Conde Nast Publications, Inc

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IN THE MATTER OF CONDE NAST PUBLICATIONS, INC.

COMPLAINT, l•'INDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 01? AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2399. Complaint, May 20, 1935-Decision, Dec. 2, 1936 Where a corporation long engaged in the publication of a semi-monthly women's style magazine which (1) had an approximate circulation of 150,000, distributed throughout every State of the United States, with editions also published in England and France, (2) was considered a style leader in its field, with its opinions and recommendations in matters of women's styles and dres~>es carrying great weight with a large portion of the feminine population, who buy style garments, and with manufacturers and retailers thereof, and (3) was at all times in demand on the part of the purchasing public on account of its recommendations as to stylish and "smart garments"- ( a) Entered into contracts with from four to seven manufacturers, for each issue, out of the two hundred New York City manufacturers, in round numbers, of women's garments of the price range with which it was concerned, under which contracts, and subject to the various provisions thereof as set forth in detail, each manufacturer agreed to pay it a specified percentage of the named price of such garment of said manufacturer as might be selected by it for its featured garments in the issue aud department of its said magazine devoted to such mattet"s, and not to manufactme, during the period concerned, a similar garment, or to sell the model selected in cities in which the publisher had selected retailers participating in plan and arrangement herein set forth, and it, the publisher, agreed to supply manufacturer with list of retailers throughout the country with whom it had made agl·eement to feature garment in question and the names of which it undertook to publish in its said periodical; and (b) Entered into agreements with some seventy-three retailers in about seventyfive cities in the different States be.;;ides New York, and other than New York City, under whkh the retailer1· under1took to purchase, subject to the various detailed prorh;ions of such contracts, at least two articles of such featured selection, and to maintain the resale prices quoted thereon, and it undertook to publish in its said periodical, and in connection with its aforesaid selections, the name of the retailer and price of the particular garment, and not to sell to any other store in such retailer's city except on the same 2 FEDERAL TRADE CO)DIISSION DECISIONS Complaint 24F.T.C.

terms, and entered into some twenty oral contracts of the same kind and effect with New York City retailers, and furnished, as a part of the aforesaid plan, for retailers' use in their local advertising, colored display cards and materials calling attention to and giving publicity to the fact that they had been selected by said periodical to sell its featured garments, and thus gave them the prestige possessed by said periodical and which it was able to confer;

With effect of securing the maintemmce, by said selected retailers, anxious to avoid price competition and obtain lines of dresses to the exclusion of competitors, and who found plan profitable, of the resale prices fixed by it, of depriving the public of normal price competition among retailers of such garments, and of causing manufacturers, by whom selection of their garments as abo;-e set forth was featured and capitalized, to limit the number of retailers displayiug and selling such selected garments to those retailers thus chosen, and of thereby depriving the public of normal competition among a number of dealers in each locality, and with capacity and tendency so to do, and to do substantial injury to (1) manufacturers of the class of garments featured in department in question of said periodical, but who do not participate in practice in question; (2) retailers in garments of class thus fentured and who do not thus participate; and (3) competition in commerce; and ( 4) the public:

Ileld, That tiUCb acts and practices were against public policy in that they unduly suppressed and hindered competition in sale and resale of women's garments, and bad capacity and tendency so to do, to prejudice of publlc interest; and con>~tituted unfair methods of competition. Defore Mr. John lV. Norwood, trial examiner. Mr. Astor Hogg for the Commission.

Dewitt, Van Taken & ~11/oynihan, of New York City, for re· spondent.

Complaint Pursuant to the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes," the Federal Trade Commission having to believe that Conde N ast Publications, Inc., a corporation, hereinafter called the respondent, has been and is using unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to said Com· mission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that reRpPd as follows:

PARAGRAPH 1. The respondent, Conde N ast Publications, Inc., is and at all times hereinafter mentioned was a corporation organized, created, and £>existing under and by virtue of the laws of the State of New York, having its principal office and place of business in the city of New York, in said State, and a branch office in the city of Greenwich, State of Connecticut. It is now engaged, and for more CONDE NAST PUDLICATIONS, INC. 3 1 Complaint than two years last past has been engaged, in the business of selling and distributing various publications, including "Vogue," between and among the various States of the United States. It now causes, and for more than two years last past has caused, its various publications, including "Vogue," when sold by it to be transported from its place of business in Greenwich, Conn., to newsdealers and subscribers thereof, some located in the State of New York and others in the various States of the United States; and there is now, and has been for more than two years last past, a constant current trade and commerce by said respondent in such publications, including "Vogue;' between and among the various States of the United States. In the course and conduct of its business respondent is now and for more than two years last past has been in substantial competition with other corporations and with firms and partnerships engaged in the sale and distribution of like publications between and among the various States of the United States.

