Clayton Act

The Clayton Act, passed in 1914, is a U.S. law aimed at promoting fair competition and preventing monopolies. It addresses specific practices that could harm competition, such as price discrimination, exclusive dealing contracts, and mergers that substantially reduce market competition. Unlike earlier laws, the Clayton Act seeks to prevent anti-competitive practices before they occur rather than just punishing them afterward. It empowers individuals and businesses to sue for damages if they are harmed by violations, promoting a healthier market where consumers benefit from choice and fair pricing.