Legal Attack on MSRP - Impact on Hikvision, Sony, Pelco, More

Author: Brian Karas, Published on Mar 09, 2016

MSRP? Make Suckers Really Pay?

Many video surveillance manufacturers set their Manufacturer Suggested Retail Price (MSRP) to far higher levels than any buyer ever pays. But not all, and this causes confusion. Indeed, in our recent Axis vs Avigilon vs FLIR vs Hikvision vs Samsung Camera Pricing report, a debate broke out in the comments about using MSRP for pricing. For those wanting to understand the basics of setting price levels, see: Surveillance Pricing: MSRP and Discounts

Perhaps more importantly, recent legal cases show that an artificially inflated MSRP, or claims of unrealistic discounts, can generate litigiation and liability.

How does this impact the security industry? We take a look in this report.

****? **** ******* ****** ***?

**** ***** ************ ************* *** ***** ************ ********* ****** ***** (MSRP) ** *** ****** ****** **** *** ***** **** ****. But *** ***, *** **** ****** *********. ******, ** *** recent**** ** ******** ** **** ** ********* ** ******* ****** Pricing******, * ****** ***** *** ** *** ******** ***** ***** MSRP *** *******. *** ***** ******* ** ********** *** ****** of ******* ***** ******, ***:************ *******: **** *** *********

******* **** ***********, ****** ***** ***** **** **** ** ************ inflated ****, ** ****** ** *********** *********, *** ******** *********** and *********.

*** **** **** ****** *** ******** ********? ** **** * look ** **** ******.

[***************]

Legal ******* ******* **** *****

**** **, ** ******, ******** ** ** *** ***** *** manufacturer ******** *** ******* ****** ******** ** **** **. ******, several ******** **** ************* **** **** ****, *** ****, **** claims **** **** ******* ********* ** ***** *** *********** *** misleading. **** **** ******* *************** ****, *** ***** *************** * ******* ******* **** *********.*** ******** ****.

** *** ******** ********, **** ************* *** ***** ** ****** no ******** ***** **** **** ** ***. **** ** ********* done *** *** ** *** *******:

  1. ** **** *** ********** **** ***** ******** *** ****** *******, or ****** ** ********* **** ** ****** ****** ********* **** competitors
  2. ** ****** *** ************ ** **** ******* ***** ********* *** the ********** ** ********** ** *** ******* ** ****** * larger ****** ** *** ********/***-****.

*** ********** *** *** **** ********** ********** **** ******** *******:

“** *** ****** **** **** ** ********* ****** ****** ** not ** **** ********** ** ****** ** ***** * *********** number ** ***** ** *** ******* ** ******** *** ****, the ************* ** * ********* *** ******* *** ********,” *** Code ** ******* *********** ******....

"** ***’** ******* $** **** *** $*.**, *** **** ***** everybody **** ** **** ******* *** **** *** $*.**, **** saying *** **** ***** ** $** ** * ***,” **** David *. *******, *** ****** ******** ** *** *.*.*.’* ****** of ******** **********. “*** ** ***’** ***** **** **********, **’* a ******* *******.”

********, **** ************ ************* **** $*** ******* *** $*** *** just ***** ******** ** ****** $***. ****, ** *** ***** former *** ******** *****, **** ***** *********** ** * ***.

Completely *********** **** ***** - **** *** ********* ********

**** ** *** ** *** *** ******** ************* ********** *************. **** **** *** **** ***** ** ************* ***** ****** ******* ** ***.**. *** *** ******* **** it ****** *** ~**% *** (~$***) **** ****** *** ****** on ****** ********, ****** ** ***'** ****** *** ** ****** full ***** ******* **** **** ** ** *** *** $***.

******* ** ** **** **** ******* **** **** **** ********* online, ** ** ***** **** *** ****, ** ***** *******, to **** ********* **** ***** ******** ** ******** **** ***** MSRP.

********* ** ******* ************ ********** **** ***-****** ********, ****** *** MSRP ** ***** * ******** ****** **** **** *** ******** routinely **** ***. *** *.*** ********* ******* **** ***** **-*******-* carries ** **** ** $***, ****** **'* ********* ***** **** under $*** ******.

***** ** ******* ************ ******* ******** **** ******.*****'* ******-***, * ********** ******** *** ****** ****, ***** ** $*,***. Online ******* *** ********* *** ** $***, **% *** ****. ******* ******** ****'* and ********* *** ** ***** ** ***** ********.

