Santa's Official Toy Prevue, Inc.

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IN Tie MA Trr OF SANTA' S OFFICIAL TOY PREVUE, INC., ET AL. cm\"SENT ORDER, ETC., IX REGARD TO THE ALLEGED VIOLATIO),T OF THE FEDERAL TRE COMMISSION ACT Docket 8231. Oomplaint, Dec. 212, 1960-Deci sion, Apr. 1964'" Consent order requiring a PhHadelphia association of toy jobbers engaged. in publishing and distributing annually to retail outlets ,throughout the United States catalogs ilustrating toys, to cease inducing or receiving from toy suppliers payments for advertising in such catalogs furnished by respondents in connection with the sale of the suppliers' products, when they knew or should have known, that proportionally equal payments were not made available to all the suppliers' customers competing with respondents. COJ\IPLA.INT Pursuant to the provisions of the Federal Trade Commission Act and hy virtue of the authority vested in it hy said Act, the Federal .Reported as modified by order of Commission date July g, 1964. 130 FEDERAL TRADE CO:;IMISSION DECISIONS 65 Complaint Trade ommission.' having reason to helievethat the parties respondentnamed il the captlOn hereof have violated the provisions of said Act and it appearing to the Commission that a proceeding by it in respec thereof would be in the public interest, hereby issues its complaint stating its charges as follows:

PARAGRAPH 1. Respondent Santa s Offcial Toy Prevue, Inc. , is a corporation organized and doing business under the laws of the State of Pennsylvania, with its principal offce and place of business located at 319 North Eleventh Street, Philadelphia 7, Pennsylvania. The stock of this corporate respondent is owned by individual respondents David W. Ring and Maurice W. Ring. Individual respondents are the offcers and directors of respondent Santa s Offcial Toy Prevue, Inc. They direct, formulate and control the acts, practices and policies of Santa Offcial Toy Prevue, Inc.

Individual respondents David W. Ring and Maurice W. Ring, in addition to owning the stock of Santa s Offcial Toy Prevue, Inc., also own the stock and control the acts, practices and policies of Ring Brothers, Inc., a wholesaler of toy products named as a respondent in the caption hereof.

Respondent Ring Brothers, Inc., is a corporation organized and with its. doing business lUlder the laws of the State of PeIU1sylvania, principal offce and place of business located at 319 N. Eleventh Street Philadelphia 7, Pennsylvania.

Respondent ABC Toy Company is a corporation organized and with its doing business under the laws of the State of Pennsylvania, Pennsylvania principal offce and place of business located at 1421 Avenue, Pittsburgh, Pennsylvania.

Respondents Morton Spolter and Arnold Spolter are copartners doingbusjness a,s Armor Sales Compa.ny, with their principal offce and Columhus, Ohio. place of business located at 580 Kerr Street, Respondent Mrs. Howard Armstrong is an individual doing business as American Art Products Company, with her principal offce and Indianapolis 4 place of business located at 210 S. Pennsylvania Street, Indiana. Sr., and D. S. Baldwin are co- Respondents Albert Baldwin, partners, doing business as Baldwin Supply Company, with their principal offce and place of business located at 513 South Peters Street, New Orleans 12, Louisiana.

Respondent Beacon Sales Co. is a corporation organize.d and doing with its principal offce business under the laws of the State of Florida, Hialeah and place of business located at 1080 East Fifteenth Street, Florida.

SA.'TA' S OFFICIAL TOY PREVUE , INC. , ET AL. 131 129 Complaint Respondent Vincent D. Botto is an individual doing business as V. F. Botto & Company, with his principal offce and place of business located at. 124 K ort.h Court A venue, Memphis 3, Tennessee. Respondents Edward Feldman, Louis Feldman and Philip Feldman are copartners, doing business as Capitol Distributors, with theirprincipal offce and place of business Jocated at 57 Jackson Street Worcester, Massachusetts.

Respondent Frank Marescalco is an individual doing business as Central Distributing Toy Co. with his principal offce and place of business located at 6721 28th A venue, Kenosha, Wisconsin. Respondent Joseph F. Crans is an individual doing business as Crans Supply Co. with his principal offcc and place of business located at 201 Twentieth Street, Huntington, ,Vest Virginia. Respondent Samuel Link is an individual doing business as E&S Merchandising Co. ''with his principal offce and place of business located at 276 Hudson A yenue, Albany 10 ew Yark. Respondent Fllntime Distributors, Inc., is a corporation organized and doing business under the laws of the State of Xew Jersey, with its principal oiIice and place of business located at 578 East Nineteenth Street, Paterson, Ne,w .Jersey.