PAR. 2. In the course and conduct of its business as aforesaid, respondent publishes a magazine known as "Vogue," in which magazine respondent has featured and does feature a department sometimes entitled "Vogue Smart Economies," and at other times, "Vogue's Finds of the Fortnight." The magazine "Vogue" is a woman's magazine devoted to fashion and has a circulation throughout all the States of the United States, and said magazine is at all times in demand on the part of the purchasing public, on account of the fashions and styles of women's apparel which it features, including the department entitled "Vogue Smart Economies" and "Vogue's Finds of the Fortnight." A substantial number of respondent's said competitors maintain in their respective publications similar departments of information and r~commendation concerning women's clothing. · PAR. 3. In the course and conduct of its business as aforesaid, respondent has adopted and still has in effect a plan whereby it enters into written contracts with various dress and garment manufacturers of the United States, wherein it is agreed that the respondent shall choose models of women's wearing apparel from the model lines of such manufacturers, for featuring in "Vogue Smart Economies" and "Vogue's Finds of the Fortnight" department of the "Vogue" magazine. For featuring such models as selected by the respondent the manufacturers agree to pay respondent, for each occasion a model is chosen from such manufacturer's line and published in the abovementioned department, a service fee of five percent of the amount col- • Complaint 24 F. T. C. lected as the price payable for the sale of each and every article which is a reproduction of the model chosen by respondent for the picture of the garment to be featured in said magazine. The manufacturers agree not to manufacture or sell any other garment so similar in design to the models so chosen and pictured in "Vogue" as to simulate the said designs.

The written contract which respondent enters into with such manufacturers of women's apparel also stipulates that respondent has made agreements with certain retailers throughout the various States of the United States who will feature and sell these garments, and that it will publish the names of such retailers in the magazine "Vogue," and respondent agrees to furnish a list of these retailers selected by it in the various States of the United States to the manufacturers with whom it enters into such written contract, and the manufacturers agree that in localities where respondent has made such agreements with retailers they will not sell their garments to any retailers in such localities except to those specified in the list furnished the manufacturers. The said manufacturers so selected by respondent in selling to retail dealers regularly, and as a part of such sales, ship their garments to said dealers from the manufacturer's places of business to such purchasers located in various other States, and in so doing are in substantial competition with other manufacturers of women's clothing. In further connection with the operation of this department of the magazine, respondent selects retail dealers in women's apparel in various localities of the different States of the United States and enters into both written contracts and oral contracts with such retail dealers, by the terms of which contracts respondent agrees to publish in each issue of "The Vogue" the name of the retailer with whom it enters into such contract as the outlet or place where such garment can be obtained in his locality. Such retailer agrees to purchase a minimum of one of each garment pictured and featured in "Vogue's Finds of a Fortnight" and "Vogue Smart Eeonomics," in every issue of "The Vogue," and further agrees and binds itself to respondent to maintain the retail price thereof quoted in"Vogue" for a period of at least one month from the on-sale date of the issue of "Vogue" in which the garments are shown. Respondent agrees that for at least a period of two months after the delivery of these models in the retail store, such models will not be sold by the manufacturers thereof to any other store in the retailer's city or locality except under the same terms and under the same form of contract as entered into between such retailer and respondent. • PAn. 4. Before selecting any model of any such manufacturer to be featured and shown in the "Vogue Smart Economies" and "Vogue's CONDE NAST PUBLICATIONS, INC. 5 1 Complaint Finds of the Fortnight" department of the magazine, respondent's experts, agents, and servants visit the various manufacturing establishments of the different States of the United States and select the designs to be featured, and require, before featuring such designs, that said manufacturers alter and modify such designs of wearing apparel to meet the demand of the respondent.

