United States v. Colgate & Co.

250 U.S. 300 (1919)

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Nature of the Case

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Facts

D is engaged in manufacturing soap and toilet articles and selling them. D conditioned all sales of its products to retailers that the sale of products must be at prices established by D. D distributed among dealers letters, telegrams, circulars and lists showing uniform prices to be charged; urging them to adhere to such prices and notices, stating that no sales would be made to those who did not. Requests asked for information concerning dealers who had departed from specified prices. D would then investigate, and those not adhering thereto would be placed on 'suspended lists.'. D would then communicate to offending dealers upon assurances and promises of future adherence to prices, which were often given sales would be reestablished. P alleged that D's resale-pricing policy violated the Sherman Act. P argued that the policy was an unlawful combination between Colgate and the retailers to fix prices. The court found for D; no charge is made that any contract was entered into by and on the part of D, and any of its retail customers, in restraint of interstate trade and commerce. P appealed.