What is the Robinson–Patman Act?

The Robinson–Patman Act is a federal law that prohibits companies from engaging in certain kinds of unfair trade practices. It was passed in 1936 and is primarily aimed at protecting smaller businesses from price discrimination and other anti-competitive practices by larger businesses. The law prohibits companies from offering different prices to different customers, as well as giving discounts or other benefits to larger customers that would put smaller competitors at a disadvantage. It also prohibits companies from engaging in predatory pricing, which is when a company sets the prices for its goods and services artificially low in order to drive its competitors out of business. Though the Robinson–Patman Act generally applies to all states, Wisconsin has its own state law that goes further in protecting small businesses from unfair trade practices. The Wisconsin Fair Dealership Law specifically targets discrimination by a manufacturer against its distributors or dealers. It seeks to ensure that manufacturers act in good faith in dealing with their distributors and dealers, and that any discrimination against them is based on good business reasons.

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What is the Robinson–Patman Act?

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