Disfavored Retailers Turn Up Volume On Robinson-Patman
By Morgan Nickerson, Michael Murphy, Christopher Finnerty and Jack Brodsky ( February 20, 2018, 1:04 PM EST) -- While volume discounts are a normal practice for business, few recognize that a pricing strategy based solely upon volume are scrutinized under U.S. antitrust laws. Specifically, the Robinson-Patman Act, enacted in 1936 as a New Deal regulation, limits a manufacturer's ability to sell the same or similar products at different prices to competing purchasers in certain instances. Certainly, not all price differences violate the RPA, and there are several justifications and defenses to offering rebates and discounts to resellers. By instituting documentation guidelines and protocols, manufacturers can be sure that their pricing strategies do not fall within the RPA's prohibitions....
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