What is Price Fixing?

Many people often as what is price fixing? Price fixing is an agreement among competitors to raise, lower, or stabilize pricing of products or services. Generally, antitrust laws in the United States require that each company establish its own pricing and terms based on market supply and demand, rather than collude with competitors to determine pricing or terms that are not driven by fair competition and market forces. When competitors join together to agree upon pricing of products or services, the pricing is usually higher than it would be if it had been determined by normal market forces.

Types of Price Fixing

While not all price similarities among competitors are the result of price fixing, there are several different ways companies conspire to collude on pricing or otherwise violate the Sherman Antitrust Act, including:

  • Unnaturally high prices
  • Pricing policies (minimum or maximum prices and terms of sale, including financing)
  • Bid rigging
  • Anticompetitive collusion
  • Market division or allocation schemes

Call a Los Angeles Securities Attorney Today

The U.S. Department of Justice generally pursues price fixing violations, while the government handles fines for price collusion and other violations. If you believe you or your company has fallen victim to price fixing, you should contact an experienced Los Angeles securities attorney today to discuss your rights.