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It is against the law for mfgs to dictate prices. (archive)
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Posted by markjenn on December 04, 2000 at 01:25:24:

In Reply to: Mercedes-Benz doesn't allow dealer markups... posted by Brian on December 03, 2000 at 22:37:18:

If a mfg requires a dealer to charge a certain price for a product, it is called price fixing and it is explicitly forbidden by law. It is also forbidden for mfgs to retaliate against a dealer for charging more/less. The idea is that it is a free market and anybody can charge whatever they want.

I'm amazed by folks who think a dealer is "gouging" when charging over MSRP, but they freely go in and expect the dealer to bargain below MSRP. They feel that the MSRP represents some kind of "high water mark" that can't be exceeded, but on a slow-seller, it is perfectly fine to go in and offer below dealer invoice.

It cuts both ways. We have a system that allows you to offer any price you want and the dealer to accept any price they want. It's called the free market and it cuts both ways.

- Mark

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