FTC Secures Fair Pricing Protections by Taking Action Against Major Wholesale T-Shirt Distributors
The Federal Trade Commission secured changes to a partnership agreement between T-shirt manufacturer Gildan Activewear SRL and major wholesale T-shirt distributor S&S Holdings LLC that will protect small businesses and consumers from unfair and discriminatory pricing practices. This resolution also furthers the FTC’s efforts to enforce the Robinson-Patman Act (RPA) in cases where price…
The Federal Trade Commission (FTC) has secured fair pricing protections by taking action against major wholesale T-shirt distributor S&S Holdings LLC and Gildan Activewear SRL. This resolution comes after the FTC's investigation into potential violations of the Robinson-Patman Act (RPA), which prohibits price discrimination that harms competition. The FTC opened its investigation after learning that S&S's contract with Gildan prohibited Gildan from offering certain pricing and discounts to competitors.
Gildan and S&S modified their agreement, now stating: "Nothing in this Agreement restricts or restrains Gildan’s discretion to set prices or offer partnership support to any other North American wholesale distributor." With these changes, the FTC has closed its investigation. FTC Bureau of Competition Director Daniel Guarnera emphasized that unfair pricing practices favoring large businesses over small businesses are detrimental to the American economy and consumers.
This case follows the FTC's recent settlement with Southern Glazer’s Wine and Spirits, marking the first RPA case resolution by a federal enforcement agency in over two decades. RPA enforcement aims to ensure businesses of all sizes compete on equal footing, benefiting consumers through greater choice and lower prices.
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