Policy Studies Competition Policy

The Case Against Minimum Pricing Laws

Key Points

Anachronistic minimum pricing and minimum mark-up laws are still prevalent in states around the country and dictate the lowest prices that businesses can charge for many goods, including popular items like gasoline and alcohol.
These laws conflict with long-standing retailing traditions, such as loss leader pricing, that allow consumers to buy products at the lowest price possible.
Most economists, including those at the Federal Trade Commission, believe minimum pricing laws both hurt consumers and are unnecessary.

Press release: How Low Can You Go: The Case Against Minimum Pricing Laws

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