Uncertainty Makes a Comeback under the Robinson-Patman Act

Originally published 10 December 2009

Keywords: antitrust, competition, price discrimination, Volvo decision, Robinson-Patman Act,

Just when it looked as though the US Supreme Court's 2006 Volvo¹decision would discourage more price discrimination cases, along comes a court that not only finds a violation but holds a seller in contempt for ceasing sales to a disfavored purchaser. 

In Feesers, Inc. v. Michael Foods, Inc., a food manufacturer charged lower prices to a foodservice operator — which served meals at schools, hospitals and other institutions — than it charged to a food distributor — which resold pre-packed food products to customers that ran their own dining operations.  The manufacturer did not view these two customers as competitors but the US District Court for the Middle District of Pennsylvania disagreed, finding that institutional customers chose either to hire a foodservice operator or to buy food and operate dining services themselves, but