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youyes · Mar 28, 2006, 01:44 AM

Is it a crime to sell one's products below the production cost in USA?

RickJ · Mar 28, 2006, 03:53 AM

I am fairly certain there is no federal law that says that specifically, but the bigger you get, the more other laws like practices unfair to the competition might come into play.

Is this just a general curiosity question, or is there a particular instance of this that you're wondering about? If the latter, can you share it? I do know we've got a couple attorneys who post here.

Fr_Chuck · Mar 28, 2006, 04:56 AM

There are some items that have price controls on them, but in general that has been Walmarts method of getting established in a market.

They move in, buy mostly imports and sell at lower costs than many small companies can even buy them for.

Next they will sell some items at a loss, to get hold of a certain market, before raising their prices back.

But there are some areas where control of product ( esp in agriculture products)

CaptainForest · Mar 28, 2006, 06:06 PM

In general, yes they can sell for lower than production costs.

Look at Walmart. They sell for less than what it costs them to buy sometimes.

They are certain restrictions, mainly in farming to help control the price. Example, you can't sell milk for less than X Amount of Dollars.

But in general, no limits.

excon · Mar 30, 2006, 07:41 AM

Hello:

I believe your wife and children would tell you yes.

excon