as online retailers like Amazon and Walmart try to grab sales from each other
For years, manufacturers set the lowest price at which retailers could advertise certain big-ticket items
They wanted to stop shoppers from seeing one price in-store, only to find it online for less somewhere else
But some companies are now setting minimum prices for everyday items
Quote from Jack Gale, Account executive at PriceSpider:
"We're seeing categories adopt (these floors) that never had, like food and beverage."
Source: Reuters source
Colgate-Palmolive has in recent months used minimum price policies on products like toothpaste
The Pro Series toothpaste is advertised for $9.96 on Amazon and consumers have struggled to find it for less elsewhere
Source: Company memo seen by Reuters
Hasbro requires retailers to keep advertised prices above specified levels, except during the holiday shopping season
Source: Ron Alcazar, CEO
And Mr. Tortilla decided to set a minimum as it expanded sales, to keep prices level across online retailers
While the policies are legal in most of the U.S., they are illegal in many countries