Promotional allowances and services-sections 2(d) and 2(e)

• Pages: 14-18

Robinson-Patman Primer

14

forming the same function. Alternatively, the cost

justication or meeting competition defenses might

be used to justify such a discount.

IV. PROMOTIONAL ALLOWANCES AND

SERVICES—SEC TIONS 2(d) AND 2(e)

Promotional allowances or services are pay-

ments or services that facilitate the product’s resale

by the customer and are distinct from concessions

that affect the price paid by the customer. Promo-

tional allowances and services are subject to some-

what stricter rules than price concessions under

Section 2(a). Examples include cooperative advertis-

ing, catalogues, displays, demonstrators, and on-line

advertising.

A. Proportional Equality

If a seller either offers to pay a customer for

promotional services (e.g., display or advertising)

or provides the customer promotional services or

materials, the Act requires that the offer be made

available on proportionally equal terms to all com-

peting customers. Unlike discrimination in price, a

discrimination involving promotional allowances or

services violates the Act regardless of whether there

has been injury to competition, although recover-

ing damages requires proof of actual injury. More-

over, when a seller provides promotional allowances

or services to direct-buying retailers, it must offer

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