A more thorough explanation:

Pass-on defense is a legal strategy used by a defendant in a lawsuit to argue that they did not suffer any damages because they passed on any overcharge or undercharge to someone else in the distribution chain. For example, if a manufacturer is accused of overcharging a retailer, the manufacturer may argue that the retailer passed on the overcharge to the consumer and therefore did not suffer any damages.

This defense is commonly used in antitrust cases where a member of the distribution chain is accused of price-fixing or other anticompetitive behavior. The defendant may argue that any overcharge was passed on to the next member of the chain, and therefore they did not suffer any damages.

Overall, pass-on defense is a way for a defendant to shift the blame to someone else in the distribution chain and avoid liability for any damages.