Nor-Cal Distributors, Inc.

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IN THE MATTER OF NOR-CAL DISTRIBUTORS, INC., ET AL.

CONSENT ORDER ETC., IN REGARD TO THE ALLEGED VIOLA TION OF SEC. 2 (f) OF THE CLA YTON ACT Docket C-1062. Complaint April 1966-Decision April 29, 1966 Consent order requiring 46 jobbers of automotive products and supplies, and their buying organization, :\or-Cal Distributors, Inc., of San Francisco Calif., to cease knowingly inducing and receiving discriminatory prices from their suppliers in violation of Sec. 2(f) of the Clayton Act. COMPLAINT The Federal Trade Commission, having reason to believe that the party respondents named in the caption hereof, and hereinafter more particularly designated and described, have violated and are now violating the provisions of subsection (f) of Section 2 of the Clayton Act, as amended (D. , Title 15, Sec. 13), hereby issues its complaint stating its charges with respect thereto as foHows:

PARAGRAPH 1. Respondent Nor-Cal Distributors, Inc. , hereinafter sometimes referred to as respondent N or-Cal, is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 500 Florida Street, San Francisco California.

Respondent N or-Cal, although using corporate form, is a mem- NOR-CAL DISTRIBUTORS , INC" ET AL. 641 640 Complaint bership organization, organized, maintained, managed, controlled, and operated by and for its members. The membership of respondent Nor-Cal is composed of corporations, partnerships and individuals whose business consists of the jobbing of automotive products and supplies.

Respondent N or-Cal, as constituted and operated, is known and referred to in the trade as a buying group. PAR. 2. The following respondent corporations and individuals sometimes hereinafter referred to as respondent jobbers, constitute respondent Nor-Cai:

Respondent Allied Automotive, Inc. , is a corporation organized, existing and doing business under and by virture of the laws of the State of Nevada with its principal offce and place of business located at 490 North Virginia Street, Reno, Nevada.

Respondent Auto Parts Sales Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 636 Ward Street Martinez, California.

Respondent The Automotive Supply Co. , Inc. , is a corporation organized existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 230 South Bridge Street, Visalia, California.

Respondent Belmont Auto Parts Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1161 Old County Road, Belmont, California.

Respondent Benson & Zimmerman Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Califor. nia, with its principal offce and place of business located at Eleventh and H" Streets, Modesto, California.

Respondent Berkeley Automotive Center is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 2619 Shattuck Avenue, Berkeley, California.

Respondent C. & H. Auto Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 610 Main Street, Placervile, California.

Respondent Cresta Bros. Auto Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 5050 Mission Street, San Francisco, California.

Respondent Federal Parts & Products Co. Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 231 California Drive, Burlingame, California.

Respondent Henderson Bros. Stores, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Cali- Complaint 69 F. T.

fornia, with its principal offce and place of business located at 1800-23rd Street, Sacramento, California.

Respondent Hust Bros., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at Fourth and " E" Streets Mar-ysvile,Respondent E. C. Kraft California.& Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 53 Santa Rosa Avenue, Santa Rosa, California.

Respondent Lacey Automotive Parts Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 108 Monterey Street, Salinas, California.

Respondent Lakeside Automotive, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at South Shore Lake Tahoe, P. O. Box 70, Stateline, California. Respondent Lemoore Auto Supply is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 41 "E" Street, P. Rox 630, Lemoore, California.

Respondent Littrell Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 310 South Main Street Y reka, California.

Respondent Maxwell Motor Supply Co., Inc., is a corporation organized, ex isting and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 228 orth EI Dorado Street, Stockton, California.

Respondent Mi1 Valley Auto Parts, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 360 Miler Avenue, Mi1 Valley, California.

Respondent Motor Parts Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 2344 Harrison Street, Oakland, California.

Respondent Chico Automotive Supply is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, and doing business under the firm name and style of Motor Supply Co. with its principal offce and place of business located at 360 East Sixth Street, Chico, California.

