What is the Robinson–Patman Act?

The Robinson-Patman Act is an Unfair Competition Law in the United States. It is a federal law that was enacted in 1936 to address the competitive disadvantages large companies had over small ones. This act was put in place to protect small businesses from being taken advantage of by larger corporations. The Robinson-Patman Act prohibits pricing discrimination when an item is sold in the same market by different companies. This includes when the price of an item is different for competing companies or when competing companies are offered different terms or conditions. The act also prohibits a seller from selling an item to one competitor at a lower price than to another. In North Dakota, the Robinson-Patman Act applies to certain price discriminations between competitors, with the ultimate goal being to keep competition fair in the marketplace. All businesses, regardless of size, are expected to comply with the law when it comes to pricing their goods and services. The Robinson-Patman Act is enforced by the Federal Trade Commission (FTC). The FTC will investigate any violations of the act and can bring cases in federal court for violations of the law. Penalties for violations can include orders to cease and desist, civil penalties, awards of damages for losses suffered by competitors, and other similar orders.

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