What is the purpose of the Robinson-Patman Act?

The purpose of the Robinson-Patman Act is to promote fair competition in the marketplace, specifically by preventing unfair pricing practices that could harm competition. This federal law addresses price discrimination, which occurs when a seller offers different prices to different buyers for goods of like grade and quality, thereby potentially harming competition and disadvantaging smaller businesses.

By prohibiting these discriminatory practices, the Act aims to ensure that all businesses have a level playing field when it comes to pricing, ultimately fostering competition and benefiting consumers through better prices and services. This focus on fairness in pricing is critical for maintaining healthy competition in various markets.