What is the Sherman Antitrust Act?

The Sherman Antitrust Act is a pioneering piece of legislation in the United States that was signed into law by President Benjamin Harrison in 1890. It is the first federal legislation passed to protect consumers’ ability to purchase products at competitive prices and to protect them from unfair business practices such as horizontal price-fixing and monopolies. This law prohibits any form of trust or monopoly to exist in the United States, with the intention to promote competition in the market place. In Texas, the Sherman Antitrust Act provides sweeping protection for businesses and consumers alike. Businesses are prohibited from entering into agreements that restrain trade, such as price-fixing, bid-rigging and market allocation. Consumers receive protection because the Sherman Antitrust Act helps to ensure that there is competition in the market, leading to lower prices, better quality and more choices. The Sherman Antitrust Act is also enforced by the government through the Department of Justice and the Federal Trade Commission which can investigate and bring suit against companies that violate the law. Through this enforcement, Texas consumers can be sure that they are being treated fairly and are not being taken advantage of by powerful companies.

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What is the Sherman Antitrust Act?

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