Unfair-practices acts typically prohibit resellers from selling items below invoice cost (including any freight charges) plus a stated markup.

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Unfair-practices acts, also known as fair trade laws in some jurisdictions, are designed to protect businesses and consumers from predatory pricing strategies. These laws often prohibit selling items below the cost to buy and bring them to market (which includes invoice cost and any freight charges) plus a specified minimum markup, to ensure fair competition and prevent large retailers from undercutting small businesses to an extent that would drive them out of the market.

Unfair-Practices Acts Typically Prohibit Resellers from Selling Items Below Invoice