United States v. Colgate & Co.
United States Supreme Court
250 U.S. 300 (1919)
Colgate & Company (Colgate) (defendant) urged retailers to resell its soap and toilet products at prices Colgate set, sending letters specifying those prices, and would place a retailer on a suspended list -- refusing further sales -- if the retailer sold below Colgate's requested price until the retailer agreed to comply. The United States (plaintiff) sued, arguing this pricing policy was an unlawful combination between Colgate and its retailers to fix resale prices in violation of the Sherman Act. The district court ruled for Colgate, and the government sought Supreme Court review.
Whether the Sherman Act bars a manufacturer from unilaterally refusing to sell to retailers who will not resell its products at the manufacturer's suggested price.