Credit: vchalup/Adobe Stock FTC Scrutinizing Volume Discounts in Pharma, Using Dormant Law It Could Apply to Other Industries
"Sellers in every industry should monitor these developments to see how the agency's enforcement priorities evolve and are treated by the courts, so they can calibrate their compliance policies accordingly," said Mary Kaiser, a Morrison & Foerster partner.
February 15, 2024 at 11:48 AM
4 minute read
What You Need to Know
- The Federal Trade Commission is invoking the Robinson-Patman Act of 1936 as it investigates drug pricing.
- The law had been unused for decades before the agency last year used it to investigate the alcoholic beverage industry.
- Its original purpose was to protect mom-and-pop grocery stores from price discrimination during the Depression.
The Federal Trade Commission is pursuing potential antitrust violations in the pharmaceutical industry using the muscle of a left-for-dead law that was used to protect mom-and-pop grocery stores from price discrimination during the Depression.
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