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The Resale Price Maintenance Agreement is utilized when a supplier or manufacturer wishes to maintain control over the resale pricing of their products in the Hong Kong market while ensuring compliance with local competition laws. This document is particularly important for businesses dealing with premium or branded products where maintaining price points is crucial for brand value and market positioning. The agreement must carefully navigate Hong Kong's Competition Ordinance, specifically the First Conduct Rule, which scrutinizes vertical agreements that may restrict competition. It typically includes detailed provisions on pricing mechanisms, quality standards, compliance procedures, and legitimate business justifications for the pricing restrictions. The document is essential for businesses implementing a structured distribution strategy in Hong Kong, especially those concerned with brand protection and maintaining consistent market positioning.
