H-F class action suit

[California Travieso]

Originally Posted by henry's 31

What a shame, in the long run the cost gets passed to the consumer.

Basic economics says NO in this case. The retail business is too competitive and their profit margins are too small for one retailer to raise prices unless all others who sell the same products raise their prices at the same time. If they raise prices, they lose sales. it just hits that company's bottom line, e.g., they make less profit.

On the other hand, if a monopoly (one seller and many buyers), or an oligopoly (a few sellers and many buyers) like car makers get fined, then they can pass it on to the consumer because they control prices. Same with oil companies. If one seller raises the price the others raise their prices because they can make more money.

David Serrano