Kennecott Cooper Corporation

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PAV AAAI UU 2 Vee d Unverasaenry aseue auwue responsibility of each Justice to determine for himself the propriety of withdrawing in any particular circumstances.” We believe that the procedure used in this case was proper and consistent with the law. In treating disqualification motions as matters “primarily for. determination by the individual concerned,” the Commission simply believes that a proper regard for the essential independence of each individual member of a multimember judicial body like the Commission requires a procedure, in disqualification matters, whereby the challenged member will respond personally to the challenge in question, and will decide for himself the merits of the challenge at a point in time prior to any action by his fellow members. Because of the obvious danger inherent in any action whereby a majority of Commissioners are required to pass judgment upon the qualifications of a fellow Commissioner with respect to a pending case, the Commission considers the challenged Commissioner’s own judgment in such matters to be a factor in its deliberations with respect to such matters. However, the final decision to either grant or deny such a motion is based on the Commission’s own determination of the merits in each case. With respect to the motion filed in the instant case to disqualify Chairman Kirkpatrick, the Commission does not. see merit in it. This determination was and continues to be separate and apart from the Chairman’s own decision to decline to disqualify himself. Aside from respondent’s challenge to the Commission’s procedure, as discussed above, respondent’s present motion and memorandum do not contain or allege facts or views that differ from those previously presented and considered by the Commission. Therefore, the Commission has determined that respondent’s request for further consideration of this matter should be denied. Accordingly, It is ordered, That respondent Standard Oil Company of California’s motion for reconsideration of the Commission’s order of April 13, 1971, be, and it hereby is, denied.

Chairman Kirkpatrick did not participate in the decision of this matter.

KENNECOTT COPPER CORPORATION Docket 8765. Order, June 28, 1971 Order denying respondent’s request for the reconsideration or reopening the case and also for certain confidential information. Orver Denyine Petition ror REeconswwrraTion oR REOPENING . On May 5, 1971 [78 F.T.C. 744], the Commission issued its final order in the captioned matter. Respondent has now filed a petition, ‘1598 FEDERAL TRADE COMMISSION DECISIONS dated June 1, 1971, for reconsideration pursuant to Section 3.55 of the Commission’s Rules of Practice or, in the alternative, for reopening of the proceedings pursuant to Sections 3.71 and 3.72(a) of the Rules of Practice. Respondent also moves, pursuant to the Freedom of Information Act (5 U.S.C. § 552) and Section 3.36 of the Rules -of Practice, for the production of certain information and records by ‘the Commission. The petition is accompanied by a memorandum in ‘support thereof. Also before the Commission is the complaint counsel’s Memorandum in Opposition to Respondent’s Petition, received June 14, 1971, and respondent’s Reply Memorandum in Support of its ‘Petition, received June 17, 1971.

In its petition, respondent alleges that it has been deprived of its tight to a hearing before a fair and impartial tribunal and has been denied due process of law for a number of reasons. Specifically, re- ‘spondent states that an (a) the Commission as an official body and one or more individual Commissioners (i) have acted upon factual material not contained in the official record, (ii) have engaged in ex parte communications in connection with, and with respect to, the merits of this proceeding, and (iii) have been subjected to, and have acted in response to, political and other pressures in connection with the subject matter of this proceeding; (b) the Commission has issued Findings of Fact, Conclusions, and Final Order and Opinion which are arbitrary and inconsistent with official materials of the Commission which have been forwarded to the Congress and released to the public; and (c) the Commission’s roles as investigator, prosecutor and judge, inherently and as exercised in this proceeding, constitute a denial of procedural due process. In support of its petition, respondent first contends that the Commission acted upon factual material not contained in the official record and that the Commission’s Findings of Fact, Conclusions, and Final Order and Opinion are arbitrary and inconsistent with other official material of the Commission. These allegations fail to state a basis for reopening this proceeding because the.Commission’s decision in Docket 8765 is based entirely and solely on the record of that proceeding. That record wil determine whether the Commission’s decision is supported by substantial evidence. Universal Camera Corp. v. National Labor Relations Board, 340 U.S. 474 (1951). Section 5(c) of the Federal Trade Commission Act (15 U.S.C. 45(c)) provides the appropriate procedure. for review of the basis for Commission determinations.

Respondent’s basic assertion is that the Commission’s role as investigator, prosecutor and judge, inherently and as exercised in this proceeding, constitute a denial of procedural due process. The combination of investigative and judicial functions within an administrative agency does not violate due process. Pangburn v. Civil Aeronautics AN LH RLUCULURY URES, WLU. Lovy Board, 311 F.2d 349, 356 (1st Cir. 1962), and cases cited therein; Lehigh Portland Cement Company v. Federal Trade Commission, 291 F. Supp. 628 (E.D. Va. 1968), aff'd, 416 F. 2d 971 (4th Cir. 1969) ; San Francisco Mining Each. v. Securities & Exchange Commission, 378 F.2d 162, 167 (9th Cir. 1967). Congress, as a general practice, has vested administrative agencies with both the specified power to act in “an accusatory capacity and with the responsibility of ultimately determining the merits of the charges presented. Federal Trade Commisston v. Cinderella Carcer and Finishing Schools, Inc., 404. F. 2d 1808, 1315 (D.C. Cir. 1968). Thus, while Section 5(b) of the Federal Trade Commission Act (15 U.S.C. 45(b)) delineates the adjudicatory power of the Commission, Section 8 (Paragraph 8) of the Act (15 U.S.C. §48) establishes the underlying authority to conduct any inquiry necessary to execute the. Commission’s enforcement responsibilities under the Federal Trade Commission Act: “The Commission may, by one or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United States.” The multiple roles of the Administrative Agencies are traditional and were reaffirmed by passage of the Administrative. Procedure Act (5 U.S.C. § 551). That Act also provides the necessary safeguards to avoid the denial of due process to a respondent in an administr ative proceeding.

Respondent’s remaining allegations are likewise without support in law. None of the materials appended to respondent’s motion represent any ex parte communication under the governing provisions of the Administrative Procedure Act (5 U.S.C. 554(d)). That Act proscribes only communications between the Commissioners and agency personnel engaged in investigative or prosecutive functions in a case, or a factually related case, pending before the agency for decision. The documents referred to do not relate to Docket 8765. Nevertheless, it is also noted that no Commission employee engaged in any investigative or prosecutive function with respect to Docket 8765 participated in the preparation or submission of these documents. See, O’Malley Affidavit (attached) .? Respondent’s contentions with regard to Commission activity in relation to its “energy study” are also clearly without merit. Thus, while Section 5(c) of the Administrative Procedure Act (5 U.S.C. § 554(d)) requires a separation of adjudicatory and prosecutorial functions within an agency, the Act specifically exempts the “agency” “member or members of the body comprising the agency” from the requirements of that Section. 5 U.S.C. § 554(d) (2) (c) ; Attorney General’s Manual on the Administrative Procedure Act, p. 58 (1947) ; 1 Not reported.

see also, Yederal Trade. Commission v. Cinderella Career and Finishing Schools, Inc., 404 F. 2d 1808, 1315 (D.C. Cir. 1968). The broad powers of investigation granted to the Commission by Congress are not held in abeyance merely because complaints charging specific and limited violations have been filed against an individual respondent. Federal Trade Commission v. Waltham Watch Co., 169 F. Supp. 614, 620 (S.D. N.Y. 1959) ; Lehigh Portland Cement Co. v. Federal Trade Commission, 291.F. Supp. 628, 631 (E.D. Va. 1968), af?d per curiam, 416 F.2d 971 (4th Cir. 1969). Indeed, the experience acquired in prior Commission proceedings, or the fact that the Commission has entertained similar matters in prior investigations or proceedings, does not disqualify an agency from participating in a subsequent, or concurrent, adjudicatory proceeding. Pangburn v. Civil Aeronautics Board, 311 ¥.2d 349 (1st Cir. 1962) ; Lehigh Portland Cement Company v. Federal Trade Commission, 291 F. Supp. 628 (E.D. Va. 1968), afd per curiam, 416 F.2d 971 (4th Cir. 1969) ; Federal Trade Commission v. Cement Institute, 333 U.S. 683 (1948) ; Maremont Corporation v. Federal Trade Commission, 4381 F.2d 124 (7th Cir. 1970). Respondent also moves, pursuant to the Freedom of Information Act (5 U.S.C. § 552) and Section 3.36 of the Rules of Practice for Adjudicatory Proceedings, for the production of certain confidential information and records. This request is for the purpose of providing “additional evidence in support of respondent’s position as advanced herein.” The Commission’s determination that the arguments advanced by respondent are without degal merit, however, renders moot respondent’s attempts to obtain further factual support for such arguments. Thus, for the purposes of respondent’s present motions to reconsider or reopen, this request will be denied. This ruling does not, of course, preclude the respondent from seeking access to this information under the Freedom of Information Act and the appropriate non-adjudicatory procedures set forth in Section 4.11 of the Commission’s Rules of Practice. Accordingly, It is ordered, That respondent’s request for reconsideration, or in the alternative, for reopening of this proceeding be, and it hereby is, denied.

It is further ordered, That respondent’s request for certain confidential information and records pursuant to Section 3.36 of the Rules of Practice for Adjudicatory Proceedings be, and it hereby is, denied. ADVISORY OPINIONS WITH REQUESTS THEREFOR Use of the Word “Diamonflare” in Marketing a Product Which is Not a Natural Diamond. (File No. 713 7014) Opinion Letter January 8, 1971 Dear Mr. Dickens:

This is with further reference to your request for an advisory opinion regarding proposed use of the word “Diamonflare” in marketing a product which is not a natural diamond. The Commission is of the opinion that use of the word “Diamonflare” in advertising or marketing a product which is not a natural diamond would be violative of Section 5 of the Federal Trade Commission Act, without a clear and equally conspicuous disclosure immediately preceding the word “Diamonflare” that the product is not a natural diamond.

By direction of the Commission.

Supplemental Letter Relative to Request Novemser 17, 1970 Re: Proposed use of designation “Diamond Flare” by Zale Corporation oo Dear Mr. Dickens:

Your letter dated October 30, 1970, addressed to the Commission has been referred to me for handling. .

I have been unable to identify the “Diamondaire” matter to which you referred. Please furnish any additional information you can with regard to the report that its use was approved by the Commission. The name of the major manufacturer using the designation might enable me to locate additional information in our files. As a matter of interest in connection with your request, a copy of the Commission’s Trade Practice Rules for the Jewelry Industry as amended November 17, 1959, is enclosed. Rules 26, 37(b), 38 and 39 particularly appear to be germane. _ Your request will be considered promptly, further, and you will be advised as soon as possible. = 7 Very truly yours, Joseph P. Durresne, Attorney, Office of General Counsel.

Letter of Request Octosrr 30, 1970 GENTLEMEN :

I would like to have your advisory opinion as to the availability of the name “Diamonflare” for use in the marketing of a product which is not a natural diamond. It has come to our attention that the name “Diamondaire” is being used by a major manufacturer of this type of merchandise, and it is reported that their use is approved by the: Federal Trade Commission.

Your prompt response to this inquiry will be appreciated. Very truly yours, Zale Corporation, Joun P. Dickens, Vice President and General Counsel.

Legality of a Promotional Plan Involving a Weekly Menu-Recipe-. Coupon Featuring Supplier Advertising. (File No. 713 7006) Opinion Letter JANvuary 11, 1971.

Desr Mr. Cullen:

This is in further response to your request for an advisory opinion. in regard to the legality of the proposed promotional plan outlined. in your letters of August 14 and 28, 1970. The plan will involve a. weekly menu-recipe-coupon featuring supplier advertising to be offered to all food retailers in a given trading area for distribution totheir customers.

The Commission has given careful consideration to your request. and has concluded that implementation of the promotional program in the manner described by your correspondence would not warrant a proceeding under the laws it administers, providing the following conditions and caveats are observed :

1. Since the proposed plan calls for your performance of certain obligations which are normally performed by the supplier, Guide 13: of the “Guides for Advertising Allowances” (see enclosed copy) must. be complied with by you and by all participating suppliers. 2. Since some products sold by retailers of food are also sold by non-grocery store outlets, the propesed plan must be made available to all retailers, including but not limited to drug and hardware retail-. ers, who may be competitive in the resale of a participating supplier’s products.

ee pe ew Se Re ee Se enero 3. Since it is unlikely that all retailers in a trading area will sell the products of all participating suppliers, product advertising on the menu-recipe-coupon must be so selected as to insure that only the products normally sold by a participating retailer are advertised on those allocated to him for distribution.

4, Since the Commission cannot now know how the proposed plan will operate in fact, you are directed to submit a written report to the ‘Commission within six months from the receipt of this letter, and every six months thereafter, indicating the manner and extent to which your plan is being implemented.

You are further advised it is the Commission’s view that as the promoter of the subject promotional plan you must make it clear to each supplier and each retailer that even though Mealtime Masterpieces, Inc., has been employed to implement the plan, it remains the supplier’s responsibility to take all reasonable steps so that each of his customers who compete with one another in reselling his products is offered either an opportunity to participate in your plan on proportionally equal terms or a suitable alternative if the customer is unable as a practical matter to participate in the primary plan; if not, the supplier, the retailer and Mealtime Masterpieces, Inc., may be acting in violation of Sections 2(d) or 2(e) of the amended Clayton Act and/or Section 5 of the Federal Trade Commission Act. By direction of the Commission.

Supplemental Letier of Request Aveust 28, 1970 ‘Dear Mr. McManiuy:

In response to your telephone call, you will receive within the next day or two a package containing the following materials: 1. Booklet, “All About MEALTIME MASTERPIECES” 11 copies 2. Bag Stuffers 10 copies 3. Main Course Organizers 10 copies 4. Schedule B, Allocation of Masterpieces, Bag Stuffers and Dispensers. Schedule C, Allocation of Window Banners and Signs, Menu Posters and Guide for Launching MEALTIME MASTER- PIECES. 10 copies each The booklet “All About MEALTIME MASTERPIECES” includes a brief description of our proposed service together with diagrams of . the various dispensers and a mockup in black and white of the Menu- Recipe-Coupon.

We hope the above material will give you the ammunition which you requested.

The food industry representatives which we have already approached agree that MEALTIME MASTERPIECES is a unique service which should be of genuine value to the consumer as well as. the supplier and the retailer. It appears that we are on the right track but we won’t know until the supplier decides that MEALTIME MAS- TERPIECES is a good investment for his advertising dollar. Needless to say, MEALTIME MASTERPIECES will not get, to. first base without a favorable opinion from the Federal Trade Commission so you can see why we are keeping our fingers crossed until we get the green light from your office. - Very truly yours, (S) Max O. Cutten, | President.

Letter of Request Aveust 14, 1976 Dear Mr. Trney:

We respectfully request an advisory opinion with respect to a new service we intend to initiate. The program will involve a weekly menurecipe-coupon to be offered to all food retailers in a given trade area. for distribution to their customers. Each menu-recipe-coupon (hereinafter referred to as “Mealtime Masterpiece”) has a printed menu and a photograph of a cooked dish on the front. The back includes cooking instructions for the pictured dish, a shopping list for the menu, and advertising space for several food products. A detachable cash discount coupon featuring one food product would be attached to each _ recipe. There would be no charge to the retailer or to the retailer’s customers for this service. The suppliers of the products featured on the coupon and the advertising spaces would provide the revenue necessary for production and distribution expenses. Indexed envelopes, without any advertising or promotional material for products, designed solely for customer convenience in filing the Mealtime Masterpiece would be sold to participating retailers for resale to their customers. The Mealtime Masterpiece and the indexed envelope will be dispensed in retail food stores from display devices which will be furnished without charge to the retailers. We recognize that Mealtime Masterpieces, Inc. and the suppliers of the products advertised on the menu-recipe portion of the Mealtime Masterpiece and the supplier whose product is the subject of the cash discount coupon portion of the Mealtime Masterpiece are subject to laws enforced by the Federal Trade Commission. In designing our program and its implementation, we have sought to follow the euidance with respect to those laws furnished to the business community: ADVISORY OPINIONS WITH REQUESTS THEREFOR 1605 in the Guides for Advertising Allowances and Other Merchandising Payments and Services. :

We shall notify all retailers in a trade area and its periphery at least sixty (60) days prior to initiation of the program in their area to provide ample time for each to make an informed judgment about participation. A letter describing the program will be sent to all corporate chains and to all cooperative, voluntary, and independent wholesaler warehouses serving food retailers within the trade area and its periphery. Envelope stuffers, describing the program, will be provided for forwarding to the retailers. Prior to initiation of the pro: gram, announcements also will be made describing the program in publications which have a general distribution to the retailers within the trade area and its periphery. These announcements will also report that descriptions are being forwarded through warehouses servicing the retailers. The procedure for electing to participate will be simple and not burdensome to the retailer.

