Robinson-Patman Act Revival: Implications for Consumer Products Manufacturers

Recent reports indicate that the Federal Trade Commission (FTC) is starting to scrutinize manufacturers in the consumer package goods (CPG) industry for potential price discrimination against retail channel partners under the Robinson-Patman Act (RPA). Over the past month, the FTC has reached out to numerous retail partners, to obtain information around how they purchase and how much they pay for certain consumer products. This is a signal by the Biden Administration of an increased focus to ensure manufacturers’ pricing structures and agreements with retail partners are lawful and equitable.

We outline some of the potential implications – both risks and opportunities – for consumer products manufacturers, who may consider looking at their existing list pricing and trade investment structures through this lens.

What is the Robinson-Patman Act?

The Robinson-Patman Act, sometimes called the “Anti Chain Store Act,” was enacted in 1936 to…