Fair Trade Legislation Restricting Price Cutting.

The article discusses aspects of U.S. fair trade legislation which restricts price cutting. The Unfair Competition Act of 1913 declared it unlawful to discriminate between different regions, communities, or cities by selling at a lower rate than justified by quality, content, or cost differences. This was seen as an intent to destroy competition. This legislation led to the Unfair Practices Act in 1935. The Act aimed to prohibit price discrimination, secret payments, and sales below cost. The legislation provided a clearer definition of costs.