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The Resale Price Maintenance Agreement is a crucial document for businesses operating in South Africa's distribution sector, particularly where maintaining pricing structure and brand value is essential. This agreement must carefully comply with South Africa's Competition Act 89 of 1998, which strictly prohibits minimum resale price maintenance while allowing certain other pricing practices. The document is typically used when a manufacturer or supplier needs to establish clear guidelines for product pricing with their distributors or retailers, while ensuring compliance with competition law. It includes provisions for recommended retail prices, maximum price caps, territory restrictions, quality standards, and marketing requirements. The agreement is particularly important in sectors where consistent pricing strategies are crucial for brand positioning, but must be structured to avoid any practices that could be considered anti-competitive under South African law.
