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Robinson-Patman Act of 1936 (Robinson-Patman Act)
Practical Law Glossary Item 0-502-0837 (Approx. 3 pages)
Glossary
Robinson-Patman Act of 1936 (Robinson-Patman Act)
A federal statute (15 U.S.C. §§ 13(a) to (f)) that amends Section 2 of the Clayton Act and prohibits an individual or business from:
- Engaging in price discrimination between larger and smaller purchasers of commodities of like grade and quality that substantially lessens competition or tends to create a monopoly.
- Paying or receiving brokerage or commission payments unrelated to the services rendered in the sale of goods.
- Paying or requesting unequal payments for services or facilities for processing, handling, or sale of a product.
- Using discriminatory purchase terms for services or facilities for processing, handling, or sale of a product.
- Knowingly inducing or receiving a discriminatory price.
Both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) may enforce the Robinson-Patman Act. However, agency enforcement has become increasingly sparse. Claims under the Robinson-Patman Act are now most commonly raised in lawsuits between private parties.
For more information on the Robinson-Patman Act, see Practice Note, US Antitrust Laws: Overview: Robinson-Patman Act.