Gildan Removed Price Restrictions After FTC Inquiry
Apparel wholesalers can now access competitive pricing tiers previously blocked by exclusive supply agreements.
Updated on Oct. 12, 2026 in Openings & Closings
Live Poll
Should federal regulators strictly prohibit suppliers from offering exclusive pricing deals to large distributors?
Gildan Activewear SRL and S&S Holdings LLC have eliminated contractual clauses that limited price and discount availability for wholesale distributors. The move follows an inquiry by the Federal Trade Commission regarding potential violations of federal price discrimination laws.
Why it matters
The previous restrictions created artificial cost advantages for some distributors while limiting procurement options for others. Removing these barriers shifts the competitive landscape for North American wholesalers, potentially lowering input costs for those previously excluded from deep-tier pricing.
The investigation focused on compliance with Section 2 of the Robinson-Patman Act, which regulates price discrimination in the wholesale market. The amendment now allows for broader price flexibility across all North American distributors.
The players
Gildan Activewear SRL
A major global manufacturer and supplier of branded basic apparel including activewear and underwear.
S&S Holdings LLC
A prominent wholesale distributor of imprintable apparel and accessories in North America.
Federal Trade Commission
The independent U.S. agency responsible for enforcing antitrust laws and protecting consumers from anti-competitive business practices.
The details
The companies modified their distribution agreement to strike clauses that formerly prevented Gildan from offering specific price tiers or promotional support to non-partner distributors. This change addresses federal concerns that the prior structure effectively penalized competing wholesalers by forcing higher purchasing costs. By amending the contract, the companies have signaled a shift toward uniform pricing access across the region.
Timeline
October 12, 2026: The Federal Trade Commission concluded its investigation into the distribution agreements.
Market Landscape
This development highlights the ongoing regulatory scrutiny regarding Section 2(a) and 2(f) of the Robinson-Patman Act in contemporary wholesale supply chains. It represents a pivot away from restrictive, exclusive pricing models that previously defined the market relationship between major suppliers and their secondary distributors.
Wholesale buyers should re-evaluate their current supplier contracts to see if new price tiers or discount programs have become available following this regulatory shift. Procurement managers should reach out to their Gildan representatives to confirm if their account is now eligible for previously restricted pricing structures.
The takeaway
The end of this FTC investigation removes a significant barrier to price competition in the apparel wholesale market. Operators should review their existing supply agreements for similar restrictive clauses that may limit their access to market-rate pricing.
Further reading
Operators can track updates on shifting supply chain agreements in our Openings & Closings section.
Source note: This article includes information reported by MyChesCo.
Live Poll
Should federal regulators strictly prohibit suppliers from offering exclusive pricing deals to large distributors?
