Statutory language from the Robinson-Patman Act

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Reference no: EM133812112

Question

It shall be unlawful for any person engaged in commerce. . . to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States . . . and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: Provided, That nothing herein contained shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered: . . . And provided further, That nothing herein contained shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade: And provided further, That nothing herein contained shall prevent price changes from time to time where in response to changing conditions affecting the market for or the marketability of the goods concerned, such as but not limited to actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.

DPS's plan involves giving different customers different prices based on how much they would be willing to pay. DPS uses different software programs to analyze how much consumers would pay based on their zip codes and demographic areas. Then they collect data from consumers visiting the website and create an interface so different customers visit a different store based on this information.

Based only on a close reading of the statutory language from the Robinson-Patman Act above, do you think that the DPS's plan would be legal? Be sure to highlight the specific parts of the statutory text (the law) that you think apply to this case. Outside research is not necessary.

Reference no: EM133812112

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