Rate recommendation is not price fixing
Thread poster: Jacek Krankowski

Jacek Krankowski  Identity Verified
English to Polish
+ ...
Apr 16, 2002

To pick up on another thread: I do not think that informing members of a minimum level of decency in rates would be viewed as price fixing even in the US as long as ProZ does not enforce such a mechanism, i.e. the choice whether to yield to the 2ct/wd pressure from agencies or not is left up to every individual alone. Agreeing on a price is very different from advising as to what going rates are in a given geographical region, provided that no one would be induced to apply them and no one would be penalized for not complying with such guidelines. Merely complying with the pre-2ct/wd status quo is not tantamount to setting a price.


Most state statutes provide that fixing the price of a product or service in agreement with another individual or business is illegal. The general rule provides that a vendor may not in combination with another vendor agree to set a certain price thereby creating a fixed price within a certain market. A business acting on its own and not in concert with another may use legitimate efforts to obtain the best price they can, including their ability to raise prices to the detriment of the general public. Also, conformity of prices within a given product is not illegal unless such conformity was created by a combination of vendors agreeing on a set price. For example, where competitors agree to sell their goods or services at a specified price, minimum price or maximum price and they receive profits from such an agreement, they are in violation of price fixing. Additionally, setting a price to be charged only within a certain area in order to get rid of competition or to create a monopoly is generally illegal under most state laws. A majority of states have also enacted a \"Below-Sales-Cost\" law wherein businesses may not sell goods below cost if they do so with anti-competitive intent or effect.

This information is only a brief summary of the extensive price fixing laws and regulations. For specific application of price fixing regulations, please consult with an attorney.


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Rate recommendation is not price fixing

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