Robinson-Patman Act

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The Robinson-Patman Act of 1936 (or Anti-Price Discrimination Act, 15 U.S.C. § 13) is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination. It grew out of practices in which chain stores were allowed to purchase goods at lower prices than other retailers. The Act provided for criminal penalties, but contained a specific exemption for "cooperative associations". The Act is an amendment to Section 2 of the Clayton Act.

In general, the Act prohibits sales that discriminate in price on the sale of goods to equally-situated distributors when the effect of such sales is to reduce competition. Sales to original equipment manufacturers (OEM) are not subject to RPA. Price means net price and includes all compensation paid. The seller may not throw in additional goods or services. Injured parties or the US government may bring an action under the Act.

Liability under section 2(a) of the Act (with criminal sanctions) may arise on sales that involve:

discrimination in price;
on at least 2 consummated sales;
from the same seller;
to 2 different purchasers;
sales must cross state lines;
sales must be contemporaneous;
of "commodities" of like grade and quality;
sold for "use, consumption, or resale" within the United States; and
the effect may be "substantially to lessen competition or tend to create a monopoly in any line of commerce."

"It shall be unlawful for any person engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by this section."

Defenses to the Act include cost justification and matching the price of a competitor. In practice, the "harm to competition" requirement often is the make-or-break point.

Sales to Military Exchanges and Commissaries are exempt from the act.