Page 95 - Foundations of Marketing

62 Part 1 | Strategic Marketing and Its Environment

Table 3.2 Major Federal Laws Affecting Marketing Decisions

Act (Date Enacted) Purpose
Procompetitive legislation
Sherman Antitrust Prohibits contracts, combinations, or conspiracies to restrain trade; calls monopolizing or
Act (1890) attempting to monopolize a misdemeanor offense.
Clayton Act (1914) Prohibits specifi c practices such as price discrimination, exclusive dealer arrangements,
and stock acquisitions in which the effect may notably lessen competition or tend to create
a monopoly.

Federal Trade Created the Federal Trade Commission; also gives the FTC investigatory powers to be used
Commission Act (1914) in preventing unfair methods of competition.

Robinson-Patman Prohibits price discrimination that lessens competition among wholesalers or retailers; prohibits
Act (1936) producers from giving disproportionate services of facilities to large buyers.
Wheeler-Lea Act (1938) Prohibits unfair and deceptive acts and practices, regardless of whether competition is injured;
places advertising of foods and drugs under the jurisdiction of the FTC.
Celler-Kefauver Prohibits any corporation engaged in commerce from acquiring the whole or any part of the stock
Act (1950) or other share of the capital assets of another corporation when the effect substantially lessens
competition or tends to create a monopoly.
Consumer Goods Prohibits the use of price-maintenance agreements among manufacturers and resellers
Pricing Act (1975) in interstate commerce.
Antitrust Improvements Requires large corporations to inform federal regulators of prospective mergers or acquisitions
Act (1976) so that they can be studied for any possible violations of the law.

Consumer protection legislation
Pure Food and Drug Prohibits the adulteration and mislabeling of food and drug products; established the Food
Act (1906) and Drug Administration.

Fair Packaging and Makes illegal the unfair or deceptive packaging or labeling of consumer products.
Labeling Act (1966)

Consumer Product Established the Consumer Product Safety Commission; protects the public against unreasonable
Safety Act (1972) risk of injury and death associated with products.

Magnuson-Moss Provides for minimum disclosure standards for written consumer product warranties; defi nes
Warranty (FTC) minimum consent standards for written warranties; allows the FTC to prescribe interpretive
Act (1975) rules in policy statements regarding unfair or deceptive practices.

Nutrition Labeling and Prohibits exaggerated health claims and requires all processed foods to contain labels showing
Education Act (1990) nutritional information.

Telephone Consumer Establishes procedures to avoid unwanted telephone solicitations; prohibits marketers from
Protection Act (1991) using an automated telephone dialing system or an artifi cial or prerecorded voice to certain
telephone lines.

Children’s Online Regulates the online collection of personally identifi able information (name, mailing address,
Privacy Protection e-mail address, hobbies, interests, or information collected through cookies) from children
Act (2000) under age 13.
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