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FTC Secures Contract Change to Block Discriminatory T‑Shirt Pricing

Federal & NationwideBusiness & Corporate
FTC Secures Contract Change to Block Discriminatory T‑Shirt Pricing

The Federal Trade Commission announced on Oct. 8, 2026 that it has closed an investigation into a pricing agreement between Gildan Activewear SRL and wholesale distributor S&S Holdings LLC. The agency said the two companies have revised their contract to remove a clause that prevented Gildan from offering certain prices and discounts to other North American wholesale distributors.

Why the FTC looked into the deal

FTC investigators learned that S&S’s contract barred Gildan from extending the pricing and discount terms it gave S&S to any competing distributor. The agency examined whether Gildan violated Section 2(a) of the Robinson‑Patman Act, which forbids sellers from engaging in price discrimination that harms competition, and whether S&S violated Section 2(f), which bars knowingly inducing such discrimination.

What retailers can do now
  1. 1Contact Gildan to ask about current discount programs.
  2. 2Compare Gildan’s offers with other distributors.
  3. 3Keep written records of pricing proposals.
  4. 4Report any continued discriminatory pricing to the FTC.

Source: Federal Trade Commission

What the companies changed

In response, Gildan and S&S added new language stating, “Nothing in this Agreement restricts or restrains Gildan’s discretion to set prices or offer partnership support to any other North American wholesale distributor.” The FTC posted a public letter from Gildan confirming the amendment and then closed the case.

How the change affects small businesses and shoppers

By eliminating the restrictive clause, the amendment allows small retailers to negotiate pricing on the same footing as larger distributors. When more sellers can access comparable discounts, competition increases, which can lead to lower prices for consumers and a broader selection of t‑shirts.

Video explainer: Protect American Families: Revive the Robinson-Patman Act — NationalGrocers - NGATV

Practical steps for retailers

Retailers who buy Gildan shirts should contact the manufacturer to learn about current pricing and partnership support options. They should keep records of any offers and compare them with competitors. Although the FTC release did not set a deadline, acting promptly can help businesses take advantage of the new terms.

If a retailer believes a supplier is still imposing unfair pricing restrictions, they can report the issue to the FTC or consult an attorney for guidance.

What this means: our conclusions

3 Good news1 What to watch1 What to do
  1. Good newsMore pricing options for small retailers

    The contract change removes a barrier that kept small distributors from getting the same discounts, potentially lowering costs for shoppers.

  2. Good newsFTC signals renewed RPA enforcement

    This action shows the agency is willing to use the Robinson‑Patman Act, a law rarely enforced in recent years, to protect competition.

  3. What to watchLarge distributors may face closer scrutiny

    Companies that try to lock out competitors with restrictive clauses could be investigated and required to amend their contracts.

  4. What to doReview your supply agreements

    Retailers should examine existing contracts for any pricing restrictions and request changes if needed.

  5. Good newsConsumers could see lower shirt prices

    When more retailers can access fair pricing, shoppers benefit from increased competition and potentially lower prices.

Contract language before and after FTC action
AspectBefore FTC actionAfter FTC action
Pricing restrictionGildan could not offer discounts to other distributorsGildan may set prices and offer support to any North American distributor
FTC statusInvestigation openInvestigation closed after amendment

Source: Federal Trade Commission

Primary sources & the law

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This article is general information based on Federal Trade Commission and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 8, 2026.

Source: Federal Trade Commission

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