Clark upset over price fixing on clarkhoward.com

Last year, Clark got so upset over the Supreme Court's 5-to-4 vote that effectively legalized price fixing. The decision allowed manufacturers to set the price you pay in a store. Up until that point, retailers charged whatever they wanted for goods they purchased from a manufacturer.

Clark was furious because the decision meant more money out of your pocket. Retailers that competed fiercely on price would no longer have any reason to do so.

At the time, the Supreme Court swore up and down that the ruling would not negatively impact the price of goods for the average consumer. But let's face it -- the 9 justices probably haven't been in a store in years!

The Wall Street Journal now reports that the Supreme Court's ruling did negatively affect the prices we pay at retail. In fact, the ruling has been one contributing factor in the massive inflation run-up -- along with the price of oil.

Price fixing has no place in capitalism, according to Clark. It is the ultimate in cronyism. Congress needs the guts to overturn the ruling.

In the meantime, you've got to practice brand substitution and buy the most-affordable names you can find.

What others are saying

Exxon's Tax Break
Exxon paid nothing in taxes. Corporations do not pay taxes. People pay taxes. The gas lines were from speculation. There was plenty of gas, but the retailers speculated that the price would go up. They held on to their supplies as long as they could. That is what caused the lines. The prices went up because government control of the prices was halted. It had nothjing to do with a tax.
By BJ @ 08/21/08 04:38:11 PMreport abuse
To Franklin RE: Exxon's tax "break"
And do you know how much Exxon PAID in taxes? A hell of a lot more than the 13.5 billion that they were given in breaks! Tax a company more and they will produce less. Don't believe me? Go read or talk to anyone alive during the Carter Presidency. This is what he did, and prices went through the roof. If you remember gasoline lines or "sorry, out of gas" signs from the 70's it was NOT because there wasn't any gas - it was because the supplier stopped selling at a certain point BECAUSE SELLING MORE WOULD INITIATE A WINDFALL PROFIT TAX to be put into effect!

Idiot.
By Wookie @ 08/21/08 02:21:01 PMreport abuse
Our tax dollars at work
What if there was a vote to decide if $13.5 billion in tax breaks for oil companies should go into oil alternatives, like solar and wind? What would you want your Senator to do?

Well, as you probably guessed, there was such a vote. We needed 60 votes to prevail, and 59 of them were in. But John McCain ducked the vote.1

As a result, instead of powering millions of homes with clean energy and building next-generation solar technology, we're giving ExxonMobil and other companies billions in tax breaks at a time when they're already making record profits.
By Franklin @ 08/20/08 10:54:41 PMreport abuse
price fixing
We've got the Best Government Money Can Buy. As long as we allow money to control our government we get what we deserve.
By Lou @ 08/20/08 08:28:22 PMreport abuse
Price Fixing
How can we stop our GOVERNMENT from doing things that are ILLEGAL?
By anonymous @ 08/20/08 07:46:21 PMreport abuse
Price Fixing On The Internet
I'd like to add that many manufacturers also do this on the Internet with mobility products (scooters, wheelchairs, etc). As a reseller we can make the actual sale at a lower price, but we are prohibited from advertising at anything below the set price. In many cases, we will rebrand products so that we can sell them at the lowest prices possible while still making money. The pros to this are keeping fly-by-night Internet stores out of the picture, but the cons are obvious as well.
By Anonymous @ 08/20/08 07:36:45 PMreport abuse
Supreme Court Price Fixing - Fair Trade
I remember when I was young that there was something called "Fair Trade," which boiled down to no dealer being able to undersell another. I especially remember this at Magnavox, when we bought our first television set. It appears to me that this is nothing more than a reiteration of the Fair Trade laws. On the positive side, it would prevent Wal Mart from offering a loss leader on a competitor's product in order to get more people into the store to buy its Chinese products.
By David @ 08/20/08 05:19:33 PMreport abuse
Price Fixing
Our government works for the lobbyists. Our courts only decide who has the most money. There is no justice, no right or wrong, no guilt or innocence any more.