Street ***** ****** **** - **********

** * ******* ** ********* ***** **** **** ***** ****, it ** ** ********** **** *** **** ** ***********, ****** by ****** ** *** ** *********** **** *** **** *********. For ********* ******* ** *** ******** ***********, ***** **** *** be **** *********** ** **** ***** *** **** *** ** not *** ***** *** ************ ***** ****** * **** ** pay (***** *** **** ************* *** ******* ******* ***** *******,******** (**** **** ****)***** ***, ***** *** **** ***** ** ** ** ******** reflection ** *** ***** ** ***-**** **** *** *** *******).

The ******** *** ********* ************ **** *****

****** ********* *** ***** ******* ** **** **** *******, ** many ***** **** **** ** *********** **** * *********** ** drop-ship *******, *** ****** ******** ***** ***** ********* ** **** packs *** *****, **** **** **** ****** *** * ******* and **** *** ******** **** ******** ** *** *********** *** keep * *** ** *** *****. ** ***** ***** * properly ******** ******* *** *** ** ****-***** **** *** ******* on * *-**% ******. ***** ******** **** * ******* *** many ******** ******* **** ********* ****** **** ******* *** *** they *** ***** ******* * ***** ****** **** **** **** can ******** *** **** ********* *** ********.

******* **** ** **** *****, ***** ** * **** ** ordering, ***********, *** ******** ** ******* ****** ************ *** ******** integrators *** *** ***-****** *************. ****** ****-******** *** ** ****** volume ** ******* *** ****** ***** **** * ********-***** ******** dealer, *** *** ****-******* *****'* **** **** ** * ******.

*** ******** ******** *** ****** ****** ***** *** ** ****** to ****** *****, *** * ********** **** ***** ** ******* 35% ***** ***** ******. *** *******, *** $**** ***** **** going *** $*** ****** ***** **** * **** ********* **** at ****** $****. *** $****, ***** ***** ***** **** * healthy ****** ** ***** *******, *** *** ******* ***** **** it *** * *** ******* ***** **** ** **** ****** to **** ***** ********* * ***** ******** ******* ******* ***** bottom ****.

Outlook - ******** ** *****

**'** ******** ** *** ***** ******* ** *** ******** ******** when ** ***** ** *****. ******** ** * ***** ****** relative ** ********** ******** ********, *** ******** ** ***** *** attention ** ********** ** ******* *******. *****, **** ***** * risk *** *************, ** ********** *** ***** *** **** **** should ** * ********** ** * ********* *****.

Poll: **** ****** ************* **?

Comments (22)

**** *******. **** ****. ***** * *** ****, *** *** breakdown *** **** ******* ****** ***** ** ********** **. ************?

** ***** **** *** "**" ***** *** *******, *** *** sub-categories **** ** ** ****** ******* *** ****.

* ** ****** **** ** *** **** ******* ****** ** this ************ ** ****!

***** ***** ******** *** **** **** *** ***** ***** ******* on *** ...****, ****...*** *** ******** **** **** ****** **** any ***** ******* **** *. ******** ****...( * *** ****** they **** *** ****** ********* ** *** *******)

***** **** ** **** ** * ***** ******, *** ****-******** MSRP's ** **** ****** *** ***** ******* *** **** ****** to ******* ******* **** *** ******* * ****** ****** ** make *****.

***, ***** *** **** * **** *** *** ********** **** I ** *** ** **** ******** ** ********* ( **** to ** *** *** *'* ********)...* **** ******* * ***** point **** *** ******* **** **** *** -******* **** *** years *** ***** ************ ** **** **** *** ** ***** just ** **** ********* ******* ***???

* ******* **** *** *** **** **** ** * "***" on *** **** *****, ******** ***** ******* ** ****-** *** units ** ******* ****** ****** ** ********. *******, **** **** not ******** ******* ***** **** ** * ** *** ******* this ******** ** ********.

**** ********* ******** **** ******** ***** ********. ****'* *** *******:

"******** ** ** ********* ** ****, *** **** *** **** Unit ***** ** * ********* ****** ***** ** $***, **** AXIS *****-* *** **** ***** ****** ***** *** $*** *** $279 *** ** ***** ********, ************. ******** ** ********* *** the **** ***** *** **** *****-* ****** *****, **** ** $249 **** *** ** ***** ********."

