Cut throat competition is a term that was widely used to describe the reason for
consumer protection
Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...
regulation,
labour law
Labour laws (also known as labor laws or employment laws) are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, ...
, and enforcement of
competition law
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
or antitrust, in the late 19th and early 20th century.
In economics, cut throat competition is also referred to as ruinous, excessive or unfettered competition. More generally, cut throat competition is also subsumed under the term "destructive competition".
Many countries have strict legislation against cut throat competition and
anti-competitive practices in pricing.
According to the
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
, the alleged necessity of a pricing agreement to avoid cut-throat competition is not considered a valid defense in the case of a proven
price fixing agreement.
[{{cite web, url=https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing, title=Price Fixing, work=Competition Guidance, publisher=Federal Trade Commission, accessdate=14 November 2015]
See also
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National Recovery Administration
The National Recovery Administration (NRA) was a prime agency established by U.S. president Franklin D. Roosevelt (FDR) in 1933. The goal of the administration was to eliminate "cut throat competition" by bringing industry, labor, and governmen ...
*
Race to the bottom
References
;Works or authors cited in Wikipedia:
*
Sidney Webb
Sidney James Webb, 1st Baron Passfield, (13 July 1859 – 13 October 1947) was a British socialist, economist and reformer, who co-founded the London School of Economics. He was an early member of the Fabian Society in 1884, joining, like Geo ...
and
Beatrice Webb
Martha Beatrice Webb, Baroness Passfield, (née Potter; 22 January 1858 – 30 April 1943) was an English sociologist, economist, socialist, labour historian and social reformer. It was Webb who coined the term ''collective bargaining''. She ...
, ''
Industrial Democracy'' (1st edn 1897; 9th edn 1926)
*
Louis Brandeis
Louis Dembitz Brandeis (; November 13, 1856 – October 5, 1941) was an American lawyer and associate justice on the Supreme Court of the United States from 1916 to 1939.
Starting in 1890, he helped develop the "right to privacy" concept ...
;Inline references:
Consumer protection
Labour law