Do you think your pricing strategy is airtight? Think again! Resale price maintenance (RPM) is one of the few business practices that is automatically illegal under Australian competition law. If your business supplies goods or services to resellers, even well-intentioned pricing controls could expose you to substantial penalties.  

The extent to which suppliers of goods in Australia are able to ‘control’ the price at which their goods are resold is something that is quite reasonably queried when negotiating supply agreements. It is important to understand that the setting of minimum resale prices (known as retail price maintenance (RPM)) is prohibited.