R.respondent Halco Sa.les Co., Inc., is a corporation organized and doing business under the laws of the State of Massachusetts, with its principal offce and place of business located at 208 Camclen Street Boston 18 , j\lassachusetts.

Respondent James M. Kidd is an individual doing husincss as Kidd ,Vholesalc Company, with his principal offce and place of business located at Korth Cobb Street, Mil1edgeville, Georgia. Respondent :f )Iaurice I\:incl is an individual doing business as M. Maurice Kind Koyelty Co. with his principal offce and place of business located at 108 First A venue, Seattle, \lVashingt.on. Respondent Long-Lewis I-Iarclware Company is a corporation organized and doing business under the laws of the State of Alabama with its principal offce and place of busines located at 2000-2030 Second A venue, North Bessemer, Alabama.

Respondent :Maines Candy and Pa.per Company, Inc., is a corporation organized and doing business under the laws of the State of New York, ",-ith its princ.ipal offce and place of business located at 28-36 Sherman Place, Binghamton ew York. Hespondents :\lax Pikelny, Leo Pikelny and Seymour Pikelny are copa.rtners, doing business as AIid- \V est Briar Pipe Co., with their principal offce and place of business located at 27 29 Lincoln Avenue, Chicago 14, Illinois.

, 132 FEDERAL TRADE COCdISSION DECISIONS Complaint 65 F.

Respondent :Mary Milner is an individual doing business as David Milner & Co. with her principal offce and place of business located at 121 South Street, Baltimore 2, Maryland.

Respondent Ari Newman is an individual doing business as New man s Wholesale Distrihutors, with his principal offce and place of business located at 8 Milk Street, Portland, Maine. Respondent Onondaga I-ohby & Toy Co. Inc., is a corporation organized and doing business under the laws of the State of N ew York with its principal offce and place of business located at 507 E. Water Street, Syracuse 2, New York.

Respondent N. D. Orum Company is a corporation organized and doing business under the laws of the State of Wisconsin, with its principal offce and place of business located at 407 North ' Water Street, Milwaukee 2 Wiseonsin.

Respondent Meyer Burg and Morris Belausky are copartners, doing business as Paramount Merchandise Co. with their principal offce and place of business located at 932 Broadway, New York, New York. Respondent Puhlie Service Paper Company, Inc., is a corporation organized and doing business under the laws of the State of Maine with its principal offce and place of husincss located at 47 YIaple Street, Burlington, V crmont.

Respondent Louis M. Saunders Co., Inc., is a corporation organized and doing business under the laws of the St-ate of Virginia, with its principal offce and place of business located at 1160 Tidewater Drive Norfolk, Virginia.

S. E. Sanders Company, Incorporated, is a corporation organized and doing business under the laws of the State of North Carolina with its principal offce and place of business located at 518 Kenilworth Road, Asheville, North Carolina.

Respondents Myer Mont, and Janet Mont arc copartners, doing business as Schenectady Paper & Toy Co. with their principal offce and place of business located at 16-18 Broadway, Schenectady, New York.

Respondent Shepher Distr s and Sales Corp., is a corporation organized and doing business under the laws of the State of N ew York with its principal offce and place of husine.s located at 302-310 Elton Street, Brooklyn 8, New York.

Respondent Standard Paper & Merchandise Company Incorporated, is a corporation organized and doing busine,ss lmder the laws of the State of Massachusetts, with its principal offce and place of business located at 42 Waltham Avenue, Springfield, Massachusetts. Respondent Tak- Toy Corp. of Washington, is a corporation organized and doing business under the laws of the District of Co- SAKTA.S OFFICIAL TOY PREVUE , INC., ET AL. 133 129 Complaint lumbia, with its principal offce and place of business located at 920 Girard Street, N. , Washington Respondent Irving 1. Bimstein, Sr., and Mrs. Irving 1. Bimstein Sr., are copartners, doing husincss as Tip Top Merchandise Co., with their principal offce and place of business located at 313-2nd Avenue No., Nashvile 3, Tennessee.

Respondent Toy Novelty Co. is a corporation organized and doing business lmder the laws of the State of New York, with its principal offce and place of business located at 3455 White Plains Road, Bronx , New York.

