Definition of 'Robinson-Patman Act'
The Robinson-Patman Act is designed to prevent large corporations from using their size and market power to drive smaller competitors out of business. The act prohibits a number of practices, including:
* Price discrimination: Charging different prices to different customers for the same product.
* Promotional allowances: Giving discounts or other incentives to large retailers in order to get them to carry a company's products.
* Exclusive dealing: Requiring retailers to agree to only sell a company's products.
* Tying arrangements: Requiring retailers to buy one product in order to get another product.
The Robinson-Patman Act has been controversial since its passage. Some critics argue that the act is too complex and difficult to enforce. Others argue that the act stifles competition and innovation.
Despite the controversy, the Robinson-Patman Act remains a key part of the United States antitrust law. The act has been used to successfully prosecute a number of large corporations for anti-competitive practices. The act also serves as a deterrent to other corporations from engaging in anti-competitive practices.
The Robinson-Patman Act is an important law that helps to protect competition in the retail industry. The act prevents large corporations from using their size and market power to drive smaller competitors out of business. The act also helps to ensure that consumers have access to a variety of products at competitive prices.
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