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15 U.S.C. § 13aDiscrimination in rebates, discounts, or advertising service charges; underselling in particular localities; penalties

submitted 90 years ago by ch. 592 to r/title-15-COMMERCE-AND-TRADE · 187 words · no verdicts yet

in plain englishAI-generated · not legal advice

In interstate commerce, sellers can't knowingly help give a buyer a secret discount that the buyer's competitors don't get on the same goods. Sellers also can't sell goods cheaper in one part of the country just to destroy a competitor there, or sell at unreasonably low prices to eliminate competition. Breaking this rule can bring a fine up to $5,000, up to a year in prison, or both.

This section bans three kinds of unfair pricing in interstate commerce. First, it is illegal for someone engaged in commerce to be part of, or help with, a sale where they know the buyer is getting a discount, rebate, allowance, or advertising charge that the buyer's competitors do not get at the same time, for goods of the same grade, quality, and quantity. Second, it is illegal to sell goods in one part of the United States for less than the same seller charges elsewhere in the country, when the purpose is to destroy competition or eliminate a competitor in that part of the country. Third, it is illegal to sell goods at unreasonably low prices for the purpose of destroying competition or eliminating a competitor. Anyone convicted of violating this section can be fined up to $5,000, imprisoned up to one year, or both.
the actual law source: uscode.house.gov ↗public domain

It shall be unlawful for any person engaged in commerce, in the course of such commerce, to be a party to, or assist in, any transaction of sale, or contract to sell, which discriminates to his knowledge against competitors of the purchaser, in that, any discount, rebate, allowance, or advertising service charge is granted to the purchaser over and above any discount, rebate, allowance, or advertising service charge available at the time of such transaction to said competitors in respect of a sale of goods of like grade, quality, and quantity; to sell, or contract to sell, goods in any part of the United States at prices lower than those exacted by said person elsewhere in the United States for the purpose of destroying competition, or eliminating a competitor in such part of the United States; or, to sell, or contract to sell, goods at unreasonably low prices for the purpose of destroying competition or eliminating a competitor.

Any person violating any of the provisions of this section shall, upon conviction thereof, be fined not more than $5,000 or imprisoned not more than one year, or both.

Source credit: (June 19, 1936, ch. 592, § 3, 49 Stat. 1528.)

history & why it existsrecord from the source credit
  • 1936Enacted · Act of June 19, 1936, ch. 592 · 49 Stat. 1528

A history note hasn’t been published yet. The record shows enactment by ch. 592 on 1936-06-19.

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