After the program has been launched, announcements about the program will be made at regular intervals (of at least every ninety (90) days) in these same publications. There will also be spot checks of a representative cross-section of retailers with at least such frequency, to verify that the suppliers’ customers are receiving proportionally equal treatment to which they are entitled under the program. The participating suppliers will be notified of Guide 13 of the Guides for Advertising Allowances and Other Merchandising Payments and Services.

Mealtime Masterpieces, and the dispensers will be allocated to all food retailers, large and small, on the basis of their average cash register transactions. For each Mealtime Masterpiece allocated, the participating retailer will be paid a nominal amount for handling. This amount plus the usual 3-cent coupon handling charge, and the profit from the sale of the indexed envelopes will be more than adequate to cover the retailer’s expenses in connection with our program. This program of cash register allocation will not favor the large retail food store over his smaller competitor. Studies have shown that . the large supermarket has an average transaction of something in excess of $7 while the smaller stores transactions average substantially less, frequently as low as $1.00, so that there are more transactions in the smaller stores for a given dollar volume of sales. The items featured on the cash discount coupon will be available in the retail (food) stores and in the grocery products section of multifunction stores. Furthermore, the individual items advertised will not be selected in a manner which would require a retailer to purchase or promote products of supphers which he does not carry as a condition to partcipating in the program.

To acquaint their customers with the Mealtime Masterpiece program prior to its institution, all participating food retailers will be furnished with bag stuffers describing the program. Allocation of bag stuffers also will be based on cash register transactions. Homemakers in some areas will be more interested in menu-recipes than homemakers in other areas, and some retailers will be more aggressive than others in promoting their distribution so it can be expected that some retailers will need more menu-recipes than the cash transactions formula would.indicate. It is our plan to provide each retailer with additional Mealtime Masterpieces if they are needed. Care will be taken, however, to see that retailers do not appropriate the coupons for redemption. Record keeping of product pur. chases and coupons redeemed will be audited on a spot basis in the event of any question so that there will not be an opportunity for misuse. In the event a participating retailer is appropriating coupons for his own use, the service will be terminated in accordance with Guide 11(a) of the Guides for Advertising Allowances and Other Merchandising Payments and Services. Undistributed menu-recipes will be picked up by us, the coupon will be removed and the menurecipe will be offered to the home economics departments in the public and parochial high schools.

To assist in supplier compliance with the principles embodied in the recent proposed FTC and FDA “cents-off” regulations, we will maintain supporting records for the suppliers whose products are used in the coupons. Spot checks will also be made to be assured that retailers do not raise their prices on products for which the coupon is being used. No more than three promotions a year, including ours, will be accepted by us for any one product. Our menu-recipe-coupon service is available and is functionally suitable and useable by all food retailers, regardless of size. No alternate plan is required. We believe our proposed program as outlined herein conforms with the Guides for Advertising Allowances and Other Payments and Services. While problems may arise, we believe we can handle them in a manner which will be fair and equitable and comport with those Guides.

If our program requires any changes to make it fully acceptable to the Federal Trade Commission, it will be appreciated if you will give us your recommendations and we’ll be glad to modify the program accordingly.

We respectfully request that this matter be given as expeditious consideration as may be reasonably possible. As you are aware, great care is being taken by suppliers and retailers to comply with the Commission’s Guides in this area and an Advisory Opinion is essential to such a program. The implementation of the program must therefore follow such approval.

Very truly yours, (S) Max O. Cutten, President.

Foreign Origin Labeling Requirements Before Electric Relay Control Devices Imported From West Germany May Be Sold in United States. (File No. 713 7016) Opinion Letter January 12, 1971 Dear Mr. Brice:

This is in reply to your letter of October 30, 1970, requesting advice as to the foreign origin labeling requirements imposed by the Commission before electric relay control devices imported from West Germany may be sold in the United States. As the Commission understands the facts, these electric relays will be packaged, individually by the foreign manufacturer, and imported by you for resale to industrial customers in this country. The devices may be ordered from you through a catalog which you will circulate to your customers.

In view of the decision by the Bureau of Customs that each electric relay device must be labeled so as to disclose the country of foreign origin, and the fact that the devices will be purchased in this country: by skilled technicians for use in industrial processes, the Commission is of the opinion that no further markings will be required on the product or the product container beyond that which has been imposed by: Customs. However, the catalog and: all other advertising and samples used to solicit orders must, clearly and conspicuously, disclose the name of the country of origin.

By direction of the Commission.

Supplemental Letter of Request -. Decemper 1, 1970 Dear Mr. Levin: ;

Enclosed is a copy of the Bureau of Customs letter of November 25, stating tariff items applicable to the Dold relays we expect to import from West Germany. This was the subject of my prior inquiry to the Federal Trade Commission requesting advice as to foreign origin label- 470-536—73——102 1608 ““" BEDERAL: TRADE COMMISSION. DECISIONS ing as may be necessary:after the goods have cleared customs but before they are sold in the United States.

It is especially important that we have such advice at this time before we have placed our purchase orders with the manufacturer in Germany ‘so that all such requirements may be included in our purchase order specifications.

Accordingly please advise regarding any mandatory labeling or marking requirements in addition to marking requirements as required in the tariff regulations referred to in the enclosed letter from the Bureau of Customs. An early reply: will be appreciated. Yours very truly, (S) W. E. Brice.

Enclosure— ; November 25, 1970 DEAR MR. BRICE:

In your letters of September 25 and November 5, 1970, you asked for information concerning the dutiable status of certain pneumatic and electric time delay controls, relays, plugs and receptacles manufactured in West Germany. Each of these articles is described in the illustrated brochure submitted. You indicate that the articles in question are component devices and parts to be used in electrical power distribution switchboards, sequence motor control circuits, motor protection and motor starting circuits, for time delay in making and breaking electrical power circuits and for the protection thereof. The articles described as VR1u510 and VR1u560, time delay relays, are pneumatie delay mechanisms with timing dependent upon setting of a valve which meters air through allowing contacts to operate when air compressed by the electrical solenoid is exhausted. The Bureau has previous ruled that pneumatic timers such as these, are classifiable under the provision for electrical switches, relays, and other electrical apparatus. for making or breaking electrical cir- cuits, in item 685.90, Tariff Schedules of the United States (TSUS), with duty at the current rate of 12 percent ad valorem. On January 1, 1971, the effective rate of duty for this item will be reduced to 10 percent ad valorem. The optional plug-in base (receptacle) for the ZS700.50 contractor timer, appears to serve as an adapter between the timing device and the electrical panel. Accordingly, we are of the opinion that it would be classifiable as an electrical apparatus used to make connections to or in electrical circuits, also under item 685.90, TSUS, dutiable at the current rate of 12 percent ad valorem. The ZR710 and ZM711 timers with rotor clutch, the. ZS2us2u407, ZS700.50, and the ZR722A contractor timers, and the ZR719 timers without clutch, are all time switches incorporating a synchronous motor. They permit the selection of a time range on a dial for switching electrical circuits on or off at predetermined time intervals. There is an established and uniform practice to classify such merchandise under the provision for time switches with watch or clock movements, or with synchronous or subsynchronous motors, in items 715.60 through 715.68, TSUS, with the rate of duty depending upon the value, as shown on the enclosed excerpt from the tariff schedules. The rates of duty for these items will also be reduced on January 1, 1971, as shown on the enclosed copy of the modified rates.

cee Pe eee eee ee we nee we LUVY In the absence of a complete description of the optional front frame for the model ZR710 timer, we are unable to furnish a binding tariff classification. However, if this article is used as a protective cover for, or to partially enclose the subject timer, it would appear to be classifiable under the provision for cases for time switches, and ‘parts of the foregoing cases, in item 720.36, TSUS, dutiable at the rate of 21 percent ad valorem. Effective January, 1, 1971, the rate of duty for this item will be reduced to 18 percent ad valorem. With respect to your request for information concerning marking requirements, enclosed please find a copy of the headnotes to Subpart E, Schedule 7, Part 2, TSUS.

Sincerely yours, (S) ArrHur P. ScHIFFLIN, Acting Director, Division of Tariff Classification Rulings. Letter of Request Ocroser 30, 1970 GENTLEMEN :

We are making preparations to import “Dold-Relays” from Germany.

As illustrated in the enclosed Catalog, these industrial Control devices will be used in industrial plants, factories, and related plans for the control of motors, machines, heating elements, and similar. Because of higher price, complexity, and technical nature we do not expect these control devices will be used or sold in trades leading to use in the home, automobile, or for other consumer purposes. These products ordinarily will be selected, specified, and approved for purchase by engineers and experienced technicians employed by industrial firms.

Each item will be separately boxed by the manufacturer. Boxes will be marked with catalog number, rating, etc., for identification on our warehouse shelves and for correlation with our price lists, illustrated catalogs, and drawings.

Please advise what markings, if any, we are required to place on the box or the control device before it may be entered through customs and sold in the United States.

(An early reply will be appreciated. We hope to place initial orders within the next two or three weeks. ) Yours sincerely, (S) W. E. Brice.

Legality of Proposed Advertising and Promotional Plan Which Contemplates the Placing of “PostAds” Within Retail Outlets at the Point of Sale of the Supplier’s Products, and Compensation to Merchants for “Reporting on an Historical and Current Basis the Shelf Movement of the Advertised Product.” (File No. 713 7017) Opinion Letter January 14, 1971 Dear Mr. Bernstein:

This is in response to your request for an advisory opinion in regard to the legality of a proposed advertising and promotional plan to be undertaken by PostAds, Inc. The plan contemplates the placing of “PostAds” within retail outlets at the point of sale of the supplier’s products, and, in addition, compensation to such merchants for “reporting on an historical and current basis the shelf movement of the advertised product.”

The Commission has given careful consideration to your request and has concluded that, if implemented in the manner outlined in your letter of June 26, 1970, as subsequently modified by your letters of September 15, 1970, and December 11, 1970, it would interpose no objection to that part of the proposal relating to the payments to be made for placing or installing “PostAds” within retail outlets. It is understood that approval is conditioned upon PostAds, Inc., making it clear to all participating suppliers that their responsibility is not relieved by the interposition of an intermediary between the suppliers and their customers, and that, even where PostAds, Inc., agrees to assume these responsibilities under Guide 18, the suppliers continue to have independent responsibilities under Guide 13 (b). The Commission, however, finds unacceptable that part of the program calling for payments to such merchants for “reporting on an historical and current basis the shelf movement of the advertised product” since the exchange of price or quantity sales information among retailers, or between retailers and suppliers might be used in such manner as to lessen competition. Since the legality of any such survey would depend on the manner of its implementation, the Commission considers that part of the request inappropriate for an advisory opinion under Section 1.1(c) of its rules ‘where the proposed course of action or its effects may be such that an informed decision thereon cannot be made or could be made only after extensive investigation, clinical study, testing, or collateral inquiry.” By direction of the Commission.

ADVISORY OPINIONS WITH REQUESTS THEREFOR 1611 Second Supplemental Letter of Request Decemeper 11, 1970 Dear Mr. McMann:

In connection with our conversation of today, I have been asked by our client to confirm the following to you: 1. In connection with our statement that the size of the signs would be approximately 22’’x24’’, we will modify the size of the sign (within reason) so that a retailer ‘who wishes a smaller sign will be accommodated. For example, if the competing retailer has space sufficient on] Hy to fit a sign 11’’x12’’, Post Ads will provide such a sign. . The compensation for the rental of the space utilized and reimbursement for the services rendered will be paid per store and will be the same for each participating store, » with appropriate adjustments as indicated.

3. In addition, if a participating store wishes to have only four ads inserted in the fixture, PostAds will comply with their request and proportionately reduce the payment therefore, so that, for example, if PostAds were to pay six dollars per fixture and the fixture contained four ads and the participating customer wished only two ads, he would be paid the equivalent of three dollars.

As I indicated to Mr. Martin in our telephone conversation, PostAds will be unable to continue in business unless its application for an advisory opinion is processed in the immediate future. We filed the original request on June 26, 1970. We, therefore, respectfully request prompt attention to this matter, Very truly yours, (S) Rosrrt S. Bernsrern.

Second Supplemental Letter of Request Srrremeer 15, 1970 Dear Mr. Sretnpacu:

Thank you for your letter of August 25, 1970. The delay in responding was due to my vacation.

In paragraph 2 of your letter, you inquire as to alternative plans available for stores selling the advertisers’ goods who do not or cannot provide space for postads. It should clearly be understood that the fixtures containing the postads can be installed on shelves and walls in any retail outlet wishing to participate and every store wishing to participate has adequate space available for display of advertisements. Stores which do not wish to provide space have determined not to participate in this part of the Plan. We therefore, feel that the Plan will be “functionally available” to all competing customers. 1612 FEDERAL ‘TRADE COMMISSION DECISIONS It is stated (p. 2) that PostAds, Inc. will pay the participating stores a certain sum each week as (i) rental for the space utilized, and (ii) in reimbursement for services rendered. It is also stated (pp. 4-5) that PostAds, Inc. will reimburse the participating outlets at the same rate for the space leased and for the services rendered. It is currently anticipated that PostAds, Inc. will pay the participating outlets between $1 and $3 for the space leased and service in connection with installation and removal of posters, and between $1 and $3 for information regarding the shelf movement of the product advertised. When the program is instituted, fees for the space rented and servicés rendered will be definitively established. As a result of your comments and to conform the rental fee to the requirements of Guide 11, we wish to eliminate footnote 1 on page 2 of our earlier letter. Space will be paid for only if PostAds, Inc. utilizes it. a Similarly, we wish to inform you that our proposal (p. 5) to offer back-lighted color transparencies to stores having sales in excess of $25,000 per week has also been eliminated. We trust that these comments have adequately responded to your inquiries.

Our clients are anxious to proceed with their proposed program, and we therefore ask that our request be processed as expeditiously as possible.

If you have additional comments or requests for information, please call me collect.

Very truly yours, (S) Rosert S. Bernstern.

Supplemental Letter Relative to Request Auceust 25, 1970 Dear Mr. Brernsremn:

In reviewing your letter requesting an advisory opinion relative to the new marketing service to be inaugurated by PostAds, Inc., we have run into several questions that require clarification before we can properly go forward on the opinion.

As we understand your proposed program, PostAds, Inc., will promote products of manufacturers or suppliers through “PostAds” at point of sale traffic. These ads, approximately 22’” x 24”’, will be placed eight to a store for thirteen week periods. It is not clear, however, what arrangements will be made for those stores also selling the advertisers’ goods, who do not or cannot provide space for PostAds. In other words, what alternative plans are available for such stores? As you know, the promotional plan must be not only offered to all stores com- ADVISORY OPINIONS. WITH REQUESTS THEREFOR 1613 peting in the distribution of the seller’s goods, but the plan must be functionally available to all such competing customers, ¢.¢., useable. It is also stated that in return for the services which the participating stores will render, Post Ads will pay each such retail outlet a certain sum each week as (a2) rental and (b) as reimbursement for services rendered. We will need to have more information as to how such payments are proportionalized under Guide 7. Also, it might be necessary to break down such payments as between (a) space rental and (b) service payments for supplying information on shelf movement of the particular products. The fixed rental fee must, of course, conform to Guide 11, notwithstanding footnote 1 on page 2: of your letter. We cannot emphasize too strongly that tripartite promoters of advertising services have the duty to make certain that such plans, and all phases of them, are functionally available to a]l competing customers, including the smaller stores, and that the payments thereunder are proportionalized as between such customers. This woud thus apply to that part of PostAds plan to make available to retail outlets having average gross sales of $25,000 per week a back-lighted, moving color transparency advertising machine. The question that must be answered is: What is being offered to retail outlets not qualifying ? Your attention to these questions will be greatly appreciated. Very truly yours, (S) C. Paun Srermpacn, _ Attorney, Office of General Counsel.

Letter of Request - June 26, 1970 Dear Mr. Suea:

Weare writing this letter to obtain an advisory opinion in connection with the following proposed transaction, which is not currently being followed and is not the subject of a pending investigation or other proceeding by the Commission or any other governmental agency. Our client, PostAds, Inc. is a New York corporation formed to develop, introduce, manage and conduct sales and be marketing consultants.

PostAds, Inc. has developed a concept which will offer manufac- _ turers a new marketing service which will allow them to advertise their products within retail outlets at the point of sales traffic. The point of sales advertisements ( “Post Ads”) are planned to be approximately 22’’ x 24’’ in size, printed in color. PostAds will be placed in frames which in turn will be affixed to gondolas, counters and/or on the walls of the participating 1 retail outlets i in the markets selected. At the start of the service, it is proposed to concentrate on pr oducts in the health and beauty aids field, althought products in other non- 1614 | FEDERAL TRADE COMMISSION DECISIONS food categories may be included later. The types of stores in which PostAds may be placed will cover all competing outlets in the area of promotion in which the advertised products are offered for resale, including discount drug stores, department stores, chain and independent grocery stores, convenience stores and others. PostAds, Inc., will undertake to make arrangements with the competing customers within the selected markets which will provide for the rental of space within the participating competing stores and the fulfillment of certain services by the participating store’s management or other designated personnel. These services will include placing Post- Ads in (and removing PostAds from) their fixtures upon delivery, or according to a specific posting schedule; seeing that the PostAds remain in position during their specific posting periods; and reporting on an historical and current basis the shelf movement of the advertised product and all other products in that category according to conditions | specified by the advertiser.

