Electronics groups switch US price policy Leading consumer electronics companies have switched to a new price-setting policy in the US to try to protect their brands from heavy discounting. The move by companies including Sony, Samsung, LG and Panasonic to Unilateral Pricing Policies (UPP) from April 1 is also designed to boost bricks-and-mortar retailers struggling to compete against online rivals and to help sectors such as the flat-panel TV business back to general profitability. IN Technology Under UPP, retailers will be warned they face the withdrawal of supplies if they fail to stick to fixed prices, a tougher standard than the current Minimum Advertised Pricing (MAP) policy, which can lead to retailers losing advertising subsidies if they undercut recommended prices. The shift is likely to mean consumers will find fewer bargains, at least initially. But analysts are sceptical about the strategy's chances of long-term success on anything but the hottest products and point out that rivals not taking part in UPP can undercut and force prices lower. Phil Molyneux, Sony Electronics US president said last month that the company was fighting a trend towards commoditisation by setting prices on 140 products, ranging from its 2012 TV line-up to cameras and headphones. "In the US, the outlook for the consumer electronics industry isn't too rosy: the market here is very focused on volume," he said. Wes Shepherd, chief executive of Channel IQ, which monitors online pricing for leading brands, says Amazon and its marketplace of online retailers have created "a race for the bottom" as they undercut bricks-and-mortar retailers and each other. It's creating a really unhealthy, unprofitable ecosystem, which is unsustainable. Manufacturers are saying enough is enough, they've been pushed into a corner and are coming out swinging for their brands," he said. The UPP rules will not address a main source of price differences between stores and websites. In many US states, online retailers do not have to collect sales tax on products sold to consumers if they do not have a physical presence.