Clayton Act Legal Meaning and Definition

Here is a simplified definition of the legal term Clayton Act.

Clayton Act (noun)

The Clayton Act is a United States federal law enacted in 1914 aimed at preventing practices that may lead to monopolies or unfair competitions. It acts as an amendment to the Sherman Antitrust Act, specifically targeting anti-competitive actions such as price-fixing, exclusive sales contracts, and mergers or acquisitions that could harm competition. This law has been instrumental in protecting consumers and ensuring healthy competition among businesses.