Advisory Letter 93-13 of October 1, 1993 concerning Pharmaceutical Manufacturers Association
(Text
excerpted from DOJ source)
The Association proposed that each participating member company would agree to limit the annual increase in the average change in the prices of its prescription drug products to a level not greater than the annual increase in the consumer price index. The proposal was not to have applied to any individual product and specifically excluded new products.
REJECTED: "Agreements among competitors, including agreements setting maximum prices, that interfere with the ability of each firm in a market to determine its own prices have long been illegal. Maximum price agreements often become agreements on actual price increases. Courts have recognized this danger and have held such agreements to be clearly unlawful."
Formal DOJ Business Advisory Letter