In return for the services which the participating stores will render, PostAds, Inc., will pay each participating retail outlet a certain sum each week as (i) rental for the space utilized,' and (ii) in reimbursement for services rendered. If the participating retail outlets are either unable or unwilling to supply the information as to the shelf movement of the products, etc., the fee paid for the service will be adjusted accordingly.

PostAds, Inc. and the Manufacturer or Supplier of the Product The personnel of PostAds, Inc., will solicit advertising orders for PostAds, both from the manufacturers and/or their advertising agencies. ‘The aim will be to post eight PostAds for each retail outlet, although smaller numbers may be used. Each Posted will be sold for a 18-week posting period, within which time it is anticipated that manufacturers will display different advertisements for the same product, or different advertisements for a number of products. It is. planned to have only one brand i in any one product category posted at one time.

In fulfilling its contractual terms with the manufacturer and/or its advertising agency (PostAds, Inc. will pay the agency, if one is involved, the standard agency commission ) the following actions are planned by PostAds, Inc. :

1. To select. specific markets in which PostAds will be carried | by: competing retail outlets electing to participate. These markets will be chosen so as to give a balance « of geographic and economic features. for the purposes of testing, evaluating, introducing new products or 1 This fixed rental fee will be pald irrespective of whether PostAds, Ine. actually utilizes. the space leased.

rmination by 6 t checks: am ye Pr osted | in parti patin and/or. its 2 ad Proposed week] Service f¢ e Those retail outlets qualifying evice wi l also be compensated for wd rate which will be subsequently In fulfilling its contractual terms with al _ PostAds, Inc. plans to take the following ya ed upon by Post- | es where there is an case the fee for services to. b will be reduced according! ee -_2. To deliver PostAds to the retail outlets, when they should be posted and replaced.

In those stores serviced by - 2 wore Ve eee oe LUWyUOLD OL nO LOLG a service merchandiser organization with whom PostAds, Inc., has an agreement, the service merchandiser will deliver and post the advertisements. 7 3. To instruct the retail outlets on the kind of shelf movement information needed and to make arrangements for its transmittal to Post- Ads, Inc.

4. To remit promptly and at regular intervals to the participating outlets the agreed upon payments for the space leased by and the services rendered to PostAds, Inc., by the participating retail outlets. _ We request your advice and opinion with respect to whether the foregoing program, if conducted in the manner set forth in this letter, conforms to the guidelines set forth in the Commission’s Guides and whether the program may be put into operation by PostAds, Inc. without having the Commission take action against it, the suppliers, their agencies or the participating retail outlets. We also request your ruling as to whether the plan, implemented in the manner stated, raises any questions as to its legality under any of the laws administered by the Commission.

Very truly yours, Barriz, Fowxer, Sroxrs & Kuen, (S) Rosert S. Bernsrer.

Legality of a Game or Contest Called “Play the STOCK MARK- IT,” Wherein Contestants Try and Select Five Stocks From a List of Fifty Stocks on the NYSE Which Will Show the Greatest Appreciation During the Two-Week Period of the Contest. ' (File No. 713 7013) Opinion Letter , January 15, 1971 Dear Mr. Ricwarnson:

This is in reference to your request for an advisory opinion on behalf of your client, Saunders, Stiver & Co., concerning the legality of a game or contest called “Play the STOCK MARK-IT,” wherein the contestants will try and select five (5) stocks from a list of fifty (50) stocks on the New York Stock Exchange which will show the greatest appreciation during the two-week period of the contest. _ The game as proposed will consist of six two-week contests. Each contest will have 5,111 winners, with prize money: for each such 1618 - FEDERAL TRADE. COMMISSION DECISIONS contest, amounting to $60,000. Thus, for the full six contests there will be 30,666 winners, receiving $360,000. Contestants may enter the contest by obtaining a card, listing the fifty stocks and full rules of the game from a participating gasoline station free of charge, with no purchase: necessary. Winners for each two-week contest will be determined by the services of University Computer, Inc., Cleveland, Ohio, and the names of the winners will be posted in each participating. service station by the Wednesday following the end of the contest. The Commission has given this matter careful consideration, and is of the view, based on the materials and information furnished, that an advisory opinion. would be inappropriate under Section 1.1(b) of the Commission’s rules, because this plan is substantially the same as several others that are now under investigation by the Commission. This action implies neither approval nor disapproval of the course of action here involved.

By direction of the Commission.

Supplemental Letter of Request Avcustr 5, 1970 Dear Mr. Srernpact:

Pursuant to your discussions with Mr. Ford last week I am enclosing mock-ups of official rules, advertising, entry blanks and pass-outs relating to the $stock-Mark-It game. I believe that these materials provide answers to the questions which were raised in your meeting with Mr. Ford. If any questions remain unanswered, or if you have suggestions for changes in the enclosed material, please let me know. My telephone number is 216-781-2166. Tf I am not available, Mr. Ford will be happy to provide answers to any questions you have. We are anxious to provide any assistance or information requested and appreciate your consideration of this matter. Very truly yours, Rosrert A. RrcHarvDsoN.

$STOCK MARK-IT Official Rules “4. You can obtain one $FOCK MARK-IT contest entry card free with each visit to a participating SHELL station (no purchase necessary). Additional - planks are available by writing to $STOCK MARK-IT headquarters. for a free card. ; ;

2. Bach entry card is self-addressed and contains two areas for punch-outs and one for a write-in.

3. The first punch area determines the number of the contest played. According to the schedule of deadlines below, punch the appropriate contest in which SAY ROW EDA SUA INUIND OYE UO LO CU LULU you wish that particular card entered. Punch only:once, other punches will make the card invalid. Make sure not to punch a contest which has already reached its deadline.

The program consists of six two-week contests. Contest No. Contest period | Deadline Contest. ends Winner for entry announced Jan. 29 to Feb. 9. - . . -- Feb. 14.

4.

5.

The second punch area numerically lists 50 New York Stock Exchange entries. With a hypothetical budget of $50,000 ($10,000 per entry), punch the 5 (five) spaces adjacent to the stock entries which you feel will most appreciate in the two-week contest period (more than 5 punches will invalidate the entry). .

The third area is a write-in for use as a tie breaker. It need not be filled in in order to win if there is no tie; but if a tie occurs, this will determine the winner. Fill in in dollar-and-cent amount the total value of your imaginery $50,000 portfolio at the close of the contest. 6. Upon completion of the ecard, place a 6¢ stamp on it and mail it to the 7.

8.

9.

10.

11.

address indicated. It must reach contest headquarters before the schedule deadline for each particular contest (Rule 3). ; Proof of mailing is not accepted as proof of receipt. No responsibility will be accepted for lost, damaged or delayed entries (or requests for contest materials). All entries are sent entirely at the risk of the contestant. The winners will be determined by the services of University Computer, Inc., Cleveland, Ohio and posted in all service stations by the Wednesday following the end of the contest (Rule 8). Prizes will be awarded on the basis of growth of the investment portfolio during the two-week. contest period. The award schedule is as follows for each two-week contest: 1 Grand Prize Winner. $10, 000. 00 10 Second Prize Winners 1, 000. 00 100 Third Prize Winners 100. 00 1,000 Fourth Prize Winners 10. 00 4,000 Runners-Up 5. 00 Total: 5,111 winners per contest (per contest) ..-.-____ 60, 000. 00 Contest materials are void and will be rejected if not obtained through legitimate channels, or if any part is illegible, mutilated, smeared or tampered with, or if any materials contain printing or any other errors. No facsimiles are eligible. Void where prohibited by law. Applicable taxes are the responsibility of the winners. Promotion ends _..-________.

Offer open to all licensed drivers who, however, may turn over eards to members of their immediate families for entry in the contest except enmployees and agents (and their families) of SHELL and parties engaged in the development, production, distribution and judging of contest materials. FEDERAL TRADE COMMISSION DECISIONS — STOCK MARK-IT SIMULATOR Simulate 0020000 entries, printing the 010 highest results every 0005000 Stock Start price End price Percent gain or loss 1 18.875 15.000 8.1081 DONNELLEY 2 14.125 16.875 19.4690 CONT MTGE 3 25.250 27.000 6.9307 ILL PW 4.08 PF 4 41,000 48.500 18.2927 CAN SOU RY 5 14.000 14.875 6.2500 CHRIS CRAFT PF 6 11.250 12.750 13. 3333 JONES LAU 7 32.000 33. 875 5.8594 PARK HANNIF 8 18.750 15.250 10.9091 SEDCO INC 9 55.000 58.000 5.4545 CEN ILL LT PF 10 14,875 16.250 9.2437 AM STERILIZ 11 27.500 =. 29. 000 5.4545 ZAPAT NOR PF 12 © 30.625 = 32. 250 5.3061 AMDER CLAYT 13 28.500 30. 000 5.2632 GIMBELS 14 19.000 20.000 5.2632 USM 1.50 PF 15 12.375 18. 000 5.0505 ZAPAT NOR 16 51.000 53. 500 4.9020 JER CPL PF 17 92.500 += 97. 000 4.8649 WRIGLEY 18 10.500 11.000 4.7619 SCOTT FETZER 19 13.375 14.000 4.6729 SERVOMAT 20 8. 000 8. 375 4.6875 SPART IND 21 15.875 = 16. 625 4.7244 STORER BRD 22 21.750 22.750 4.5977 HOMESTKE 23° «16.750 — 17.500 4.4776 REVCO 24 27.750 29.000 4.5045 UTAH PW LT 25 17.000 17.750 4.4118 COLT IND 26 10.875 7.000 —35.6322 GEN HOST 27 6. 500 4.375 —82.6923 BROWN CO 28 =-:11.. 125 7.625 —31.4607 AM ZINC 29 12.125 8.375 —30,9278 LTV 30 23.000 16.500 —28.2609 NATOMAS 31 (4.000 2.875 —28.1250 SELLON INC 32 23.000 16.625 —27.7174 NARCO SCIEN 33-11. 000 8.000 —27.2727 LTV AA _ 34 7. 875 5.750 —26.9841 CHADBRN INC 35 27.000 19,750 —26.8519 CHRIS CRAFT 2PF 36 =—-:11.. 750 8.625 —26.5957 LEASCO DATA 37. 49.000 36.000 —26.5306 LEH V IND PF 38 =-16.000-Ss«14.875 = — 25.7818 EL MEM MG 39 15.625 11.750 —24.8000 PENN CENT 40 27.500 20.750 —24.5455 CAP C BDC5T 41 9. 875 7.500 —24.0506 GT WASH INV 42 3. 125 2.375 —24.0000 BERMEC CP 43 52.625 40.000 —23.9905 VEEDER INC.

44 16.375 12.500 —23.6641 TELEX CORP.

45 7. 000 5.375 —23.2148 BENGUET 46 43.750 33.625 —23:;1429 -WILL ROSS 47 40.000 31.000 —22.5000 LTV 5 PF 48 39.000 30.250 —22.4359 WALL MURR PF 49 14.625 11.375 —22.2222 GIBRALT FIN ADVISUKY UPLNIOUNS With KEQUHSTS THEKEPOR LOZL STOCK MARK-IT SIMULATOR, AFTER 5,000 ENTRIES Place Percentage 6 selections gain or loss Viiiue eee ------ 10. 4228 02 06 10 12 18 2-2-2 eee 2 eee 9. 3896 01 19 11 02 10 8. ..------------ee ee 9. 1215 02 09 08 15 21 4___002 2-1 --- 9. 0833 | 12 il 08 04 09 §. eee 7. 6923 18 07 13 06 ’ 10 6..------------ +e ee 6. 6896 14 21 11 06 19 Y 6. 4098 11 05 01 12 03 8... 2+ 6. 2432 08 13. 20 15 12 9... 6.1456 17 16 22 09 08 10__. 20-2 eee 6. 0475 04 10 02 11 49 Low. _..--.---.--._------ --- — 28. 4957 Ave_...-.2--- eee ae eee —10. 6531 Letter of Request June 29, 1970 GENTLEMEN:

I am an attorney representing Saunders, Stiver & Co., Cleveland based company dealing in investment securities. My client has developed a contest which it desires to market. We will very much appreciate your review of the contest to determine that it does not involve a violation of any rules or policies of the Federal Trade Commission. Upon receipt of your advisory opinion my client proposes to attempt to interest a petroleum company or companies in the contest.

The contest will consist of selecting stocks from among New York Stock Exchange companies which will be listed on a card available to all customers at participating retail outlets of the petroleum company. It is expected that the game cards will be available at all geographic locations in which the participating petroleum company markets gasoline.

The cards for each contest will be available from two to four weeks. Each card will contain 50 stocks, from which participants will select the 5 which they believe will show the greatest appreciation from the last date on which the cards may be mailed to the Company until the date winners are determined. Each series of cards will be available for a period of two to four weeks. When the closing date for mailing a particular set of cards occurs, a new set of cards with a later closing date will be available at the service stations. Variations of items such as the number of stocks and the. -period of time for each game may occur if. requested by a petroleum company, although permitted modifications will be nominal.

LO0ZZ Co UA CU UREN rane Since winners will be determined on the basis of the performance of the-stocks selected, and all customers at participating outlets will be able to obtain cards, there will be no possibility of predetermining the geographic locations of winners. The number of winners will vary from ten to'two thousand in each contest, as desired by the petroleum company. The number and the value of prizes to be awarded (subject to adjustment for ties) will be posted at participating outlets at the inception of the contest. Tnformation concerning winners of the contest. will be posted within 72 hours of the termination date of the contest and distribution of prizes will be made within 48 hours of the determination of the winner. ~ It is our belief that the proposed contest has several features which set it apart from lotteries and similar games of chance. Most notable is the fact that the winners will be those participants who demonstrate the most skill in selecting.stocks that appreciate in value. Also, | because the winners will be determined on the basis of subsequently occurring facts, outside of the control of the parties to the contest, opportunity for manipulation is absent.

If any other facts are required for your determination please call me collect in Cleveland at (216) 781-2166. Thank you for considering this matter. We will look forward to receiving your advisory opinion at. the earliest possible date. Yours very traly, | (S) Rosert A. Rrcwarpson.

Advertisements ‘Offering a Free Balloon Displayed at the Point of ‘Sale To Promote Soft Drinks. (File No. 713 7011) Opinion Letter Frsruary 17, 1971 Dear Mr. Sireman:

This is in reply to your letter of September 22, 1970, requesting approval of advertising copy for an offer of a free balloon. The advertisements are to be displayed at the point of sale to promote Nesbitt’s soft drinks.

Contained in the advertising copy submitted is the following language: “Free! Jolly Orange Giant 36’ Playful, Bouncy, Stand- -up Balloon just for enjoying the real, orange flavor of Nesbitt’s.” The offer is explained in the accompanying details which are not in immediate conjunction with the word “free,” but which require the AW OWi UUIN UND WH QU Ut 1VU29submission of four Nesbitt cork bottle top liners (or facsimiles) plus. 10 cents postage before a balloon may be obtained. The Commission has given this matter careful consideration, and is of the view, based on the materials and information furnished, that the advertising copy is misleading and cannot be approved unless the requirement that the consumer submit 10 cents is disclosed clearly on the front side of the bottle hanger and in any other advertisements. Otherwise, if the promotion is to use the word “free,” the company and not the consumer e-shousd have to pay for the cost of return postage.

By direction ef the Commission.

Supplemental Letter of Request November 5, 1970 Dear Mr. Levin:

We appreciate your letter of October 26, requesting additional information on the free balloon offer that will be put into effect by one of our clients.

_ To facilitate your review, I have listed the questions in your letter and their replies below:

(1) Q. Has this plan been implemented to the extent that this _ special offer is currently available to consumers? A. The promotion will be test: marketed in mid-November and if successful, will be used on a broader scale in April and May of 1971.

(2) Q. Please submit a bottle hanger on which this offer appears. A. There are several pieces on which this offer will appear at the point of sale. All include the same information shown in the enclosed piece.

(3) Q. Please submit all details in connection with this offer, if you have not already done so.

A. The offer is simply that by enclosing four cork liners from our client’s soft drinks and 10 cents for postage we will ‘send them‘a balloon free.

(4) 2 Please describe acceptable facsimiles to Nesbitt cork liners. A. Our client will accept any four pieces of ‘paper on which ‘the word “Nesbitt’s” is printed. From prior experience, we find most customers will draw a circle and print the word “Nesbitt’s” inside.

