Colgate Act

The Colgate Act, formally known as the Colgate-Palmolive Act, was enacted in 1936 as part of U.S. antitrust law. It allowed manufacturers to set minimum resale prices for their products, which means they could mandate retailers to sell items at or above a certain price. This was intended to prevent price-cutting and ensure fair competition. However, it has been controversial because it can limit price competition and lead to higher prices for consumers. The Act ultimately aimed to protect brand integrity while balancing the marketplace dynamics between manufacturers and retailers.