price fixing laws

Price fixing occurs when competitors secretly agree to set the same prices for their products or services, instead of letting market forces determine prices. This practice harms consumers by reducing competition, leading to higher prices and fewer choices. Laws against price fixing, like those enforced by the Federal Trade Commission and Department of Justice in the U.S., aim to promote fair competition and protect consumers. Engaging in price fixing is illegal because it undermines a free market economy, and companies found guilty can face hefty fines and legal penalties.