Respondents E. D. Westerman, and R. H. 'Westerman, are copart. ners, doing business as Uneeda Toy Company, with their principal offce and place of business located at 395 Ocean A venue, Jersey City , New Jersey.

Respondent E. .Winiek & Co. Inc., is a corporation organized and doing business under the laws of the State of New York, with its principal offce and place of business located at 3455 W1ite Plains Road, Bronx 67, Kew York.

Respondent Seymour Lieberman is an individual doing business as Seymour Lee Co. with his principal offce and place of business located at Town Dock Road, New Rochelle, New York. Respondent L. D. Friedland is an individual doing business as L. D. Friedland Co. with his principal offce and place of business located at 328-334 Marietta Street, K. , Atlanta 2, Georgia. All of the foregoing corporate, partnership and single proprietorship respondents have been, and are now, members of respondent Santa s Offcial Toy Prevue, Inc.

PAR. 2. Santa s Offcial Toy Prevue, Inc., is an association composed of toy wholesale distrihutors or jobbers, named herein as corporate, partnersip and single proprietorship respondents, who scll and dis. trihute -their toy products to retail outlets locwted in various States of the United States. Respondent Santa s Offcial Toy Prevue, Inc. has been engaged, and is presently engaged, in the business of publish. ing and distributing annually on behalf of the wholesaler members catalogs ilustrating toys. The catalogs are published and distributed under the title "Santa s Offcial Toy Prevue." Various manufacturers of toys have been and are now advertising their toys in said catalogs. Respondent members of respondent Santa s Offcial Toy Prevne, Inc. have sold and distributed and presently sen and distribute, their catalogs to retail outlets located throughout the Vnited States. The wholesaler members of corporate respondent Santa s Offcial Toy Prevue, Inc., hy a majority vote select both the advertisers and the toy products that are to he ilustrated in the catalogs published hy said corporate respondent.

___ Complaint 65 F.

PAR. 3. Respondents, in the course and conduct of their businesses have engaged, a.nd arc presently engaged, in commerce, as "commerce is defined in the Federal Trade Commission Act. Respondents purchase their products fmm many toy suppliers located throughout the various States of the United States and cause such products to he transported from various States in the United States to other States for distribution and sale by respondents to retail outlets. There is now and has been, a constant current of irade in commerce in said products between and among the various States of the United States. In addition, respondents published, or caused to he published, toy catalogs which they sell and distribute to retail outlets located in various States of the United States.

PAR. 4. In the course and conduct of their businesses in commerce said respondents have been, and are now, in competition with other corporations, partnerships and individuals in the sale and distribution vf toy catalogs to retail outlets, and in the sale and distribution of toy products to said retail outlets.

PAR. 5. Respondents, in the course and conduct of their businesses in commerce, knowingly induced or received, or contracted for the payment of promotional payments or allowances from various toy suppliers which were not offered or made available on proportionally equal terms to all other customers of such suppliers competing with respondents in the distribution of said suppliers' toy products. Respondents, as publishers and distrihutors of toy catalogs induced or received payments or allowances from the aforesaid suppliers in connection with the promotion and advertising of their products in respondents' catalogs. Respondents knew, or should have known, that said payments or allowances which they induced or received were not granted or offered on proportionally equal terms to all other of said suppliers' customers competing with respondents in the distribution of said suppliers' products. Said payments were made to Ring Brothers, Inc., acting on behalf of respondent association. The payments to said association for 1959 , exeeedcd $57,000. Among the toy suppliers granting promotional payments or allowances to respondents in 1959 were:

