The act reaches discriminatory pricing, promotional allowances, and services where the effect may be to lessen competition. Cost justification, meeting competition, and functional availability are recognized defenses.
Enforcement declined for decades before recent renewal.
Alternative Names:
Price Discrimination Act|Robinson Patman
Why it Matters?
Meeting competition is the most practical defense, permitting a seller to match a competitor's lower price to a specific customer in good faith, and documenting the competing offer contemporaneously is what establishes it. Recent FTC enforcement activity has revived attention to a statute that saw little use for decades, which makes pricing program review worthwhile for sellers with differentiated customer pricing.
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Frequently asked questions
What is the most practical defense?
Why does the statute warrant renewed attention?