Respondent Moses & Moses Motor Parts is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of California, and doing business under the firm name and style of M & M Motor Parts, with its principal offce and place of business located at 1219 Solano Street, Corning, California.

Respondent National Auto Parts Co. , Inc. , is a corporation organized, ex- NOR-CAL DISTRIBUTORS, INC. , ET AL. 643 640 Complaint isting and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1110 Col usa Street, Vallejo, California.

Respondent Tri-City Auto Supply is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 551-23rd Street Richmond, California.

Respondent Sequoia Auto Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 908 Main Street, Redwood City, California.

Respondent Westside Auto Parts, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1232 Monterey Street, San Luis Obispo, California.

Respondents Herman Krebs and Earl Lounsbury are copartners doing business under the firm name and style of Automotive Parts Co., with their principal offce and place of business located at 961 West 16th Street, P. Box 1230, Merced, California.

Respondent Floyd E. Benson is a sole proprietor doing business under the firm name 'Bnd style of Benson & Ridenhour, with his principal offce and place of business located at 215 EI Circulo, Patterson, California. Respondent William T. Wood is a sole proprietor doing business under the firm name and style of Automotive Parts & Machine Shop Co., with his offce and principal place of business located at 722 Broadway, Fresno, California, Respondents A. Frank Lewis and Albert H. Davis are copartners doing business under the firm name and style of Contra Costa Auto Parts, with their principal offce and place of business located at 2329 Boulevard Circle Walnut Creek, California, Respondents Julius G. Rossi and Leonard L. Rundle are copartners doing business under the firm name and style of Farnsworth & Callahan, with their principal offce and place of business located at 186 South Montgomery Street, San Jose, California.

Respondent Jack W. Parker is a sale proprietor doing business under the firm name and style of Globe Auto Supply, with its principal offce and place of business located at 700 Parina Avenue, North Sacramento, California, Respondents Robert B. Huston, George E. Huston and Kenneth A. Greer are copartners doing business under the firm name and style of Hollster Auto Parts, with their principal offce and place of business located at 139 Fourth Street, Hollster, California.

Respondent Raymond Allen is a sole proprietor doing business under the firm name and style of Irving Auto Supply, with his principal offce and place of business located at 1900 Lawton Street, San Francisco, California. Respondents Herbert J. Kramer and Guldbrand J, Kramer are copartners doing business under the firm name and style of Kramer Auto Supply Co. \with their principal offce and place of business located at 215 Fourth Street Eureka, California.

Respondent Wiliam J. Cresta, Jr. , is a sole proprietor doing business under the firm name and style of McCullock Auto Supply, with his principal Complaint 69 F.

offce and place of business located at 999 Valencia Street, San Francisco California.

Respondents Barrett T. Hicks and Eleanor B. Hicks are copartners doing business under the firm name and style of Merced Motor Parts, with their principal offce and place of business located at 811 West Seventeenth Street Merced, California.

Respondents Carl Pate and Wiliam Lehnhoff are copartners doing business under the firm name and style of Montgomery Auto Parts, with their principal offce and place of business located at 198 North Monterey Street, Gilroy, California.

Respondents Eugene F. Asher and Harry W. Scott are copartners doing business under the firm name and style of Motor Supply Company, with their principal offce and place of business located at 1757 California Street, Redding, California.

Respondents L. R. Horler, J. A. Bennett, L. C. Avedano and V. Borba are copartners doing business under the firm name and style of Xational Parts Company, with their principal offce and place of business located at 809 Lincoln Avenue, San Rafael, California.

Respondents Louis P. Lazzaretto and Elmer L. Anderson are copartners doing business under the firm name and style of United Auto-Sweet Service Co., with. their principal offce and place of business located at 435 Washington Street, Monterey, California.