AfJproeimate payments oy supp ers. granted to resprmdents a tter, Inc_- --- ---- - ------ --- - -. - -- --. --- - - -- - $825 Aurora Plastic Corp_____---------------------------------------- 550 Kohner Bros., Inc_ ------------------- 550 Balsam Products Co_---------------------------- ---------------- 1, 100 Porter Chemical Co_-------------------------------------------- 825 llevell, Inc_____-- 550 Multiple Products Corp_____---------- -------------------------- 550 SANTA' S OFFICIAL TOY PREVUE, INC., ET AL. 135 J29 Initial Decision PAR. 6. The acts and practices of respondents, as hereinbefore alleged, of knowingly inducing or receiving special promotional payments or allowances from their suppliers which were not made available by said suppliers on proportionally equal terms to respondents competitors, are all to the prejudice and injury of competitors of respondents and of the public; have the tendency and effect of ohstructing, injuring and preventing competition in the sale and distribution of toy products, and have the tendency to obstruct and restrain and have obstructed and restrained commerce in such merchandise, and constitute unfair metbods of competition in commerce and unfair acts and practices in commerce within the intent and meaning and violation of Section 5 of the Federal Trade Commission Act. lir. Jerome Garfinkel counsel for the complaint. lir. Edwin P. Roone counsel for respondents. INITIAL DECISION BY JOSEPH 'V. KAUFMAX , HEARING EXA nner The Federal Trade Commission issued its complaint against the above-named respondents on Decemher 22, 1960, charging them with violation of Section 5 of the Federal Trade Commission Act in that they knowingly induced or received promotional payments in commerce from various toy suppliers, for toy catalog advertisements, not made available on proportionally equal terms to other customers and therefore unlawful for this and other reasons. There was submitted to the hearing examiner a consent agreement dated April 25, 1962, which was signed by all but four respondents and hy counsel for both sides, and approved hy the Bureau of Restraint of Trade. The agreement providcd for the entry of a consent order in the wording and form set forth therein. Accompanying the submission of the agreements to the hearing examiner, there was an application signed by counsel supporting the complaint requesting the hearing examiner to accept the agreement despite Jate filing or to certify to the Commission the question of excusing lateness of filing. Under the Rules, the agreements should have been fied prior to September 1 1961.

On certification by the hearing examiner, the Commission, hy order dated May 14, 1962, excused lateness of filing and referred the matter back to the hearing examiner for consideration of the consent agreement.

Under the terms of the agreements, the signatory respondents admit the jurisdictional facts alleged in the complaint. They waive any further procedural steps, the making of findings of fact and conclusions of law, and the right of judicial review or other challenge of the validity of the consent order. It is also agreed that the record shall Initial Decision 65 F.

consist solely of the complaint and 'the agreement, but thwt the agreement is for settlement purposes only and does not constitute an admission by respondents of violation. It is further agreed that the order may be entered without further notice, and have the same force and effect and shall hecome final and may he altered, modified or set aside as provided by statute for other orders. The complaint may be used in construing the terms of the order. The following respondents are the only ones who are not parties to the consent agreement:

ABC Toy Company, a corporation Morton Spolter and Arnold Spolter, d/b/a Armor Sales Company, E. Winick & Co. Inc.

The agrecment states that these respondents are out of business and that the complaint should he dismissed as against them. The hearing examiner finds that said agreement includes all of the provisions required hy 3 of the Commission Rules, which contain substantially the same provisions, pertinent here, as 25 (h) of the old Rules of the Commission.

In addition, the agreement contains certain permissive provisions set forth in the Rules.

r-Iaving considered said agreement, including the proposed order and being of the opinion that it provides an appropriate basis for settlement and disposition of this proceeding the hearing examiner accepts the agreement but directs that it shall not become part of the offcial record until it heeomes a part of the decision of the Commission.

The following jurisdictional findings are hereby made: 1. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. 2. The following facts relate to respondents in this case. Respondent Santa. s Offcial Toy Prevue, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its principal offce and place of business located at 319 North Eleventh Street, Philadelphia 7, Pennsylvania. Respondent David W. Ring is an individual and an offcer and di. rector of Santa s Offcial Toy Prevue, Inc., with his principal offce and place of business located at 319 North Eleventh Street, Philadelphia 7, Pennsylvania.

Respondent Maurice W. Ring is an individual and an offcer and director of Santa s Offcial Toy Prevue, Inc., with his principal offce and place of business located at 319 North Eleventh Street, Philadelphia 7, Pennsylvania.

SANTA' S OFFICIAL TOY PREVUE , INC. , ET AL. 137 129 Initial Decision Respondent Ring Brothers, Inc., is a, corporation existing and doing business under the laws of thc State of Pennsylvania, with its principal offce and place of business located at 319 North Eleventh Street Philadelphia 7, Pennsylvania.

Respondent Mrs. Howard Armstrong is an individual doing businoss as American Art Products Company, with her principal offce and place of husincss located at 210 S. Pennsylvania Street, Indianapolis 4, Indiana.

Respondents Albert Baldwin, Sr., and D. B. S. Baldwin are copartners doing business as Baldwin Supply Company, with their principal offce and place of business located at 513 South Peters Street ew Orleans 12, Louisiana.

