Vertical price-fixing refers to manufacturers setting minimum prices for the retail sale of their product. From 1911-2007, manufacturers could not set minimum prices for the sale of their products or prohibit retailers from offering sales or discounts to consumers. These practices were illegal under the Sherman Antitrust Act.
In the 2007 case of Leegin v. PSKS, the Supreme Court issued a 5-4 ruling reversing the prior law and holding that manufacturers can set minimum prices. After 96 years, vertical price fixing is now legal.
This legislation, Senate Bill 75, would reestablish the law as it existed prior to the decision in Leegin. This bill would make any agreement or conspiracy that sets a minimum price below which a product cannot be sold a violation of the Sherman Antitrust Act.