Fair Trade Law Q&A - Other Restrictive Trade Practices

Subparagraph 2 of Article 20 of the Fair Trade Act prohibits an enterprise from engaging, without justification, in discriminatory treatment toward another enterprise where such conduct is likely to restrain competition. The prohibition against discriminatory treatment does not mean that an enterprise must charge identical unit prices to all trading counterparts in every transaction. Rather, where an enterprise possesses sufficient market power to influence trading conditions, any differential treatment among trading counterparts must be supported by a legitimate justification; otherwise, such conduct may constitute a restraint on competition. Accordingly, the prohibition against discriminatory treatment does not require an enterprise to sell its products to all trading counterparts at uniform prices.

Relevant Provisions: Article 20 of the Fair Trade Act; Article 26 of the Enforcement Rules of the Fair Trade Act