Fair Business Practices

Businesses can operate very efficiently and show their greatest profit if they are not distracted by annoying things like competition. However, monopolies have been shown to be economically and socially destructive and have been regulated in an effort to limit their negative effects.

Other business practices considered to be unfair or considered to limit competition are similarly regulated.

Volume discount pricing and special inter-business agreements are common throughout the business community and are regarded by some as essential. Good arguments can be made for their use. After all, economies of scale are very real. Unfortunately these practices are far too often implemented in ways that are unfair and even predatory. They are used as tools to limit competition. They have been used most effectively to limit or inhibit competition from small or new businesses.

Limiting the use of these practices would change the way businesses interact. Businesses, small and large, new and old would be on a more level playing field. Both competition and fairness of trade would increase. Both the business community and consumers would likely benefit greatly from such regulation.

Here is an example of how this might work: Suppose a little store can sell a thimble for a dollar. A nearby big store might be able to sell a thimble for fifty cents because it buys and sells in larger volumes. Suppose the sales tax was higher in the larger store so the customer ended up paying about the same as in the little store. The stores are competing to sell thimbles, and prices and profits are based in their efficiency, marketing and business acumen. The little 'mom and pop' store has an more equal opportunity to compete with the giant super-chain store.