FTC Secures Fair Pricing Protections by Taking Action Against Major Wholesale T-Shirt Distributors

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. This resolution also furthers the FTC’s efforts to enforce the Robinson-Patman Act (RPA) in cases where price discrimination harms consumers. 

The FTC opened an investigation into Gildan and S&S after becoming aware that S&S’s contract with Gildan prohibited Gildan from offering certain pricing and discounts given to S&S to S&S’s competitors.

The FTC investigated Gildan for potential violations of Section 2(a) of the RPA, which prohibits sellers from engaging in certain price discrimination. The FTC also investigated whether S&S violated Section 2(f) of the RPA, which prohibits knowingly inducing or receiving prohibited price discrimination.

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.”

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.