Respondents F. ::\:1. Chandler, Earl Neilsen, Robert P. Chandler alid Burton E. Hazelton are copartners doing business under the firm name and style of Sweet Service Co. of Santa Cruz, with their principal offce and place of business located at 504 Front Street, Santa Cruz, California. Respondents Jack A. Fisher and James V. Fisher are copartners doing business under the firm name and style of Tracy Auto Parts, with their principal offce and place of business located at 65-10th Street, Tracy, California.

Respondent James M. White is a sole proprietor doing business under the firm name and style of Whities Auto Parts, with his principal offce and place of business located at 508 San Mateo Avenue, San Bruno, California. Respondent Douglas Davis is a sale proprietor doing business under the firm name and style of Davis' Auto Parts, with his principal offce and place of business located at 119 Van Ness, Watsonvi1e, California. Respondent John Nunes is a sale proprietor doing business under the firm name and style of Novato Auto Parts, with his principal offce and place of busjness located at 1052 First Street, Novato, California. Respondent C. W. Lerer is a sale proprietor doing business under the firm name and style of M. Lerer & Sons, with his principal offce and place of business located at 19 East Washington Street, Petaluma, California. PAR. 3. The respondent jobbers set forth in Paragraph Two have purchased and now purchase in commerce from suppliers engaged in commerce numerous automotive products and supplies for use, consumption, or resale within the United States. Respondent jobbers and said suppliers cause the products and supplies so purchased to be shipped and transported among and between the NOR-CAL DISTRIBUTORS , INC. , ET AL, 645 640 Complaint several States of the United States from the respective State or States of location of said suppliers to the respective different State or States of location of the said respondent jobbers. PAR. 4. In the purchase and the resale of said automotive products and supplies, respondent jobbers are in active competition with independent jobbers not affliated with respondent Nor-Cal; and the suppliers selling to respondent jobbers and to their independent jobber competitors are in active competition with other supplie,s of similar automotive products and supplies. PAR. 5. Respondent Nor-Cal, since its formation in 1953, has been and is now maintained, managed, controlled and operated by and for its members the respondent jobbers set forth in Paragraph Two and each said respondent has participated in, approved, furthered, and cooperated with the other respondents in the carrying out of the procedures and activities hereinafter described.

In practice and effect, respondent N or-Cal has been and is now serving as the medium or instrumentality by, through, or in conjunction with, which said members and/or respondent jobbers exert the influence of their combined bargaining power on the competitive suppliers hereinbefore described. As a part of their operating procedure, said respondent jobbers direct the attention of said suppliers to their aggregate purchasing power as a buying group and, by reason of such, have knowingly demanded and received, upon their individual purchases discriminatory prices, discounts, allowances, rebates, and terms and conditions of sale. Suppliers not acceding to such demands are usualiy replaced as sources of supply for the commodities concerned and such market is closed to them in favor of such suppliers as can be and are induced to afford the discriminatory prices, discounts allowances rebates, and terms and conditions of sale so demanded. Respondent jobbers demand that those suppliers who seli their products pursuant to a quantity discount schedule shall consider their several purchases in the aggregate as if made by one purchaser and grant quantity discounts, allowances, or rebates on the resultant combined purchase volume in accordance with said suppliers' schedule. This procedure effects a discrimination in price on goods of like grade and quality between respondent jobbers and competing independent jobbers whose quantity discounts, allowances, or rebates from such suppUers are based upon only their individual purchase volumes. From other suppliers the respondent jobbers demand the payment or allowance of trade dis- Decision and Order 69 F, counts, allowances, or rebates which such suppliers do not ordinarily payor allow to jobber customers. This procedure effects a discrimination in price on goods of like grade and quality between respondent jobbers and competing independent jobbers who are not afforded such trade discounts, allowances, or rebates. When and if a demand is acceded to by a particular supplier the subsequent purchase transactions between said supplier and the individual jobber respondents have been and are biled to, and paid for through, the aforesaid organizational device of respondent Nor-Cal. Said corporate organization thus purports to be the purchaser when in truth and in fact it has been and is now serving as an agent for the several respondent jobbers and as a means of facilitating the inducement and receipt of the afore-described respondent jobbers of the price discriminations concerned. PAR. 6. Respondents have induced or received from their suppliers, in the manner afore-described, favorable prices, discounts allowances, rebates, terms and conditions of sale which they knew or should have known constituted discriminations in price prohibited by subsection (a) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act.

