What is the Robinson–Patman Act?
The Robinson–Patman Act is a federal law in the United States that was created to protect small businesses from unfair competition from larger companies. The law prohibits large, multi-location companies from selling identical goods at prices that are lower than what is offered to local, single-location businesses. This law was created to prevent large companies from undercutting smaller businesses, allowing them to gain an unfair competitive advantage in the marketplace. In Texas, the Robinson–Patman Act applies to all types of businesses. For example, a large grocery chain selling identical items for a lower price than local small grocery stores would be violating the law. The law also prohibits companies from offering discounts or rebates that are only available to certain buyers. These measures are designed to limit the ability of larger companies from gaining an unfair competitive advantage and ensure that small business owners can remain competitive. The Federal Trade Commission is responsible for enforcing the Robinson–Patman Act both in Texas and across the United States. The commission investigates potential violations and can file suit against companies that are found to be in violation of the law. Companies found to be in violation could face penalties, including jail time for those responsible, and be required to pay restitution to any businesses that have been affected by their unfair practices.
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