LAD #27: Clayton Anti-Trust Act

The Clayton Anti-Trust Act relates to the Fair Packaging and Labeling Act because both regulated businesses so that they don't cheat consumers.

Clayton Anti-Trust Act Summary: The Sherman Anti-Trust Act of 1890 was largely ineffective, bringing need for the Clayton Anti-Trust Act of 1914. One of the main points of this Act was the assertion that businesses could not charge customers different prices for the same product. This served to limit the monopolistic practices, especially by Rockefeller with the railroads, of charging different prices to different customers. It was made clear though that this Act would not limit a business's ability to selectively choose customers. The Act also disallowed companies to shift prices and the eliminate the weak as had been done before. The last point of the act was the outlawing of restrictive mechanisms such as "pyramid business", in order to promote free trade and prevent the lessening of competition.