Introduction

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Robinson-Patman Primer

I. INTRODUCTION

In the 1930s, political concern developed in the

U.S. over the rise of large grocery chains and concen-

trated buying power. In 1936, this concern led Con-

gress to pass the Robinson-Patman Act (the “Act”),

to protect small businesses from the perceived pur-

chasing and selling abuses of the large chains.

The Robinson-Patman Act, which amended the

Clayton Act of 1914, is perhaps the most technical

and complex of the U.S. antitrust laws. It affects

the operations of many businesses every day, and

accounts for numerous questions from business man-

agers every year.

The Section of Antitrust Law of the American Bar

Association has developed this general guide to aid

operating managers’ understanding of the Robinson-

Patman Act. This Primer is not a substitute for legal

advice; it is offered as background to help spot issues

so that advice may be sought from an experienced

attorney.

The cost of violating the Act can be high. The

Act can be enforced by both the federal government

and private parties. Though the level of government

enforcement has been minimal in recent years, pri-

vate litigation is relatively common. A private party

that successfully pursues a claim under the Act is

entitled to recover three times its actual damages as

well as attorneys’ fees. Various forms of price dis-

crimination are a lso unlawful under the laws of most

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