Pricing

• Pages: 103-117

103

CHAPTER IV

PRICING

A. We Want to Create and Implement a New Price Discount

Scheme for Our Customers T hat Gives Some Customers

Better Prices Than Others. What Antitrust Princ iples Do We

Need to Keep in Mind?

Section 2 of the Cla yton Act,

1

as amended by the Robinson-

Patman Act,

2

is the principal feder al statute addressin g price

discrimination. The Robinson-Patman Act prohibits the sale of two

products of like grade and quality at different prices to two different

buyers where the price difference may result in injury to competition.

A prima facie case of discrimination under the Robinson-Patman

Act is established when the following elements are satisfied:

x

The goods involved in either the sale to the “favored

customer” or the sale to a competing “disfavored customer”

are “in commerce”—meaning they cross a state line.

3

x

The buyers pay different prices.

4

“Price” under Section 2(a) is

the ultimate purchase price, net of all discounts, rebates,

allowances, payment terms, and credits.

5

x

A single seller makes at least two completed sales to different

1. Clayton Antitrust Act of 1914, Pub. L. No. 63-212, 38 Stat. 730 (1914)

(codified at 15 U.S.C. § 13).

2. Pub. L. No. 74-692, 49 Stat. 1526 (1936) (codified at 15 U.S.C.

§§ íE D). Section 1 of the Robinson-Patman Act generally

amended Section 2 of the Clayton Act.

3.

See, e.g., Gulf Oil Corp. v. Copp Paving Co., 419 U.S. 186, 194-95

(1974).

4.

See, e.g., FTC v. Anheuser-Busch, Inc., 363 U.S. 536, 549 (1960).

5. See, e.g.&RQRFR,QF Y,QPDQ 2LO&R )G íWK &LU

1985).