policy

FTC Forces Pricing Changes in Gildan, S&S Activewear Deal

Summarized from Press Release Feed

The FTC secured agreement changes between Gildan and S&S Holdings to end discriminatory wholesale pricing that harmed small businesses.

FTC Forces Pricing Changes in Gildan, S&S Activewear Deal

The Federal Trade Commission has taken action against a partnership arrangement between T-shirt manufacturer Gildan Activewear SRL and wholesale distributor S&S Holdings LLC, securing modifications designed to shield small businesses and consumers from discriminatory pricing practices.

The agency's intervention centers on alleged violations of the Robinson-Patman Act, a federal law that prohibits sellers from charging competing buyers different prices for the same goods when the effect may be to lessen competition. The FTC's move signals an ongoing commitment to enforcing that statute, which had seen relatively limited federal action in recent decades before the agency renewed its focus.

Read more Fed Takes Enforcement Action Against American Express Over Money Laundering Lapses →

Small wholesale buyers and, ultimately, consumers who rely on independently owned apparel businesses stood to bear the cost of the pricing disparities at issue, according to the commission. By compelling revisions to the Gildan-S&S partnership terms, the FTC aims to restore competitive parity in the wholesale blank-apparel supply chain.

The case reflects broader regulatory scrutiny of pricing arrangements between dominant manufacturers and large distributors across consumer goods sectors. Enforcement under Robinson-Patman has drawn renewed attention as federal regulators argue that preferential pricing to high-volume buyers can systematically disadvantage smaller competitors and distort retail markets.

Continue reading at Press Release Feed.

Frequently Asked Questions

Q.What law did the FTC use to take action against Gildan and S&S Holdings?

The FTC invoked the Robinson-Patman Act, a federal statute that prohibits sellers from charging competing buyers different prices when the effect may harm competition.

Q.Who does the FTC's action against Gildan and S&S Holdings protect?

The action is designed to protect small businesses and consumers from unfair and discriminatory wholesale pricing practices in the T-shirt supply chain.

Q.What did the FTC require as a result of its investigation into Gildan and S&S Holdings?

The FTC secured changes to the partnership agreement between Gildan Activewear SRL and S&S Holdings LLC to eliminate the discriminatory pricing arrangements.

More in policy →