Introduction

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CHAPTER I

INTRODUCTION

This handbook offers guidance regarding the fundamentals and the

perplexing nuances of price discrimination laws. While paying

appropriate attention to the federal Robinson-Patman Act (RPA),1 the

handbook also discusses analogs under state law, so-called “locality”

price discrimination laws, and related industry-specific prohibitions—all

variations on the theme of protecting buyers against price discrimination

by sellers in statutorily defined circumstances. Reflecting the increasing

globalization of commerce, the handbook also discusses the price

discrimination laws and philosophies of other countries in which

multinational companies do business.

This chapter provides an overview of the various types of price

discrimination laws, their legislative rationales, and the continuing

debate over whether prohibitions against price discrimination are

consistent with other antitrust laws and the consumer welfare principles

underpinning them. Chapter II focuses on the specific prohibitions and

defenses provided under U.S. federal price discrimination law,

specifically, the RPA, and offers practical guidance on compliance and

the private litigation of RPA claims. Chapter III offers an overview of

1. 15 U.S.C. § 13. The core price discrimination provision of Section 2(a)

of the RPA, 15 U.S.C. § 13(a), states:

It shall be unlawful for any person engaged in commerce, in the

course of such commerce, either directly or indirectly, to

discriminate in price between different purchasers of

commodities of like grade and quality, where either or any of the

purchases involved in such discrimination are in commerce,

where such commodities are sold for use, consumption or resale

within the United States or any Territory thereof or the District

of Columbia . . . and where the effect of such discrimination may

be substantially to lessen competition or tend to create a

monopoly in any line of commerce, or to injure, destroy, or

prevent competition with any person who either grants or

knowingly receives the benefit of such discrimination, or with

customers of either of them.