Political and Legal
Environment of Marketing
Consumer Legislation
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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
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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
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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
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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
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Anti- Merger Act– Gives government ability to prevent mergers
– Limit Competition
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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.
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