PAR. 5. By and through the captions of such department of its said magazine, "Vogue Smart Economies" and "Vogue's Finds of the Fortnight," the publication therein of the identity of the manufacturers whose garments are selected and of the retailers where same may be purchased, and by and through the text of the reading matter in said department contained, respondent impliedly represents to its readers that it is disinterestedly acting to inform them of "smart" garments and where they may be purchased at economical prices; when in truth and in fact respondents select the garments of those manufacturers who will agree to pay it a consideration for making such selection and recommending the same to its readers, and causes the manufacturers of such garments to adopt and carry ou~, and ~ids and assists them in adopting and carrying out, a resale pnce m~mtenance policy whereby all price competition among retail dealers m such garments is prevented.

PAR. 6. The capacity and tendency, and purpose and result, of the combination and agreement between respondent and the manufacturers and retailers of women's garments and of the acts and practices of respondent, as hereinabove alleged, has been and is to mislead and deceive the readers of respondent's said magazine into the belief that respondent's research and recommendations were and are disinterested; to deprive the public of the benefits of normal price competition among retailers of such garments by constraining retailers to sell at a price arbitrarily fixed by respondent and said manufacturers; anu to cause manufacturers to limit the retail dealers in each locality to those selected by respondent, thus depriving the pul:>lic of the benefits of competition among a number of dealers in each locality.

PAR. 7. The said combination and agreement and acts and practices, were and are to the prejudice of the public interest, as aforesaid; to prejuuice of respondent's competitors who honestly conduct similar departments in the interest of their readers; and to the prejudice of the competitors of the said manufacturers who enter into no such schemes to deceive the public, and deprive it of the benefits of competition; and constitute unfair methods of competition in commerce within the intent anu meaning of Section 5 of an Act of Congress entitled "An Act to create a Federal Traue Commission, to define its 60• FEDERAL TRADE COMl\iission DECISIONS Findings 24F. T. C.

powers and dudes, and for other purposes," approved September 20, 1914.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Cqngress approved Septembfr 26, 1V14, entitled "An Act to create a Fedenil Trade Comniission, to define its powers and duties, and for other purposes," the Federal Trade Commission on the ~Oth clay of May 1935, issued and served 'its complaint in this proceeding upon respondent, Cmide Nast Pub- ·licati6i1s, · Inc.,c. a corporation, charging it ,with the use ·of unfair methods ()f. competition in commerce in violation of the _provisions· of ·said act. After the issuance of said complai1_1t, and the filing of rcsponclellt's answer thereto, testimony and other evidence in· sup·port of the allegatioi1s of the said complairlt were 'introduced by Astor Hogg,_ attorney for _the Commissiop., before J·ohn '\-V. Norwood; an 'examiner «_:>f' the Commission theretofore duly designated by it, and ·in opposition to the allegations of the complaint by MacDonald De- '\-Vitt, attorney foi· ·respondent; and said testimony and evidence were duly recorded and filed in the office of the Commission. '-I:hereafter, the proceeding came on for final hearing before the Commission ·oi1 the sltid complaint, the answer thereto, testimony and: other evidence, briefs in support of the complaint and in opposition thereto, and· the oi·al arg11ments of the counsel aforesaid; and the Commission having -duly considered the same, and being fully advised in the premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and conclusion -?rawn therefrom: · . ' FINDINGS AS .TO THE' FACTS PARAGRAPH 1. Respondent, Conde N ~st Publications, Inc.,· is a corporation, organiz.ed, existing, ancl doing bt)siness under and by virtue pf the laws of the State of New York with .-its principal corporate :9ffice located in the city and State of New York and its principal place of business located in the town of Greenwich, State of Conn.ecticut. It is 1_10w, and has been- for mor<? than twenty years last . pa.st, engaged in the business of selling and. distributing various pub- .lications1 including the magazine known as "Vogue," to various indiv:idunls, firms, and corporate:ions, located in the various States of the United States. It has caused ·and still causes its said publications, including "Vogue," \vhen so sold by it to be transported, in commerce, flom its principal pla~e of business in the town of Greenwich, Conn., to, ·into, and throi.1gh ~aid other States to the purchasers thereof.

