A price parity clause is a contractual provision that ensures equal pricing for a product or service across all distribution channels. This means that the price of the product or service must remain consistent, regardless of where it is being sold. This clause is often included in agreements between manufacturers and retailers to prevent price discrepancies and maintain fair competition in the market. Price parity clauses help to protect both the manufacturer and the retailer from price undercutting and maintain a level playing field for all parties involved.