fair trade laws
Fair trade laws were state statutes enacted during the 1930s that allowed manufacturers to require retailers to sell products at or above set minimum prices. Nearly all states adopted such laws to address price instability during the Great Depression. Manufacturers supported them to protect brand value and prevent what they viewed as harmful price cutting. Over time, states repealed or abandoned these laws, particularly as international trade grew and enforcement became impractical. In 1975, Congress passed the Consumer Goods Pricing Act, which repealed federal authorization for fair trade agreements and rendered state fair trade laws unenforceable under antitrust principles, including the Sherman Act.
[Last reviewed in August of 2025 by the Wex Definitions Team]
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