Statement of Administration Policy: H.R. 585 - Freedom from Vertical Price Fixing Act of 1987

(House)
(Rodino (D) New Jersey and Hyde (R) Illinois)

The administration opposes H.R. 585 and, if it were presented to the President for signature, the Department of Justice would recommend that it be vetoed.

H.R. 585 is objectionable because it would codify the per se illegality of resale price maintenance agreements between manufacturers and customers. While such agreements are, at present, considered per se unlawful, the adoption of such a standard would preclude the courts from continuing to develop the appropriate standard to be used in antitrust cases. In addition, the bill would confuse and possibly harm the developing law of conspiracy by permitting the courts to infer the existence of an unlawful agreement even in the absence of any evidence.