The Federal Trade Commission said Oct. 8 it has closed an investigation into T-shirt maker Gildan Activewear and wholesale distributor S&S Holdings after the two companies changed their partnership agreement. The FTC had examined whether the old contract barred Gildan from giving S&S's competitors certain prices and discounts.
The agency looked at Gildan under Section 2(a) of the Robinson-Patman Act, which bars certain price discrimination, and at S&S under Section 2(f), which covers knowingly inducing or receiving prohibited discrimination. Following the inquiry, the contract now says nothing in it restricts Gildan's discretion to set prices or offer partnership support to any other North American wholesale distributor.
The FTC posted a public letter from Gildan confirming the amendment. It called the matter a follow-up to last week's settlement with Southern Glazer's Wine and Spirits, which it described as the first Robinson-Patman case resolved by a federal enforcement agency in more than 20 years.
For shoppers the effect is indirect. The FTC's reasoning is that when small distributors and retailers can get equivalent discounts, they compete better, and that can mean more choice and lower prices. The release does not promise any price cut, and the agency did not announce a fine or refund in this case.