Standard Oil Co. v. Federal Trade Commission
United States Supreme Court
340 U.S. 231 (1951)
- Written by Heather Whittemore, JD
Facts
Standard Oil Company (defendant) sold gasoline to four large retailers at a price lower than that it charged small retailers. The Federal Trade Commission (FTC) (plaintiff) accused Standard Oil of violating § 2(a) of the Robinson-Patman Act by engaging in illegal price discrimination. Standard Oil argued that its price discrimination was allowed under the meeting-competition defense provided by § 2(b) of the Robinson-Patman Act because, in offering the large retailers lower prices, it acted in good faith to match the prices of its competitors. The FTC countered by explaining that the meeting-competition defense from § 2(b) did not apply if the price discrimination injured competition. The FTC found that Standard Oil’s actions prevented competition between the large and small retailers and held that Standard Oil had violated § 2(a). The court of appeals affirmed the FTC’s judgment, and Standard Oil appealed.
Rule of Law
Issue
Holding and Reasoning (Burton, J.)
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