From the daily brief · Policy
FTC gets Gildan and S&S to drop exclusive-discount clause, second pricing case in 2 weeks
The FTC is enforcing a 1936 price-discrimination law again, and that matters if a supplier gives bigger rivals better terms than you get.
- What happened
On Oct. 8, 2026, the FTC said T-shirt maker Gildan Activewear and wholesale distributor S&S Holdings amended a contract that had barred Gildan from offering S&S's pricing and discounts to S&S's competitors, and the agency closed its Robinson-Patman Act investigation. The FTC said the matter builds on last week's Robinson-Patman settlement with Southern Glazer's Wine and Spirits, the first such case resolved by a federal enforcement agency in over 20 years.
- What it means for a 10-to-50-person business
For most trades and service firms, nothing changes this month. The FTC did not order any price cut and did not say what shirts will cost. The signal is that the FTC is again using the Robinson-Patman Act, which generally bars sellers from charging higher prices to smaller buyers who compete with bigger ones for the same goods. Take a 25-person agency that resells branded Gildan shirts to clients through a smaller distributor. Assume it buys 2,000 blanks a year at $4 each, or $8,000. If that distributor can now get the same discounts S&S gets, a 5% cut would save $400 a year. That figure is an assumption, not an FTC number. A 30-person cleaning company buying uniforms is a purchaser, not a reseller, so it is unlikely to see any direct effect. Who should care: firms that resell goods and compete with larger buyers, including promo-merch agencies and contractors who resell parts and fixtures. Everyone else can ignore this.
- What to do
- Ignore
Take no action this month unless you resell goods and a supplier tells you a contract stops it from matching a bigger rival's discount, in which case write down the details and ask your lawyer whether to file an FTC antitrust complaint.
- What it costs
What it costs - FTC-ordered price change
- none stated
- Possible saving, assume 2,000 blanks × $4 × 5% discount
- ≈ $400/yr (assumption, not guaranteed)
- Reviewing your main supplier terms
- 1 hr (≈ $50 at $50/hr)
- Filing an FTC antitrust complaint
- $0 to file; lawyer time extra
- Doing nothing
- $0; no deadline
- Sources
- ftc.gov (primary)
Questions owners ask
- Will T-shirt or uniform prices drop because of this?
The FTC did not say. The amended contract only lets Gildan offer other North American wholesale distributors the pricing and support it gives S&S. It does not require any price cut.
- Does the Robinson-Patman Act cover services like software subscriptions?
The FTC release discusses goods sold to competing buyers, such as T-shirts and wine and spirits. It does not address software or services. Ask a lawyer before assuming it applies to a subscription.
Three to five of these, every weekday morning.
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