Political and Legal Environment of Marketing

Consumer Legislation• The Clayton Act

– Law established in 1914 on the subject of antitrust and price discrimination– Created to stop monopolies

• A monopoly is an exclusive control of a product in a certain market that gives the company control of prices because they have no competition

• Robinson- Patman Act– 1936 statue amending the Clayton Act prohibits a seller of the of products from selling comparable goods to

different buyers at different prices. • Wheeler- Lea Act

– 1938 amendment to the Federal Trade Commission that prohibits false advertising– Before this was passed, the FTC could only protect unfair practices of competitors. This allowed the FTC to

broaden their ability to protect consumers from false advertising.• Sherman Act-

– helps customers with rigged prices. – Makes it a crime to monopolize

Marketer Legislation• Robinson- Patman Act

– 1936 statue amending the Clayton Act prohibits a seller of the of products from selling comparable goods to different buyers at different prices.

• Federal Trade Act- The FTC is empowered, among other things, to:

– prevent unfair methods of competition, and unfair or deceptive acts or practices in or affecting commerce

– seek monetary redress and other relief for conduct injurious to consumers

– prescribe trade regulation rules defining with specificity acts or practices that are unfair or deceptive, and establishing requirements designed to prevent such acts or practices

– conduct investigations relating to the organization, business, practices, and management of entities engaged in commerce

– make reports and legislative

Consumer Agencies • Consumer Product Safety Commission

– Protects the public from unfair injuries or deaths from consumer products

– Protects consumers from fire, electrical, chemical, or hazardous products

– Ensure the safety of consumers– Examples are…..

• Toys, cribs, power tools, lighters, and household chemicals.

• Federal Trade Commission – Protect consumers from fraudulent or false claims

that mislead the consumers. • First Data

– Make buying and selling easier – Help Businesses safely and efficiently complete

transactions for the customers – Make sure that the customers payments are

secure.

Marketer Agencies • Anti- Merger Act-

– Gives government ability to prevent mergers – Limit Competition

• Vertical mergers occur when two firms, each working at different stages in the production of the same good, combine.

• Conglomerate mergers take place when the two firms operate in different industries.