(5) Q. Kindly furnish assurance that no portion of the ten cents postage submitted by the consumer is used to defray any of the costs of the balloons.

470—536—73——103 1624 ' ¥EDERAL TRADE COMMISSION DECISIONS A. The ten cent figure has been used because this was the cost of postage indicated by the manufacturer. In regard to the items outlined on Page 2, please note as follows: (1) The price charged for soft drinks under this offer will not be increased to the consumer. As a matter of fact, normally there is a price offer in addition to the premium offer. (2) The quantity, quality or size will not be affected by the offer of the free balloon. ;

(3) There are no conditions attached to the offer other than that they send in four cork liners or facsimiles and ten cents for postage. T hope this will provide the information required by the Commission, and would appreciate receiving your confirmation that our client is complying with all legal requisites that might be applicable to this offer. , Sincerely, Srreman/Bropueap, Inc., (S) Lxe Srreman, President.

Letter of Request .

SepremBer 22, 1970 GENTLEMEN: . , Enclosed you will find advertising copy for a special offer we are making available to consumers throughout the United States. No purchase of Nesbitt’s Soft Drinks is required in that we will accept facsimiles of Nesbitt’s cork liners. We will require 10¢ for postage. Our free offer involves a 36’’ tall balloon with a special design on it effecting a “Jolly Orange Giant.” This balloon has a normal retail price of 39¢.

We would appreciate receiving your comments and approval of this copy at your earliest convenience.

Sincerely, Srreman/Bropueap, Inc., (S) Lee Srreman.

NESBITT FOOD PRODUCTS, INC.

Job No. 119-C70-3-Rev. 1 Giant Balloon Promotion Bottle Hanger—2-color—2 sides 2u4"" x 9”

(9-21-70) ADVISORY OPLNIONS WILS1 Tigumoio tastes vee sue JOLLY ORANGH GIANT Dear NESBITT’S:

FREE! Please send me my free “JOLLY ORANGE GIANT” BALLOON.

just for enjoying Here are my 4 cork liners (or facsimiles) from Nesbitt’s Soft Drinks and the real, orange 10¢ for postage.

flavor of NESBITT’S He will remind me when I have a giant thirst to think of Nesbitt’s first. 36” Tall! Playful! Bouncy! Stands NAMB up on own feet! ADDRESS CITY STATH. ZIP.

YOURS FREB! PASTH CORK LINERS HERE:

See reverse side for details. (found under bottle caps) ( ) ( ) ( ) ( ) Complete and mail this coupon to:

NESBITT’S JOLLY ORANGE GIANT P.O. Box 23505 Los Angeles, California 90023 Offer expires Dec, 31, 1971.

(Void where prohibited).

Bottler Code: ( ) Legality of a Proposed Reciprocal Advertising Plan. (File No. 713 7019) Opinion Letter Frprvary 17, 1971 Dear Mr. BRAUNSTEIN: ~ oe This reply is in response to your letter ‘of November 25, 1970, requesting an advisory opinion concerning the legality of a proposed reciprocal advertising plan.

As the Commission understands the facts, supermarkets will use space on their private-label packaging and shopping bags for advertising of local television and radio stations. A credit will be allowed the supermarket based on the number and type of packages carrying the message. In turn, a time credit. will be built up by the supermarket with the broadcasters involved. This credit will be used by the supermarket to advertise the store and ‘its privately labeled merchandise. The promoter of this plan will receive compensation from the supermarket, and no manufacturer or supplier of any product sold by the supermarket will be involved in any way with this promotion.

The Commission has given this matter careful ‘consideration, and is of the view, based on the information furnished, that an advisory opinion would be inappropriate under Section 1.1 (c) of the Commission’s rules, because the proposed course of -action or its effects are ‘such that an informed decision thereon cannot be made or could be made only after extensive investigation and collateral inquiry. This action implies neither approval nor disapproval of the course of action here involved.

By direction of the Commission.

Letter of Request Novemper 25, 1970 Dear Sirs: ;

We are a.company that specializes in sales and new market development for products, in Supermarkets, Drug Stores, Department Stores and Variety ‘Stores. It ‘is our intention to offer to the supermarkets and Radio or T.V. stations the following proposal : a) To the supermarket we propose the use of their private label packaging; such as milk cartons, orange juice cartons, bread wrappers and shopping bags.

The packaging will carry a printed message promoting the T.V. or radio station. The imprinted message will always carry, the name of the station, its logo, and its number on the dial. On occasion it may also make mention of a specific program the station carries. ‘Example:

I. One side of a milk container will carry the following message : “Watch the Mike Douglas Show” Channel 13 WXAV T.V. Also Station Logo Il. Shopping bag might read: “For the best young sound listen to Joe Jive” WXAV Radio 777 on your dial. ‘b) At no'time will we promote a particular product. c) We will never promote any program that is fully sponsored by ‘a‘manufacturer whose products appear ‘in the supermarkets. Tixample:

KRAFT MUSIC HALL.

d) For-each milk carton; etc,:that carries:a‘station’s message inthe local marketing area, the supermarket will receive for example; a one ADVISORY OPINIONS. WITH REQUESTS THEREFOR Loa? penny credit for advertising time at full rate card from the station. e) The supermarket will develop a time credit with the local radio or T.V. station. This time credit will be used by the supermarket to promote their stores and the sales of their private label products. At no time will the supermarket use this time credit to promote or advertise any standard brand merchandise. The fees for originating and coordinating this type of premotion will be paid for by the supermarket, at the standard advertising agency rate of fifteen percent.

We are seeking your advice because in some of the programs mentioned on the cartons the station may have sold spot time to vendors of products sold in the supermarkets. It is our opinion that this factor would not constitute a violation of the Robinson Patman Act, since neither ourselves, or the supermarket would have any knowledge or control of who had been sold spot time by the station. Since we have many supermarkets interested in the above proposal we would appreciate an opinion by the Bureau of Advisory Opinion before we proceed further with this promotion. We would be pleased to furnish any additional information you would desire. Respectfully yours, (S) Ex.rotr B. Braunstein, President.

Disclosure of Foreign Origin in Newspaper Advertisements. (File No. 713 7020) Opinion Letter Fesrvuary 26, 1971 Dear Mrs. Forman:

This is in reply to your letter of December 4, 1970, requesting advice concerning the legality of (1) failing to disclose the name of the country of foreign origin of imported merchandise in newspaper advertising, or (2) disclosing in newspaper advertisements that an item is “imported” without disclosing the name of the country of foreign origin.

As the Commission understands the facts, each imported item is labeled. so as to disclose the country of foreign origin, and the newspaper advertisements promoting the sale of the imported items do not solicit for mail-order or catalog purchases. The Commission is of the view, based on the information furnished, that failure to disclose the name of country of foreign origin in the newspaper advertisements probably would not be in violation of any of the laws which it administers. The Commission is also of the view that it is permissible to use the word “imported” in newspaper advertisements promoting the sale of imported merchandise. If, however, the articles of wearing apparel are imported furs or are fur products containing imported furs, Sec. 5(a) (6) of the Fur Products Labeling Act requires that the name of the country of origin of the imported fur must be disclosed in advertising.

By directon of the Commission.

Letter of Request Drcemper 4, 1970 Dear Mr. Sar:

Mr. Aliza of the Los Angeles Federal Trade Commission Office suggested that we write you for an opinion on the use of the word ‘import’ i in newspaper advertising.

Our specific problem: Is it mandatory to use the term “imported’ if the article is an import or may it be omitted ? Or if, on the other hand, we want to stress the fact that an article is imported, may we speak of ‘imported coats’ or must the source be defined, as ‘coats imported from Spain’? And in the event that the leather for the coats came from Spain, but the coats were manufactured in Italy or the U.S. what would the proper reference be? We would appreciate, too, any literature you could let us have on the subject. We are aware that there is a completely different set of rules for fur products which we are not concerned with at this time. Thank you for your assistance.

Yours sincerely, Mrs. Bea Forman, Advertising Depariment, Robinson’s, Seventh and Grand, Los Angeles, Calif.

Legality of a ‘Proposed Standard Certification Program. (File No. 713 7002) Second Opinion Letter oe Marcu 8, 1971 Dear Mr. Rocewe.:

. The Commission has given further consideration to your request for an advisory opinion on the legality of a proposed standard certification program, and in an effort to be as helpful as possible in this ADVIDUNY UPUNIUNDS WITH Kaun “eu torUT LULU important and difficult area involving programs of self-regulation believes that it would be desirable to amplify its letter to you of December 29, 1970, with the following comments. The Commission is sympathetic to the growing interest in the development of plans for self-regulation which will avoid the strictures of the antitrust laws. On the other hand it is mindful of its responsibility to evaluate all such plans in light of the many anticompetitive potentialities inherent therein. Some of the matters which must be considered in an evaluation of any program of self-regulation are:

1) Standardization and certification programs must not be used as devices for fixing prices or otherwise lessening competition. See, e.g., Milk and Ice Cream Can Institute v. F.T.C., 152 F.2d 478 (7th Cir. 1946).

2) Standardization and certification programs must not have the effect of boycotting or excluding competitiors. See, e.g., Silver v. New York Stock Huchange, 373 U.S. 341 (1963). 3) Standardization and certification programs must not have the effect. of withholding or controlling production. See, ¢.g., Standard Sanitary Mfg. Co. v. United States, 226 U.S. 20 (1912); National Macaroni Manufacturers Assn v. F.T.C., 345 F.2d 421 (7th Cir. 1965).

4) Construction or specification standards should not be used except in exceptional circumstances and never when performance standards can be developed.

5) It is incumbent upon any organization sponsoring, adopting, administering or enforcing standards to insure that its standards reflect existing technology and are kept current and adequately upgraded to allow for technological innovation. 6) Where certification is involved, no applicant for certification may be denied certification for any of the following reasons: (a) that he is a nonmember of any association or organization; (b) that he is a foreign competitor; or (c) that he is unable to pay the fee or cost charged for certification. See Advisory Opinion Digest No. 152, 3 CCH Trade Reg., Rep. para. 18, 125 (December 13, 1967). 7) Fees charged in connection with participation in a standardization or certification program must be reasonable as related to the direct and indirect costs. involved. oe 8) Membership in groups or organizations sponsoring, promulgating or administering standardization or certification programs must be open to all competitors, domestic or foreign. : . . 9) Due process must be accorded all parties interested in or affected by a standardization or certification program, including suppliers, 1630 FEDERAL TRADE COMMISSION. DECISIONS: manufacturers, distributors, customers and users: Due process: includes, but.is not limited to, the conduct of timely hearings with prompt decisions on claims respecting standards. or the denial of certification. 10): Standards. and certification. programs, unless. otherwise clearly required. by considerations of safety, may not be used to reduce, restrict or limit in any manner, the kinds, quantities, sizes, styles or qualities of products. See, ¢.g., the consent decree-in United States v. General Electric Co., 1956 Trade Cas. paras: 67,714, 67,794, 67,795, 67,796 (D. N.J: 1954).

11) The exercise of the responsibility of validating any proposed ‘standard should include a determination by a iaboratory or other appropriate entity independent of those immediately affected by the proposed standard that the criteria set forth in such standard are meaningful and relevant. See, ¢.g., the consent decree in United States v. Southern Pine Assn, 1940-43 Trade Cas. para. 56,007 (E.D. La. 1940). .

12) The function and responsibility of determining whether anyproduct is to be certified under any program involving certification should be performed by an appropriate organization independent of those immediately affected by such program. Unzted States v. Southern Pine Assn, supra.

13) Representations made by standards organizations with respect to testing procedures, standards, etc:, must. be truthful. See, e.g., In the Matter of Parents” Magazine Enterprises, Inc., FTC Dit. No. C-1133 (1966).

14) In cases involving a challenge to standards, the burden of proof _ respecting reasonableness is upon those who develop and enforce the standards. Kestenbaum, Antitrust Questions. In Voluntary Industry Standards, p. 10, Address prepared’ for delivery before the National Association of Manufacturers: Marketing Conference (October 9, 1969).

15) All standards must be voluntary.

16) Certification programs should avoid the use of single standard, “pass/fail” systems and, in lieu thereof, employ graded systems which preserve consumer and user options.

The foregoing criteria, which are by no means exhaustive, demonstrate the many factors which make it difficult to approve a standard certification program such as the one you suggest. The difficulty is increased by the uncertainty which exists in the court decisions on this subject. Accordingly, the problems of establishing a program which will qualify for approval before it can be seen in action are formidable. Nevertheless, the Commission would like to assist in exploring the possibilities of self-regulation through standard certification. To that ADVISORY OPINIONS WITH REQUESTS THEREFOR 1631 end it has directed its staff to commence an in depth study of the subject to determine whether it is possible for the Commission to make a meaningful contribution to the development of a satisfactory and legal program.

The Commission is not presently in possession of sufficient information to enable it to make all of the determinations essential to an evaluation of your program. Even if this information were furnished, the Commission feels that it would be inappropriate for it to act in this area until the results of its present study are known. It must, therefore, ~ decline to act at this time on your request for an advisory opinion. By direction of the Commission.

First Opinion Letter Decemper 29, 1970:

Dear Mr. Rockwett:

This is with further reference to your request for an advisory opinion regarding the general format of ANSI’s voluntary Certification Program.

Based onthe information you have provided, it is the Commission’s understanding that any manufacturer of a product covered by an American National Standard, which standard lends itself to a certification procedure, may apply to ANSI to have the product certified as conforming to the standard. The fees for submittal of a product to be certified are designed to support the program but to avoid placing participating manufacturers at a disadvantage in competing with nonparticipating manufacturers.

An independent qualified laboratory selected by the producer’s trade association, or by the producer, and approved by ANSI determines whether the product complies with the standard. An approved certification mark may be placed on products submitted which are found to comply. Also, a public information program to inform consumers regarding the ANSI certification and what it means is in use and periodically, a listing of products which have been certified as issued. To check on continued compliance of a certified product with the standard, there is continuing inspection and followup by the testing laboratory, using procedures tailored for each standard and administered by the appropriate trade association, all of which, however, is monitored by ANSI.

_ The Commission is of the view that an advisory opinion would be inappropriate in this matter inasmuch as an informed decision thereon could be made only after extensive investigation and collateral inquiry. In these circumstances, the request is inappropriate under Section 1.1(c) of the Commission’s rules. It also appears that the course of action is alr eady being followed. If this is the situation, the request for an advisory opinion is also inappropriate under Section 1.1(a) of the rules.

By direction of the Commission.

Letter of. request May 6, 1970 Dear ComMissionzR WEINBERGER :

At the suggestion of Commissioner Jones I am writing you to let you know about our Certification Program.

As you know, the American National Standards Institute is the leading voluntary standards coordinator. We also handle all international standards through the International Organization for Standardization (ISO). Under separate cover I am sending a booklet describing our functions and a catalog of our standards. In addition, I am. sending a copy of the LaQue Report and a copy of our Annual Report.

As a natural follow up on standards we have initiated a voluntary Certification Program in which any manufacturer can participate. Our basic requirements are that there be an American National Standard covering this item, that the standard be one that is adequate for certification, and that this program is available to anyone wliether or not he isa member of a trade association or a domestic producer. I am also sending you a copy of an article I have written on certification and a copy of our procedures and a model contract which we have prepared. We are aware of the active part the Commission has played in reviewing these Certification Programs and your various advisory opinions. Our certification is primarily aimed at consumer goods and is for the benefit of the consumers. Knowing of your concern in this area I am sure you will find this proposed program of interest. For your information I am also sending you a booklet on our Consumer Council and our consumer standards program. ... We would like to obtain approval of the general format of our program from the Commission. . . .

Very truly yours, (S) Wituram H. Rocxwe t, Director of Certification and Consumer Affairs. ADVISORY OPINIONS WITH REQUESTS THEREFOR 1633. Proposed Dealer Purchase Stimulation Plan Whereby Dealers Earn Points in Order To Qualify for an Expense Paid Trip. (File No. 713 7021) Opinion Letter Marcu 11, 1971 Dear Mr. JANKELL:

This is with further reference to your request for an advisory opinion regarding Miida’s proposed dealer purchase stimulation plan whereby dealers might earn points in order to qualify for an expense paid trip to Rio de Janeiro or London.

Based on the available information, the Commission is of the view that an advisory opinion would be inappropriate in this matter inasmuch as an informed decision thereon could be made only after extensive investigation and collateral inquiry. In these circumstances, the request is inappropriate under Section 1.1(c) of the Commission’ s rules.

By direction of the Commission.

Letter of Request Drcremper 28, 1970 GENTLEMEN :

We are the attorneys for Marubeni- Tida (America), Inc., who among other things, distributes cameras, photographic equipment and accessories. The company has recently begun marketing a broad line of such merchandise in the low and moderate price ranges under its brand name “Miida”, through six regional distributors who sell the Miida line to approximately 12,000 photography stores and retailers who carry photographic supplies.

