MKTG 356: Overview of Marketing Laws

State "Fair Trade" Laws (1930s) (Resale Price Maintenance)

Allows manufacturers to set the minimum retail price for goods. Included a "non-signers" clause.

Wheeler-Lea Act (1938)

Amended FTC Act to prohibit unfair trade practices that cause injury to consumers.

Celler-Kefauver Act (1950)

Amends Clayton Act by prohibiting mergers where there is purchase of Assets of a firm.

Trademark Law Revision Act (1988)

Amends the Lanham Act to allow protection of brands not yet introduced to the market.

Federal Trade Commission Act (1914)

Creates the FTC. Prohibits unfair methods of competition where it substantially lessens competition or causes injury to a competitor.

Federal Trade Commission (FTC)

Enforces FTC Act, Clayton Act and various consumer protection acts. It is a legislative agency issuing rules and regulations. Is is an investigative agency. It is an administrative agency and tribunal. It is an enforcement agency imposing civil penalties.

Justice Department, Antitrust Division

Enforces Sherman Act & merger section of Clayton Act. Sherman Act allows for triple damages. Can bring criminal complaints which are often settled by No Contest pleas. Also brings civil complaints which are often settled by Consent Decrees.

Consumer Product Safety Act (1972)

Established the Consumer Product Safety Commission (CPSC). Gives CPSC the power to issue rules and regulations regarding product safety.

Magnuson-Moss Warranty Act (1975)

Establishes various regulations in warranty area. Gives FTC power to issue rules and regulations in the warranty area.

McGuire-Keough Act (1952)

Exempts non-signers clauses from federal jurisdiction & scrutiny.

Miller-Tydings Act (1937)

Exempts state fair laws from the Sherman Act.

Hart-Scott-Rodino Antitrust Improvement Act (1976)

FTC and Justice Department must be notified in the case of certain mergers. Where acquired firm has over $13.6 million in assets and acquiring firm has over $136.4 million in assets (as of 2012).

"Fair Packaging and Labeling" Act (1966)

Package must show name and location of manufacturer. Package must show "net" contents in a prominent place. Gives FTC power to issue rules and regulations.

Sherman Antitrust Act (1890)

Prohibits contracts, combinations and conspiracies in restraint of trade. Prohibits monopolies and attempts to create monopolies.

Robinson-Patman Act (1936)

Prohibits price discrimination on goods of like grade and quality. Both buyers and sellers can be prosecuted. Real cost differences are a defense. Promotional allowances must be on a proportionally equal basis.

Clayton Act (1914)

Prohibits: price discrimination, exclusive dealings, tying contracts, and mergers where they substantially lessen competition.

Lanham Act (1946)

Protects trademarks, brands, and brand names.

Consumer Goods Pricing Act (1975)

Repeals both the Miller-Tydings and the McGuire-Keough Acts.

Nutrition Labeling and Education Act (1988)

Requires all processed foods to have labels that display nutritional information.

Enforcement of Marketing Laws

1. Justice Department, Antitrust Division 2. Federal Trade Commission (FTC)

Laws Designed to Protect Consumers

1. Pure Foods and Drug Act (1906) 2. Wheeler-Lea Act (1938) 3. "Fair Packaging and Labeling" Act (1966) 4. Consumer Product Safety Act (1972) 5. Magnuson-Moss Warranty Act (1975) 6. Nutrition Labeling and Education Act (1988)

Laws Designed to Protect Competition/Competitors

1. Sherman Antitrust Act (1890) 2. Clayton Act (1914) 3. Federal Trade Commission Act (1914) 4. Celler-Kefauver Act (1950) 5. Robinson-Patman Act (1936) 6. State "Fair Trade" Laws (1930s) (Resale Price Maintenance) 7. Miller-Tydings Act (1937) 8. McGuire-Keough Act (1952) 9. Consumer Goods Pricing Act (1975) 10. Lanham Act (1946) 11. Trademark Law Revision Act (1988) 12. Hart-Scott-Rodino Antitrust Improvement Act (1976)

Pure Foods and Drug Act (1906)

1st federal consumer protection act.