Aluminum Company of America

Text (OCR of the scan at left; may contain errors)

In toe Matrrer OF ALUMINUM COMPANY OF AMERICA CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION oF src. 2( d) OF THE CLAYTON ACT Docket 8175. Complaint, Nov. 17, 1960—Decision, Nov. 1, 1961 Consent order requiring a manufacturer of aluminum and aluminum products, including ‘Alcoa Wrap” aluminum foil, with annual sales exceeding $858,000,000, to cease violating Sec. 2(d) of the Clayton Act by such practices as paying $150 to a retail grocery chain in Burlington, Iowa, for advertising or other services furnished in connection with the sale of its products while not making any comparable payments to the chain’s competitors. CoMPrLaINntT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof, and hereinafter more particularly designated and described, has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act (U.S.C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows:

Paracrapu i. Respondent Aluminum Company of America is a corporation organized, existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its office and principal place of business located at 1501 Alcoa Building, Mellon Square. Pittsburgh, Pennsylvania.

ALUMINUM CO. OF AMERICA 1059 1058 Decision Par. 2. Respondent is now and has been engaged in the manufacture, sale and distribution of aluminum and aluminum products, including aluminum foil and aluminum foil containers sold under the trade name “Alcoa Wrap”. Respondent sells its products to wholesalers and retailers, including retail chain stores and department stores. Respondent’s sales of its products are substantial, exceeding $858,000,000 annually.

Par. 8. Respondent sells and causes its products to be transported from its principal place of business in the State of Pennsylvania to customers located in other states of the United States. There has been at all times mentioned herein a continuous course of trade in said products in commerce, as “commerce” is defined in the Clayton Act, as amended.

Par. 4. In the course and conduct of its business in commerce, and particularly since 1958, respondent. paid or contracted for the payment of something of value to or for the benefit of some of its customers as compensation or in consideration for services or facilities furnished by or through such customers in connection with their offering for sale or sale of products sold to them by respondent, and such payments were not made available on proportionally equal terms to all other customers competing in \the sale and distribution of respondent's products.

Par. 5. For example, in the year 1959, respondent contracted to pay and did pay to Benner Tea Company, a retail grocery chain with headquarters in Burlington, Iowa, the amount of $150.00 as compensation or as an allowance for advertising or other services or facilities furnished by or through Benner Tea. Company in connection with its offering for sale or sale of products sold to it by respondent. Such compensation or allowance was not made available on proportionally equal terms to all other customers competing with Benner Tea Company in the sale and distribution of products of like grade and quality purchased from respondent.

Par. 6. The acts and practices of respondent, as alleged, are in violation of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act.

DECISION AND ORDER This matter having come on to be heard by the Commission upon a record consisting of the Commission’s complaint charging the respondent. named in the caption hereof with violation of Section 2(d) of the Clayton Act, as amended by the Robinson-Patman Act, and an agree- Order 59 F.T.C.

ment by and between respondent. and counsel supporting the complaint, which agreement. contains an order to cease and desist, an admission by the respondent of all the jurisdictional facts alleged in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent. that it has violated the law as alleged in the complaint, and waivers and provisions as required by the Commission’s rules; and The Commission having considered the agreement. and order contained therein and being of the opinion that the agreement provides an adequate basis for appropriate disposition of the proceeding, the agreement. is hereby accepted, the following jurisdictional findings are made, and the following order is entered.

1. Respondent is a corporation existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its oftice and municipal place of business located at. 1501 Alcoa Building, Mellon Square, in the city of Pittsburgh, State of Pennsylvania. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered, That respondent Aluminum Company of America, a corporation, and its officers, employees, agents and representatives, directly or through any corporate or other device. in or in connection with the offering for sale, sale or distribution of any of its aluminum foil products or aluminum foil containers in commerce, as “commerce” is defined in the Clayton Act, as amended. do forthwith cease and desist from :

Paying or contracting for the payment of anything of value to, or for the benefit of, any customer of respondent as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the offering for sale, sale or distribution of respondent’s aluminum foil products or aluminum foil containers, unless such payment. or consideration is made available on proportionally equal terms to all other customers competing in the distribution of such products.

[tis further ordered, That the respondent herein shall, within sixty (60) days after 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.

NUTRI-HEALTH, INC., ET AL. 1061 Complaint