Price Discrimination Law Enforcement: It's Back

Federal agencies basically ignored the federal price discrimination law for decades. That law – the Robinson-Patman Act – generally prohibits product suppliers from offering more favorable prices, rebates or similar promotional support to favored retailers (like Walmart, Costco or other big-box stores) over smaller retailers (typically "mom-and-pop" shops and local dealers). The law was enforced primarily through private civil actions rather than federal agency prosecution.

But recent events signal that the Robinson-Patman Act is back, at least in the eyes of the Federal Trade Commission (FTC). Current FTC chairperson Linda Khan has called for more active enforcement of the Robinson-Patman Act by federal agencies. FTC commissioners also said in a June 2022 policy statement that the agency could use the Robinson-Patman Act to target illegal prescription drug rebate and fee agreements that prevent patients from accessing lower-priced alternatives.