Marubeni wishes to institute a sales incentive program to promote the Miida line, and in accordance with the Commission’s Procedures and Rules of Practice covering Industry Guidance, desires a staff review of the proposed course of action. The proposed course of action has not yet been implemented and it is not currently being followed by the company. At a conference held with Joseph P. Dufresne, Esq. of the Commission’s staff, we have been advised that the same or substantially the same course of action is not under investigation and is not and has not been the subject of a current proceeding, order, or decree initiated or obtained by the Commission or another governmental agency. It is the considered opinion of the company and this 1634 FEDERAL TRADE COMMISSION DECISIONS.

office that an informed decision on the proposed course of action and its effects can be made without recourse to extensive investigation, clinical study, testing or collateral inquiry. The proposed sales incentive program is designed to stimulate sales of all items in the Miida line. At the start of the program, each item would receive a predetermined point value. Point values would not. be principally determined by price nor will they fluctuate as a function of price. Rather, in considering point values for each item, consideration would be given to such factors as: The item’s ability to create and build brand image; brand name identification; percentage of markup; and age and size of inventory. Some examples of point value assignments are: Cameras (assorted prices and styles) 15 point; Binoculars (assorted prices and styles) 10 points; interchangeable camera lens»s, depending on size and type, from one point to 20 points; and slide projectors 15 points. From time to time, the company may change or reassess point values for certain items or certain types of items in order to stimulate or increase sales of those item lines or particular types of items within a line, but no change would become effective without full and adequate prior notice to all existing and potential Miida retailers.

Every retailer who now carries the Miida line, and all others who wish to carry the line, will be given stamp books similar to these currently issued by the trading stamp companies. The point vaiue of all items purchased by a retailer will be determined and the retailer will receive one “Miida Stamp” for each point. It is anticipated that the first promotion would commence in mid January, 1971, and continue until mid December of the same year. Each retailer who had accumulated 2,500 stamps during the promotion period would receive a ten-day all expense paid trip to Rio de Janeiro in mid February, 1972. The trip is being obtained by the Company at group package rates of approximately $750. per person. A copy of the proposed itinerary is attached. Those retailers who acquired sufficient additional stamps could bring their wives or friends. For those retailers who are unable to acquire sufficient stamps to obtain a second ticket, provision will be made for the purchase of the second ticket at the Company’s cost. It was stated earlier that point values were being assigned to items based upon factors other than price. Depending, therefore, upon the mix of the Miida line merchandise purchased by a retailer, 2,500 stamps could be acquired for an aggregate of purchases ranging between $14,000 and $20,000. A “typical” composite order which indicates the modest scope of the purchase requirements is attached. Based upon Marubeni’s years of experience in the distribution of photographic equipment and accessories, the Company estimates that ADVISORY OPINIONS WITH REQUESTS THEREFOR 1635 even a small full line photography shop of the “ma and pa” variety spends at least $10,000.00 per year on the types and price ranges of merchandise covered by the Miida line. Retailers who failed or were unable to acquire the requisite number of stamps during the eleven months promotion period would have the right to apply them towards the 2,500 stamps required for the trip being offered in the next annual promotion. It is anticipated that the promotions would continue annually for at least five years and even a small “ma and pa” photography shop could, with a minimum of effort, acquire sufficient stamps in less than half that time.

The Company recognizes that the world of business is fraught with many risks and that there may come a time when the Company is unable or unwilling to renew the promotion for the next ensuing year. The Company can obtain at group rates, and in the event of nonrenewal, would offer a trip to London for 1,000 stamps, to those who had not attained, and were unable to attain, during the remainder of the promotion period, the 2,500 stamps. A copy of that proposed itinerary is also attached.t The Company would, of course, give all retailers plenty of advance notice of the non-renewal and creation of alternative trips so that each retailer could check his stamp status, determine which plan was attainable for him, and plan his purchases during the balance of the promotion period, It is to be noted that the London trip could be acquired for an aggregate of purchases of as little as $3,600.00. .

It must, at this juncture, also be noted that the market share of both the Miida line and the Company’s entire photographic materials distribution are negligible considering that they compete with Kodak, Ansco, Bell and Howell, Honeywell and all of the well known foreign lines, as well as a host of private labels. It is, therefore, in Marubeni’s best interests to make every retailer who carries a line of photographic equipment and accessories aware of the promotion and the Miida line. The Company will extensively advertise the promotion in the trade publications and follow up with personal contact by the distributors. Notices of any changes or amendments would be handled in a similar manner, and, in addition, would be supported by mailings to all participating retailers.

Marubeni feels that by these means it has evolved a promotion concept whereby every retailer, small and large, has the ability to qualify.. The Company trusts that the Commission, after review of the foregoing, will concur, and awaits the Commission’s comments. 1 Because of its length, this attachment has not been included. Should the Commission desire any further information or clarification of any aspect of the proposed course of action, please contact the undersigned.

Very truly yours, Ratuuemm, Horrman, Kassen & Sinverman, (S) Ricwarp JANKELL.

TYPICAL ORDER FOR 1 YEAR Points 10 Cameras at 15 points each_.__----------------------------------- ~ 150: 10 Cases at 3 points each__.__-------------------------------------- 30: 10 Pair 7 x 28 RP binoculars at 10 points each_..__._.--_------------- 100: 10 Pair 8 x 32 RP binoculars at 10 points each._.-._------------------ 100: 10 Pair 8 x 56 RP binoculars at 10 points each______--___-_----------- 100 10 Pair 7 x 35 Macrofocus wide angle binoculars at 10 points each. _.___- 100- 10 Pair 8 x 40 Macrofocus wide angle binoculars at 10 points each__.___- ~ 100 10 Pair 9 x 35 Macrofocus wide angle binoculars at 10 points each____-_- 100 10 Pair 10 x 40 Macrofocus wide angle binoculars at 10 points each__-_-_- 100 10 Stereo devices at 10 points each____------------------------------ 100 10 Projection tables at 5 points.____--------------------------------- 50 36 Pair assorted spectacles at’ 1 point each.__.-..-.---_------------~-- 36 6 Illuminated viewers at 2 points each__...--.----------------------- 12 6 Hand print viewers at 2 points each...-_-_--.---------------------- 12 20 Assorted adapters at 1 point each___.-.-----.--------------------- 20 6 Slide projectors at 15 points-each____.---_------------------------- 90° 3 S/A adapters at 3 points each____:_------------------------------- 9 10 25mm wide angle lenses at 10 points each____.___--_-_------------- 100 36 28/35/135/200mm lenses at 1 point each_.___-_------------------ a 36 10 100mm lenses at 2 points each___-_-.----------------------------- 20 10 90/190 zoom lenses at 2 points each____-----_---------------------- 20: 6 70-230 zoom lenses assorted at 20 points each____._---_---_--------- 120. 6 85-205 zoom lenses assorted at 20 points each__._-------------------- 120 12 Foot switches at 1 point each_.__.__-------------------------------- 12 24 Assorted easels at 2 points each___._-.-_--------------------------- 43 24 Triclamps at 6 points each_____-----------------------------~----- 144 24 Pistol grip (FA—002) at 4 points each_______---_------------------- 96- 24 Pistol grip (FA-008) at 1 point each___-_.----.------------------- 24 12 2-way bounce head at 1 point each..__---------------------------- 12 24 3-section step-on tripod at 2 points each__._-___---.--------------- 48 24 4-section step-on tripod at 4 points each____..-.-----------.--~---- 96. 3 Spotting scopes at 10 points each___..----.------------------------ 30: 96 Lens pouches at 5 points per doz____-..--------------------------- 40: 6 Cases IA-005L at 6 points each.____-.----------------------+------ 36. 6 Cases IA-005U at 5 points each____-_----------------------------- 30 6 Cases [A-055 at 5 points each__.____----------------=-------------- 30: 6 Cases IA-006 at 3 points each._._-.--------.---------------------- 18 6 Cases IA-066 at 5 points each____.__.-_-.------------------------- 30: 24. Shoulder bags at 1 point each____-------------------------------- 24 24 IB-001/IB—002 bags at 5 points each___.--_----------------------- 120: Total_._....--..-.-_--------------------------------------- 2, 463 NotTe.—Plus carded goods;

Proposed Acquisition by 2 Cement and Aggregate Producer of Certain Assets of a Producer and Seller of Concrete and Block, and Dry Building Materials. (File No. 713 7008) Opinion Letter Marcu 12, 1971 Dear Mr. SaTreE:

This is with further reference to your request for an advisory opinion approving the proposed purchase of certain assets of Burnup by Maule. a .

Tt is the Commission’s understanding that Maule proposes to acquire for $384,000 from Burnup all of the physical assets, excepting transit mix trucks, located at Melbourne, City Point and Micco, Florida, owned by Burnup for use in the production and sale of ready-mix concrete and concrete block and for the purchase and sale of dry building materials. Maule currently supplies Burnup with aggregate and is a potential supplier of cement to Burnup from Maule’s Miami mill.

“In pertinent part, the Commission’s “Enforcement Policy with Respect to Vertical Mergers in the Cement Industry,” issued January 8, 1967, provides that “. . - the Commission intends to investigate expeditiously every future acquisition by a cement producer of any. substantial ready-mix concrete firm in any market to which such acquiring producer is an actual or potential supplier” (I, p. 9)- The Policy Statement provides further that acquisition of any ready-mix concrete company, or other cement consumer, which regularly purchases 50,000 barrels of cement or more annually, will be considered a substantial acquisition (II, p. 9). The available information indicates that in each of the two years prior to notification to the Commission of the proposed acquisition, Burnup purchased more than 50,000 barrels of cement.

The information you have provided is not sufficient for the Commission to make a determination as to whether the proposed acquisition is subject to the jurisdiction of the Commission. However, if the acquisition is consummated an investigation to determine this and other questions will be initiated, since the information does indicate that the type and size of the acquisition would fall within the Commission’s Enforcement Policy with Respect to Vertical Mergers in this industry.

By direction of the Commission.

Supplemental Letter of Request JANvARY 25, 1971 Dear Mr. Durrusne:

Relative to your requests for information as set forth in your letter of December 28, 1970, the following is in answer to Item No. 1: Maule Industries, Inc., was incorporated February 21, 1946, in the State of Florida.

Maule Industries operates in the counties of Dade, Broward, Palm Beach, Martin, St. Lucie, Brevard and Volusia. Within these counties, Maule operates ready-mix concrete plants, concrete block plants, concrete pipe plants, a small operation at Fort Pierce, Florida, buying and reselling building materials, aggregate plants in Dade and Broward counties, prestress and precast concrete components in Dade county, asphalt plants in Dade County and as of April of 1970, we had completed a cement mill and are producing cement for distribution to our concrete products and ready-mix plants with some sales to other consumers producing in Southeast Florida only. The purchase of supplies is primarily from Florida suppliers with the exception of heavy equipment which comes through Florida distributors but originates in other parts of the United States; an example of this would be cranes, bulldozers, ready-mix trucks and other heavy pieces of construction equipment.

As to Burnup & Sims, Inc., they. advise us that they were incorporated in May 1941, in the State of Florida. This company is mainly in construction which is, in the most part, doing underground work for utility companies in laying cables and other communication transmissions. They have now branched into some ownership and construction for others of CATV installations.

