Are Purchasing Consortiums Legal ?
Properly established and managed consortiums operate legally. However, the legal aspects of the consortium must be carefully monitored. When group purchasing is discussed, most purchasers are concerned with the Robinson-Patman Act, a law applying to products but not to services. This Act requires that favorable prices received by the purchasing group must also be available to comparable purchases, unless the pricing differential is cost-justified or granted to meet a competing suppliers price. The CPS Consortium is in full compliance with all governing federal, state and local laws.
