Scanlon, Warren Call on the FTC to Revive Enforcement of the Robinson-Patman Act

Scanlon, Warren Call on the FTC to Revive Enforcement of the Robinson-Patman Act

In a letter to FTC Chair Lina Khan, the lawmakers additionally requested the FTC investigate current RPA violations in order to protect small businesses and workers

Washington, D.C. - Congresswoman Mary Gay Scanlon (PA-05) today joined Senator Elizabeth Warren (D-MA) to lead a group of 14 lawmakers on a letter to FTC Chair Lina Khan urging the FTC to revive enforcement of the Robinson-Patman Act (RPA).

"Congress passed the Robinson-Patman Act to create a level playing field for retailers by ensuring that both small and large firms pay the same price for comparable products," the lawmakers wrote. "The RPA prohibits sellers from engaging in price discrimination and prevents sellers and buyers from skirting around the price discrimination ban by giving more favorable commissions, brokerages, processing fees, handling fees, or other similar schemes to certain buyers."

In the years after its passage, the RPA succeeded in promoting competition between small independent retailers and larger chain stores. Despite this success, the RPA fell into disuse in the 1980s after new judicial interpretation of antitrust laws. The food supply chain is now more concentrated than ever before, and a lack of enforcement of the RPA gives large businesses an outsized influence over the production and sale of food. This control pushes small businesses from the market, increases food prices for consumers, and directs employee benefits away from communities

During the pandemic, this outsized control of the market led to supply shortages and price hikes for consumers. A recent FTC report found that large market participants accelerated the effects of supply chain disruptions. Smaller grocery retailers were especially affected, as many faced difficulty obtaining products when compared to larger firms. These retailers were able to use rising costs as an opportunity to further raise prices and increase profits. Many consumers are still facing the consequences of this market concentration today as prices for grocery goods remain elevated.

"Congress enacted the Robinson-Patman Act to give the FTC the authority to prevent these related risks of price discrimination and local businesses being driven from the marketplace. By enforcing the RPA, the FTC can prevent dominant market players from further eroding the economic and social benefits that independent stores provide to their communities. We urge the FTC to fulfill Congress's intent and enforce the Robinson-Patman Act," the lawmakers concluded.

Congresswoman Scanlon and Senator Warren were joined in the letter by Reps. Becca Balint (VT-AL), Katie Porter (CA-47), Greg Casar (TX-35), Alexandria Ocasio-Cortez (NY-14), Chris Deluzio (PA-17), Summer Lee (PA-12), Zoe Lofgren (CA-18), Seth Magaziner (RI-02), Marie Gluesenkamp Perez (WA-03), and Pramila Jayapal (WA-07), and Senators Chris Murphy (D-CT), Richard Blumenthal (D-CT), Bernie Sanders (I-VT), and Cory Booker (D-NJ).

Find the full text of the letter here.

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