Covering Business Credit

Credit Questions and Answers
Business Credit and Collections
Commercial Credit Management

Return to Q and A 2004Home

Doctor Credit

A customer complained that we are offering a direct competitor better terms of sale than we offer them. Apparently, a buyer went from one company to the other and carried the news with them. They are correct. One customer is offered a 2% discount, and the other is not. I cannot even find out why the first account was given the discount. The customer has been around for a long time, and the file contains no details about why this customer is one of the handful of active account to whom we offer a 2% discount. The customer says what we are doing is illegal. Are they correct?

Answer: We are not attorneys, and cannot offer any legal advice. We can, however, offer some general information. The Courts have determined that terms are part of price. The Robinson-Patman Act addresses the issue of price discrimination. Our advice is consult an attorney and be guided by her or his advice.

spacer spacer