FTC orders Gildan and S&S to end T-shirt pricing restrictions
The Federal Trade Commission announced that it has secured changes to the partnership agreement between Gildan Activewear SRL and wholesale distributor S&S Holdings LLC to remove pricing restrictions that favored S&S over competitors. The revised agreement states that nothing in it restricts Gildan’s discretion to set prices or offer partnership support to any other North American wholesale distributor.
The FTC investigated Gildan for potential violations of Section 2(a) of the Robinson-Patman Act, which prohibits sellers from engaging in certain price discrimination. After the amendment, the FTC closed its investigation and posted a public letter from Gildan confirming the contract change. The action follows an RPA settlement with Southern Glazer’s Wine and Spirits, the largest U.S. wine and spirits distributor, which was the first federal enforcement case in over 20 years.
“Congress has prohibited unfair and discriminatory pricing practices that favor big businesses and box out small businesses, which are the engine of the American economy,” Daniel Guarnera said.
Last week the FTC entered an RPA settlement with Southern Glazer’s Wine and Spirits, the largest U.S. distributor of wine and spirits. That settlement was the first RPA case resolved by a federal enforcement agency in over 20 years.
What we know
The Federal Trade Commission secured changes to a partnership agreement between T-shirt manufacturer Gildan Activewear SRL and major wholesale T-shirt distributor S&S Holdings LLC that will protect small businesses and consumers from unfair and discriminatory pricing practices.
In response to the FTC’s investigation, Gildan and S&S modified their agreement, which now provides: “Nothing in this Agreement restricts or restrains Gildan’s discretion to set prices or offer partnership support to any other North American wholesale distributor.”
The FTC investigated Gildan for potential violations of Section 2(a) of the RPA, which prohibits sellers from engaging in certain price discrimination.
Given the changes Gildan and S&S have implemented, the FTC has now closed its investigation.
The FTC posted a public letter from Gildan confirming that Gildan and S&S have amended the relevant contract.