Their concrete operations are confined to the Brevard County area of Florida where they operate one main plant, one satellite plant and one portable plant. They produce in Brevard County ready-mix concrete, concrete block and also operate a small building materials yard. Their cement is purchased from General Portland Cement Company in Florida. They do not operate in the concrete industry in any other state. However, they do have a small concrete plant on the island of Barbados which they originally set up to satisfy their needs for readymix concrete and thereafter continued it as a concrete operation. In conclusion, our operations in the concrete products industry and in the cement industry relative to Maule and to Burnup & Sims are confined solely to the State of Florida. 1 pelieve this re answ e ow us. to disregard the lof your - request ar and => s indicated. eS Dron5 1 8 1 1 2 1730 741 32 65 62.892365 of5 1 8 1 1 3 1785 729 82 75 14.358597 ‘4975 1 8 1 1 4 1857 747 18 65 94.880653 05 1 8 1 1 5 1844 723 64 71 30.966263 Oe5 1 8 1 1 6 1921 762 66 33 33.580139 ei2 1 9 0 0 0 1875 738 228 97 -1 3 1 9 1 0 0 1875 738 228 97 -1 4 1 9 1 1 0 1875 738 228 97 -1 5 1 9 1 1 1 1875 738 228 97 95.000000 2 1 10 0 0 0 514 842 1563 1706 -1 3 1 10 1 0 0 514 842 1563 1691 -1 4 1 10 1 1 0 533 842 1184 85 -1 5 1 10 1 1 1 533 850 143 77 13.862122 Dear5 1 10 1 1 2 683 843 78 74 52.667610 Ma.5 1 10 1 1 3 765 842 166 75 0.000000 Sarren!.5 1 10 1 1 4 1030 868 104 8 24.576988 ras5 1 10 1 1 5 1715 861 2 2 29.312042 .4 1 10 1 2 0 600 844 1360 146 -1 5 1 10 1 2 1 600 926 120 64 41.962757 This:5 1 10 1 2 2 727 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purview.5 1 10 1 5 6 1216 1097 43 35 92.554626 of5 1 10 1 5 7 1279 1095 65 43 94.097801 the:5 1 10 1 5 8 1355 1082 229 50 91.363884 Commission’s5 1 10 1 5 9 1611 1080 15 35 0.000000 -5 1 10 1 5 10 1625 1076 18 22 12.703506 a5 1 10 1 5 11 1666 1061 224 53 0.000000 inforcement5 1 10 1 5 12 1917 1053 77 50 35.685699 ee4 1 10 1 6 0 565 1101 1428 119 -1 5 1 10 1 6 1 565 1174 143 46 35.985435 Policy5 1 10 1 6 2 725 1173 86 43 86.165413 with:5 1 10 1 6 3 823 1153 148 64 94.093666 Respects 1 10 1 6 4 981 1154 37 46 96.942108 to5 1 10 1 6 5 1021 1149 163 51 96.449287 Vertical5 1 10 1 6 6 1199 1136 153 51 88.324768 Mergers5 1 10 1 6 7 1366 1141 41 33 88.324768 in5 1 10 1 6 8 1417 1130 69 48 95.775650 thes 1 10 1 6 9 1491 1130 141 43 95.775650 Cements 1 10 1 6 10 1647 1116 200 46 90.130157 Industry.”5 1 10 1 6 11 1919 1116 35 31 47.467152 A.5 1 10 1 6 12 1979 1101 14 50 0.000000 :4 1 10 1 7 0 579 1164 1441 111 -1 5 1 10 1 7 1 514 1239 166 48 24.870232 copy5 1 10 1 7 2 696 1226 43 33 96.810104 of5 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1578 230 45 27.405823 customers5 1 10 1 14 2 807 1564 133 52 47.914013 located.5 1 10 1 14 3 950 1551 138 55 92.888275 outside5 1 10 1 14 4 1102 1548 48 50 96.995796 of5 1 10 1 14 5 1156 1554 67 41 96.037842 thes 1 10 1 14 6 1227 1539 112 50 69.926376 States 1 10 1 14 7 1337 1536 50 47 92.944252 of5 1 10 1 14 8 1388 1533 39 40 91.650307 F5 1 10 1 14 9 1429 1524 126 59 85.198318 florida.5 1 10 1 14 10 1559 1525 48 52 87.110970 If5 1 10 1 14 11 1618 1533 46 36 87.110970 no5 1 10 1 14 12 1679 1516 83 52 79.337112 such.5 1 10 1 14 13 1775 1510 93 56 87.757126 sales5 1 10 1 14 14 1871 1509 54 65 93.408669 or5 1 10 1 14 15 1940 1513 19 14 43.095261 =4 1 10 1 15 0 563 1558 1381 130 -1 5 1 10 1 15 1 563 1644 21 18 0.000000 .5 1 10 1 15 2 608 1621 197 65 82.033554 purchases5 1 10 1 15 3 811 1624 60 32 96.244545 ares 1 10 1 15 4 879 1612 118 47 95.955231 made,5 1 10 1 15 5 1008 1615 66 40 95.955231 you5 1 10 1 15 6 1088 1608 84 80 45.557613 neys 1 10 1 15 7 1176 1591 188 52 76.485535 ‘disregards 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2121 220 50 96.187332 distributions 1 10 1 25 3 970 2105 220 52 49.835796 terminals.5 1 10 1 25 4 1965 2057 60 47 23.432983 mee4 1 10 1 26 0 682 2091 1304 136 -1 5 1 10 1 26 1 682 2185 30 30 87.453079 4,5 1 10 1 26 2 738 2169 102 58 95.802963 Copies5 1 10 1 26 3 865 2185 12 29 75.428856 |5 1 10 1 26 4 876 2166 51 47 61.945084 of:5 1 10 1 26 5 934 2158 187 58 95.145096 contracts,5 1 10 1 26 6 1127 2120 137 86 68.643501 options5 1 10 1 26 7 1285 2126 74 56 96.104065 ands 1 10 1 26 8 1360 2106 221 79 79.709763 ‘agreements5 1 10 1 26 9 1600 2100 152 71 70.617538 relating5 1 10 1 26 10 1765 2097 44 58 85.897461 to5 1 10 1 26 11 1811 2091 79 66 78.412025 ‘thes 1 10 1 26 12 1896 2108 169 44 53.886032 ace4 1 10 1 27 0 644 2155 1387 121 -1 5 1 10 1 27 1 644 2185 173 91 34.659798 ication.5 1 10 1 27 2 841 2214 127 54 57.276329 Please.5 1 10 1 27 3 966 2207 157 52 58.416908 “includes 1 10 1 27 4 1131 2204 145 37 64.646736 letters5 1 10 1 27 5 1275 2199 43 43 95.727432 of5 1 10 1 27 6 1341 2196 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87 46 95.485786 sort,5 1 10 1 29 8 1337 2291 177 44 94.935898 including5 1 10 1 29 9 1529 2279 146 50 70.572937 printed.5 1 10 1 29 10 1684 2276 38 35 87.046951 or5 1 10 1 29 11 1733 2257 235 66 25.471367 typewritten5 1 10 1 29 12 2039 2278 2 2 56.680676 :4 1 10 1 30 0 587 2308 1424 116 -1 5 1 10 1 30 1 587 2381 53 43 0.000000 -5 1 10 1 30 2 651 2375 143 45 96.742859 matter,5 1 10 1 30 3 799 2375 97 35 96.944923 made5 1 10 1 30 4 909 2368 67 45 96.836372 by5 1 10 1 30 5 968 2375 39 26 95.756615 or5 1 10 1 30 6 1014 2366 70 34 95.756615 for5 1 10 1 30 7 1090 2358 128 44 95.972649 Maule,5 1 10 1 30 8 1224 2345 179 50 85.107567 referring5 1 10 1 30 9 1415 2342 45 44 95.239136 in5 1 10 1 30 10 1467 2345 66 36 95.267914 any5 1 10 1 30 11 1546 2345 76 31 89.794327 ways 1 10 1 30 12 1633 2335 40 32 87.152496 to5 1 10 1 30 13 1681 2329 63 32 87.152496 thes 1 10 1 30 14 1754 2317 218 51 62.761463 acquisitions 1 10 1 30 15 2003 2308 8 3 49.733208 :4 1 10 1 31 0 625 2364 1361 105 -1 5 1 10 1 31 1 625 2462 2 2 0.000000 -5 1 10 1 31 2 653 2436 45 36 90.012482 of5 1 10 1 31 3 707 2434 103 44 90.012482 assets5 1 10 1 31 4 824 2438 44 32 94.913071 or5 1 10 1 31 5 875 2418 115 43 83.203690 stock,.5 1 10 1 31 6 996 2403 214 53 96.169807 commitments 1 10 1 31 7 1230 2410 13 41 86.779976 |5 1 10 1 31 8 1237 2398 37 38 95.705299 to5 1 10 1 31 9 1288 2392 154 63 93.276016 purchases 1 10 1 31 10 1457 2405 17 43 87.179520 §5 1 10 1 31 11 1467 2388 105 63 95.973465 stock,5 1 10 1 31 12 1586 2395 39 22 96.846718 or5 1 10 1 31 13 1631 2377 65 71 65.283051 thes 1 10 1 31 14 1680 2450 2 2 0.000000 g5 1 10 1 31 15 1713 2370 199 78 0.000000 arquisiiyn5 1 10 1 31 16 1924 2364 39 39 91.289261 of5 1 10 1 31 17 1984 2369 2 2 17.027245 ©4 1 10 1 32 0 627 2447 1178 101 -1 5 1 10 1 32 1 601 2492 38 41 61.948620 =5 1 10 1 32 2 655 2474 105 74 75.896057 stocks 1 10 1 32 3 760 2477 119 55 96.216919 voting5 1 10 1 32 4 844 2464 31 82 88.396957 ag5 1 10 1 32 5 888 2472 122 70 88.396957 rights,5 1 10 1 32 6 1020 2466 38 33 96.957451 of5 1 10 1 32 7 1045 2534 2 2 43.249016 i5 1 10 1 32 8 1077 2458 135 75 82.712868 Burnup5 1 10 1 32 9 1222 2449 35 39 93.076180 &5 1 10 1 32 10 1261 2448 99 62 95.899498 Sims.5 1 10 1 32 11 1384 2464 27 26 0.000000 m5 1 10 1 32 12 1722 2415 175 39 18.958984 ees2 1 11 0 0 0 1921 796 182 90 -1 3 1 11 1 0 0 1921 796 182 90 -1 4 1 11 1 1 0 1921 796 182 90 -1 5 1 11 1 1 1 1921 796 182 90 95.000000 2 1 12 0 0 0 1433 926 421 48 -1 3 1 12 1 0 0 1433 926 421 48 -1 4 1 12 1 1 0 1433 926 421 48 -1 5 1 12 1 1 1 1433 955 72 19 95.000000 5 1 12 1 1 2 1762 926 92 20 95.000000 2 1 13 0 0 0 1991 1018 75 69 -1 3 1 13 1 0 0 1991 1018 75 69 -1 4 1 13 1 1 0 1991 1018 75 69 -1 5 1 13 1 1 1 1991 1018 75 69 95.000000 2 1 14 0 0 0 1922 1263 180 218 -1 3 1 14 1 0 0 1922 1263 180 218 -1 4 1 14 1 1 0 1922 1263 180 218 -1 5 1 14 1 1 1 1922 1263 180 218 95.000000 2 1 15 0 0 0 1818 1864 175 100 -1 3 1 15 1 0 0 1818 1864 175 100 -1 4 1 15 1 1 0 1818 1864 175 100 -1 5 1 15 1 1 1 1818 1864 175 100 95.000000 2 1 16 0 0 0 1937 2180 44 4 -1 3 1 16 1 0 0 1937 2180 44 4 -1 4 1 16 1 1 0 1937 2180 44 4 -1 5 1 16 1 1 1 1937 2180 44 4 95.000000 2 1 17 0 0 0 1937 2187 34 2 -1 3 1 17 1 0 0 1937 2187 34 2 -1 4 1 17 1 1 0 1937 2187 34 2 -1 5 1 17 1 1 1 1937 2187 34 2 95.000000 2 1 18 0 0 0 1937 2200 50 2 -1 3 1 18 1 0 0 1937 2200 50 2 -1 4 1 18 1 1 0 1937 2200 50 2 -1 5 1 18 1 1 1 1937 2200 50 2 95.000000 2 1 19 0 0 0 1676 2453 305 183 -1 3 1 19 1 0 0 1676 2453 305 183 -1 4 1 19 1 1 0 1676 2453 305 183 -1 5 1 19 1 1 1 1676 2453 305 183 95.000000 2 1 20 0 0 0 763 2600 380 52 -1 3 1 20 1 0 0 763 2594 380 58 -1 4 1 20 1 1 0 763 2600 380 52 -1 5 1 20 1 1 1 763 2600 300 52 4.344452 470-586-7810 1640 . FEDERAL TRADE COMMISSION DECISIONS 5. Original or photocopies of :

(a) All annual, quarterly and other reports made by: Maule and its affiliates to their stockholders since J. anuary 1, 1968, (b) All Prospectuses, solicitations or Proxy statements, and statements listing securities filed by Maule, or its affiliates with any state corporation and/or stock exchange since J anuary 1, 1968, (c) All reports and prospectuses submitted by Maule and its affiliates to the Securities and Exchange Commission since January 1968, (d) All documents, including correspondence, internal memoranda, summaries, minutes of meetings, press releases, Teports, surveys, analyses, studies, announcements and writings of any sort, including printed or typewritten matter, made by, made for, or in the possession of Maule, or any subsidiary, affiliate or stockholder, or any agent acting on behalf of any of them, referring in any way to: (1) entry or expansion by Maule into new product lines or hew marketing areas—into the Orlando,. Florida SMSA, particularly (defined by the Bureau of the Budget as encompassing Orange and Seminole Countries) —at any time during the past five years, or in the future;

(2) Maule’s market share, rank, or position with reference to the sale and distribution of portland cement, ready-mix, aggregates, and concrete products in any geographic market during the past five years or in the future; .

(3) general studies, Surveys, and analyses of the portland cement, ready-mix, concrete product, or aggregate industries within the geographic marketing area of Maule, during the past five years or in the future.

(4) the most recent brochures and catalogs describing and illustrating all products manufactured or distributed by Maule. 6.(a) Identify and locate each Maule plant manufacturing portland cement, ready-mix, aggregates or concrete products, showing the yearly capacity of each in barrels, cubic yards, tons and other appropriate units for the year 1970.

(b) Identify and locate each terminal and/or storage facility of Maule for portland cement and concrete products, together with the storage capacity of each, in barrels and other appropriate units, respectively, for the year 1970.

7. For each portland cement, ready-mix and concrete products producing’ plant operated by Maule, during the period January 1, 1968 to date, submit the following:

(a) Location, yearly rated capacity, and detailed description of the geographic area, by county, into which shipments were made; (b) The production of portland cement, ready-mix, aggregates and concrete products in barrels, cubic yards, tons and other appropriate units for each of the years 1968 and 1969;

10. Provide copies of any agreement, understanding, or condition between Maule and Burnup & Sins, or anyone acting on behalf of them, relating to ( 2) Burnup & Sims purchases of portland cement from Maule, and (b) any purchased by Maule from Burnup & Sims. If such agreement, understanding, or condition is not in writing, describe its terms in detail.

With regard to Burnup & Sims, we also need to have the following and ask that either you provide it or that you request Burnup & Sims to send it to us direct :

1. Amount and percentage of Brevard County’s annual consumption of ready-mix supplied by Burnup & Sims from January 1, 1968, to the present.

2. Amount and percentage of Brevard County’s annual consumption of conerete products supplied by Burnup & Sims from January 1, 1968, to the present.

3. The amount and percentage of Brevard County's annual consumption of cement consumed by Burnup & Sims from January 1, 1968, to the present.

Your submittal of this additional information will facilitate our further consideration of your request.

Very truly yours, Josrry P. Dur RESNE, Attorney, Office of General Counsel.

Supplemental Letter of LPeequest Decemsrr 11, 1970 Dear Mr. Durrrswy :

Ienclosed is completed FTC Form B and Supplement No. 1. Relative to the relationship between F erred Industries, please be advised that Ferre Florida Corporation, a real estate operating company, is the parent of Maule Industries, Ine. Ferre Florida Corporation is not involved i cement or building materials in any manner, It is owned in total by the Ferre family who also have approximately 65% control of Puerto Rican Cement Company with mills at Ponce and San Juan, Puerto Rico. , T hope the enclosed information is sufficient to get an opinion from the Federal Trade Commission relative to the Burnup & Sims proposed acquisition. If other information ig needed, we will comply immediately.

Very truly yours, Mave Inpusrrig, Inc., (S) AL. Sarrer, Executive Vice President, General manager. Spee ene i “Budget Bureau ‘No. 56- R eee va Eapines, September? 380; s BE mandato Funder | the. authority! ‘of omission. a5 U: 8. C: A6) FEDERAL TR DE COMMISSION WASHINGTON,5 1 9 1 2 2 1300 520 74 34 80.479881 D.C.5 1 9 1 2 3 1414 516 102 53 65.804344 20580.4 1 9 1 3 0 1048 565 398 57 -1 5 1 9 1 3 1 1048 570 197 52 18.779289 SPECIALS 1 9 1 3 2 1260 565 186 46 82.673775 REPORT:2 1 10 0 0 0 572 576 1424 203 -1 3 1 10 1 0 0 572 576 1424 179 -1 4 1 10 1 1 0 572 576 1382 131 -1 5 1 10 1 1 1 572 668 16 35 9.141418 ie5 1 10 1 1 2 599 615 316 92 91.148918 INVESTIGATIONS 1 10 1 1 3 938 634 51 45 95.049347 TO5 1 10 1 1 4 1001 608 276 68 0.000000 (EERECTUATE5 1 10 1 1 5 1299 608 305 63 91.564156 ENFORCEMENT5 1 10 1 1 6 1585 624 24 26 80.095306 T5 1 10 1 1 7 1631 581 148 77 68.631554 POLICY5 1 10 1 1 8 1778 576 140 71 48.062485 with5 1 10 1 1 9 1951 643 3 2 17.734390 !4 1 10 1 2 0 627 651 1369 89 -1 5 1 10 1 2 1 627 695 211 45 63.375813 RESPECTS 1 10 1 2 2 850 697 66 28 46.446056 TO.5 1 10 1 2 3 936 680 203 52 88.426888 VERTICAL5 1 10 1 2 4 1174 669 149 50 88.426888 MERGES 1 10 1 2 5 1410 672 70 32 13.920631 IN:5 1 10 1 2 6 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95.000000 2 1 36 0 0 0 596 1724 1366 115 -1 3 1 36 1 0 0 596 1724 1366 115 -1 4 1 36 1 1 0 596 1724 1366 115 -1 5 1 36 1 1 1 596 1752 874 87 95.000000 5 1 36 1 1 2 1045 1724 917 81 95.000000 2 1 37 0 0 0 566 1736 68 65 -1 3 1 37 1 0 0 566 1736 68 65 -1 4 1 37 1 1 0 566 1736 68 65 -1 5 1 37 1 1 1 566 1736 68 65 95.000000 2 1 38 0 0 0 1201 1810 205 69 -1 3 1 38 1 0 0 1201 1810 205 69 -1 4 1 38 1 1 0 1201 1810 205 69 -1 5 1 38 1 1 1 1201 1838 68 40 0.217598 Ders 1 38 1 1 2 1268 1810 138 69 73.918304 INITIONS2 1 39 0 0 0 1423 1842 51 19 -1 3 1 39 1 0 0 1423 1842 51 19 -1 4 1 39 1 1 0 1423 1842 51 19 -1 5 1 39 1 1 1 1423 1842 51 19 95.000000 2 1 40 0 0 0 1468 1845 498 77 -1 3 1 40 1 0 0 1468 1845 537 77 -1 4 1 40 1 1 0 1468 1845 498 77 -1 5 1 40 1 1 1 1468 1866 63 52 72.276184 thes 1 40 1 1 2 1542 1860 105 62 59.663998 whole5 1 40 1 1 3 1653 1880 116 33 15.777725 or-any5 1 40 1 1 4 1780 1878 67 32 62.177170 “parts 1 40 1 1 5 1859 1874 35 27 13.613510 ‘of5 1 40 1 1 6 1887 1845 2 2 0.000000 f5 1 40 1 1 7 1916 1847 50 57 53.486320 the2 1 41 0 0 0 617 1869 1455 110 -1 3 1 41 1 0 0 617 1869 1455 96 -1 4 1 41 1 1 0 617 1869 1446 96 -1 5 1 41 1 1 1 617 1914 12 3 0.000000 -5 1 41 1 1 2 643 1881 277 84 66.118950 ‘ACQUISITION:5 1 41 1 1 3 941 1904 155 42 77.730499 Acquiring5 1 41 1 1 4 1103 1874 132 64 18.974106 “directly5 1 41 1 1 5 1255 1908 31 19 96.463486 or5 1 41 1 1 6 1304 1869 151 73 52.710247 indirectly5 1 41 1 1 7 2058 1896 5 2 52.286934 :4 1 41 1 2 0 1687 1908 385 71 -1 5 1 41 1 2 1 1687 1927 29 22 36.418591 e5 1 41 1 2 2 1718 1922 30 46 96.966805 of5 1 41 1 2 3 1734 1977 2 2 50.663639 f5 1 41 1 2 4 1762 1908 202 69 22.968864 residy-mnixed5 1 41 1 2 5 1977 1920 8 8 28.059708 co5 1 41 1 2 6 2070 1915 2 3 36.904430 ae2 1 42 0 0 0 607 1920 1457 559 -1 3 1 42 1 0 0 607 1920 1457 535 -1 4 1 42 1 1 0 641 1920 1044 90 -1 5 1 42 1 1 1 641 1962 136 48 1.596825 stock:5 1 42 1 1 2 788 1971 42 20 88.656898 or5 1 42 1 1 3 838 1959 91 28 88.656898 assets5 1 42 1 1 4 944 1956 33 26 74.336548 of5 1 42 1 1 5 997 1960 58 24 88.183449 any5 1 42 1 1 6 1074 1948 141 33 91.695282 company5 1 42 1 1 7 1237 1939 137 36 55.336540 engaged:5 1 42 1 1 8 1382 1935 38 46 40.634705 in.5 1 42 1 1 9 1423 1930 58 53 89.091187 ‘thes 1 42 1 1 10 1499 1920 186 63 23.487488 manufactur4 1 42 1 2 0 666 1982 805 62 -1 5 1 42 1 2 1 666 2010 3 2 13.906853 ;5 1 42 1 2 2 689 1995 141 49 59.939941 concrete,5 1 42 1 2 3 839 1998 138 33 87.052467 ‘concrete5 1 42 1 2 4 989 1992 147 37 93.098434 products,5 1 42 1 2 5 1152 1996 31 18 78.040138 or5 1 42 1 2 6 1194 1982 190 35 25.597221 aggregates.5 1 42 1 2 7 1423 1982 48 14 10.438751 00 REPORTING COMPANY: The reporting company ‘is. the company: 46: “which” ; this: form is addressed; the reporting: company. is’ yeaponsible’ for providing all Be “© of the information requested, including information’ for.subsidiaries. ee RE SUBSIDIARIES: This report should: include the yeporting company. “and all cele ‘domestic subsidiaries.in which the repor ting company and/or subsidiaries owned. 50. percent: or more of. the outstanding voting stock, ' and which. were engaged -.. “in the manufacture or distribution of: portland comment, ready mixed eonorete, aggregates or. concrete products.