On election day, we citizens will have our opportunity to get revenge with our votes. Every incumbent needs to be taught just what we think about $4 a gallon gas and milk! Let's all get out and vote with a vengeance!
By BJ @ 08/20/08 03:27:52 PMreport abuse
Price Fixing
"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal" Sherman Antitrust Act
By PJ @ 08/20/08 07:35:14 AMreport abuse
Supreme court challenge
WoW Clark, I am sending this information to my congressman. I had no idea we could challenge dumb decisions of the Supreme Court - and this one is unbelievable! I have been unemployed since Jan 08 and just saw another news report on ABC network news on how lousy the economy is and that prices are going up, etc. The solution is to loose more jobs?! This is not good, it is being blamed on gas prices and the culprits probably haven't set foot in a store to buy school supplies, food, or the basics in years.
Good Job, Clark!
By Nancy Payne @ 08/19/08 07:40:31 PMreport abuse
America: Freedom to Fascism
That explains why the price is the same at every store you check. I guess there's no point in shopping around. Isn't communism grand.
By Judges destroying America @ 08/19/08 07:37:30 PMreport abuse

Exxon's Tax Break

Exxon paid nothing in taxes. Corporations do not pay taxes. People pay taxes. The gas lines were from speculation. There was plenty of gas, but the retailers speculated that the price would go up. They held on to their supplies as long as they could. That is what caused the lines. The prices went up because government control of the prices was halted. It had nothjing to do with a tax.

By BJ @ 08/21/08 04:38:11 PMreport abuse

To Franklin RE: Exxon's tax "break"

And do you know how much Exxon PAID in taxes? A hell of a lot more than the 13.5 billion that they were given in breaks! Tax a company more and they will produce less. Don't believe me? Go read or talk to anyone alive during the Carter Presidency. This is what he did, and prices went through the roof. If you remember gasoline lines or "sorry, out of gas" signs from the 70's it was NOT because there wasn't any gas - it was because the supplier stopped selling at a certain point BECAUSE SELLING MORE WOULD INITIATE A WINDFALL PROFIT TAX to be put into effect!

Idiot.

By Wookie @ 08/21/08 02:21:01 PMreport abuse

Our tax dollars at work

What if there was a vote to decide if $13.5 billion in tax breaks for oil companies should go into oil alternatives, like solar and wind? What would you want your Senator to do?

Well, as you probably guessed, there was such a vote. We needed 60 votes to prevail, and 59 of them were in. But John McCain ducked the vote.1

As a result, instead of powering millions of homes with clean energy and building next-generation solar technology, we're giving ExxonMobil and other companies billions in tax breaks at a time when they're already making record profits.

By Franklin @ 08/20/08 10:54:41 PMreport abuse

price fixing

We've got the Best Government Money Can Buy. As long as we allow money to control our government we get what we deserve.

By Lou @ 08/20/08 08:28:22 PMreport abuse

Price Fixing

How can we stop our GOVERNMENT from doing things that are ILLEGAL?

By anonymous @ 08/20/08 07:46:21 PMreport abuse

Price Fixing On The Internet

I'd like to add that many manufacturers also do this on the Internet with mobility products (scooters, wheelchairs, etc). As a reseller we can make the actual sale at a lower price, but we are prohibited from advertising at anything below the set price. In many cases, we will rebrand products so that we can sell them at the lowest prices possible while still making money. The pros to this are keeping fly-by-night Internet stores out of the picture, but the cons are obvious as well.

By Anonymous @ 08/20/08 07:36:45 PMreport abuse

Supreme Court Price Fixing - Fair Trade

I remember when I was young that there was something called "Fair Trade," which boiled down to no dealer being able to undersell another. I especially remember this at Magnavox, when we bought our first television set. It appears to me that this is nothing more than a reiteration of the Fair Trade laws. On the positive side, it would prevent Wal Mart from offering a loss leader on a competitor's product in order to get more people into the store to buy its Chinese products.

By David @ 08/20/08 05:19:33 PMreport abuse

Our government works for the lobbyists. Our courts only decide who has the most money. There is no justice, no right or wrong, no guilt or innocence any more.

On election day, we citizens will have our opportunity to get revenge with our votes. Every incumbent needs to be taught just what we think about $4 a gallon gas and milk! Let's all get out and vote with a vengeance!

By BJ @ 08/20/08 03:27:52 PMreport abuse

"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal" Sherman Antitrust Act

By PJ @ 08/20/08 07:35:14 AMreport abuse

Supreme court challenge

WoW Clark, I am sending this information to my congressman. I had no idea we could challenge dumb decisions of the Supreme Court - and this one is unbelievable! I have been unemployed since Jan 08 and just saw another news report on ABC network news on how lousy the economy is and that prices are going up, etc. The solution is to loose more jobs?! This is not good, it is being blamed on gas prices and the culprits probably haven't set foot in a store to buy school supplies, food, or the basics in years.
Good Job, Clark!

By Nancy Payne @ 08/19/08 07:40:31 PMreport abuse

America: Freedom to Fascism

That explains why the price is the same at every store you check. I guess there's no point in shopping around. Isn't communism grand.

By Judges destroying America @ 08/19/08 07:37:30 PMreport abuse

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Aug 19, 2008 -- Clark upset over price fixing

What others are saying