Price Maintenance, Price Discrimination and Predatory Pricing: Overview and Practical Issues
Date:
January 1 2004
The price of a product is often its most important selling feature. Pricing of goods and services is also the focal point of laws intended to maintain a competitive marketplace. The primary competition legislation in Canada is the Competition Act.
In this paper, we will discuss some of the provisions of the Competition Act which deal with pricing. When does pricing cross the line between healthy competition and anti-competitive conduct, and how one can recognize when a competitor may have crossed that line? When are low prices too low? When do price incentives become discriminatory trade practices? When are suggested retail prices illegal?
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