Enforcement, damages and statute of limitations

• Pages: 22-23

Robinson-Patman Primer

22

VIII. ENFORCEMEN T, DAMAGES, AND

STATUTE OF LIMITATIONS

The Act may be enforced by the FTC or the

Department of Justice. Historically, only the FTC

has taken enforcement actions under the Act. The

FTC may issue a cease-and-desist order, seek an

injunction, or attempt to impose monetary nes.

The FTC’s enforcement actions under the Act have

declined substantially and have been virtually non-

existent in recent years.

The greatest risk is private litigation. A competi-

tor or disfavored buyer may bring an action to obtain

an injunction, recover costs (including reasonable

attorney’s fees), and collect treble damages. If a pri-

vate plaintiff proves that it was damaged because of

lost sales or prots directly resulting from a competi-

tor’s or supplier’s violation of the Act, the plaintiff

may recover three times its actual damages. Merely

proving the existence of a discriminatory pr ice is not

sufcient to entitle a plaintiff to damages; a plain-

tiff must show actual injury, which is typically in the

form of actual lost sales, customers, or prots as a

result of the discriminator y price.

Claims under the Act are subject to a four-

year statute of limitations. The parties may agree

to shorten the applicable limitations period by con-

tract—even a one-year period was deemed not unrea-

sonable. Generally, a cause of action accrues and the

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