What does the Robertson-Patman Act primarily prohibit?

The Robertson-Patman Act primarily prohibits price discrimination in the context of sales of goods to different purchasers. This law aims to protect competition by making it illegal for sellers to discriminate in price between different buyers of the same product when the effect may substantially lessen competition or create a monopoly.

In this context, price discrimination occurs when a seller charges different prices to different buyers for the same product, which can potentially harm competition and give larger buyers an unfair advantage. The act specifically focuses on situations where the pricing structure can impact competition, ensuring that businesses have a level playing field.

While anti-competitive practices by producers are regulated and closely related to the implications of the Robertson-Patman Act, the act itself is specifically about unfair pricing practices rather than broader anti-competitive behaviors such as collusion or monopolies. Therefore, understanding the specific focus of the Robertson-Patman Act on pricing is crucial for interpreting its purpose and implications in the marketplace.