***** *** **** **** ******* ***** ***** ****; *** ****** the "******* ********** ******" *** ** ********* ** ****** *** asks. ***** *** * ******** *** **** *** *** ******* MSRP. * *** **** *** ************* **** ****** *** **** the ****** *******! ( ***'* ******* ****** *** ***** *** differently)

* ** ***** **** *** ** *** *** ***** *** referring ** *****'* ******* *******: "**** **, ** ******, ******** to ** *** ***** *** ************ ******** *** ******* ****** commonly ** **** **"

** ** ********* ** **** **** **** **** ***** **** of ****** ** ******* ***** *** ******

*** ******

** *** **** * ******* *********** ******* ****** ***** **** Sony's ****, *** **** **** ****** **** **** ** *** Sony's ********** ******* **** (**** ********** ********)

** ******* * ** *********** ******* ****** ***** **** **** MSRP, *** *** **** *** **** ** *** ********* ******* list, *** ****** *** **** **** ******* ******* ****.

** ** ********* ** **** **** **** **** ***** **** of ****** ** ******* ***** *** ******

*** **** ************ ** **** ******** ****** ***** **** ** counter **** *********.

******, ***** ** ** ****'* "********** ******** ****" ***** ** have *** ****** *** *******. ********* ****** **** ********* ** **** ******* ** ********** ******.

** ******* * ** *********** ******* ****** ***** **** **** MSRP, *** *** **** *** **** ** *** ********* ******* list, *** ****** *** **** **** ******* ******* ****.

**, ****'* ******** **** ** ** **** *****-*-****, **** ***** dealers ****** ** ****** ********** ********? ****** **** ***** ** their *** ******** *** ******* ******? **, *** *** ****** enforce * **** ******** ******* ***** ** ******** ****?

*****, **** ** * **** ***** *** * **** *******. The ******* ***** *** **** **** * ***** ** *********** for *********** *** *** *****.

**** ******* ******* ** ** **** **** **** ******* ******** about ****, ******* *** ** ***** ** **** ******* *******, but * ***'* **** ***** **** ** **** ****.

*** **** ** **** ** ********** ********* ***** ****, *** user ********* ******* (*.*. **** *********) ** **** ** ********* transparency **** *** ******* *** **** ******** *******.

******** ***** ** * *** ** ********** ** ******* *** user ********* ******* *** ***** ** *** ***, ****** ***** searches ** *** **** **** *********** ****. *** **** *********** of ******* ***** (**** ****) **** ********* ***** ******* **** keep ***** ****** ********* **** ********** **** *******.

**** ******** ******* **** "*** **** ** ******** ********". **** comparative ******** ** ******* *********** *** * *******. *** "***** vs. *******" **** *** **** **** ** ******** ****, *** its **** *** **** * *********** ***** *** *********** *** end *****.

** * ******** *** *** ******* ** ********** ********** *** opinion, **** ******** ******* ********** ******* ****, ** **** *********** age, *** **** **** *******.

**** **** ******** * ***** ** ****** ******** **** ************* haven't **** ******** ***, *** ***** ** ***** ********** *** long **** ** ******** ******* *********.

***** *** *** ********-***-***** ********, *** **** ******* **** ** do **.

*** - ****** *** *** ********/******** :)

*** ***** **** ** **** *** ** **** ************ **** I ***** ******* **** ****** ** *** ******* **** ******** showing * ***** ****** ****'* **** **** ****. *** *** a ***** ****** *** * ******* **** ******* ** ** the **** *** *** *****. ********* ** ******** *** **** example *** ****. *** *** ********* *** "*********" ******** ****** on ****** *** **** ***** **** *** *** *** **** US ******** ******* * ***********, *** ***** ******** ***'* **** with ********* **********, *** ***** *******, ** **** ******** ******** on ******* *******. **** ** ****** **** ****** **** ********* to *** *** ********. *** **** ******, *** ********** **** trying ** ********** *** ****** ** *** ** *** **** to ** ******* * *********** **** ** ** **** ********* it ******* * **** **** ******.

* ***** *** ******* ***** **** *** ** ** ******* and ******** ** *** ***** ******** ** *********** ********* ** the ********, ** **** *******, ********** ** ************, ***. **** consumers *** ******** ** ********** **** ***** ***** ********** ********* online **** ******* ****** **** *** **** ***** ** **** need *******.

********, ** ***** *********** ** ******* ****, *** ***** ***********, distributor ***** ***** ** ****** *** ****** **** **** *********** and *********. ** ***** *****, *******. *** ***** ******* *** become **** ******* *** ** ******* ******** ** ***, *** integrator ** *** *** **** ** ******** *** *******.

*****, **** ********.

"*** *** ********* *** "*********" ******** ****** ** ****** *** much ***** **** *** *** *** **** ** ******** ******* a ***********, *** ***** ******** ***'* **** **** ********* **********, are ***** *******, ** **** ******** ******** ** ******* *******."

**** ** ** *********** ***** ******* ** **** **** * essentially ********* ******** *** ******* **** *** **** ***** / identifier. **** ** * ***** *** ** *****, ** **** as ********* **** ** **** *** **** ******** *** ***** prices ** *** ****** (*****) **** ******* (********).

