The following is not meant to be legal advice.
The US Supreme Court overruled the Dr. Miles Medical Co. v. John D. Park & Sons, 220 U.S. 373 (1911) decision, which held that minimum resale price agreements between a manufacturer and its retailers are illegal per se. Illegal per se means without the need to prove actual harm to competition under the Sherman Act. 
In Leegin Creative Leather Products, Inc. v. PSKS, Inc., No. 06-480, Leegin, the defendant, was a manufacturer of women's fashion accessories under the
In the Leegin decision, manufacturers can direct the specific price to be charged. The only constraint, under the rule of reason, is that the arrangement cannot be one that causes prices to increase, or quantity, quality, or consumer choice to decrease, in the market that includes all brands, not just the manufacturer's brand.
PSKS, the plaintiff in the Leegin case, was a retailer of women's clothes and accessories in
The US Supreme Court stated that a dominant manufacturer or retailer that abuses resale price maintenance for anticompetitive purposes may not be a concern unless the relevant entity has market power. If a retailer lacks market power, manufacturers likely can sell their goods through rival retailers. If a manufacturer lacks market power, there is less likelihood it can use the practice to keep competitors away from distribution outlets. The foregoing is cited from the case.
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