Final answer:
The Clayton Act indeed prohibits classes of price discrimination, ensuring fair competition by outlawing practices that lead to reduced competition or that favor certain customers over others.
Step-by-step explanation:
The statement that The Clayton Act prohibits certain classes of price discrimination is true. The Clayton Antitrust Act of 1914 makes it illegal for companies to engage in various anticompetitive practices such as price discrimination. Price discrimination involves charging different prices to different customers for the same product or service. This act, enforced by the Federal Trade Commission (FTC) and the U.S. Department of Justice, ensures fair competition and prohibits practices that would reduce competition, such as mergers and acquisitions that would 'substantially lessen competition,' and tied sales, amongst others.
True. The Clayton Act, which is a part of United States antitrust law, includes provisions that address price discrimination. Specifically, Section 2 of the Clayton Act deals with price discrimination and other unfair business practices. The Robinson-Patman Act, which is part of the Clayton Act, prohibits certain types of price discrimination that may harm competition.
Under the Robinson-Patman Act, it is generally illegal for sellers to discriminate in prices charged to different purchasers if the effect is to lessen competition or injure competition. The Act is aimed at promoting fair competition and preventing anticompetitive behavior in the marketplace. Therefore, the statement that the Clayton Act prohibits certain classes of price discrimination is true.