The Robinson-Patman Act: An Important Conundrum

Abstract

The Robinson-Patman Act is an antitrust law, ignored for the most part by the Federal Trade Commission and the Justice Department. The act was passed to address abuses of power in interactions among business components within the channel of distribution. While the manifestations of power may have changed in elements of the business channel, evidence is offered that substantial power is being exercised within the channel today. Furthermore, it is clear that the Robinson-Patman Act is going to remain a law. Over time, there has been substantial business support for controls on blatant channel power and support for the maintenance of a healthy institutional environment. Protecting a healthy institutional environment is more in line with the antitrust positions taken by key European agencies. Macromarketers and other educators need to acknowledge the existence of this act, understand the logic and complexity of the act, and continue to examine its consequences.