PAR. 7. The effect of the knowing inducement or receipt by respondents of the discriminations in price as above alleged has been and may be substantially to lessen, injure, destroy or prevent competition between suppliers of automotive products and supplies and between respondent jobbers and independent jobbers. PAR. 8, The foregoing alleged acts and practices of respondents in knowingly inducing or receiving discriminations in price prohibited by subsection (a) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act, are in violation of subsection (f) of Section 2 of said Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of subsection (f) of Section (2) of the Clayton Act, as amended, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents having thereafter signed an "Agreement Containing Consent Order to Cease and Desist" which agreement contemplates that, if it is accepted by the Commission, the Commis- NOR-CAL DISTRIBUTORS , INC. , ET AL. 647 640 Decision and Order sion may, without further notice to respondents, issue (1) its complaint consistent in form and substance with the copy attached to said agreement, and (2) its decision containing the order to cease and desist as attached to said complaint; and further, which agreement contains inter alia an admission by the respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission hy respondents that the law has been violated as set forth in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent N or-Cal Distributors, Inc. , hereinafter sometimes referred to as respondent N or-Cal, is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 500 Florida Street, San Francisco, California. Respondent N or-Cal, although using corporate form, is a membership organization, organized, maintained, managed, controlled and operated by and for its members. The membership of respondent N or-Cal is composed of corporations, partnerships and individuals whose business consists of the jobbing of automotive products and supplies.

The following respondent corporations and individuals constitute respondent N or-Cal :

Respondent Alled Automotive, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nevada, with its principal offce and place of business located at 490 North Virginia Street, Reno, Nevada.

Respondent Auto Parts Sales Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 636 Ward Street Martinez, California.

Respondent The Automotive Supply Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 230 South Bridge Street, Visalia, California.

Respondent Belmont Auto Parts, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1161 Old County Road, Belmont, California.

648 FEDERAL TRADE COMMISSION DECISIO!\S Decision and Order 69 F.

Respondent Benson & Zimmerman Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at Eleventh and H" Streets, Modesto, California.

Respondent Berkeley A utomotive Center is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 2619 Shattuck Avenue, Berkeley, California.

Respondent C. & H. Auto Parts is a corporation organized, existing and doing buisiness under and by virtue of the laws of the State of California, with its principal offce and place of business located at 610 Main Street, Placervi1e, California.

Respondent Cresta Bros. Auto Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 5050 Mission Street, San Francisco, California.

Respondent Federal Parts & Products Co. , Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 231 California Drive, Burlingame, California.

Respondent Henderson Bros. Stores, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1800 23rd Street, Sacramento, California.

Respondent Hust Bros., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at Fourth and "E" Streets :\arysvilJe, California.

Respondent E. C. Kraft & Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 53 Santa Rosa Avenue, Santa Rosa, California.

Respondent Lacey Automotive Parts Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 108 Monterey Street, Salinas, California.

Respondent Lakeside Automotive, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at South Shore Lake Tahoe, P. O. Box 70, Stateline, California. Respondent Lemoore Auto Supply is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 41 "E" Street O. Box 630, Lcmoore, California.

Respondent Littrell Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 310 South Main Street Yreka, California.

Respondent Maxwell Motor Supply Co. Inc., is a corporation organized, ex- NOR-CAL DISTRIBUTORS, INC" ET AL. 649 640 Decision and Order isting and doing business under and by virtue of the laws of the State of orthCalifornia, with its principal offce and place of bm,iness located at 228 EI Dorado Street, Stockton, California.

