One hundred years ago today, President Woodrow Wilson signed the Clayton Act, just weeks after signing the Federal Trade Commission Act. Together, these statutes gave the federal government new tools to deal with the growing threat of the trusts: a bipartisan five-member Commission to police against “unfair methods of competition,” and a new law designed to stop certain business combinations and conduct before they caused widespread harm.
Here’s another common question we receive from retailers: A manufacturer is placing restrictions on the way I price its products. I think this is anticompetitive. Is it a violation of the antitrust laws for a manufacturer to tell me what price to charge?
In most situations, a manufacturer’s requirements imposed on retailers are legal, so long as they are limited to the sale of that supplier’s products. Such requirements are usually legal because they may make that manufacturer’s products more desirable as compared to the products of competing manufacturers.