Robinson-Patman Act of 1936

The Robinson-Patman Act amended Section 2 of the Clayton Act and serves as the main statute in price discrimination cases

• The act extends to both direct and indirect instances of price discrimination
  • Indirect price discrimination occurs when a firm alters credit terms, quality, delivery time, etc.
• The act only applies “where the effect of such discrimination may be to substantially lessen or prevent competition”
  • Most discrimination cases have no effect on competition and are thrown out
• The act only applies to the sale of “commodities of like grade and quality”
  • The buyers must believe that the discriminated markets are selling the same goods
  • If the goods in different markets have significantly different costs to produce, the act doesn’t apply
• We group the major legal cases centered on price discrimination into these categories:
  1. Primary-Line Injury
  2. Secondary-Line Injury
  3. Indirect Price Discrimination