The Robinson-Patman Act

The Robinson-Patman Act, enacted in 1936, is a U.S. law aimed at preventing unfair competition by prohibiting price discrimination. It restricts companies from charging different prices to different buyers for the same goods if it harms competition. The goal is to protect smaller businesses from larger companies that might use lower prices to undercut competition. This law ensures fairness in pricing practices, encouraging a diverse and competitive marketplace where all types of businesses can thrive. Violations can lead to legal action and penalties to uphold fair trading standards.