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 Anti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws differ among state and federal laws to ensure businesses do not engage in competitive practices that harm other, usuall ...

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 o ...

, 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 Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given ...

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

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 Ge ...

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 Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decisi ...

'' (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" concep ...

;Inline references: Consumer protection Labour law

See also

References