Define: Competitive Price

Yes, companies have the freedom to set their prices as long as they do not engage in anti-competitive practices such as predatory pricing or price-fixing.

Predatory pricing refers to the practice of setting prices below cost with the intention of driving competitors out of the market. It is generally considered illegal as it harms competition and consumers.

No, collaborating with competitors to set prices is illegal under antitrust laws. Price-fixing agreements are considered anti-competitive behaviour and can lead to severe penalties.

While companies are generally free to offer discounts and sales promotions, they must ensure that these practices do not mislead consumers or violate any specific regulations or laws related to pricing.

Price discrimination, where a company charges different prices to different customers for the same product or service, is generally legal unless it is based on discriminatory factors such as race, gender, or nationality.

While companies have the flexibility to adjust their prices, significant price increases without any valid justification may attract scrutiny from regulatory authorities. It is important to ensure that price increases are reasonable and not exploitative.

Price gouging, which involves significantly increasing prices during times of crisis, is illegal in many jurisdictions. Laws are in place to protect consumers from exploitation during emergencies.

Yes, companies can offer price-matching guarantees, where they promise to match or beat a competitor’s price. However, they must ensure that the terms and conditions of such guarantees are clear and transparent.

Price wars, where companies continuously lower prices to gain a competitive advantage, are generally legal as long as they do not involve anti-competitive practices such as predatory pricing or collusion. However, companies should be cautious to avoid engaging in behaviour that harms competition or consumers.