Friday, December 05, 2008

The Consumer Be Damned

Did you know that if an online retailer sells stuff below the minimum advertised price some pasty geek toiling away in some obscure veal fattening pen will drop a dime on them?
When NetEnforcers finds goods like cameras, handbags or ovens for sale at too-low prices, as it claims to do 5,000 to 10,000 times a day, it alerts its clients, including Sony Corp., Black & Decker Corp., Cisco Systems Inc., JVC Kenwood Holdings Inc. and Samsung Inc.

The manufacturer then notifies the retailer to raise their price or else. The retailer bound by their MAP agreement will normally comply within hours. If the retailer isn't a licensed retailer, the manufacturer will jam them up legally. How does this affect you? Higher prices from a less competitive market.

1 comment:

Homercles said...

Thanks for the belly laugh. "...pasty geek toiling away in some obscure veal fattening pen...".