Definition
The Robinson-Patman Act of 1936 is an amendment to the Clayton Act that prohibits price discrimination when the effect “may be substantially to lessen competition or create a monopoly;” prohibits payments of broker’s commission when an independent broker is not employed; forbids sellers to provide allowances or services to buyers unless these are available to all buyers on “equally proportional terms,” and prohibits a buyer from inducing or receiving a prohibited discrimination in price.[1]
References
- ^ American Marketing Association, AMA Dictionary.