Respondent Mi1 Valley Auto Parts, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 360 Miller Avenue, Mil Valley, California.

Respondent Motor Parts Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 2344 Harrison Street Oakland, California.

Respondent Chico Automotive Supply is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, and doing business under the firm name and style of Motor Supply Co., with its principal offce and place of business located at 360 East Sixth Street, Chico, California.

Respondent Moses & Moses Motor Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, and doing business under the firm name and style of M & M Motor Parts, with its principal offce and place of business located at 1219 Solano Street, Corning, California.

Respondent National Auto Parts Co. , Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1110 Colusa Street, Vallejo, California.

Respondent Tri- City Auto Supply is a corporation oyganized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 551-23rd Street Riehmond, California.

Respondent Sequoia Auto Parts is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal offce and place of business located at 908 Main Street, Redwood City, California.

Respondent Westside Auto Parts, Inc" is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and place of business located at 1232 Monterey Street, San Luis Obispo, California.

Respondents Herman Krebs and Earl Lounsbury and copartners doing business under the firm name and style of Automotive Parts Co., \with their , p, O. principal offce and place of business located at 961 West 16th Street Box 1230, Merced, California.

Respondent Floyd E. Bemon is a sale proprietor doing business under the firm name and style of Benson & Ridenhour, with his principal offce and place of business located at 215 EJ Circulo, Patterson, California. Respondent Wiliam T. Wood is a sole proprietor doing business under the firm name and style of Automotive Farts & Machine Shop Co., with his offce and principal place of business located at 722 Broadway, Fresno, California. Respondents A. Frank Lewis and Albert H. Davis are copartners doing with business under the firm name and style of Contra Costa Auto Parts, Decision and Order G9 F.

their principal offce and place of business located at 2329 Boulevard Circle Walnut Creek, California.

Respondents Julius G. Rossi and Leonard L. Rundle are copartners doing buginE'ss under the firm name and style of Farnsworth & Callahan, with their principal offce and place of business located at 186 South Montgomery Street, San Jose, California.

Respondent Jack W. Parker is a sole proprietor doing business under the firm name and style name of Globe Auto Supply, with his principal offce nd place of business located at 700 Parina Avenue, North Sacramento, California.

Respondents Robert B. Huston, George E. Huston and Kenneth A. Greer are copartners doing business under the firm name and style of Ho11ster Auto Parts, with their principal offce and place of business located at 139 Fourth Street, Hollister, California.

Respondent Raymond Allen is a sole proprietor doing business under the firm name and style of Irving Auto Supply, with his principal offce and place of business located at 1900 Lawton Street, San Francisco, California. Respondents Herbert .T. Kramer and Guldbrand .r. Kramer are copartners doing business under the firm name and style of Kramer Auto Supply Co. with their principal offce and place of business located at 215 Fourth Street Eureka, California.

Respondent Wiliam J. Cresta, Jr. , is a sale proprietor doing business under the firm name and style of McCullock Auto SUDply, with his principal offce and place of business located at 999 Valencia Street, San Francisco California.

Respondents Barrett T. Hicks and Eleanor B. Hicks are copartners doing business under the firm name and style of Merced Motor Parts, with their principal offce and place of business located at 811 "Vest Seventeenth Street Merced, California.

Respondents Carl Pate and \ liliam Lehnhoff are copartners doing business under the firm name and style of :Montgomery Auto Parts, with their principal offce and place of business located at 198 Xorth Monterey Street, Gilroy, California.

Respondents Eugene F. Asher and Harry W. Scott are copartners doing business under the firm name and style of Motor Supply Company, with their principal offce and place of business located at 1757 California Street, Redding, California.

Respondents L. R. Horler, J. A. Bennett, L. C. Avedano and V. Borba are copartners doing business under the firm name and style of National Parts Company, with their principal offce and place of business located at 809 Lincoln A venue, San Rafael, California.

