WASHINGTON, DC — Today, the Federal Trade Commission (FTC) took a historic stride toward restoring marketplace fairness and lowering consumer prices when it voted 3-2 to enforce the Robinson-Patman Act (RPA) for the first time in a generation. Even incoming Chair Andrew Ferguson clearly acknowledged the long overdue use of the Act by the FTC. RPA prohibits price discrimination when buyers purchase goods in similar quantities or volumes. The FTC’s bipartisan vote demonstrates the critical importance of enforcing our nation’s existing antitrust laws to level the playing field for Main Street businesses and the local communities they serve.
Although the FTC’s enforcement action is narrowly focused on the alcohol distribution market, the ripple effects will be felt across all markets for goods, demonstrating that enforcers are serious about leveling the playing field and promoting fair competition. It’s a win for consumers looking for more choices and better prices as RPA enforcement ensures that the same discounts big retailers secure through aggressive tactics are fairly available to all retailers and wholesalers who buy in similar quantities.
The decision is being applauded by the Main Street Competition Coalition, a broad alliance of businesses of all sizes, as well as farmers and ranchers, who have been sounding the alarm for years on the increasingly brazen practices of giant companies weaponizing their size to harm smaller competitors and trading partners.
“It is no secret that a handful of big companies have taken advantage of decades of lax antitrust enforcement to gain an economic advantage in the market,” said Chris Jones, Chief Government Relations Officer & Counsel of the National Grocers Association. “Instead of competing head-to-head, it's much easier for many corporate giants to simply use their muscle to get ahead and avoid the disciplining forces of competition. Today’s enforcement action is an important step towards a competitive landscape that will improve the standing of American consumers.”
“Dominant firms have exploited their power for years, and the impact has been devastating for Main Street” Rob Underwood, President and CEO of the Energy Marketers of America added. “Robinson-Patman enforcement will restore true price competition and give consumers more choices in the marketplace.”
“The FTC’s action shows that the Robinson-Patman Act is still relevant and vital today because fairness and competition aren’t antiquated concepts in the 21st Century,” said Matt Seiler, R.N., Esq. Vice President and General Counsel of the National Community Pharmacists Association. “This enforcement action sends a strong message to dominant firms that they can no longer disregard a law that is still in effect.”
About the MSCC
The Main Street Competition Coalition is comprised of national and state industry trade associations and agriculture groups who support vigorous enforcement of the Robinson-Patman Act. Our membership constitutes the backbone of Main Street America, including independent grocers, community pharmacists, convenience stores, truck stops, independent bars and restaurants, booksellers, hoteliers, package stores, wholesale distributors, and farmers and ranchers. Our advocacy mission and full membership list is available on our website: www.mainstreetcompetition.com.
###