13 TGI Fridays in New Jersey Accused of Faking Premium Liquor

[Sherman A1]

9. They would have to be very careful if they would try to do such a thing.

Robinson-Patman Act

VIII. Promotional Allowances and Services
Sections 2(d) and 2(e) prohibit a seller from granting advertising and promotional allowances or services to particular customers in connection with the resale of a product unless the same allowances or services are available to all competing customers on proportionally equal terms. The seller is obligated to take steps reasonably designed to provide notice to competing distributors of the availability of promotional services and allowances.

Some substantial differences exist with respect to violations under these sections as opposed to section 2(a). Specifically, evidence of probable anticompetitive effect is not an element under sections 2(d) or (e), instead an affirmative case is established by proof of the discrimination itself.74 Further, the cost justification defense of section 2(a) is not applicable to cases arising under sections 2(d) or 2(e); the meeting competition defense on the other hand, is available. A wide range of services and facilities is covered by these sections including catalogs, in-store displays, advertising, prizes and special employee training. These provisions, though, are applicable only in connection with the resale by the favored purchaser and not in connection with the initial sale. For instance, in Haug Co. v. Rolls Royce Motor Cars, Inc.,75 the Second Circuit held special subsidies provided by a manufacturer to an allegedly favored dealer for free customer service stated a claim under section

http://www.pepperlaw.com/publications_article.aspx?ArticleKey=318#_ftn76