"What is credit discrimination (as related to trade credit) and what legal issues do I need to be aware of?"
This question was asked at a recent webinar, now available on-demand:
"Essentials of Working Capital Management: Trade Credit & Collections"
Please add your thoughts about it below. Thanks!
In the U.S., the Robinson-Patman Act (Federal) governs customer discrimination situations. If a server cannot show that customer A is different from customer B (e.g., costs more to complete a shipment), then both customers have to be offered the same terms. There are penalties associated with not adhering. Overseas, transfer pricing laws require that a seller offer the same terms to similar companies, even if those customers are foreign subsidiaries of the parent company. Local representatives usually can advise sellers.