* ** *** **** * ***** **** *** ***** ** some ** *** ******** ******** ** *** ****** ***** ** the ***** *********. ** *** ******* **** *******, **** *** Company ******** **** ** "********* **** ******". **** *** *** use *** **** ******* ** *** ************ (******** ***** *** one).

**** ** **** ** ***** ****** ** **** ** ******** to ** ******* ********. **** ** ********* ** **. ** you ***'* *** *** ***** ** ******* *** *** **** McCoy ** ** **** *** *****. ***** ** **** ***** than *** *********. **** ** *** ****, *** *** ******* what *** *** ***.

***** ***** ********** ** *** ***** *** ******** ***** ** be **** ***********, ** ** ********** **** *** **** ******* Amazon *** ********* (******* *** ******* ****** ** ******* ***********). They **** ***** ******* *** ****, **** **** *** ******* was *** ** ***** ******, **** ***** **** ******. *****, it **** *** **** **** ***. ******* ***** **** ****.

** ******* *** ****** ******* ** **** ** ***** *****, these ********* *** ***** *** ****** "**** *****" ** ******* to "****". ***** ** * ******** ***** ********** ** ** opinion. ************* *** *** ****** ** ******* ** *** ***** retail ****** ** *** ***** **** ****. ** ******* ****, but ** *** *** **** "****", *** ******** ***** **** no ***** - ** ***. *** ****** **** ********* *** actual ******* ***** ******. ** ****** ***. ******** **** ** shocked *** ********* ** **** *** **** **** ** ***** not *** ***** **** ** **** - **** *****, **** often **** ***, ** ***** *** ****. ******** ** **** have **** **** ** **** *********** *** ******* ****** ******** over *** ***** ** **** **** ** ***'* ** ********. (i.e. * **** *** **** ***** *** **** ************ **** if *** *** ******* ** *****).

***** ** *** * ***** ** ******** ** *** ** this ******* **** ************* *** ** *****. ** ** *** resellers ** ********* **** *** ********** *** ****** ********, *** amazingly ******, *** **** ** *** ********** *** ******* **-**** retailers; *** **** ******** **** *** ******** ** ** ******** the ******* ***** *** ********!!

** ** ** ** ** *** ******* ****** **** **** the ******* ** ************? * ********* *** *** ******* ******* some ** *** ******* **** **** **** **** ** ********* if/when ***** *** ********* ****** ****** *** *****, *** **** price *** ** ** ******* ** ****** *** ******. **** is * ********** ************ *********** ** *** **** *** **** a ******* ******* *** ** ** ********* *** *** ********** I ******* ** ******.

* ***'* *** ** ****** ******** ***. *** * *** tell *** **** **, *** *** ************, ******** *** ********. We ******** *** *****. ** ******* *** ********* *** ** keep ********* ** *** ******* ** ******** ******** ********. ****** is *** * ********* ********* ****. ** ******** ** ****. If * ******* ***** ** *** *****, ** **** ** go ***, ******* ****** ********* ** *** ********* ********* **** the ******** ******. **** ** *** ** *** *** **** it ** *** ************ *** ******. ** **** *** *** the ******** **** *** *****, *** ********, *** ****** ******* and ** **. *** **-**** *****, **** *** *** ******* (and ********** ******* *** ** ***** ** **** *****), ***'* do *** ** ****.

** *** ******** **** *** **** ***** *** ** ****, there ** * ****** *** ***. *** ***** ***/***. ** buy ** ******. *** ****** **** *********** ***** *** *** I ** ********. ** *** ****** *** **** ** ****. We *** ** ******** **** ** *** **** ****** ** an ****** ******** *** *** **** ** **** ** ******** model ** ******** **** ********* **** ******. *** ***, ** not *** ** **** ** ****** ****** *** ******** **** I ***'* ******* ** *** *** ** *** ***** ******* you ******** *** ***'*.

* **** ** *** * ***'* ***** **** *** **** of **** * **** **** ** *** ***** *******. **** before *** ********, ** ****** **** ** **** *** *********. He ***** *** **** ** *** *****, ****** ***** ** another *** ** **. * ***** ********* *** *** ***** it. "*** *** ******* *** ******* *** **** **** ** save ** *****." **** ****** **** **** ******** **** *** prices ****** * ****** * ******. *** *** ***** ** a ***** **** ****** ******* **** *** (*** **** ***** do). **** *** ***** ******** *** *** *** **** ***** lawyers **** *** ***** * & * ** ***** ***** charged **** **** * **********. **** ** ***** ******** **** to ** **** ******* ******* ** ****** *********** ******* **** did *** ** ***** ******** ** ********* **** **** **** on *** ********* ** *** ******* *****-****** ****** (*** *** lawyers ** ******).

