Robinson-Patman Act Sections 2(d) and 2(e) Promotional Discrimination Claims

Summary

The Robinson-Patman Act (the Act) prohibits certain forms of discrimination, principally price discrimination, between competing buyers of commodities. Sections 2(d) and 2(e) of the Act prohibit suppliers from discriminating when offering promotional allowances to the retailers buying from them. These sections of the statute form the basis of many arguments among suppliers and their retailer-customers about whether a retailer's demand for a lower price or greater promotional assistance will create Robinson-Patman liability for one or both parties. To prepare for such arguments, you need to understand the state of Robinson-Patman enforcement today. This practice note will assist you when representing either a seller or buyer in a Section 2(d) and 2(e) case. This practice note first provides important history and background information on the rationale for the promotional discrimination prohibition and then provides a detailed discussion of the required elements of both Sections 2(d) and...