Robinson-Patman Act
The Robinson-Patman Act is a United States federal law passed in 1936 that prohibits price discrimination, meaning companies cannot charge different prices to different customers for the same product. The act aims to promote fair competition and prevent larger companies from driving smaller competitors out of business by offering lower prices to certain customers.
For example, imagine a company that sells widgets to both a large retailer and a small mom-and-pop shop. The company cannot offer the large retailer a lower price per widget than the mom-and-pop shop, as this would be considered price discrimination under the Robinson-Patman Act.
It is important for businesses to be aware of the Robinson-Patman Act and ensure they are not engaging in any practices that could be considered price discrimination. Violating the act can result in hefty fines and damage to a company’s reputation.
Overall, the Robinson-Patman Act plays a crucial role in promoting fair competition and protecting smaller businesses from being unfairly disadvantaged by larger competitors.
For more information, you can visit the Wikipedia page on the Robinson-Patman Act.