Can competitors legally agree to set prices on their products according to the Robinson-Patman Act?

Under the Robinson-Patman Act, competitors cannot legally agree to set prices on their products because such agreements typically constitute price-fixing, which is a violation of antitrust laws. The purpose of the Robinson-Patman Act is to prevent anti-competitive practices that could harm consumers or unfairly disadvantage smaller businesses. Price-fixing restricts competition by eliminating price variability and can lead to higher prices for consumers, thereby reducing market efficiency and choice. The Act aims to create a fair market environment by prohibiting these kinds of agreements among competitors.

In contrast, other choices suggest various scenarios under which price-setting might be permissible, but in all cases, the law firmly prohibits these agreements to maintain healthy competition in the marketplace.