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Cybercops Bust Retailers Whose Deals Are Too Good

By Jim O'Neill,  Newser User

Posted Dec 4, 2008 9:57 AM CST

(Newser) – Manufacturers have gone on the offensive to stop discounters from selling their products for less than the minimum advertised price they set, reports the Wall Street Journal. But companies like eBay and Costco are pushing for laws to ban the minimum prices. Some retailers, like Circuit City, use workarounds to undercut the "MAP," or minimum advertised price. The Supreme Court has ruled that MAPs do not constitute an antitrust violation.

Many manufacturers enforce their MAPs through an emerging industry of cybermonitors who comb the Internet looking for super-low prices—and allow the manufacturers to punish violators. They say they're protecting their brands, but consumer advocates argue that the result is artificially inflated prices, and some retailers complain of inconsistent enforcement. "We feel that consumers will ultimately suffer," says an eBay rep.

eBay signs illuminate the company's booth at the DigitalLife expo in New York.
eBay signs illuminate the company's booth at the DigitalLife expo in New York.   (AP Photo/Mark Lennihan, file)
A sign outside eBay headquarters in San Jose, Calif.
A sign outside eBay headquarters in San Jose, Calif.   (AP Photo/Paul Sakuma, file)
Customers enter a Costco warehouse store in Matthews, N.C.
Customers enter a Costco warehouse store in Matthews, N.C.   (AP Photo/Chuck Burton)
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We feel that consumers will ultimately suffer, and we feel that they do deserve the best and most competitive price they can get."
- Nichola Sharpe
eBay spokeswoman

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COMMENTS
Showing 2 of 2 comments
Guest
Dec 30, 2008 12:08 AM CST
Just proves how stupid some retailers really are. The number of failed stores is due to the fact they did not allow themselves sufficient margion to pay their bills.
Zebraone
Dec 7, 2008 9:29 PM CST
With the economy tanking, Screw the MAP's! They're going down the tubes with the net spies!

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