Respondents Louis P. Lazzaretto and Elmer L. Anderson are copartners doing business under the firm name and style of United A uta-Sweet Service Co., with their principal offce and place of business located at 435 Washington Street, Monterey, California.

Respondents F. M. Chandler, Earl Neilsen, Robert P. Chandler and Burton E. Hazelton are copartners doing business under the firm name and style of Sweet Service Co. of Santa Cruz, with their principal offce and place of business located at 504 Front Street, Santa Cruz, California. NOR-CAL DISTRIBUTORS , INC. , ET AL. 651 640 Order Respondents Jack A. Fisher and James V. Fisher are copartners doing business under the firm name and style of Tracy Auto Parts, with their principal offce and place of business located at 65-10th Street, Tracy, California.

Respondent James M. White is a sole proprietor doing business under the firm name and style of Whities Auto Parts, with his principal offce and place of business located at 508 San Mateo Avenue, San Bruno, California. Respondent Douglas Davis is a sale proprietor doing business under the firm name and style of Davis' Auto Parts, with his principal offce and place of business located at 119 Van ess Watsonvile, California. Respondent John Nunes is a sale proprietor doing business under the firm name and style of Novato Auto Parts, with his principal offce and place of business located at 1052 First Street, Novato, California. Respondent C. \V. Lerer is a sole proprietor doing business under the firm name and style of ::. Lercr & Sons, with his principal offce and place of business located at 19 East Washington Street, Petaluma, California. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It is ordered That respondents Nor-CaJ Distributors, 1nc. , a corporation; Allied Automotive, Inc., a corporation; Auto Parts Sales Co" a corporation; The Automotive Supply Co., Inc., a corporation; Belmont Auto Parts, Inc., a corporation; Benson & Zimmerman Co., a corporation; Berkeley Automotive Center, a corporation; C. & H. Auto Parts, a corporation; Cresta Bros. Auto Parts, a corporation; Federal Parts & Products Co., Inc. , a corporation; Henderson Bros. Stores, Inc. , a corporation; Rust Bros. Inc., a corporation; K C, Kraft & Co., a corporation; Lacey Automotive Parts Co. , a corporation; Lakeside Automotive, Inc., a corporation; Lemoore Auto Supply, a corporation; Littrell Parts, a corporation; Maxwell Motor Supply Co. , Inc., a corporation; Mil Valley Auto Parts, Inc" a corporation; Motor Parts Company, a corporation; Chico Automotive Supply, a corporation doing business under the firm name and style of Motor Supply Co. ; Moses & Moses Motor Parts, a corporation doing business under the firm name and style of M & lV Motor Parts; National Auto Parts Co. Inc., a corporation; Tri-City Auto Supply, a corporation; Sequoia Auto Parts, a corporation; Herman Krebs and Earl Lounsbury, copartners doing business under the firm name and style of Automotive Parts Co. ; Westside Auto Parts, Inc., a corporation; Floyd E. Benson, doing business under the firm name and style of Benson & Ridenhour, a sole proprietorship; Wiliam T. Wood, doing business under the firm name and style of Automotive Parts & Machine Shop Co., a sole proprietorship; A. Frank Lewis and AI- Order 69 F.