DOMESTIC: Consists of the 50 States, vervitories, and possession © of the United ; States, ‘and. Puerto Rico: Loh tieey ATES TE : es i ESTABLISH MENT: An establishment is defined for the purposes of this report as a single physical location where industrial Operations are performed, where business is conducted, or where Services are rendered. Examples of establishments are ready-mixed concrete production facilities, sales offices, ete. PORTLAND CEMENT: Includes Types I through V of portland cement ag Specified by the American Society For Testing Materials (ASTM). Neither masonry nor white cement is included.

READ Y-MIXED CONCRETE: Includes all concrete manufactured and delivered to a purchaser in a plastic and unhardened state. Ready-mixed concrete includes central-mixed concrete, shrink-mixed concrete and transit-mixed concrete.

AGGREGATES: Includes sand, gravel, and stone. CONCRETE PRODUCTS: Includes concrete brick and block, concrete pipe, and precast and prestressed concrete products. 1. Name and ‘Address of Maule Industries, Ine., ; Miami, Florida Reporting Company: (Name) (Address) 2. Name and Address of Burnup & Sims, Inc., West Palm Beach, Florida Acquiring Company: (Name) (Address) (If acquisition is to be made by a subsidiary of the reporting company, be sure to enter name of subsidiary making acquisition). 3. DESCRIPTION OF COMPANY TO BE ACQUIRED: a. Name and address: None ___-.- Production assets of Burnup & Sims at Melbourne, City Point, and Micco, Florida; ;

b. Date Acquisition to be consummated: Dependent upon clearance by F.T.C. Indicate the percent of stock to be acquired: Physical assets only. Indicate the percent of total assets to be acquired if acquisition of assets: All physical assets excepting transit mix trucks. Describe assets to be acquired: Aé Melbourne: All on leased property, Concrete Batch, Plant, Block machines (2), Warehouse Lease, Aggregate Loading Equipment, Block Delivery Equipment, Dry Goods Delivery Trucks; At City Point: Conerete Batch Plant and five acres of land. At Afteco: Portable concrete Batch Plant on Leased Land. c. Cost of acquisition: $384,000. The dollar consideration, including cash and the value of stock transferred and other financial obligations assumed by the reporting company.

d. Describe principal business activity of company to be acquired as of the date of notification (e.g., manufacturer of ready-mixed concrete, aggregates, etc.). Production and sale of concrete and block and purchase and sale of dry butlding materials. oS e. Attach certified copies of Profit and Loss Statement and Balance Sheets of the company to be acquired for the 3 years prior to the date of notification. See attached. .

4. ASSETS: . , Report total assets of the company to be acquired as of date of notification $384,000.

(Roport in dollars; omit cents) If total assets reported are of different date specify date September 30, 1970. (Month) (Year) ADVISURY UPFLNLUING Wasee seme 5. GROSS RECEIPTS:

Report gross receipts from operations of company to be acquired during the twelve month period prior to date of notification Year ended April 80, 1969: $1,568,422.

Tf data are reported for different period, ‘specify year for which data are reported: Year beginning ------------ and ending Year ended April 80, 1970, $1,480,112. $ Months ended July 31, 1970 $361,456. 6. SHIPMENTS TO CUSTOMERS:

Report shipments to customers from domestic establishments of company to be acquired during twelve month period prior to notification. (Report combined figures for all domestic establishments.) If data are reported for different. period, specify year for which data are reported: Year beginning Ween ee enone and ending ------------a. Ready mix concrete: 48,800 yards $850,000. (Number of cubic yards) (Delivered value in dollars) b. Concrete products: $1,01 0,000 Block and Concrete. (FOB value in dollars) c. Aggregates: $ None.

(Delivered value in dollars) 7, ESTABLISHMENTS OF COMPANY TO BE ACQUIRED: , ; Description of establishments owned or operated by company to be acquired during twelve month period prior to notification. a. Ready-mixed Concrete and Conerete Products Manufacturing Establishments. Report in the manner indicated, the information requested on consumption of portland cement for each establishment of the company to be acquired which manufactured ready mix concrete or concrete products during the twelve month period prior to notification. If information is .reported for a different period, specify year for which data are reported: Year beginning ------------ and ending ------------- Portland Cement Consumption During 12 Months Prior to Notification Barrels of 376 pounds Purchased from Total acquiring _ Name and address of establishment consumption company Melbourne, Florida, Concrete & Block.------- §8,000 ------------ City Point, Florida___------------------777 None ------------ Micco, Florida, Poriable Batch Plant--------- 18,000 ~----------b. Report name and address of each portland cement supplier, including the acquiring company, and the amounts purchased during the twelve month period prior to notification. ;

Location of plants (terminals) Barrels from which - Name and address purchased shipped January 1 to August 31, 1970: General Portland Cement Co__---------------7--7 0777007077 §3, 748 .----------- 1969: :

General Portland Cement Co__----------- 81,810 _----------= Ideal Cement Co_.----------------7-7777 2, 883 _----------c. All other establishments of company to be acquired: Name and address of establishment, principal business activity. Burnup & Sims. Contracting business in ihe United States and Caribbean Islands. Proposed disposition is total and only concrete and concrete products establishments of Burnup & Sims in the United Siates. 8. GEOGRAPHIC AREAS:

Report in the manner indicated the geographic area, including the names of counties, in which the company to be acquired sold its products during the twelve months prior to notification.

a. Ready-mixed concrete Brevard County, Florida, only b. Concrete products Brevard County, Florida, only c. Aggregates: None.

9. COMPETITORS:

teport the names and addresses of the competitors of the company to be acquired for the twelve months prior to notification. a. Ready-mixed Concrete: Linker Materials, Melbourne, Cocoa, Rockledge, Titusville, Florida. Dixie Conercte, Cocoa, Florida. : b. Concrete Products: Same as a.

c. Aggregates: None.

ee 10. CERTIFICATION:

This report. was prepared under my direction and is true and correct to the best of my knowledge.

A. L. Sattee December 9, 1970 (Signature and title of company official) (Date) Executive Vice President and General Manager Subscribed and sworn to before me at the City of Miami, State of Florida, this 9th day of December, 1970.

Eleanor 8. Fecci Notary Public Notary Public, State of Florida, at Large. My Commission Iexpires March 28, 1972.

My Commission Expires _._22_ Person to contact, if necessary, regarding this report: Mr. A. L. Sattee Miami, Florida 305-377-8941 (Name) (Address) (Telephone Number) This Report IS REQUIRED BY LAW. It Budget Bureau No. 56~ R-0024 mandatory under the authority of the . ‘ Federal Trade Commission (15 U.S.C. 46) Approval Expires September 30, ‘Supplement No. 1 To FTC Form B (1-69).

SIXTY (60) DAY NOTIFICATION OF ACQUISITION OR MERGER 1. Name and address of Reporting Company: Maule Industries, Ine.

(Name) 100 Biscayne Boulevard, Miami, Florida 33139 (Address) :

2. Name and address of acquiring Company: Burnup & Sims, Ine.

(Name) West Palm Beach, Florida (Address) :

(If acquisition is to be made by a subsidiary of the reporting company, be sure to enter name of subsidiary making acquisition.) ADVISORY OPINIONS WITH REQUESTS THEREFOR 1647 3. Name and address of company to be acquired: (Address) 4. Date of Agreement (if any): Dependent upon clearance by F.T.C. b. Indicate type of acquisition: Physical Assets Only. (Stock or Assets) 5. Company to be acquired is engaged in the production of: a. [X] Ready-mixed concrete.

b. [X] Concrete Products c. [ ] Aggregates. (None) d.[ ] Other___ 2 ---_-2 eee A. L. Sattee, December 9, 1970 (Signature and title of company official) (Date) Executive Vice President, and General Manager Supplemental Letter of Request Novemper 9, 1970 Dear Mr. Durresne: .

In accordance with our telephone conversation of this date, please be advised that you may proceed as described in Part 1.4 of “General Procedures”, relevant to public disclosure. Very truly yours, Awnprew L. Sarrer Letter of Request SEPTEMBER 30, 1970 Dear Mr. Sura:

We are seeking an opinion regarding a contemplated acquisition by Maule Industries, Inc.

As of April, 1970, Maule Industries is a cement producer with a new mill at Miami, Florida, producing ata rated capacity of 2.4 million barrels per year. This mill was primarily constructed to supply Maule Industries’ operations in ready-mix and other concrete products which the Company has been selling since 1920.

All of the cement production at this time is going into Maule or Maule-associated operations, primarily in the ready-mix and block producing plants.

Prior to the construction of the mill, Maule had been attempting to establish itself in concrete producing markets further North in Florida as well as in the Orlando area. We had, to that extent, been negotiating with a company called Burnup & Aims in Brevard County, Florida, with plants at Melbourne and City Point in that county. Since 194K 470-536—73——105 1648 FEDERAL. TRADE COMMISSION DECISIONS we have been negotiating on and off with the Burnup & Sims corporation but had never concluded an agreement due to differences in our opinions as to valuation of the operations. Burnup & Sims has in the last two years become a public corporation, over the counter, and has specialized in construction work and diversified into CATV, during which time they have been in contact with us to sell to us their last remaining concerte operation, 1.e., the Brevard County plant.

To the best of our knowledge, Brevard County is serviced by three concrete-producing firms: Rinker Materials, considered the largest producer of concrete in Florida, and operates four plants in Brevard County; Dixie Concrete, a small producer operating in Cocoa, and Burnup & Sims operating only in Melbourne with a dormant plant at City Point, Florida. Consequently, the main plant that we are interested in, the Melbourne plant, is in an area serviced by only one other producer, Rinker Materials. Were Burnup & Sims to close the Melbourne plant, there would be only one remaining plant. Burnup & Sims purchases 100% of their cement requirements from the Florida Portland Cement Company and has purchased at least 95% of their cement requirements from the Florida Portland Cement Company since 1963. The cement purchases by Burnup & Sims runs about 50,000-80,000 barrels per year.

Maule is now in serious negotiation with the Burnup & Sims Company wherein we would expect to acquire their Brevard plants, i.e., the Melbourne plant and the inactive City Point plant. We would, of course, then use our own cement in producing ready-mix and block in this new operation, and the operation will continue to use the Mauleproduced aggregate which we have been selling to them for many years.

_ Maule is a Florida-based corporation, manufacturing and selling its products only in the State of Florida and specifically the southeastern portion of the State. We wish to acquire this Brevard County operation which is as I have related above, one that we have been negotiating for since 1965.

We would very much appreciate your opinion as to whether we would be within the confines of the Federal Trade Commission rulings in acquisitions such as this.

Very truly yours, Mave Invvstriss, Inc., (S) A. L. Sarrer, Executive Vice President, General Manager. ADVISORY OPINIONS WITH REQUESTS THEREFOR 1649 Proposal To Provide Packages of Food and Grocery Products With Slide Projection Advertising of Their Products in Retail Outlets (File No. 713 7022) Opinion Letter Marcw 12, 191 Drar Mr. Casu:

This is in further response to your request, of October 28, and December 19, 1970, for an advisory opinion on behalf of your client, Projected ’Adver tising Network, Inc., concerning its proposal to provide packagers of food and erocery products with slide projection advertising of their products in retail outlets. As the Commission understands your submittal, your client proposes to install display devices capable of exposing 140 photographic slide advertising messages at fixed intervals in retail outlets. Supplieradvertisers w ily purchase advertising space on a slide package and, in turn, your client will reimburse participating retailers on the basis of “the number of transactions and dollar volume per store during a specified period as that volume is determined by the industry standards.” The plan contemplates utilization of projection equipment of.a type useable in various retail outlets and an appropriate alternative for those outlets, which for practical business reasons, are unable to participate in the primary program.

The Commission has given careful consideration to your request and has concluded that implementation of the promotional program by your client in the manner described by your correspondence would not warrant a proceeding under the laws it administers, providing the following conditions and caveats are observed: 7 1. Since the proposed promotional assistance plan calls for your client’s performance of certain obligations which are normally performed by suppliers, Guide 13 of the “Guides for Advertising Allowances” (see enclosed copy) must be complied with by your client and by all participating suppliers.

2. Since some products sold by retailers of food are also sold by non-grocery store outlets, the proposed promotional assistance plan must be made available to all retail outlets, whether grocery or nongrocery in nature, which may be competitive in the resale of a participating supplier” S products.

3. Since it is unlikely that all retail outlets in 4 any trading area will sell the products of all participating suppliers, participating retailers must be given the prior opportunity to prohibit the advertising of a product not offered for sale in their stores. 4. Since the Commission cannot now know how the proposed plan will operate in fact, your client is directed to submit a written report to the Commission within six months after institution of the program, indicating the manner and extent to which it is being implemented. You are further advised it is the Commission’s view that your client, as the promoter of the subject promotional assistance plan, must make it clear to each supplier and each retailer that even though Projected Advertising Network, Inc., has been employed to implement the plan, it remains the supplier’s responsibility to take all reasonable steps so that each of his customers who competes with another in reselling his products is offered either an opportunity to participate in your client’s plan on proportionally equal terms or the appropriate alternative if the customer is unable, as a practical matter, to participate in the primary plan; if not, the supplier, the favored retailer and your client may be acting in violation of Sections 2(d) or 2(e) of the amended Clayton Act and/or Section 5 of the Federal Trade Commission Act. By direction of the Commission.

Supplemental Letier of Request December 19, 1970 Dear Mr. McMann:

Thank you for your letter of November 30, 1970 with reference to Projected Advertising Network, Inc. In response to the inquiries made on page two of your letter please be advised as follows: 1. We believe, as set forth in our request for an advisory opinion under the heading “mechanics” that the projector-screen is functionally usable by all retailers regardless of size. However, in those instances where it is determined that there are retailers, who for practical business reasons, are unable to participate in the proposed program, a proportionately equal alternative promotional program will be made available by furnishing those retailers with photographic prints or color slides of the transpar encies provided to us by the advertisers.

2. All retail store outlets, whether grocery or non-grocery in nature, selling competitive products will be offered the same program. I believe the foregoing answers the inquiries set forth in your letter and I trust that an advisory opinion may now be rendered. I would appreciate hearing from you so that I may advise my client when he might look forward to receiving the opinion. Thanking you and wishing you the best for the holiday season. I am Sincerely, (S) Aperr D. Casz.

‘The. , undersigned ereb rsuant to: “the: Federal: Trade: omni is i pu hy ADVISORY SUR Navet every pinion in 1 connection will y cpeqtiest an advisor jon . and the proposed ‘course of ‘action. is not < biect: of a: “pending inves ing: party and. is not: the: ‘sul I he Commission « or any: other: ‘governmental agent l mas whe propos i sing Network In 1 plan 3 in . the ‘grocery field. The ;

kagers: of: food. and: ocery.

ot : “the alee location ‘woul be : ~ manager § so as to ‘obt:

such, practical consideration shelving plac 14 x 28° 14’’. for. projection in the case of the smaller oe" to 20’: from: the screen in jarge Ss ain the largest possible au : ay: pertain ‘to: ‘the ement and traffic: ow. The projector. ‘ onto: the: 40" x. 40!” screen down to: 1 Aq st screen: The: projector willbe: located at a . distance: 0: stores and. at: lesser distances. in the: case. of : on common: household. current. ‘Because of smaller § ‘stores. The projector operniee ¢ operate, install and continually se t e desiring the services of the applica Tone ner or m; nager the-applicants would Se ee Und: Blue rvice the equip- ‘given the opportunity roducts not sold in the store more fully set forth herein.