** *** ******* **** *******, **** *** ******* ******** **** up "********* **** ******". **** *** *** *** *** **** offered ** *** ************ (******** ***** *** ***).

******* ****** * ******** ******* *****, ***** *******/************* ***** **** **** in ***** *** ******* ******, *** **** ** ***** ****** (Macy's, ***.)

** *** **** ** ******* ****, **** **** ******* * "list *****" ***** **** ********** ***** ******* *** ******* **. The ***** **** ** *** *** ******* ** *** ******* steeply "**********".

***** * ***** * ****** **:

** ***** **** *** ***.

****:

"** ******* *** ****** ******* ** **** ** ***** *****, these ********* *** ***** *** ****** "**** *****" ** ******* to "****". ***** ** * ******** ***** ********** ** ** opinion."

* **** ********* ** *** *** **** ******** ****** *** this ** **** **** ***:

***************'*suggested ****** ***** (****),list ***** or recommended ****** ***** (***) ** ********** ********** ***** ************************* **** ****************** *******. *** ********* *** ** **** ** *********** ****** among *********. ***** **** ****** ****** **** **, ** *****, the ********************, ****** ** ** **** **** ***** *** ****************/*********.

* *** * ******** **** **** ****** ***** *** ******* Antitrust ***. ** ** ******* *** * ************ ** ******* the ***** ***** ** * *********** ** * **-******.

** ****, *** ****** ****** ******* ***** ******** **** ** agreement ******* * ************ *** *** *********** ** *** ****** to ** ******* ** *** *********** – ***** ** ****** price *********** ** ******** *****-****** – *** ************* ******** ***** the ********* ****.

*** **** ***** * ************ ** **** ** ** ** to **** * ******* ********** ***** ******. *** ***** **** sell ******* ************ ******* **** ********* ** ****** * **** time ***.

*** ******* ****-***** ***** *** *********** **** **********:

****://***.************.***/********/*******-*****-*******-*************-***-***-******/

***** ****-***** ************ *****:

***** ** * ************* *** ***** **** ****** [******* *********] made ***** ********** *****. **** ***’* **** ** ***. *** Court ******* *** *** ** *****, ***** ** ***********, *** like ***** ******** ********** **** ***** ******** *****, * ******* employing ** *** ********* ***** **** ******* ********* ********....

*** ******* ***** ** ******, ** ******, ***** **** ***** the ******* ********* ****.Many ****** ******** ***** *** ** ************ ** ***** *** ********* ******** ******* ******** *****-******. ** ** *** *** * ******** ************, *** ****** **** ** **** ***** ********* **** ** ****. For example, under California’s antitrust statute—the Cartwright Act—it appears that resale-price-maintenance agreements may still be per se unlawful (although the California Supreme Court has not definitively addressed it since Leegin)...

****,

**** ******. **'* *** ***** ********* *****. ** * ******** does *** *** ***** ** **** * **** ** *****, at *** ***** * ** ******** ** ***, **** **** won't *** **** **, ** **** **, **** **** ****. Plain *** ******. ** **** ****** ** *** **** ******* they *** ***** ** *** ***** ******** * *****, ** does *** **** **** * "******" ** ** ** ********* businessman. ** ** ******** **********, *** * ** ******** ** their ****. *******, *** ****** **** *********, *** *** ******** of *** ***** *** ***** **** * **** ** ***** may ******, *** ** **** ** ***** *** **** *** there, *** ***** ****** **** **, *** * *** **** them, *** **'* * ****** ** *** ** ***** *** make * ******, * **** ** ** ******** *** ** customers **** ** *********. * ***** *** ***** ** **** forum ** ****** *** *** ***** **** *** **** ***** and **** ***** ****.

****** **** ** *****:****** ** ******* *********** **** ******. *** ***** ***** * ****** ** ******** ** *******, however ***** ** ** ************ **** ****** **** **** ** being **** ***********.

**** ****, ** ****** ********* **** ******** **** ******, ** could ** * **** ** ******* ******** ** ******** *************** high ***** ** * ***** ******.

** ** ** ************* **** * ************ *** *** ******* the ***** **** * **-****** ***** **'* *******. **** *** only ******* * *** ******. ** *** ******* ***'* **** did *** **** **** **** **** ***** *** ******, *** sell ****** ** *** ***-****, **** *** ****** ** **** ruling?

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