Respondent Beacon Sales Co. is a corporation existing and doing business under the laws of the State of Florida, with its principal offce and place of business located at 1080 East Fifteenth Street Hialeah, Florida.

Respondent Vincent D. Botto is an individual doing business as V. F. Botto & Company, with his principal offce and place of business located at 124 North Court A venue, Memphis 3, Tennessee. Respondents Edward Feldman, Louis Feldman and Philip Feldman are copartners doing business as Capitol Distributors, with their principal offce and place of business located at 57 Jackson Street ""V oreester Iassachusetts.

Respondent Frank MarescaJeo is an individual doing business as Central Distributing Toy Co. with his principal offce and place of business located at 6721 28th Avenue, Kenosha, Wisconsin. Respondent Joseph F. Crans is an individual doing business as Crans Supply Co. with his principal offce and place of business located at 201 Twentieth Strect, Huntington, West Virginia. Respondent Samuel Link is an individual doing business as E & S Merchandising Co. with his principal offce and place of business located at 276 Hudson Avenue, Alhany 10, New York. Respondent Funtime Distributors, Inc., is a corporation existing and doing' business under the laws 01 the State of New Jersey, with its principal offce and place of business located at 578 East Nineteenth Street. Paterson, Now Jersey.

Respondent Halco Sales Co., Inc., is a corporation existing and doing business under the laws of thc State of Massachusetts, with its principal offce and place of business located at 208 Camden Street, Boston 18 Massachusetts.

Respondent James M. Kidd is an individual doing business as Kidd Wholesale Company, with his principal offce and place of business located at North Cohh Street, Miledgevile, Georgia. 313-121--70-- , 138 FEDERAL TRADE COMMISSIOK DECISIONS Initial Decision 65 F.

Respondent M. Maurice Kind is an individual doing business as M. :Ylaurice Kind Novelty Co. with his principal offce and place of business located at 108 First Avenue, Seattle Washington. Respondent Long-Lewis Hardware Company is a corporation existing and doing business under the laws of the State of Alahama, with its principal offce and place of business located at 2000-2030 Second A venue, North Bessemer, Alahama.

Respondent Maines Candy and Paper Company, Inc., is a corporation existing and doing business under the laws of the State of New York, with its principal offce and place of business located at 28- Sherman Place, Binghamton, N ew York.

Respondents Max Pikelny, Leo Pikelny, and Seymour Pikelny are copartners doing business as Mid-West B6ar Pipe Co. with their principal offce and place of business located at 2727-29 Lincoln Avenue, Chicago 14, Illinois.

Respondent Mary Milner is an individual doing business as David Milner & Co. with her principal offce and plaee of business located at 121 South Street, Baltimore 2, ;'faryland. Respondent Ari Newman is an individual doing business as ewman s Wholesale Distributors, with his principal offce and place of business located at 8 Milk Street, Portland, Maine. RBSpondent Onondaga Hobhy & Toy Co. Inc., is a corporation existing and doing business under the laws of the State of K ew York, with its principal offce and place of business located at 507 East ' Water Street, Syracuse 2, X ew York.

Respondent M. D. arum Company (erroneously described in the complaint as N. D. arum Company) is a corporation existing and doing business under the laws of the State of Wisconsin, with its principal offce and place of business located at 407 North 'Water Street, Milwaukee 2, 1Visconsin.

Respondents Meyer Burg and Morris Belausky are copartners doing business as Paramount Merchandise Co. with their principal offce and place of business located at 932 Broadway, New York, New York. Respondent Public Service Paper Company, Inc., is a corporation existing and doing business under the Jaws of the State of :Iaine, with its principal offce and place of business located at 47 Maple Street Burlington, Vermont.

Respondent Louis M. Saunders Co. Inc., is a corporation existing and doing business under the laws of the State of Virginia, with its principal offce and place of business located at 1160 Tidewruter Drive Norfolk, Virginia.

Respondent S. E. Sanders Company, Incorporated, is a corporation existing and doing business under the laws of the State of North ;

SANTA'S OFFICIAL TOY PREVUE ET AL. 139 129 initial Decision Carolina, with its principal offce and place of business located at 518 Kenilworth Road, Asheville, North Carolina. Respondents Myer Mont and J "net Mont are copartners doing business as Schenectady Paper & Toy Co. with their principal offce and place of business located at 16-18 Broadway, Schenectady, New York. Respondent Shepher Distr s and Sales Corp. is a corporation existing and doing business under the laws of the State of N ew York, with its principal offce and place of business located at 302-310 Elton Street, Brooklyn 8, New York.

