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Price Fixing is the formation of an agreement to set prices. In order to prove price-fixing, it must be shown that the parties actually agreed to fix prices or to retain existing uniform price structures [Credit Bureau Reports, Inc., v. Retail Credit Co., (1971)(1973)]. Horizontal price-fixing is an agreement between direct competitors on the same level of the market structure [ Credit Bureau v. Retail Credit]. Price-fixing can also occur vertically, by formation of a combination between the manufacturer and distributors to maintain retail prices [Albrecht v. The Herald (1968)].

Vertical price-fixing is also known as resale price maintenance. A manufacturer or group of distributors engages in resale price maintenance by fixing the price at which a product will be sold to the public. Resale price maintenance does not occur by simply suggesting list prices and refusing to deal with non-complying retailers. It requires the announcement of a price accompanied by threatening or taking some coercive course of action if the retailer is unwilling to adopt the price [Carlson Mach Tools v. American Tool (1982)]. Whether imposed by horizontal or vertical restraint, price-fixing is per se unreasonable restraint of trade in violation of Section 1 of the Sherman Act.

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