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In ordinary words.
The sticker price and the real price inhabit different planets.
In legal terms.
Multiple supply-chain participants negotiate rebates and fees under complex federal and state rules.
Where it stops being legal.
This practice is not categorically legal. Applicable federal, state and local laws, disclosures, procedural protections and the specific facts can make particular conduct unlawful.
General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.