How to Save Your Company Tens of Millions: Avoid Illegal Pricing Practices

Price fixing is an illegal activity with heavy penalties, yet corporations continue to be indicted for the practice. To stop the chance your company is engaging in illegal price fixing, employ these three strategies. First, educate managers as to the disastrous consequences of price fixing and the high likelihood of exposure. Second, require that relevant managers endorse a code of ethical conduct and sign agreements not to discuss price with competitors. Third, have some elementary price auditing done to identify any suspicious regularities occurring between resellers of your product, or between your prices and competitors' prices. These strategies require little investment, but can help avoid highly toxic behavior and outcomes.