In Canada, it is a criminal offence under section 45 of the Competition Act. Bid Rigging is considered a form of price agreement and is illegal in both the United States (see 1 Sherman Act) and Canada (see 47 Competition Act). In the United States, agreements to consolidate, increase, reduce, stabilize or price are in themselves illegal. [12] It does not matter whether the agreed price is reasonable or for a valid or altruistic reason, or whether the agreement is tacit and implied. In the United States, pricing also includes agreements to keep prices equal, discount prices (even if based on financial need or income), establish credit terms, agree on a price plan or scale, adopt a common pricing formula, to prohibit the advertising of prices or to respect the prices advertised. [13] While there are good reasons to make pricing illegal, consumer choice can also make it impossible to set prices. If consumers feel that the price of a product is inappropriate, they can simply reduce demand by: there is a boycott or a concerted refusal to enter into an agreement when two or more companies agree not to trade with a third party. These agreements may clearly be anti-competitive and violate the Sherman Act, as they may lead to the elimination of competition or the reduction of the number of participants entering the market to compete with existing participants. Boycotts created by market power groups aimed at eliminating a competitor or forcing him to accept a group norm are in themselves illegal. Boycotts, of a cooperative nature to increase economic efficiency or make markets more competitive, are subject to the rule of reason. Generally speaking, most courts have found that horizontal boycotts, but not vertical boycotts, are in themselves illegal. Price agreements disrupt the normal laws of supply and demand.

It gives monopolies an advantage over their competitors. . . .