Under the Robinson-Patman Act, wholesalers may give new distributors free advertising and other services to help them compete with other distributors who have been doing business for a number of years and have become firmly established.

Question

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The Robinson-Patman Act prohibits price discrimination and certain promotional allowances that could harm competition. Providing free advertising and services to new distributors could be seen as discriminatory unless offered to all competing distributors on proportionally equal terms.

Under the Robinson-Patman Act, Wholesalers May Give New Distributors Free