Loyalty Discounts Not Necessarily Win-Win

Law360, New York (October 23, 2008, 12:00 AM EDT) -- Although bundling discounts on company products seems to have obvious benefits for consumers, experts say these discounts could be viewed as anti-competitive, given the lack of consensus among the federal antitrust agencies and the courts.

Loyalty discounts are given to customers that agree to buy a certain amount of a company’s products in a set time frame and are generally viewed as benefiting consumers.

But when a company is dominant in a market and is not just offering a discount on one product but on multiple...
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