POLICYBRIEFTheRobinson-PatmanAct:AStatuteatOddswithCompetitionandEconomicWelfareAldenAbbottandSatyaMararJune2023TheRobinson-PatmanActof1936(RPA),a1937amendmenttotheClaytonAntitrustAct,isananti–pricediscriminationstatute,administeredprimarilybytheFederalTradeCommission(FTC),whichmayprovideinjunctivereliefthroughadministrativeproceedings.1TheRPAbanscertaindiscriminatorydiscountsonpriceaswellastheprovisionoforreimbursementforcer-tainpromotionalservices.Itsoriginalintendedtargetswerelargeretailchainsthatleveragedtheirlargesizeanddominantmarketpositiontosecurefavorableexchangetermsfromsuppliersrelativetotheirsmallercompetitors.AlthoughcourtshaverecentlyshowngreaterreluctancetoenforcetheRPAbasedoninjurytocompetitorsratherthancompetition,2evenitsmodernpro-ponentsintheantitrustenforcementestablishmentaffirmitspurposeaskeeping“openthedoorofopportunityforthesmall-businessman.”3AfterinitialdecadesofheavyenforcementbytheFTC,thestatutelargelybecameinactiveinthe1980s.Since1992,theFTChasissuedjustoneRPAcomplaint.4Recently,however,theBidenadministrationFTC,undernewchairLinaKhan,hassignaledrenewedenthusiasmaboutenforcingtheRPA’smandates.5Khan’sFTChasthesupportoftheBidenadministration,whichproducedanexecutiveorderinJuly2021citingtheRPAasasolutionforimproving“farmers’andsmallerfoodprocessors’accesstoretailmarkets.”6ThehistoricdeclineinRPAenforcementhaslargelybeendrivenbychangesineconomiclearningandantitrustprecedentsincethestatute’senactment.Fromthe1970sonward,AmericancourtsadjudicatingClaytonActdisputeshaveappliedthe“consumerwelfarestandard”astheantitrustbenchmarkforassessingbusinesspractices.7Morespecifically,courtshavestruckdownconductasanticompetitivebasedonitsharmfuleffectonconsumers,asattestedthroughhigherprices,reducedinnovation,andlowerqualityinproductsandservices.Thissituationhasledtojurists,8scholars,9andantitrustenforcementagencies—forexample,theDepartmentofJustice10—alike3434WashingtonBlvd.,4thFloor,Arlington,VA,22201•703-993-4930•www.mercatus.orgTheview...