bert H. Davis, copartners doing business under the firm name and style of Contra Costa Auto Parts; Julius G. Rossi and Leonard L. Rundle, copartners doing business under the firm name and style of Farnsworth & Callahan; Jack W. Parker, doing business under the firm name and style of Globe Auto Supply, a sole proprietorship; Robert B. Huston, George E. Huston and Kenneth A, Greer, copartners doing business under the firm name and style of Hollister Auto Parts; Raymond Allen, doing business under the firm name and style of Irving Auto Supply, a sole proprietorship; Herbert J. Kramer and Guldbrand J. Kramer, copartners doing business under the firm name and style of Kramer Auto Supply Co. ; Wiliam J, Cresta, Jr., doing business under the firm name and styie of McCulIock Auto Supply, a sole proprietorship; Barrett T. Hicks and Elcanor B. Hicks, copartners doing business under the firm name and style of Merced Motor Parts; Carl Pate and William Lehnhoff, copartners doing business under the firm name and style of Montgomery Auto Parts; Eugene F. Asher and Harry W. Scott, copartners doing business under the firm name and style of Motor Supply Company; L. R. Horler, J. A. Bennett L. C. Avedano ".nd V. Borba, copartners doing business under the firm name and style of National Parts Company; Louis P. Lazzaretto and Elmer L. Anderson, copartners doing business under the firm name and style of lJnited Auto-Sweet Service Co. ; F. IVI. Chandler, Earl Neilsen, Robert P. Chandler and Burton E. Hazelton, copartners doing business under the firm name and style of Sweet Service Co. of Santa Cruz; Jack A. Fisher and James V. Fisher, copartners doing business under thc firm name and style of Tracy Auto Parts; James M. White, doing business under the firm name and style of Whities Auto Parts, a sole proprietorship; Douglas Davis, doing business under the firm name and style of Davis' Auto Parts, a sole proprietorship; John Kunes, doing business under the firm name and style of Novato Auto Parts, a sole proprietorship; and C, W. Lerer, doing business under the firm name and style of M. Lerer & Sons, a sole proprietorship; and respondents' agents, representatives, employees, offcers and members, directly or through any corporate or other device, in connection with the offering to purchase or purchase of any automotive products or supplies in commerce, as "commerce" is defined in the Clayton Act, as amended, do forthwith cease and desist from: Knowingly inducing or knowingly receiving or accepting any discrimination in the price of such products and supplies, by directly or indirectly inducing, receiving, or accepting from any TRI-STATE PRESS SERVICE INC" ET AL. 653 640 Complaint seller a net price known by respondents to be below the net price at which said products and supplies of like grade and quality are being sold by such seller to other customers, where the seller is orcompeting with any other seller for respondents' business, where respondents are competing with other customers of the seller.

For the purpose of determining "net price" under the terms of this order, there shall be taken into account discounts, rebates, allowances, deductions or other terms and conditions of sale by which net prices are effected.

It is further ordered That the respondents herein 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 this order. IN THE MA TTER OF TRI-STATE PRESS SERVICE, INC., ET AL.

CONSENT ORDER, ETC. , 1"1 REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT April 1966 Docket C-l063. Complaint, AP1'i!29, 1966-Decision Consent order requiring an Evansvile, Ind., publisher to cease using misrepresentations and threatening tactics to sell advertising space in its weekly newspaper " Tri-State Labor News" or any other publication.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Tri-State Press Service, Inc., a corporation, and Joe L. Regan, individually and as an offcer of said corporation, hereinafter refen' ed to as respondents, have violate" the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof wouid be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Tri- State Press Service, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Indiana with its offce and prin- Complaint 69 F, cipal place of business located at 1413 /2 Division Street, Evansvile, Indiana.

Respondent Joe L. Regan is an offcer of said corporation and he formulates, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth, His address is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for some time last past have been, engaged in the publication of a weekly newspaper known as Tri-State Labor News, Said weekly newspaper is caused by respondents to be circulated from its point of publication in the State of Indiana to subscribers and purchasers located in various other States of the United States.

