The Clayton Antitrust Act is a piece of legislation that specifies unethical economic activities, such as price fixing and monopolies, and supports numerous worker rights. It was enacted by the U.S. Congress and signed into law in 1914. The act was named after John Sherman’s brother-in-law, Senator Tom C. Clayton of Alabama who authored the bill. The Clayton Antitrust Act has been amended several times over the years to reflect changes in technology and economy, but its basic tenets remain unchanged: to protect consumers from unfair business practices and to ensure free competition in the marketplace .One important part of the Clayton Antitrust Act is that it prohibits companies from forming monopolies . A monopoly is a company that controls so much of a market that it can set prices at will , which hurts both consumers and businesses who are unable to compete fairly. The act also outlaws price fixing , when companies get together illegally to agree on how much they will charge for their products or services . This type of collusion harms both consumers (who have less choice) and businesses (who can’t compete if they are stuck with artificially high prices).
