Is Price Skimming Legal? Price skimming by itself is not illegal, but can be construed as unethical in certain cases.

Is price skimming unethical?

Price skimming can also be considered price discrimination, which is the strategy of selling the same product at different prices to different groups of consumers. In some cases, this strategy is against the law, but the actual conditions that define illegal price discrimination are shady, to say the least.

What is considered price skimming?

Skim pricing, also known as price skimming, is a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market. Skim pricing is the opposite of penetration pricing, which prices newly launched products low to build a big customer base at the outset.