Competition – correspondence

Restricting online resale prices: CMA letter to suppliers and retailers

Open letter to suppliers and retailers about resale price maintenance (RPM) and compliance with competition law.



In May 2016, the Competition and Markets Authority fined 2 businesses in separate cases for restricting retailers’ ability to sell their products online at independently determined prices.

This letter gives detail on different kinds of practices that can amount to illegal resale price maintenance (RPM) which include the use of ‘minimum advertised price’ or MAP policies. It also warns suppliers and retailers that they can both face serious consequences for engaging in illegal RPM.