What is the Robinson–Patman Act?
The Robinson–Patman Act is a federal antitrust law created in 1936. This law is intended to protect small business owners from unfair competition by large companies. This law has special significance in New Jersey, as it affects the day-to-day practices of many businesses here. The Robinson–Patman Act prohibits companies from engaging in a few types of anti-competitive practices. First, it prohibits companies from selling the same products to different customers at different prices, known as price discrimination. Price discrimination can occur when large companies have such large buying power that they can establish lower prices than their smaller competitors. Second, it bans companies from offering products or services at a lower cost to buyers who purchase in larger quantities, as this can drive away small businesses. Lastly, it prohibits companies from offering promotional services, such as advertising, to large customers while refusing to provide the same services to smaller customers. The Robinson–Patman Act is important in New Jersey, as it helps protect local businesses from unfair competition. Smaller businesses are often at a disadvantage to larger ones, and this law helps to level the playing field by ensuring that everyone has fair access to the products and services they need to succeed.
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