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The FTC sued PepsiCo under the rarely enforced 1936 Robinson-Patman Act. The FTC said the act prohibits companies from using promotional incentive payments to favor large customers over smaller ones.
The lawsuit filed in New York alleges that the soft drink manufacturer violated the Robinson-Patman Act, a law that went largely unenforced for decades by the federal government.
The FTC sued PepsiCo under the rarely enforced 1936 Robinson-Patman Act. The FTC said the act prohibits companies from using promotional incentive payments to favor large customers over smaller ones. It was the second time in a little more than a month that the FTC has cited the Robinson-Patman Act in a lawsuit.
The 1936 Robinson-Patman Act, which prohibits advertising and promotional allowances to favor large customers over small businesses, was cited in the FTC’s announcement.
In 1994, the American Booksellers Association and independent bookstores filed a federal complaint in New York against Houghton Mifflin Company, Penguin USA, St. Martin's Press and others, alleging that defendants had violated the Robinson–Patman Act by offering "more advantageous promotional allowances and price discounts" to "certain large ...
Brooke Group Ltd. v. Brown & Williamson Tobacco Corp., 509 U.S. 209 (1993), was a United States Supreme Court case in which the court required that an antitrust plaintiff alleging predatory pricing must show not only changes in market conditions adverse to its interests, as a threshold matter, but must show on the merits that (1) the prices complained of are below an appropriate measure of its ...
More importantly, in the early 1960s the United States Supreme Court citing the Robinson–Patman Act that manufacturers could not dictate minimum prices for retailers. [4] Grass suddenly saw an opportunity in the retail sector, thanks to the Supreme Court ruling and lack of competing drugstores.
A case has not been brought under the law since 2000. Under the FTC’s interpretation, the Robinson-Patman Act is not a wholesale ban on price discrimination and could allow volume discounts. The ...