Price fixing is an agreement by multiple competitors to set, raise or otherwise support the price for goods or services sold. Price fixing is considered anti-competitive. Price fixing can take many forms. Specific price-fixing practices are illegal in many countries, including the United States. In the US, the Antitrust Division of the US Department of Justice is responsible for enforcing price fixing laws and regulations, most notably the Sherman Act. Examples of price fixing practices that are prohibited include making agreements to establish specific discounts, not lower prices, adopt a standard pricing formula, or fix credit terms. Bid rigging and market allocation schemes are usually grouped with price fixing as illegal anti-competitive acts. Violation of the Sherman Act is a felony. Conviction for participation in a price fixing conspiracy can result in fines and/or prison terms. Victims of unlawful price fixing are entitled to seek restitution of up to three times damages suffered. |
