Predatory Pricing Involves large retailers that seek to destroy competition by selling goods and services at very low prices, thus causing small retailers to go out of business. The practice is restricted by federal and state laws.
predatory pricing
a pricing practice by which a company hopes to inhibit or eliminate competition by charging lower than normal prices for its products in certain geographic regions
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Marketers should beware that some governmental agencies view loss leaders as a form of predatory pricing and thus consider it illegal.
 See also: Price, Pricing, Product, Marketing, Offer
  
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