-·CONDE NAST PUBLICATIONS, 'INC.- 7 1 Findings PAR. 2. In the course and conduct of its business. as aforesaid ,rec sponrlent published the· magazine "Vogue" ~n which it has featt~red and does featm:e a department., or continuous feature, which from'its incipiency in September 1D32, to .J.une 1934, was e1~titled ''Vo-gue's Smart Economics," since said latter date it has been entitled "Vogue's Finds of the 'Fortnight.." "Vogue" is a women's. style magazine, publislwd twice a month, and has: an approximate circulation of 150,00Q, distributed' throughout evel~Y State of the United States. n also has editions published i'n EI1glancl and: _France. -It ·is considei~ed: a style ' leader in irs· field and its opinions ~nd recommendations ii1 matters of . I ·' wmnen'~ styles~an(f_c s~~have gi·eat weight wi~h.!llarg~ p9_ration of the . ~eq1ale population who buy style garn1ents, an_d with manufacturers and retailers of such' garme;nts. It is at .~tll times. in. derhand on the part of the purchasing public on accoii.nt of its recoinmendations as to stylish and "smart garmeJ!ts", - . .- P.->.n. 3. in the cburse of and in ~~mw~tiof1 with the conduct of said department '.'Finds of the Fortnight,"- .re~pondent has adopted and ·still has in effect a plan whereby it enters ·into and .carries out certain written contracts, first, with women's garment ·manufacturers, and second, with retailers of such garments. I~s contract with·manufacturers is in the_ woi·ds and figm~es following, to wit: · CONDE NAST PUBLICATIONS, INC.

420 Lexington. Avenue, . New York, N. 'Y.

AGREEMENT b.et~een The. Conde Nust Publjcations, ·Inc., publisher of the magnzine Vogue, hereinafter called .the "Publisher", and_ ----------------• wholesale manufacturer, hereinafter called. the ;,Manufacturer."· · - " 1. The Publisher conducts·a department in Vogue entitled "Vogue's Finds of the Fortnight", wherein it publishes pictures of models of women•s wearing app~r.el, with retail prices given: These models are chosen by the editors of \rogue" from the Model lines ofwholesale manufacturers. The Manufacturer is desirous" t of having selections· made by Vogue froni his line for that part)ose. 2. The l\Ianufacturer agrees to. pay the Publisher;· to offset, in _paint, the expense to the Publisher of operating. sucli l~inds of the Fortnight Department, for each occasion -when a model is so chbsen 'frorrl his Hiie and pubii~hed .in the above-mentioned. department of Vogue, a service fee of 5% of the an1count quoted to Vogue as the price payable to • him from tile sale of each and every' article of wearing apparel (in any and all mat,erials in which the same may be made) which is a reproduction or adaption of the model so chosen and pictured in Vogue (less 8% to cover trade discount), and. 'the Manufacturer agrees not to· manufacture or S!•ll any other garment so similar in design to the 1~od~l so chosen and pictllred in Yogue ns to constitute an infringement of tlw design of such model or a substantial imit\].tion thereof. The l\L'lnufacturer shall pay such service fee to the Publisher each thirty days after delivery of tbe mercluindise to retailers during the sales life of the garment selected by. Vogue. 3. The Publisher has made agreements with certain retailers throughout the country who will feature these garments, to pnblisb the· names ot such Findings 24F. T. C.

