That’s right. When the Federal Trade Commission (FTC) was investigating complaints by the American Booksellers Association and independent booksellers, they found that a number of book publishing companies had engaged in predatory pricing by offering discounts and promotions to large national book retail chains and buying clubs. Such actions are a violation of the Robinson-Patman Act. The book publishers settled the dispute and agreed to stop the pricing practices. Penguin later paid penalties when they continued the predatory pricing practices.
Book publishing companies offer national retailers special promotions and discounts that they don’t offer to independent booksellers. How likely is it that this type of pricing arrangement is a violation of antitrust legislation?
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