The Robinson-Patman Act has given rise to some truly awful court decisions that have created a seller-buyer environment of sometimes unforgiving price rigidity, as well as complex and difficult-to-comply-with principles about when and to whom sellers must offer price discounts and nonprice promotions. For example: – Unlike any other antitrust statute, the Robinson-Patman Act can be violated merely upon proof of a « reasonable possibility » that competition between two buyers might be impaired (the Morton Salt standard). – The old Fred Meyer case requires sellers to offer promotions to entities that do not buy from the sellers and with whom the sellers may not even want to have a relationship. – The meeting competition defense (which allows a seller to lower its price to a buyer in a
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The US Court of Appeals for the Seventh Circuit validates cigarettes manufacturer’s discount program and holds that it does not constitute a violation of the Robinson-Patman Act (R.J.R. Tobacco / Cigarettes Cheaper)
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