Clayton Antitrust Act

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The Clayton Antitrust Act of 1914, (October 15, 1914, ch. 323, 38 Stat. 730, codified at 15 U.S.C. § 12-27, 29 U.S.C. § 52-53), was enacted in the United States to remedy deficiencies in antitrust law created under the Sherman Antitrust Act of 1890, the first Federal law outlawing practices harmful to consumers (monopolies and anti-competitive agreements). Passed during the Wilson administration, the legislation was introduced by Alabama Democrat Henry De Lamar Clayton.

1 Provisions
2 Exemptions
3 Enforcement
4 See also
5 External links

[edit] Provisions

The Clayton Act prohibits:

price discrimination between different purchasers if such discrimination substantially lessens competition or tends to create a monopoly in any line of commerce (Act Section 2, codified at 15 U.S.C. § 13);
sales on the condition that (A) the buyer or leaser not deal with the competitors of the seller or lesser "exclusive dealings", or that the buyer also purchase another different product ("tying", also covered by the Sherman Act, Section 1), but only when these acts substantially lessen competition (Act Section 3, codified at 15 U.S.C. § 14);
mergers and acquisitions where the effect may substantially lessen competition (Act Section 7, codified at 15 U.S.C. § 18);
any person from being a director of two or more competing corporations (Act Section 8; codified at 15 U.S.C. § 19).

[edit] Exemptions

Section 6 of the Act (codified at 15 U.S.C. § 17) exempts labor unions and agricultural organizations. Therefore, boycotts, peaceful strikes, and peaceful picketing are not regulated by this statute. Injunctions could be used to settle labor disputes only when property damage was threatened.

[edit] Enforcement

The Act empowers private parties injured by violations of the Act to sue for treble damages under Section 4 and injunctive relief under Act Section 16.

The Act is also enforced by the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice.