Robinson-Patman Act and Price Discrimination

• Pages: 44-51

44

CHAPTER III

ROBINSON-PATMAN ACT AND PRICE DISCRIMINATION

A. “Can we charge one of our best customers a lower price? They

will pick up the product at our factory, and every other

competitor is offering them a discount.”

Section 2 of the Clayton Act,1 as amended by the Robinson-Patman

Act,2 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. The Robinson-Patman Act is violated if

 The goods involved in either the sale to the “favored customer”

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

commerce.” If the goods in one of the two transactions cross a

state line, the goods are deemed to be “in commerce.”3

 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

1 15 U.S.C. § 13.

2 Act of June 19, 1936, 15 U.S.C. §§ 13−13b, 21a. Section 1 of the

Robinson-Patman Act is codified as § 2 of the Clayton Act.

3 See, e.g., Gulf O il Corp. v. Copp Paving Co., 419 U.S. 186, 195 (1974).

4 See, e.g., F.T.C. v. Anheuser-Busch, Inc., 363 U.S. 2d 536, 549 (1960).

5 See, e.g ., Conoco Inc. v. Inman Oil Co., 774 F.2d 895, 901−02 (8th Cir.

1985).