FTC forces Gildan and S&S Holdings to amend distribution agreement

The Federal Trade Commission secured structural changes to a distribution agreement between T-shirt manufacturer Gildan Activewear SRL and wholesale distributor S&S Holdings LLC on Oct. 8, 2026, according to an official announcement from the regulatory agency. The regulatory enforcement action targets restrictive terms in order to prevent discriminatory pricing practices that disadvantage smaller retailers in the market.

The federal regulatory action focused directly on restrictive clauses within the commercial partnership between Gildan Activewear SRL, a major producer of T-shirts, and S&S Holdings LLC, a prominent wholesale distributor. Under the terms of the original agreement, Gildan was contractually prohibited from offering competing wholesale distributors the same pricing tiers and discounts that it provided to S&S Holdings LLC.

Federal regulators determined that these restrictive agreement terms insulated S&S Holdings LLC from price competition while placing other wholesale distributors at a distinct disadvantage. By barring Gildan from offering equivalent wholesale pricing terms across the industry, the agreement created conditions that harmed smaller commercial buyers and retail businesses.

Amendments to Wholesale Agreement

Following the regulatory probe conducted by federal officials, Gildan Activewear SRL and S&S Holdings LLC agreed to make structural modifications to their partnership agreement. The amended agreement removes the prohibitions that prevented Gildan from extending favorable pricing terms to competing businesses in the wholesale sector.

Under the modified agreement, Gildan Activewear SRL is now permitted to offer comparable wholesale pricing structures and discount terms to all other distributors operating across North America. This structural change allows rival distributors to purchase inventory under equivalent terms, establishing equal pricing access within the regional supply chain.

Enforcement of the Robinson-Patman Act

The action against Gildan Activewear SRL and S&S Holdings LLC forms part of a renewed enforcement effort by federal regulators applying the Robinson-Patman Act. The federal law is designed to safeguard small businesses and smaller retailers from discriminatory pricing arrangements that favor larger commercial operations.

The resolution marks the second Robinson-Patman Act enforcement matter concluded by federal regulators within the span of a single week. The FTC action follows a recent regulatory settlement with wholesale distributor Southern Glazer's Wine and Spirits, which was also addressed under the same federal price discrimination law. The agency announced the completed changes to the Gildan and S&S Holdings partnership on October 8, 2026.