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The Ghost of Robinson-Patman Haunts the Channel

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The Ghost of Robinson-Patman Haunts the Channel

The technology channel is largely unregulated. While there are tax and safety laws that govern the sale, handling, shipping, and branding of products, few laws exist that specifically govern the channel’s structure and operations except one: The Robinson-Patman Act (RPA) of 1936.

The Great Depression-era law was part of a “fair trade” movement by Congress in an effort to curb the power of size. The RPA seeks to prohibit price discrimination by preventing suppliers and manufacturers from giving big price breaks to large retailers without granting the same consideration to their smaller counterparts, unless the price breaks are subject to one of the exceptions under the act. Under nominal conditions, the RPA requires suppliers to have a level playing field for all retailers — and resellers — without consideration of the retailers’ size or market power.


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