FEDERAL TRADE COMMISSION v. MORTON SALT CO., 334 U.S. 37

Summary

In a proceeding against respondent under the Clayton Act, as amended by the Robinson-Patman Act (the Act), 15 U.S.C.S. § 13, to terminate alleged unlawful price discrimination, the Supreme Court reversed a judgment setting aside a cease-and-desist order issued by petitioner, the Federal Trade Commission, and remanded the case. The Supreme Court held that petitioner's order was sustained with the exception of two provisos that needed to be reconsidered and refashioned by petitioner. The Court held that respondent's standard quality discounts on its products, theoretically available to all, were discriminatory under the Act where functionally they were not available to all. Respondent's discounts were prohibited whenever there was a reasonable possibility that they had the effect of substantially lessening competition or injuring competition with any person who either granted or knowingly received the benefit of the discrimination, or with customers of either of them. The Court held that...