retailers in Vogue. The list of these retailers will be furnished to the l\Ianu· facturer, and the Manufacturer agrees that in cities where Vogue has made such agreements with retailers he will not, without Vogue's written consent, sell these garments to any retailers except those specified in such list. The Manufacturer agrees not to make delivery of any garment reproduced by him ft·om the model so chosen by the editors of Vogue to retailers more than five days before the publication date of the particular issue of Vogue in which such garment is to be pictured, and the Publisher agrees to give the Manu· facturer advance notice of such publication date. Dated: New York, ---------- 1933 THE CONDE NAST PUBLICATIONS, INC. In presence of: By:------------------------------------- \Vitness: _______________________ _ Firm Nan1e:----------------------------- Witness=------------------------ The written contract between the respondent and the retailers is in the words and figures following, to wit: AGREEMENT, made the ------ day of ------------ 103 , between THE CONDE NAST PUBLICATIONS, INC., Publisher of the magazine Vogue, and -------------------- of --------- ----------• Retailer. 1. There appears in the editorial section of each issue of Vogue a special department consisting of several pages of illustrated wearing apparel under the title "Vogue's Finds of the Fortnight". The purpose of tllis Editorial feature is to present to the readers of Vogue special garments selected by Vogue from wholesale manufacturers, because of their good ~-;style and gooll values. On the pages where these garments are tllustrated, Vogue quotes the retail prices and states further that they may be found in the better shops throughout the country. 2. In order that you may get· the full benefit of Vogue's promotion of these garments, Vogue Is prepared to publish in each issue the name of your store as a retail outlet for these particular garments in your community, providing you subscribe to the conditions specified herein. 3. You agree to purchase until further notice a minimum of two of each garment (not to exceed seven nnmh£>rs) ~shown In "Vogue's Finds of the Fort· night" in every Issue of Vogue, and you further agree to maintain the retail price thereof quoted In Vogue for u veriod of at least one month from the on· sale <late of the issue of Vogue In which thel;e garments have been shown. 4. Vogue agrees that for at least a period of two months after the delivery d these models to your store, these same models will not be sold by the manufacturers thereof to any other store In your city, except under the same terms and under the same form of contract as subscribed to by you. 13. This agreement may be terminated by either party giving the other thirty clays' written notlre, at the expiration of six months. CONDE NAST PUDLICATIO~S, INC.

Dy ------------- ---- ----------------~ ACCEPTED:

ll!'ta!ler PAn. 4. For each issue of Vogue responllei1t enters into the contract hereinabove first set out with New York City manufacturers of from four to seven models of garments to be featured, and offers sugges- CONDE NAST PUBLICATIONS, INC. 9 1 Fiji(llngs tions and requires alterations in the same to meet respondent's ideas and desires. During the year 1932, respondent entered into such contracts with seventy-three manufacturers of dress garments, all of whom were located in New York City. In 1933 it entered into seventy-seven such contracts; in 1934 it entered into seventy-three. such contracts and from January 1, 1935, to August 1, 1935, respondent entered into forty such contracts. Approximately 85% of the manufacturers in the United. States, of garments of the class featured by Vogue, in "Finds of the Fortnight," are situatetl in New York City. Manufacturers of such dresses outside of New York City are not permitted to participate in the plan although said manufacturers are engaged in interstate commerce in the sale of their dresses to the same class of retail dealers as tlw~:>e to whom said other manufacturers sell. The wholesale price range of <lresses featured by Vogue in its "Finds of the Fortnight" is from $10.75 to $39.50. In this price range there are about 200 manufacturers in New York City who manufacture dresses of the class which Vogue features in its department, and it has contacted approximately 160 of that number. Thus, in any one issue of Vogue, from four to seven of the manufacturers in New York are favo:red against the remainder of about 200, and against all manufacturers outside of New Yorc. The selected manufacturers circularize their trade and stress the fact of their selection by Vogue. The manufacturers with whom respondent enters into such contracts are regularly engaged in selling women's garments to retail dealers located in states other than the state in which such manufacturers are located, and pursuant to such sales, aml as a part -thereof, shipping the garments into and through the various States of the United States to purchasers thereof. PAR, 5. The list of Vogue retail dealers, with whom it enters into the written contract hereinabove set out, covers regularly about seventy-five cities in the different States o£ the United States, besides New York City, and embraces about seventy-three retailers outside the State of New York. Since the plan was adopted written eontracts have been made with a total o£ 137 retail dealers. Approximately twenty oral contracts of the same tenor and effect as the written contracts are operative between rl:'spondent and retailers in New York City. Respondent has had, at various times, eo-existing contracts covering the same models with two retailers in each o£ the following cities:

Philadelphia Brooklyn Los Angeles Kansas City San Francisco Pittsburgh Chicago Toledo 10 FEDERAL TRADE COl\IMISSION DECISIONS Findings 24F. T.C.

