The Federal Trade Commission (FTC) has successfully intervened in a partnership agreement between T-shirt manufacturer Gildan Activewear SRL and wholesale distributor S&S Holdings LLC. This action aims to protect small businesses and consumers from unfair and discriminatory pricing practices.

The investigation was initiated after the FTC discovered that S&S's contract with Gildan restricted Gildan from offering certain pricing and discounts to S&S's competitors. This raised concerns about potential violations of the Robinson-Patman Act (RPA), which prohibits price discrimination that harms competition.

During the investigation, the FTC looked into whether Gildan violated Section 2(a) of the RPA by engaging in price discrimination, and whether S&S violated Section 2(f) by knowingly inducing such discrimination. In response to the FTC's findings, Gildan and S&S amended their agreement to allow Gildan the freedom to set prices and offer support to other distributors.

With these changes in place, the FTC has closed its investigation. The agency emphasized the importance of fair pricing practices, stating that they are essential for maintaining competition and supporting small businesses, which are vital to the economy.

This case follows a recent RPA settlement with Southern Glazer’s Wine and Spirits, marking a significant step in federal enforcement of the RPA after two decades. The FTC's actions underscore its commitment to ensuring a level playing field for businesses of all sizes, ultimately benefiting consumers through increased choice and lower prices.