A manufacturer sets a minimum retail price for its product.

the situation in which a producer sets a list price and does not allow the retailer to offer a discount to consumers.

The process by which manufacturers dictate to the retailers of their products the prices below which (or in some cases, above which) they may not sell the products to consumers. While the legal status of RPM is complex, it can generally be said that manufacturers may suggest resale prices for their products to retailers on a unilateral basis without violating the antitrust laws. However, when a resale price is dictated to a retailer by the manufacturer, and the retailer agrees to and does adhere to that price, courts have found this to be a violation of the antitrust laws.