[link|http://www.thestreet.com/s/supreme-court-eases-ban-on-retail-price-floors/markets/marketfeatures/10365503.html?puc=_googlen?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA|The Street]

The U.S. Supreme Court on Thursday eased a nearly century-old ban on retail price floors, leaving it to lower courts to determine whether individual circumstances violate anti-trust laws.

In a 5-4 decision, the court directed lower courts to apply a "rule of reason" to each case to establish whether the practice is in violation of the Sherman Anti-Trust Act. Justice Anthony Kennedy, writing the majority opinion, ruled that vertical retail price agreements could, under certain circumstances, either hurt or aid consumers.

There are actually two things here. The first is the sudden streak of 5-4 decisions that overturn previous Supreme Court decisions. That rather disappoints me with Roberts, who had been showing signs of being reasonable and conservative*.

The second is this being a good idea or not. Personally I don't like it, but I'll wait to see how the court rules on the follow up case. This case just kicks the matter back to the lower court, and is likely to end up back at the Supreme Court again. I'm worried that the court is liable to rule in a way that would render all but the most abusive price fixing as being legal.

Jay

* In the true "don't change things unless their is a good reason" rather then the authoritarian sense the current White House pushes.