Proposal to grant discounts for increased annual purchases The Commission rendered an advisory opinion in…

No. 153. Proposal to grant discounts for increased annual purchases The Commission rendered an advisory opinion in \vhich an applicant \Ws informed a proposal to grant discounts to a certain class of customers .i obbers who bought his products for resale-to be given at the end of a sales year based on increased amounts of purchases over purchases in the preceding sales year cannot be approved because it appears on its face the proposal would violate Section 2 (a) of the Clayton Act if it were put into operation. The proposal was based on the following scale: (a) 2%, discount on a 20;; to 29S; ' inclusive increase; (b) 37; discount on a 30% to 39% inclusive increase; (c) 4%, discount on a 40% to 49% inclusive increase; and (d) 5 fi. discount on a 50 % or more increase. The Commission further pointed out that price discriminations to customers who in fact compete with each other in resale of commodities of like grade and quality would violate Section 2 (a) of the Clayton Act unless cost justified or unless the lower price is a good faith meeting of a competitor s equally low price. (File No. 683 7037, released Dec. 19, 1967.