Price discrimination may be prohibited under Sections 17 and 20 of the Act. It refers to the application of different conditions, normally different prices, to equivalent transactions. It can take two forms:
- The charging of different prices to different customers, or categories of customers, for the same product where the differences in prices do not reflect the quantity, quality or any other characteristics of the items supplied; or
- The charging of the same price to different customers, or categories of customers, even though the costs of supplying the product were very different. A policy of uniform delivered prices throughout the country could be discriminatory if, for example, differences in transport costs were significant.