Robinson-Patman Violation in Food Service Industry

In Feesers Inc. v. Michael Foods Inc. et al., Middle District of Pennsylvania Judge Sylvia H. Rambo found that Michael Foods Inc., an egg and potato product supplier and Sodexo Inc., a food services giant, violated the Robinson-Patman Act by engaging in unlawful price discrimination, where Michael Foods was selling supplies to Sodexo at a lower price than to the plaintiff, Feesers Inc., a regional food distributor.  In enjoining the defendants from continuing the price discrimination against Feesers, the court found that 1) the Robinson-Patman Act requires a showing of “competitive injury,” which is “established prima facie by proof of ‘a substantial price disctimination between competing purchasers over time'”; and 2) “defendants have failed to meet their burden of rebutting the inference of competitive injury by showing that there is no casual connection between the price discrimination and competitive injury to Feesers.” This decision was based on the August 2007 Third Circuit Court of Appeals decision, finding that Sodexo, which both procures products for and operates food services facilities, competes with Feesers, which produces products for food service facilities but does not operate them.   

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