Comment by knowitnone3
6 hours ago
Illegal in what way? They are not allowed to set prices lower than competitors or raise them at any time?
6 hours ago
Illegal in what way? They are not allowed to set prices lower than competitors or raise them at any time?
Predatory pricing is illegal in the US, but difficult to prosecute under the existing laws.
What is “predatory pricing” vs. “pricing”?
Selling items for less than they cost to produce is known as "dumping" in international trade (where it is generally disallowed by trade organizations) and can be illegal in the US if the intent is to eliminate competition [0]. That last factor can be hard to prove, and I don't think the FTC is doing much about anticompetitive behavior these days.
[0]: https://www.ftc.gov/advice-guidance/competition-guidance/gui...
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To add onto sibling comment: it is specifically when they sell below cost to eliminate competition, with the goal of later being able to raise prices to recover those losses (and more) once they are the only player in town and can jack the prices up all they want. The later price elevations are what result in consumer harm, which is why it is illegal.
Which means it’s actually: legal and widespread
No it means it’s illegal and enforcement agencies don’t have the means and/or political support to prosecute.