LJNDawson.com, Consulting to the Book Publishing Industry
Book Publishing Industry Consultant

Price floors - SCOTUS decision

Manufacturers and retailers can now set minimum pricing, according to a Supreme Court decision released about an hour ago.

For 96 years, it's been illegal to set minimum pricing on products. Today's decision reverses that. So, for example, publishers could insist that books be sold at a minimum of, say, $25 for a hardcover - eliminating discounts.

The Wall Street Journal reports:

The change isn't likely to boost prices at large discount retailers, which have considerable power over manufacturers to set their own prices. Instead, the case could make it harder for smaller boutiques that offer specialty or custom-fitted goods to lower prices without consent of a manufacturer. It also could limit the ability of retailers to sell some goods at lower prices on the Internet.

Another blow for the independent bookseller who wants to offer special programs or pricing packages to compete with the big guys.

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