Which act prohibits price discrimination among businesses selling similar products?

Which act prohibits price discrimination among businesses selling similar products?

• A. Clayton Antitrust Act
• B. Robinson Patman Act
• C. Sherman Antitrust Act
• D. Wheeler-Lea Act

Answer: (B)

The Robinson Patman Act is the correct answer because it specifically addresses and prohibits price discrimination in transactions between sellers and buyers when selling similar products. This act aims to ensure fair competition and protect small retailers from being disadvantaged by larger competitors who might receive lower prices from suppliers. The law primarily targets pricing practices that could harm competition and restrict market entry for smaller players. It establishes that sellers cannot charge different prices to different buyers if it disadvantages the competition, providing a safeguard against unfair pricing strategies that could lead to monopolistic practices. The Clayton Antitrust Act, while related to antitrust protections, focuses more broadly on mergers and acquisitions and does not specifically address price discrimination in the same direct manner as the Robinson Patman Act. The Sherman Antitrust Act is a foundational antitrust law that addresses a variety of anti-competitive practices but does not specifically target price discrimination among sellers. The Wheeler-Lea Act primarily addresses deceptive advertising and unfair practices rather than pricing actions directly.

The Robinson Patman Act is the correct answer because it specifically addresses and prohibits price discrimination in transactions between sellers and buyers when selling similar products. This act aims to ensure fair competition and protect small retailers from being disadvantaged by larger competitors who might receive lower prices from suppliers.

The law primarily targets pricing practices that could harm competition and restrict market entry for smaller players. It establishes that sellers cannot charge different prices to different buyers if it disadvantages the competition, providing a safeguard against unfair pricing strategies that could lead to monopolistic practices.

The Clayton Antitrust Act, while related to antitrust protections, focuses more broadly on mergers and acquisitions and does not specifically address price discrimination in the same direct manner as the Robinson Patman Act. The Sherman Antitrust Act is a foundational antitrust law that addresses a variety of anti-competitive practices but does not specifically target price discrimination among sellers. The Wheeler-Lea Act primarily addresses deceptive advertising and unfair practices rather than pricing actions directly.