What is the Robinson–Patman Act?
The Robinson-Patman Act is a federal law passed in 1936 that addresses issues of unfair competition related to pricing. This law applies specifically to prices charged by manufacturers, wholesalers, and retailers who are competing for the same customers in the same geographic market. The purpose of the Robinson-Patman Act is to protect small businesses from large companies using their greater buying power to set prices that would put smaller businesses at a disadvantage. The Robinson-Patman Act prohibits price discrimination between purchasers of identical products in different geographic markets. The law also prohibits large businesses from offering special services or price discounts to certain favored customers that are not available to others. These practices are referred to as "price discrimination" because they create a competitive advantage for the favored customers. In North Carolina, the Robinson-Patman Act applies to the sale of all goods and services, as long as the goods or services are sold in more than one geographic market and are purchased in the same quantity. North Carolina competition laws also prohibit companies from utilizing unfair methods of competition, such as deceptive or fraudulent practices, in order to gain a competitive advantage over their rivals. Overall, the Robinson-Patman Act is a federal law designed to protect small businesses from unfair competitive practices, such as price discrimination. North Carolina has adopted the Robinson-Patman Act and enacted additional competition laws to ensure that companies compete fairly in the market.
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