Further, respondents in the course and conduct of their business engage in extensive transactions involving the transmission of letters, advertising proofs, checks and other business instrumentalities and extensive transactions by long distance telephone all between and among various States of the United States, and maintain, and at an times mentioned herein have maintained, a substantial course of trade in said publication in commerce, as commerce" is defined in the Federal Trade Commission Act. PAR. 3. A large part of respondents' income is derived from the sale of advertising space in the Tri-State Labor News to business concerns, Respondents and their duly authorized agents and representatives contact said business concerns by telephone and other means and seek to induce them to purchase advertising space in said publication. In the course of said solicitations respondents and their agents and representatives represent, and have respresented, directly or by implication, to prospective advertisers that said publication is extensively and offcially endorsed or sponsored by, affliated with or is the offcial publication of the AFL-CIO or its affliates or other labor unions. PAR, 4. In truth and in fact, Tri-State Labor News is not extensively and offcially endorsed or sponsored by, affliated with, or the offcial publication of the AFL-CIO or its affliates or any other national or international labor union; but is independently organized and operated by respondents for a profit with endorsements by only a few local unions.

Therefore the statements and representations referred to in Paragraph Three hereof are false, misleading and deceptive. PAR. 5, In addition, in order to induce the purchase of advertising space in Tri-State Labor News, respondents, or their repre- TRI-STATE PRESS SERVICE, INC. , ET AL. 655 653 Decision and Order sentatives, threaten and have threatened, directly or by implication, that if business concerns did not purchase such space, their business would receive unfavorable treatment by labor union members. This practice now has, and has had, the tendency and capacity to intimidate and coerce, and does intimidate and coerce business concerns unfairly to purchase advertising space in the aforesaid publication.

PAR. 6. In the conduct of their business, at all times mentioned herein, respondents have been in substantial competition, in commerce, with corporations, firms and individuals likewise engaged in the publication of weekly newspapers and other periodicals and the seJIng of advertising to be inserted therein and particularly with the publishers of newspapers and other periodicals published or endorsed by labor unions.

PAR. 7. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had, and now has, the capacity and tendency to mislead prospective advertisers into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of advertising space by reason of said erroneous and mistaken belief.

PAR. 8. The aforesaid acts and practices of the respondents, as herein alleged, were and are a11 to the prejudice and injury of the public and of the respondents' competitors and constituted, and now constitute, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act. DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set 656 FEDERAL TRADE CO'l IISSION DECISIONS Order 69 F.

forth in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its compaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order;

1, Respondent Tri-State Press Service, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Indiana, with its offce and principal place of business located at 1413 1/2 Division Street, in the city of Evansvile, State of Indiana.

Respondent Joe L. Regan is an offcer of said corporation and his address is the same as that of said corporation. 2. The Federal Trade Commission has jurisdiction of the subj ect matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER 1. It is ordered That respondents Tri- State Press Service Inc. , a corporation, and its offcers, and Joe L. Regan, individually and as an offcer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the soliciting, offering for sale or sale in commerce of advertising space in the weekly newspaper now designated as Tri-State Labor News, or any other publication, whether published under that name or any other name, and in connection with the offering for sale, sale or distribution of said newspaper, or any other publication, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from; A. Representing, directly or by implication, that said publication is endorsed or sponsored by, affliated with, or is an offcial publication of or connected in any manner with a labor union; Provided, however That it shall be a defense in any enforcement proceeding instituted hereunder for respondents to estabiish that any claimed or alleged sponsorship, endorsement, affliation or status as an offcial publication has been in fact received and offcially authorized. B. Inducing or seeking to induce a business concern to purchase advertising space in or contribute to respondents publication by means of expressed or implied threats that such business concern wil or may be subjected to unfavora- BERKLEY ASSOCIATES 657 653 Complaint ble treatment at the hands of labor union members should it refuse to make such purchase or contribution. II. It is j!wtheT ordered That respondents set forth in a clear and conspicuous manner, immediately after the name of each such publication appearing at the top of the masthead of such publication, the following statement:

Not affliated with any labor union or other labor organization.

III. It- is f"TtheT ordered That respondents shall deliver a copy of this order to every salesman or representative now, or at any time hereafter, selling or soliciting the sale of advertisements in any such publication.

It is f"Tthe?' ordered That the respondents herein 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 this order.