Consumer Law, Warranties Is this legal or illegal?

[dwenterp]

We are a small dietary supplement company that was ordering products wholesale from a manufacturer. We had a dispute with our product ordering contact about a price on a sample item. This led to our contact becoming angry and forcing us to talk to his superior. The superior backed the employee against us. Then they stated that only our company will not receive discounts that would normally be received with larger orders (12 items or more). Then, we received a strange email stating that we were price gouging our competition by selling products at prices below a 25% mark down cap from the retail price. We only charged this amount because several other companies that sell this product sell at this price level. They stated that if we do not raise the prices to the 25% cap they will close our account. This email enforcement was done only to our company. How do we know? We recently checked the other companies that charge less than this 25% cap and they are still selling at the much lower price. Please note, we do not have a written contract with this company and were not given any prior knowledge to a 25% discount cap on the retail price. What we do have is a computer generated price list that is given most likely to all companies that want to purchase wholesale products from them.

Is this treatment we are receiving legal? Or do we have a case to file a lawsuit against them for some type of discrimination?

Sincerely,
Joe

 

[dee_dub]

Because they are a private company and are generally free to charge what they want to whom they want, you probably don't have a case of discrimination.

You might have a case of breach of contract. It is unclear exactly what your contract was, but arguably their stipulation that you are not to re-sell below a certain price and are not to receive a discount you had historically received are unilateral changes to your agreement that they are simply not entitled to make. I would consult with a local lawyer.