Overview

The Robinson-Patman Act (RPA) is a federal antitrust law that has not been enforced in decades because of bipartisan consensus that enforcement leads to higher prices for consumers. The government’s case seeks to abolish the use of volume discounts that Southern Glazer’s—and nearly every distributor of consumer products in the country—uses to lower their customers’ costs and enable consumers to pay lower prices for the everyday goods they need. Southern Glazer’s strongly disputes the FTC’s allegations [as unjustified overreach] and will demonstrate that they suffer from fatal legal flaws.  

Key Facts

  • Southern Glazer’s Wine and Spirit’s (SGWS) pricing and discounting structure doesn’t violate the Robinson-Patman Act (RPA) or harm competition.
  • SGWS’ pricing differentials are justified and reflect how competitive the market really is.
  • Enforcement of the RPA will raise prices, reduce choice, and hurt American consumers during a time of inflation. 

Frequently asked questions

  • The Robinson-Patman Act (RPA) is a federal antitrust law that has not been enforced in decades because of bipartisan consensus that enforcement leads to higher prices for consumers.
    • In fact, in 2007, the Antitrust Modernization Commission, a bipartisan commission created by Congress, concluded that Congress should “finally repeal” the Robinson-Patman Act because it “appears antithetical to core antitrust principles.”
  • Southern Glazer’s strongly disputes the FTC’s allegations [as unjustified overreach], will demonstrate that they suffer from fatal legal flaws, and will vigorously defend itself in litigation.
  • Southern Glazer's pricing and discounting structure doesn’t violate the Robinson-Patman Act (RPA) or harm competition.
    • Using the RPA to target an industry already heavily regulated by state and federal agencies over standard pricing practices that benefit consumers will only raise prices, reduce choice, and hurt American consumers.
  • Moreover, the FTC’s case is based on cherry-picked, limited sales data. In bringing this case and targeting Southern Glazer’s, the FTC has ignored the weight of the evidence relating to the company’s 200,000 customers and the many millions of sales made to them each year, and instead has focused on a small handful of transactions to create a misleading picture of the company’s business practices.

It’s business as usual. We remain focused on serving our valued customers and suppliers. The FTC’s lawsuit will have no impact on that during the pendency of the litigation.

It’s business as usual. As ever, we are focused on our employees and on serving our valued customers during the pendency of litigation.

It’s business as usual. We remain focused on serving our valued customers. The FTC’s lawsuit will have no impact on that during the pendency of the litigation.

We are evaluating the complaint and will respond in due course.

Resources

 

About SGWS

  • Company Overview (include link to PDF of one-pager)

Press Release(s)

  • [Southern Glazer’s Wine & Spirits Responds to FTC Lawsuit]; DATE

In The News

  • The Wall Street Journal Editorial Board: The FTC Brings Back the 1930s (June 12, 2024)
  • [Future supportive coverage (top tier, trade and broadcast)]

Third-Party Voices

Contacts

 

Media@SGWS.com