Retail Price Maintenance

Retail Price Maintenance (RPM) is an agreement where manufacturers and retailers agree on the selling price of a product. This means the manufacturer sets a suggested retail price, and the retailer is expected to sell at or near that price. RPM is intended to protect brand value and ensure fair competition among retailers. However, in many countries, RPM can be considered illegal because it can restrict free market competition and lead to higher prices for consumers. Laws around RPM vary, so its legality depends on specific regulations in each jurisdiction.