FTC Secures Fair Pricing Protections by Taking Action Against Major Wholesale T-Shirt Distributors

What happened

FTC action signals continued Robinson-Patman Act enforcement to protect consumers, small businesses 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. The FTC opened an investigation into Gildan and S&S after becoming aware that S&S’s contract with Gildan prohibited Gildan from offering certain pricing and discounts given to S&S to S&S’s competitors.

Given the changes Gildan and S&S have implemented, the FTC has now closed its investigation. This resolution also furthers the FTC’s efforts to enforce the Robinson-Patman Act (RPA) in cases where price discrimination harms consumers.

The FTC investigated Gildan for potential violations of Section 2(a) of the RPA, which prohibits sellers from engaging in certain price discrimination. The FTC also investigated whether S&S violated Section 2(f) of the RPA, which prohibits knowingly inducing or receiving prohibited price discrimination. In response to the FTC’s investigation, Gildan and S&S modified their agreement, which now provides: “Nothing in this Agreement restricts or restrains Gildan’s discretion to set prices or offer partnership support to any other North American wholesale distributor.”