General.
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The Attorney General’s Consumer Protection Team often hears from consumers with questions about price fixing on items like appliances, stereo equipment, toys, and health products. A common question is:
“I was shopping for speakers, but the price was the same at every store. When I asked a salesclerk, he told me it was the manufacturer’s set price. Isn’t that price fixing?”
The answer is usually no. Price fixing—when businesses agree to set the same prices on products or services—is illegal. Price fixing happens when businesses at the same level of the supply chain agree on prices. For example, if all stereo manufacturers set one price, or if all stores selling that product agreed to charge a single price, that would be illegal because it harms competition and limits choices for consumers.
But this isn’t the same as when a manufacturer suggests a price and retailers decide to follow it. Many manufacturers suggest a price, called the Manufacturer’s Suggested Retail Price (MSRP). Retailers can decide if they want to use this price or set their own. If a retailer is following the suggested price on its own, this is usually not illegal, even if other stores do the same. Because brands compete, one brand might lower its price to attract more buyers. This competition helps keep prices in check and benefits consumers.
It’s not always easy to tell if a store is setting its price based on a manufacturer’s suggestion or an illegal agreement. Here’s a general rule: If the manufacturer suggests a retail price and the stores each decide to follow it on their own, it’s likely not price fixing. However, if the stores or brands agree to set one price across the board, that could be illegal.
The Attorney General’s Consumer Protection Team is dedicated to answering your questions and making sure the marketplace is fair for all consumers. If you suspect price fixing, contact the Consumer Protection Team at:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form