Originally Posted by Lyme
The reason why laws making it illegal to sell below cost exist, is so that a company with deeper pockets cannot simply undercut the competitors and run them out of business. These kinds of laws are to help local business's, however they in cases like with Walmart will hurt consumers because doing such things is regular policy.
Does that law apply to clearance stuff too? E.g. the store has something that didn't sell that well, and they just want to get rid of it so they'll sell it at whatever price?
If so that is crap. I couldn't ever imagine trying to setup any upstart retail business there, that kind of thing would easily be the difference between life and death for the company.
Even if it didn't apply to clearance, that would still suck for any startup who wants to start with insanely low prices in order to attract new customers - namely because they don't really have any in the first place.
All this kind of law could serve to do is keep the big guys in business while the smaller guys have no flexibility to do anything.