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0 pointsthaumasiotes4y ago0 comments

> I think though that CostPlus, if nothing else, has opened the eyes of a great many people who just assumed medicine was like any other product where the manufacturer controls the price

Like any other product? There are zero products like that. Manufacturers aren't legally able to control the price even if they propose a contract with a resale price clause. That's why everything has a "manufacturer's suggested retail price" printed on it.

0 comments

gm4y ago

I meant the manufacturer controls the price at which they sell. Ie, if drug X costs $15 to make, and the manufacturer chooses to sell it to retailers/distributors at $2000, they are free to do that.

thaumasiotesOP4y ago

If that's what you meant, all those people who assumed medicine was like any other product were correct.

s1artibartfast4y ago

The difference is who you buy from and how difficult they are to go around to get to the manufacturer.

1 more reply

kevin_thibedeau4y ago

Resale price maintenance agreements were legalized in the US in 2007.

thaumasiotesOP4y ago

No, they weren't. What was legalized was refusing to sell, in the future, to someone who violates such an agreement. But you can't enforce the agreement.

Note that refusing to sell to people was already legal before 2007.

amluto4y ago

I don’t know anything about the legality, but UMRP is very common.

thaumasiotesOP4y ago

UMRP has no legal effect. It's just a declaration by the manufacturer that "if we catch you pricing below this point, we will stop selling to you". Once you have the item, you can price it however you want.

amluto4y ago

But that’s the point: UMRP is not illegal. It gives the manufacturers de facto control of retail pricing.

kQq9oHeAz6wLLS4y ago

Unless the manufacturer is also the retailer, such as Tesla

j / k navigate · click thread line to collapse

0 pointsthaumasiotes4y ago0 comments

> I think though that CostPlus, if nothing else, has opened the eyes of a great many people who just assumed medicine was like any other product where the manufacturer controls the price

0 comments

gm4y ago

I meant the manufacturer controls the price at which they sell. Ie, if drug X costs $15 to make, and the manufacturer chooses to sell it to retailers/distributors at $2000, they are free to do that.

thaumasiotesOP4y ago

If that's what you meant, all those people who assumed medicine was like any other product were correct.

s1artibartfast4y ago

The difference is who you buy from and how difficult they are to go around to get to the manufacturer.

1 more reply

kevin_thibedeau4y ago

Resale price maintenance agreements were legalized in the US in 2007.

thaumasiotesOP4y ago

No, they weren't. What was legalized was refusing to sell, in the future, to someone who violates such an agreement. But you can't enforce the agreement.

Note that refusing to sell to people was already legal before 2007.

amluto4y ago

I don’t know anything about the legality, but UMRP is very common.

thaumasiotesOP4y ago

amluto4y ago

But that’s the point: UMRP is not illegal. It gives the manufacturers de facto control of retail pricing.

kQq9oHeAz6wLLS4y ago

Unless the manufacturer is also the retailer, such as Tesla

j / k navigate · click thread line to collapse