Does government have the right to tell a business to cut down it's price?

[Kross]

The government regulates the business sector in many countries. In view of that, does the government of a country have the right to order a business to reduce it's prices? Is it not supposed to negotiate with the business?

 

[eLdavis]

While government does not have the right to do so, there are several cases where they might intervene, such as during crisis.

 

[Fidelia]

Government has the express right to tell a business to reduce it's prices. They would say they are acting for social good.

 

[Augusta]

Governments do not have the direct right to tell a business to cut its prices. However, governments can influence prices through various means, and have the legal authority to enforce price controls

 

[Min George]

I heard that government has just ordered a satellite TV provider in my country to slash prices by 30%. Don't know how that works though.

 

[Augusta]

I heard that government has just ordered a satellite TV provider in my country to slash prices by 30%. Don't know how that works though.

Yes I think this is about MultiChoice they have to because the prices for us is just too high

 

[kit_hung]

The government regulates the business sector in many countries. In view of that, does the government of a country have the right to order a business to reduce it's prices? Is it not supposed to negotiate with the business?

Often, negotiation is the first and most preferred option. The government can first engage in dialogue with business stakeholders, inviting them to the negotiating table and persuading them to voluntarily reduce prices. This helps build good relations with businesses and avoid conflicts.

However, if these negotiations do not yield results, and especially if the situation is serious and requires urgent action, the government can use its legal authority to issue an order. This is because the primary role of the government is to protect the public interest, and sometimes this requires difficult and urgent decisions.

 

[Springtime]

Generally speaking, in free countries, government will not intervene with private business's pricing policy unless for products which involve public interest such as gas, electricity. But in communist countries, the government intervene always.

 

[Trush Jodie]

If there is a strong indication of exploitation from a private business in terms of pricing of their products and services, government can give them sanctions that would make them reduce the price.

 

[eLdavis]

I heard that government has just ordered a satellite TV provider in my country to slash prices by 30%. Don't know how that works though.

Yes i think the government can come in, especially in situations where they feel it is affecting the masses negatively or they are not meeting up with the agreed rules and regulations.

 

[Min George]

Government is the sovereign force in any country and can impose prices on a business they deem fit to impose on.

 

[Augusta]

Well, in reality they do and it wouldn't be much of a problem if the government means well for its citizens