FTC Action Against Southern Glazer’s Will Help Small Businesses Compete

“The Federal Trade Commission's (FTC) enforcement action against Southern Glazer’s Wine & Spirits is a significant victory for small businesses because it sends the message that the federal government is serious about leveling the playing field for small firms. 

Small businesses face many challenges that inhibit their ability to compete. While larger businesses often have the resources and market power to implement harmful practices such as excessive fees, predatory pricing, forced advertising and unfair franchise agreements, America’s smallest firms lack the resources to push back. It’s no wonder that Small Business Majority’s research found that 55% of small business owners see predatory pricing as an issue, and 34% are impacted by the practice.

One of the most effective ways to address competition issues is the Robinson-Patman Act of 1936, which protects small businesses from being driven out of the marketplace via discriminatory pricing, promotional allowances and advertising afforded to large, franchised companies. Over the decades, however, the act has been enforced sparingly and sporadically – but not for lack of violations. We urge the FTC to continue to enforce violations of Robinson-Patman and stand up for small businesses whenever big corporations employ illegal tactics to stifle their smaller competitors.”