Respondent Standard Paper & Merchandise Company Incorporated, is a corporation existing and doing business under the laws of the State of Massachusetts, with its principal offce and place of business located at 42 IValtham A venue, Springfield, 11assaeh usetts. Respondent Tak- Toy Corp. of .Washington is a corporation existing and doing business under the laws of the District of Columbia, with its principal offce and place of business located at 920 Girard Street , Washington, D.C.

Respondents Irving 1. Bimstein, Sr., and Mrs. Irving 1. Bimstein Sr. , are copartners doing business as Tip Top Merchandise Co. with their principal offce and place of business located at 313-2d Avenue No., Nashville 3, Tennessee.

Respondent Toy Novelty Co. is a corporwtion existing and doing business under the laws of the State of New York, with its principal offce and place of business located at 3522 .Webster Avenue, Bronx 67 New York.

Respondents E. D. IVesterman and R. H. IVesterman are copartners doing business as Uneeda Toy Company, with their principal offce and place of business located at 395 Ocean A venue, Jersey City 5 1' ew Jersey.

Respondent Seymour Lieberman is an individual doing business as Seymour Lee Co. with his principal offce and place of business located at Town Dock Road, New Rochelle, New York. Respondent L. D. Friedland is au individual doing business as L. D. Friedland Co. with his principal offce and place of business located at 328-334 Marietta Street, N.IV., Atlanta 2, Georgia. The following order is hereby made:

ORDER It ordered That respondents Santa s Offcial Toy Prevue, Inc. Ring Brothers, Inc. , Beacon Sales Co. Funtime Distributors, Inc. Haleo Sales Co. Inc., Long-Lewis Hardware Company, Maines Candy and Paper Company, Inc. , Onondaga Hohby & Toy Co. Inc., M. D. Louis M.Oru Company, Public Service Paper Company, Inc., 140 FEDERAL TRADE Cmf:MISSION DECISIOXS Decision 65 F.

SaUllders Co. Inc., S. E. Sanders Company, Incorporated, Shepher Distr' s and Sales Corp., Standard Paper & Merchandise Company Incorporated, Tak- Toy Corp. of Washington, Toy Novelty Co. corporations, their offcers and directors; individual respondents David W. Ring, Maurice W. Ring, Mrs. Howard Armstrong, Alhert Baldwi Sr., D.B.S. Baldwin, Vincent D. Botto, Edward Feldman, Louis Feldman, Philip Feldman, Frank Marescalco, Joseph F. Crans, Samuel Link, James M. Kidd, M. Maurice Kind, Max Pikelny, LeoPikelny, Seymour Pikelny, Mary Milner, Ari Newman ieyer Burg, Morris Belausky, Myer Mont, Janet Mont, Irving I. Bimstein, Sr., Mrs. Irving 1. Bimstein, Sr., E. D. Westerman, R. H. 'Westerman, Seymour Lieherman, and L. D. Friedland; and their respective representatives, agents and employees directly or through any corporate or other device in or in connection with any purchase in commerce, as commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Inducing, receiving or contracting for the receipt of anything of value as payment for or in consideration for advertising or other services or facilities furnished by or through respondents in connection with the processing, handling, sale, or offering for sale of toy, game, and hohhy products manufactured, sold, or offered for sale by the supplier, when the respective respondents Imow or should know that such payment or consideration is not made available by such supplier on proportionally equal terms to all its other customers competing with the respective respondents in the distribution of such products.

It is f"rther ordered That the complaint be dismissed with respect to ABC Toy Company, Morton Spolter, Arnold Spolter, and E. Winick & Co. Inc.

DECISION OF TJ-IE nfISSloN AND ORDER TO FILE REPORT OF COMPLINCE APRIL 3, 1064 On May 31, 1962, the examiner filed his initial decision in this matter, accepting the consent agreement negotiated between complaint counsel and respondents. On June 26, 1962, the Commission placed this case on its O\17n docket for review. The Commission has determined that the order contained in thc initial decision adequately disposes of the allegations of the complaint. The parties to the consent agreement, however, agreed further that:

"In the event the Commission should issue any cease and desist order in Dockets 7971, 8100, 8240, 8255, or 8259 more limited in &, SANTA' S OFFICIAL TOY PREVUE , INC., ET AL, 141 129 ORDER MODIFYING ORDER. scope than the order provided for in this agreement, the Bureau of Restraint of Trade agrees tl",t it wil join in a motion hy respondents to the Commission requesting that respondents' order be modified in accordance with such more limited cease and desist order.

