Discriminatory price differentials can take a variety of forms, some of which can be quite subtle.The classic case of the Simplicity Pattern Company illustrates just how subtle such price discrimination can be.The Federal Trade Commission charged the simplicity Pattern Company with violating section 2e of the Robinson-Patman Act. The Federal Trade Commission argued that Simplicity, a manufacturer of sewing patterns, had practiced discrimination in offering promotional services to retailers. Specifically, Simplicity offered a large chain of retail variety stores free catalogs and display cases but did not offer them to small, independent fabric stores. The Federal Trade Commission found simplicity guilty of violating section 2e of the Robinson-Patman Act. Simplicity appealed to the circuit court, which reversed the Federal Trade Commission ’s decision. On appeal by the Federal Trade Commission , the Supreme Court upheld the original Federal Trade Commission decision. In finding for the Federal Trade Commission , the Supreme Court upheld the original Federal Trade Commission decision. In finding for the Federal Trade Commission , the court argued that since the variety stores and independent fabric stores were in competition. The granting of free catalogs and display cases was a discriminatory promotional allowance favoring the stores intended to make a profit For the fabric stores, however, patterns were sold on a limited basis as an accommodation to customers and thus were not a significant merchandise category on which the stores intended to make a profit. Simplicity argued that if the stores were not actually in competition, then the actions of Simplicity with respect to promotional allowances could not be viewed as impeding competition had never existed.