(a) Definitions.
  (1) horizontal price fixing--a price fixing agreement:
    (A) between competitors on the same level of distribution, such as a price fixing agreement between two or more bingo equipment or supplies manufacturers; or
    (B) between two or more bingo equipment or supplies distributors; or
    (C) between two or more suppliers.
  (2) price fixing agreement--an express or implied agreement to fix, set, control, maintain, or stabilize prices at any level.
  (3) supplier--a licensed or unlicensed manufacturer or distributor of bingo equipment or supplies or any person, group, or entity with an ownership interest of 10% or greater in a manufacturer or distributor of bingo equipment or supplies.
  (4) vertical price fixing--a price fixing agreement between parties on different levels of the same chain of distribution regarding the price that one of the parties will charge further down the distribution chain, such as an agreement between a bingo equipment or supplies manufacturer and a bingo equipment or supplies distributor regarding the price that the bingo equipment or supplies distributor will charge to the licensed authorized organization.
(b) Horizontal Price Fixing Prohibited.
  (1) Horizontal price fixing agreements are prohibited.
  (2) Evidence of uniform prices or exchange of past or historical price information alone shall not be sufficient to establish a violation of paragraph (1) of this subsection or Texas Occupations Code §2001.556.
(c) Vertical Price Fixing Prohibited.
  (1) Vertical price fixing agreements are prohibited.
  (2) Each distributor shall have full discretion in setting the distributor's sales or lease prices for bingo equipment or supplies to authorized organizations.
  (3) A manufacturer may not set or control the sales or lease price that a distributor charges a licensed authorized organization for bingo equipment or supplies.
  (4) A manufacturer may not set a minimum price on any sales or lease price that a distributor charges a licensed authorized organization for bingo equipment or supplies.
  (5) A manufacturer may not prohibit a distributor from offering price discounts, rebates, credits, promotional allowances, or any other arrangement affecting the price paid by the purchaser or lessee of bingo equipment or supplies, to a licensed authorized organization.
  (6) A manufacturer may not terminate a distributor's contract for failure to charge the manufacturer's suggested retail price.
  (7) Discussions, suggestions, or the exchange of information between a manufacturer and a distributor regarding the sales or lease price charged by a distributor to a licensed authorized organization are not, in and of themselves, violations of this subsection or Texas Occupations Code §2001.556, so long as the distributor retains discretion to establish its sales or lease price to licensed authorized organizations.
  (8) Nothing in Texas Occupations Code §2001.556 shall prevent a manufacturer and distributor from negotiating or establishing the sales or lease price that the distributor will pay to the manufacturer for bingo equipment or supplies.
(d) It is not a defense to horizontal or vertical price fixing that the fixed or agreed upon price is reasonable.
(e) Recordkeeping Requirements. Manufacturers and distributors shall retain contracts, invoices or other documents sufficient to show wholesale and retail pricing information for a period of forty-eight months. This documentation shall be made available to the Commission upon request, in accordance with §2001.216, Texas Occupations Code.

Source Note: The provisions of this §402.204 adopted to be effective July 17, 2007, 32 TexReg 4387; amended to be effective September 13, 2012, 37 TexReg 7094