Fred Meyer, Inc., et al.

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

IN THE j\IATTER OF FHED ~feyer, INC., ET AL.

MODIFIED ORDER, ETC., IX REGARD TO THE ALLEGED VIOLATION OF SEC. (f) OF THE CLAYTON ACT AXD THE FEDERAL TRADE COl\Il\fISSIOX ACT Docket 7492. Complaint, May 1959-Decision, Ju' ne 1.'1,1968 Order modifying an order dated July 9, 1963, 63 F. C. 1, pursuant to an opinion of the Supreme Court, 390 U.S. 341 (1968), and an order of the U.S. Court of Appeals, Ninth Circuit, of May 16, 1968, which prohibited a Portland, Oreg. supermarket chain from knowingly inducing discriminatory prices by including in the prohibition those retailers who buy through wholesalers as well as direct-buying retailers.

FRED 11EYER , INC. , ET AL. 1027 1026 Order :MODIFIED ORDER Pursuant to the final decree of the United States Court of Appeals for the Ninth Circuit of I uly 1 , 1966, and in conformity with the opinion of the Supreme Court of the United States in Pede?' al T1Yiele 001n- 171/ission v. F7' ed .:.11 eye')' , Inc. et al. , 390 S. 341 (1968), and in accordance with the order of the United States Court of Appeals for the Ninth Circuit of ~Iay 16, 1968 It is he?'eby o?Yle?' That the order of the Commission of July 9 1963 (63 F. C. 1J, entered in the above-entitled matter be, and it hereby is, modified to read as follows: It is O1ylered That respondent Fred l\leyer, Inc., a corporation, its officers, agents, representatives and employees, and Fred G. :Meyer and Eagle A. Chiles, individually and as officers of and in connection with activities related to the business of respondent Fred Meyer, Inc. in connection with the offering to purchase or purchase by or on behalf of respondent Fred ~Ieyer, Inc., in commerce, as " commerce" is defined in the amended Clayton Act, of products for resale in outlets operated by respondent Fred ~leyer, Inc., do forthwith cease and desist from: Knowingly inducing, or knowingly receiving or accepting, in connection with any promotional scheme consisting of distribution of coupons to and return of coupons by consumers in connection with the purchase by consumers of products offered for resale in retail outlets of respondent Fred ~Ieyer, Inc., or in connection with any comparable schmne, any discrimination in the price of such products by directly or indirectly inducing, receiving or accepting from any seller a net price respondents blow or should know is:

(a) Below the net price at which such products of like grade and quality are being sold by such seller to a.ny other purchaser "ith whom respondent Fred )feyer, Inc. , compet€s, or with ,,-hose customer or customers said respondent competes, and (b) Not a price differential "hieh makes only due allowance for differences in the cost of manufacture, sale or delivery resulting from the differing methods or quantities in which products are sold and delivered by such seller, and (c) Not a price change in response to changing conditions affecting the market for 01' marketability of such products such as but not limited to actual or imminent deterioration , .

Order 73 F.

perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned, and ( d) at a price made in good faith to meet an equally low price of a c.olnpetitor of the seller.

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

I t is f1.t?,ther oJ'clei'ed That respondent Fred :Meyer, Inc. a corporation, its officers, agents, representatives and employees, and Fred ~leyer and Earle A. Chiles, individually and as officers of and connection with activities related to the business of respondent Fred JHeyer, Inc., directly or through any corporate or other device in or in connection with any purchase by or on behalf of respondent Fred l\Ieyer, Inc. , in commerce, as "commerce" is defined in the Federal Trade Commission Act, of products for resale in outlets operated by respondent Fred JHeyer, Inc.: do forthwith cease and desist from: Inducing or receiving anything of any value from any supplier as compensation for or in consideration of advertising, promotion or display services or facilities furnished by or through Fred l\le.yer, Inc., in connection with any promotional scheme consisting 'of distribution of coupons to and return of eoupons by consumers in connection with the purchase by consumers of products offered for resale in retail outlets of respondent Fred J\Ieyer, Inc. or in connection 'with any comparable progralll, or in connection with any actual or purported promotion or special sale of particular products to be conducted by or on behalf of respondent Fred l\ieyer, Inc., when respondents know or should know that such compensation or consideration is not beingofferec1 or otherwise made available by such supplier on proportionally equal te.rms to all of its other customers, inc.luding retailer customers who do not purchase directly froln such supplier, who compete with respondent Fredl\leyer, Inc., in the sale of such supplier s products. It is Iu,Ttlu31' onle'i'ecl That respondent Fredl\leyer, Inc., a corporation, and its officers, and Fred G. l\feyer and Earle A. Chiles, individually and as officers of corporate respondent, shall, within sixty (60) clays after service upon them of this order, file with the Commission a report, in writing, settulg forth in cleta.il the manner and form in which they have complied with the order to cease and desist set forth he-rein.

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ROYAL MOTORS, INC., ET AL. 1029 iComplaint