Robinson–Patman Act
1936 US law prohibiting price discrimination / From Wikipedia, the free encyclopedia
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The Robinson–Patman Act (RPA) of 1936 (or Anti-Price Discrimination Act, Pub. L. No. 74-692, 49 Stat. 1526 (codified at 15 U.S.C. § 13)) is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.
Co-sponsored by Senator Joseph T. Robinson (D-AR) and Representative Wright Patman (D-TX), it was designed to protect small retail shops against competition from chain stores by fixing a minimum price for retail products. Specifically, the law prevents suppliers, wholesalers, or manufacturers from supplying goods to “preferred customers“ at a reduced price. It also prevents coercing suppliers into restrictions as to whom they can and can't sell goods.[1][2]
The law grew out of practices in which chain stores were allowed to purchase goods at lower prices than other retailers. The amendment to the Clayton Antitrust Act prevented unfair price discrimination for the first time by requiring a seller to offer the same price terms to customers at a given level of trade. The RPA provided for criminal penalties but contained a specific exemption for "cooperative associations".[3] Enforcement of the RPA's provisions began to decline beginning in the 1980s.[4]