Coalition welcomes renewed Robinson-Patman Act enforcement and urges continued scrutiny of powerful buyers that use preferential terms to disadvantage competitors.
WASHINGTON, D.C. — The Main Street Competition Coalition (MSCC) today applauded the Federal Trade Commission’s action involving Gildan and S&S, welcoming its focus on the role of buyer power in potential Robinson-Patman Act violations. The Commission’s investigation led to the removal of a contract provision that restricted Gildan’s ability to offer certain prices and discounts to distributors competing with S&S.
According to the FTC, its investigation examined potential unlawful price discrimination by Gildan under Section 2(a) of the Robinson-Patman Act and potential buyer liability for S&S under Section 2(f). The companies amended their agreement to remove the restriction and expressly preserve Gildan’s freedom to offer pricing and partnership support to other North American distributors.
The coalition said the action reflects the buyer power focus it has urged the Commission to pursue. Enforcing the Robinson-Patman Act requires scrutiny of powerful purchasers that seek discriminatory advantages, as well as the sellers that grant them. Removing a buyer-driven restriction on the terms available to rivals is a welcome step toward fairer competition. This action lays down an important marker for similar arrangements across the economy that allow powerful buyers to secure advantages at the expense of smaller Main Street businesses.
“Main Street businesses deserve a fair shot, and powerful buyers should not be able to use their leverage to shut competitors out of better terms,” said Chris Jones, Executive Director of the Main Street Competition Coalition. “We applaud the FTC for looking at the buyer’s role in this arrangement and securing a change that gives rivals more room to compete. This is the kind of buyer-power focus we have called for, and we encourage the Commission to keep going.”
The coalition urged the FTC to build on today’s action with sustained enforcement against unlawful discriminatory practices, including those sought or induced by powerful buyers. A level playing field gives independent businesses a fair chance to compete, preserves competitive outlets for producers, and helps protect consumer choice and affordability.
Media Contact: Chris Jones | chris@cenmarkstrat.com
About the Main Street Competition Coalition: The Main Street Competition Coalition represents thousands of Main Street businesses and agricultural producers across the United States working to revitalize and reform the nation's antitrust laws. The Coalition supports policies that establish a level playing field for businesses and consumers, with the goal of promoting competition so consumers have real choices. Learn more at www.mainstreetcompetition.com.
