Do merchants who sell mobility scooters network with other scooter merchants?
Tuesday, September 22nd, 2009 at
12:45 pm
I’m curious if the mobility scooter merchants help each other or they usually too competitive?
Filed under: Mobility scooter
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Competitors can certainly network but they must be careful due to laws against collusion.
Collusion is when you enter into an agreement for a unlawful purpose, in the business world that would mean an agreement that would violate fair trade practices.
If they "help" each other by establishing a price floor so the companies don’t undercut each other that would be illegal. If they assign each other geographic areas so that they don’t step on each others toes that too is illegal.
Anytime competitors are too chummy it is going to draw scrutiny of regulators.
A real life example is I briefly lived in a county where service stations could perform state safety inspections on your cars. Even though they never had a meeting it was an unwritten rule that they would all charge the same amount. They were all charge with collusion and every service station in the county was fined.