and with from six to eight retailers in New York City. As a part of the plan the selected retail dealers are furnished with colored dis~ play cards and materials for use in their local advertising, calling · attention to and giving publicity to the fact that they have been selected by Vogue to sell the featured garments, thus giving them the prestige which Vogue possesses and is able to confer. It is under~ stood that failure by the retailers to maintain, according to the contract, the resale price for the garments fixed by respondent and quoted in Vogue, with fractional tolerances, will result in such retailer being denied further participation in the plan. However, the selected retailers have found the plan profitable to them, and they have maintained the fixed prices. Retail dealers in such garments have been and are anxious to avoid price competition and to obtain lines of dresses to the exclusion of competitors. PAR. 6. The maximum demand for a garment featured in "Finds of the Fortnight" occurs during the first month after the issue of the magazine in which said garment is featured goes on sale. In the year 1934, Vogue circulation increased approximately 15,000 copies per issue and the Department "Finds of the Fortnight" contributed substantially to the increase. The plan under which this department is and has been operated, has resulted in the sale of 32,459 garments in the year 1933, of 32,3.01 garments in the year 1934, and 9,937 gar~ ments from January 1, 1935, to August 1, 1935. PAn. 7. The capacity, tendency, and effect of respondent's plan and practices as set forth in these findings has been and is to secure the maintenance by the selected retail dealers of the resale prices fixed by respondent and to deprive the public of normal price competition umong the retailers of such garments; and to cause manufacturers to limit the number of retail dealers displaying and selling said selected garments to those selected by respondent, thus depriving the public of normal competition among a number of dealers in each locality. The plan has had and has the capacity and tendency to do substantial injury to manufacturers of the class of garments featured in "Finds of the Fortnight" who do not participate in the practice herein set out and to do substantial injury to retailers in garments of the class featured in "Finds of the Fortnight" who do not partici~ pate in the practice herein set forth. The plan has had and has the capacity and tendency to do substantial injury to competition in interstate commerce and to do substantial injury to the public. PAR. 8. The evidence in the record fails to establish by substantial proof that respondent's method of conducting the department "'Vogue's Finds of the Fortnight" has the capacity or tendency to mislead and deceive its readers-, as alleged in the complaint. CONDE NAST PUBLICATIONS, INC. 11 1 Order CONCLUSION The aforesaid acts and practices of Conde N ast Publications, Inc. are against public policy in that they have the capacity and tendency to, and do, unduly suppress and hinder competition in the sale and resale of women's garments, to the prejudice of the public interest, and constitute unfair methods of competition within the intent and meaning of Section 5 of an Act of Congress, approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondent, testimony and other evidence taken before John W. Norwood, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, briefs filed herein and oral arguments by Astor Hogg, counsel for the Commission, and by MacDonald Dewitt, counsel for the respondent, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress, approved September 26, 1914, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." It is now ordered, That the respondent, Conde Nast Publications, Inc., its officers, representatives, agents and employees, in connection with the publication and sale of its magazines in interstate commerce, or in the District of Columbia, do cease and desist from: (1) Entering into contracts, agreements, or understandings with retail dealers of women's garments, who regularly purchase such garments in interstate commerce, requiring or providing that the retailers, in the resale of such garments, or any of them, shall observe and maintain the retail prices therefor specified, fixed or quoted by .respondent;

(2) Entering into contracts, agreements, or understandings with manufacturers of women's garments, who regularly sell and ship such garments in interstate commerce, requiring or providing that the manufacturers shall limit, in each locality, the number of retail dealers to whom it will sell and ship such garments, or any of them; (3) Using and carrying out a plan whc>reby, pursuant to contracts with selected manufacturers of women's garments, who regularly sell and ship such garments in interstate commerce to retailers thereof, respondent selects models of such manufacturers' garments, p~c- Order 24F. T. U.

tures the same in its magazine, selects, and publishes the names of, retailers who will have and have such garments for sale, and requires the manufacturers to refrain from selling such garments, in cities where respondent has selected retailers, to any retailers except those selected by respondent; and enters into contracts with and requires the selected retailers to observe and maintain the resale prices fixed and quoted by respondent for such garments; ( 4) Aiding, assisting, and abetting any person in carrying out any resale price maintenance policy, the capacity, tendency, or effect of which may be to prevent or to substantially lessen competition among retail dealers;

(5) Utilizing any cooperative means of accomplishing or carrying out the things prohibited in paragraphs 1, 2, 3, and 4, hereof. It is further ordered, That the said respondent shall, within 30 days from and after the day of the date of the service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.

PAUL F. BElCH CO. 13 Syllabus