Accordingly, It is ordered That the initial decision of the examiner, fied :May 31 1962, be, and it hereby is, adopted as the decision of the Commission. It i8 further ordered That respondents named in the above-captioned proceeding, "ith the exception of ABC Toy Company, Morton Spolter, Arnold Spolter, and E, Winick & Co. Inc" shall, within sixty (60) days after service upon them of this order, file with the 'Commission a report, in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist.

It is further ordered Thwt respondents, with the exception of ABC Toy Company, :Morton Spolter, Arnold Spolter, and E. 'Winiek & Co., Inc., if they so desire, may, within sixty (60) days after service of this order upon them, request modification of the order in the light of the Commission s decisions in IndividuaUzed Oatalogues Inc., et al. Docket No. 7971 Santa s Playthings, Inc. , et al. Docket No. 8259 ATD Catalogs, Inc., et al. Docket No. 8100 , and Billy Ruth Promotion, Inc., et al. Docket No. 8240. Such a request, if made, "il stay the time within which respondents would otherwise be required to file a report of compliance.

Commissioner Reily not participating.

ORDER MODIFYISG CONSE"T ORDER JUY 9 , 1964 On June 10, 1964, the respondents in this proceeding, with the exception of ABC Toy Company, Morton Spolter, Arnold Spolter and E. Winick & Co. Inc., fied 11 motion requesting modification of their consent order pursuant to the authorization granted hy the Commission order of April 3, 1964 (p, 140 hereina. The Bureau of Restraint of Trade has joined in respondents' motion. The Commission has determined the request should be granted. Accordingly, It is ordered That the consent order in this proceeding be, and it hereby is, modified to read as follows:

It is ordered That respondents Santa s Offcial Toy Pre vue, Inc. Ring Brothers, Inc. , Beacon Sales Co. Funtime Distributors, Ine. Halco Sales Co., Inc., Long-Lewis Hardware Company, Maines Candy and Paper Company, Inc. , Onondaga Hohby & Toy Co., Inc. )1. D. Orum Company, Public Service Paper Company, Inc. , .

ORDER MODIFING CO::SEKT ORDER. 65 F. Louis M. Saunders Co. Inc., S. E. Sanders Company, Incorporated, Shepher Distr s and Sales Corp., Standard Paper & Merchandise Company Incorporated, Tak- Toy Corp. of IVashington, Toy X ovelty Co., corporations, their offcers and directors; individual respondents David W. Ring, Maurice W. Ring, Irs. Howard Armstrong, Albert Ba.!dwin, Sr. , D. B. S. Baldwin Vincent D. Botto, Edward Feldman, Louis Feldman, Philip Feldman, Frank )1aresealco J oseph F. Crans, Samuel Link James M. Kidd, M. Maurice Kind, )1ax Pikelny, Leo Pikelny, Seymour Pikelny, Mary Milner, Ari Xewman, )feyer Burg, Morris Belansky, Myer )lont, Janet Mont, Irvingl. Bimstein, Sr. Mrs. Irving 1. Bimstein, Sr., E. D. IV cst erman, R. H. 'Westerran Seymour Lieberman, and L. D. Friedland; and their respective representatives, agents and employees directly or through any c.corporate or other device in or in connection with any purchase in commerce, as "commerce ' is defined in the Federal Trade Commission Act, do forthwith cease and desist from: Inducing and receiving, or receiving, the payment of anything of value to or for the benefit of the respondents, or any of them, as compensation or in consideration for any services or facilities consisting of advertising or other publicity furnished by or through respondents, or any of t.hem, in a toy catalog, handbil, circular, or any other printed publication, serving the purpose of ft buying guide, c1istribnt.ec1 directly or through any corporate or other device, by said respondents, or any of them, in connection wit.h the process ing, handling, sale or offering for sale, of any toy, game or hohhy products manufactured, sold, or oiIered for sale by the manufacturer or supplier, when the said respondents know or should know that such payment or consideration is not made available on proportionally equal terms to all other customers competing with sa,id respondents in the cEstribution of such toy, game or hohby products.

It is f1lrthe1' ordel' That the aforesaid respondents shall, within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist. BILLY & RUTH PROMOTION, INC., ET AL. 143 Complaint