Statement of Administration Policy: S. 430 - The Retail Competition Enforcement Act

(REVISED)

(Senate)
(Metzenbaum (D) Ohio and 24 others)

The administration opposes S. 430 and, if it were presented to the President for signature, the Department of Justice would recommend that it be vetoed.

S. 430 is objectionable because it would, for the first time, preclude the courts from determining what type of business arrangements are unreasonable under the antitrust laws. The bill would also unnecessarily change existing law concerning the burden of proof necessary to establish the existence of resale price maintenance agreements between manufacturers and customers. In addition, the bill would confuse and harm the developing law of conspiracy by permitting the courts to infer the existence of an unlawful agreement even in the absence of any evidence that such an agreement existed. Finally, the Supreme Court has recently considered and decided these issues.