Lcan H eAeD Tes If the advertiser desires _ 214" X 2%"' color trans.

riod as that volume is determined by the industry standards ‘on transactions per. store, th Smaller’ retailer will reeach stores stallation and ervicing of | 0 of: ‘th -adyvancem nt yf: th existing: equipment that: :

therefore ‘gunctionally :

projection. is’ $ ize. The proposal | is:

now. ssmall a. grocery. store: may. hee every grocery. s aS available | to: all: competing customers. No. matter, ne that would. not necessary | space requi stated ‘above ‘becaus uch” ‘today. “there ‘is:

store: “regardless: of 's This is with por seteserios: to your eque’ reconsideration oft the dreory op ion 1

ADVISORY. OPENIUN omaren seyret:

- information as a they desire | on the cover 0 ‘the charge | either to. those “who have their owl tra he: rubber stamp. | ould be offered agazine srbieh the} | use oting- products peculiar t to th themselves of this option, h ”

he | ie artwork — ~ mark symbol 0 or : Additionally, : all participati option « of a page in the body of the m ce ich popes | as they | desire in prom her Tn order f to avail 2m ‘a practical bus ines - would, ‘at the request, 0 the parti plied by him in the form of an. ad mat: other. description, printa black and white page to. ‘promote products. or to convey an advertising message of the participants, which page would be printed and inserted es eS in the. requesting participan nts’ sopi 2 of the magazine by} In-Store at itsown expense. : as On the basis of the jnformation mission qs of the opinion that impl manner outlined would not warrant oe laws administered by the ‘Commission.

The Commission believes, however, pliers ‘against including “special” offers, for a particular. pro - plied by. In-Store, the Co jeatation ‘of the plan in the initiation: of proceedings ' der hat’ you “diol: caution sup> such as ‘redeemable coupons duct, in ‘their. ‘advertisements. ‘This, because re- — rly i in the ae sellers not stocking ‘such products would be ple impropes - position of promoting ‘such. products... ne _ Also, since the Commission - cannot ‘know now how the ‘proposed = plan will oper ate in fact, your. client is directed to submit awritten > me report | to the Commission Six’ months: after institution of the program, ee aS : indicating the to which it is being implemented. = e manner. and extent ae You are. furthe - advised jt is the. -Commission’s ” vi cS promoter of the promotional plan, Tn- Store must make ‘dear to. each.

supplier and each retailer that even though In-Store has ‘been employed to implement the plan, it remains all reasonable. steps so ‘that each o:

Oe another i in reselling the supplier’s pro : tunity to participate in the plan | 2 suitable alternative. if the customer! -- to participate in the primary plan me and In-Store may be acting in Violat - amended Clayton Act and/or Section mission Act.

; y direction of the Gommission.

th, supplier’s responsibility totake s. customers ‘who. competes - with | a yducts is offered either an pporroportionally equal terms or Bo s unable as a ‘practical matter f not, the supplier, t retailer.

of Sections 2 (d) or e) 5 of the F Federal Trade Col Letter of Request January 15, 1971 participating manufacturers and suppliers will have no control over the style and content of the magazine nor the policies and practices of ISP. It is anticipated initially that the magazine will focus on advertisements of consumer products such as bread, milk, cereal, canned goods, soap products and the like which are customarily sold in retail food outlets, In addition to consumer product advertisements, the magazine will contain a complete seven-day television schedule, syndicated columns, and feature articles of particular interest to Shoppers which will change weekly with publication, “TV PLUS” magazine will be made available weekly to all participating retail outlets at no charge on the basis of one magazine for each $1000 of gross annual retail sales in the New York Metropolitan area, The only obligation placed upon such outlets will be to distribute the available supply of “TV PLUS” magazines free In view of the large number of retajl outlets in the New York Metropolitan area that may be eligible to receive “TV PLUS” magazine, ISP proposes to employ a variety of methods of notification as to its availability, First, it intends to urge participating advertisers to _ ADVISORY: DPINUNE.: Wanne mmm .

oS notify all their ‘competing ‘customers of ‘the: availability ‘of STV. PLUS” magazine in their various sales. flyers and bulletins: which are — : > retail outlets. Secondly, ISP. proposes to. enter. é a ilers and wholesalers - serving istribution of the magazine : independent retail:

in the New York to give ‘notice of: the.

= distribute magazines: to Pe pandeat retailers ‘and who § oe ( > distribute the magazine to the consuming. public will: : uted. to: the: independent retail customers. S ginning of each quarter.

to publish at the be;

lation. among. retail outlets: in : Thirdly, ISP. ‘proposes ae _ notice: gn trade papers of general circu oe _the Metropolitan New. York area ‘such. as «Supermarket News” and “Progressive Grocer.” A sample form of the. notice to be published i is : attached ‘as Exhibit “A”. To determine t the efficacy of this notice, Isp will from time to time by telephone. and personal contact, conduct spot checks to determine if’ actual notice is being received: by a ~ outlets. Finally, ISP proposes: to publish in each issue of “ ‘TV PLUS’ magazine a notice indicating. the availability of the magazine to retail ce outlets in the: ‘New York: Metropolitan; area. Upon ‘being notified that.an. individual: retail ce wry PLUS? m magazine, ISP. willsenda letter (Exhibit: «B”) outlining: all of the relevant details as to the. availability ‘of the magazine. To: ase sure that ‘the proper yumber of magazines ° will be distributed by” 18: is ‘accordance with the plan: and to a gazine is actually being | { P will require the retail outlet: t initially, and from to certify to ISP in writing the amount of his “py PLUS” magazines actually.

ed form of certification ae time to time teeter, annual retail sales and the number of - distributed to the: public. ‘A copy of the propos is attached ‘as ‘Exhibit © WTOP will then. mail ie outlet: no later than’ Thursday} ber of ‘copies to the retai L week in which the. magazine is to be. disseminated | to the: pub onde - jiver them no after than the following Monday. ~ With respect to rmulti-outlet retailers’in the New York Metropslitan ‘ oe oe area, ISP proposes fo negotiate and to enter: into agreements with'such =~ te retailers providing for th s & distribution by them of “TV PLUS” maga-" ae gine to each of their retail ow cS tlets in the area. ISP. will del iver ‘the. ae requisite number of magazines to the ‘retailer’s: warehous and in: turn for receiving the magazine, the retailer will agree to (a): ‘distribute the magazine to: each of its retail stores in the: Metropolitan ere New York area, and (b): cert the number ‘of magazines ofeach issue: distrib during each week of the he apreemen*! and provide: ify. to ISP: distribution figures. showing ated by. each of its stores.

st other information oe.

pertaining to the distribution of the magazine as may be reasonably requested by ISP. A specimen copy of the proposed form of Agreement with multi-outlet retailers is enclosed as Exhibit “D”, Likewise, ISP proposes to enter into agreements with wholesalers serving independent retail outlets in the Metropolitan New York area whereby they will agree to (a) distribute “TV PLUS” magazine to each of the retail stores they serve in the area, and (b) certify to ISP distribution figures showing the number of copies of each issue distributed by each of their stores during each week of the agreement. In return for performing these Services, the wholesaler will be entitled to receive an allowance of 14¢ from ISP for each magazine distributed, | While it is not possible to predict with accuracy the exact number of “TV PLUS” magazines which will be required to supply retail outlets in the Metropolitan New York area, ISP proposes to evaluate at the end of each quarter of operations the number of magazines needed and to take steps to provide the necessary copies in the subsequent quarter. . Based upon an investigation of printing facilities available for the New York Metropolitan area, in the first quarter of operation ISP will initially be able to distribute up to 2 million Magazines weekly. ISP is prepared to expand the number of magazines available in subsequent quarters. It is anticipated that by the third quarter of operation ISP will be able to distribute approximately 4 million magazines weekly, and that within a twelve to eighteen month period it will be able to distribute substantially more copies of “TV PLUS” magazine if necessary. In the unlikely event there are insufficient numbers of maga- _ zines available in a quarter, ISP will add an appropriate number of copies to the retail outlet’s entitlement of magazines in subsequent quarters, The format and contents of “TV PLUS” magazine will be the same for all] participating retail outlets although the following options are available. For those outlets, regardless of sales volume, which have at no charge a separate cover page bearing the logo and/or trade name identification of the retail outlet. Similarly, retail cooperatives and associations of independent retail outlets with their own logo or dismembership.

Although the format of the cover page will vary for each participating retail outlet. with its own logo or trade name symbol, aside from magazine ae ADVISOR’ OPINIONS © Watse seer oe “gill ba: no o commercial messages print on the & cover + which will be of f ee a es penefit to the retail outlet. | For retail outlets without their own toes: or. distinctive ‘trade ane Bae a symbol, ISP will make available at its expense a rubber: stamp which S : ased by ‘such outlets personalize copies. of “TV: PLUS” : S “store. hours, prin pal products, 1.¢ “fresh meat,” “Fresh milk and . eggs,” € etc, A ‘promin it place. will: be provided or on: 2 the: cover, of the magazine for the retailer to place the stamp. © _ As a second option, ISP will also offer -qreekly. to 5 all participating - retail outlets. one page of the whatever. information the ‘retail outlet. desires such as a private label . advertisement. If the’ outlet. desires ISP to print the page,’ oe provide: at its” ‘own. ‘expen the plate and other layout. and artwork Be 2 ; NE participate on the same basis.

- distributed to consumers In their: stores. The stamp: may ae contain.” whatever 4nformation the: retail: outlet. wishes within mum of four Tines,. including store name, address, telephone number, ae 1agazZine: -which-may - ‘be used to print — wd it must ee oe “material ‘required. Retail cooperatives and associations of independent ee & retail | ‘outlets who desire to avail themselves of this page may also “Wor individual retail outlets. unable as a “pelle soatier to provide os the necessary printing - material, Is will print, based on information oe supplied by the. retailer in the form a separate page in black and white which will be placed by ISP in the: copies of “Ty: PLUS” magazine t to: which the retail: outlet is entitled prior to delivery. ‘This page may contain whatever informa- = ‘tion the retail: outlet, desires, ‘including. weekly specials, ‘store hours, ee ete.; , provided it isin good. taste and in keeping with the overall quality : of the magazine. In addition, in lieu of the page printed by ISP for yf an ad mat or other description, — = oS retail: outlets furnishing their own plate and artwork, the “I'V PLUS” : ae magazines: avai able to the i individual | retail outlet will: also have Be : page devoted oa 1 weekly publics servi c) announcement. ~ Conelusion “ISP. submits “that. ‘its can amended plan, if ‘implemented. in. the manner. outlined herein, will not violate any ofthe statutes. ad- _ ministered by the Federal Trade Commission, including | Sections 2 (d) - = and (e). -of the Clayton - Act, as amended, and Section. 5 of the FE »deral Trade Commission - Act. ee «py PLUS”. magazine will be made ‘available to all participating retail outlets in the New York Metropolitan area on pr roportionally equal: terms, i.e. one ‘magazine weekly for each $1000. of annual retail = ~~ gales by the outlet in the area. ‘Thus, the requirements of Guide 7 of the “as Commission’ Ss. Guides for Advertising: Allowances and Other Merae chandising. Payments and Services wil) be met. Retail outlets in the New York Metropolitan area will be notified of the availability of the magazine in compliance with Guide 8 through ‘personal solicitation by participating advertisers, personal contact by ISP, notification by wholesalers serving independent retail outlets, by publication in the magazine itself, and by publication at the beginning of each quarter of an appropriate notice of the magazine’s requirements of Guide 9 will be met.

With regard to Guide 13, Example 3, of the Commission’s Guides, it is important to emphasize that retail outlets are not required to purchase from any of the suppliers who advertise in “TV PLUS” maga- ISP considers it unlikely, however, that any retail outlet will be ‘distributing magazines bearing advertisements of products not being stocked and sold since the kinds of products advertised will be those customarily found in the kinds of retail outlets interested in the magazine. Every effort will be made to avoid any instance where the retail outlet may not be carrying all of the products advertised in the magazine. Indeed, ISP. assures the Commission that as the program develops it will do whatever is necessary under the law to meet the objections of retail outlets who may not wish to distribute copies of “TV PLUS” magazine which contain advertisements of products they might not thereafter carry.

It is significant, we think, that ISP insists only that the magazines be given away free of charge to consumers, The retail outlet is not required to perform any kind of promotional activity “. . . as a condition to receiving promotional] payments or services: from the seller... .” There is no requirement, for example, that the retail outlet post stickers or signs indicating the availability of the magazine in the store.

“TV PLUS” magazines will be distributed at the checkout counter as the consumer leaves the store, and will most likely not be looked at until the consumer arrives at home. It is a substantially different kind of activity than in-store broadcasting, for example, which pro- | motes “impulse buying” in the store. There consumers are constantly nitain ‘a host” of features of interest:

nts. Lhe. magazine will contain a co S product advertiseme “day. television schedule, sae columns; fee public service messages which ‘product, ‘promotion.

ISP believ t oducts | sold in the sl sumers, reof t, will be drawn to the | store BORO, a the sity ‘of the magazine ‘at no cos to shop the full range © of the products. ‘available. ISP believes that “eLV PLUS” magazine will benefit apse re nd consumers alike. Suppliers. will be able to advertise their weekly. magazine of wide. distribution at reasonable. ill havea, free, attractive | and usable weekly 1 magazine for distribution to consumers. | will he n informative magazine containing at no cost a se schedule and articles of current interest. : ISP: is not att the eae t time printing ¢ or aisteibuting “ “TV PI T intend | to do so until it receives t the appr al. ‘Since it. cannot commence. opera-.

al, it vee requests | that. this mat f ~ tailers, a Z products. ina Ww! oS “rates. Retailers w available to them given. prompt attention by.

ecordingly, it is ‘respectfully req consider its ear jer advice and approv ige additional information “js dest ired by, : please do not hesita ee subm te _HOWEEY :

the Commins , undersigned : ‘Enclosures of Counsel: :

- JOSEPH J: MoCaxx, J Sry 25 ‘Broadway _ Xow York Y ae “To: ‘pe spustshed: at bth peginning : cirenation in the area.

ree ‘to all retail. outle ets.

“rv PLUS” magazine ¢ a “Tn-Sto, publications, Ine.’ is, offering £ _ Metropolitan area: a: weekly pon eatied © sombining ne are availa 2 INSTORE py Loar _ WESTPORT, CONN. 47 } in which the ‘magazines: are the following Monday. eS om If you have your own store logo or other dis ISP will print the cover of “TY PLUS:

to be distrip uted or delivereq to you no later than... tinctive trade. name identification, :

i e identification, AY Vass : Jom G. ARBOUR, ; President.

“Name of Owner and/or. Owners Name of Supervisor | or Store ¢ Manager:

Name’ and ‘Lopation of. Principal Wholeseler “Dollar. Amount: of Retail ‘Sales. (0 es figures. must = acceptable certificate exeouted. by the. owner or r manager involved.) ~ aoe NGA SE ae :

2.19692 “F970: seas 1971: Breesied - web lguelicesee-cr of the ‘Store vr So eS a : ‘In-Store Publications, Ine.

Al Richmondville - “Avenue: vee .

ies ‘Westport, Connecticut 06880 _ © Dwar, Sirs oe as S This letter, when signed by 3 you; will “sastitute't the Agreement between us. 1... (a) A “0st: to, us; you agree to publish a weekly: magazine ‘(the “Maga- oS zine”) in form and style ‘substantially: similar to” that attached hereto, and ime oso: es . and, commencing -------- =- to deliver. or. if a: holiday. on. the next day not a : : “our: warehouse: at. 22s- 0. later “than. 12: :00 p.m. ‘Each Magazine of each : oo issue shall contain. afr nt. cover. with our name,- store: logo or t! demark: shown. : ae thereon ;: one. “page of which. ‘ghall contain such. information | or: advertisements. Ss: We ‘ghall: provide: you. for. inclusion. in the. Magazine; a: complete: televisi n sched ; ale: for. the seven day: period ‘commencing the Saturday: following: de very;. and : ae feature articles, syndicated columns.

and advertisements, ‘the content and ‘quantity - Ok: which you shall | determine: in.your: sole discretion. 7 ‘Information or. -advertise-”

ae ments. to, be provided by. Us for inclusion in: any. issue: of the Magazine ‘shall be. ee Pie (prepared. and: delivered 1 to. you: at our cost: no rt, later. ‘than: “60..days. prior to the as date. you, are: required to: deliver: that. issue. tous: Tf-we shall. fail.to deliver suc Re ‘information or. advertisements within: the time required, you s ‘shall have: the right a “to use such: space as you in your. sole. discretion shall | determine. It is. agreed that = nee to. ‘us weekly. on the basig ‘of 1 for each m Ane Magazines weekly. on - the Magazine will, be: made available 410-5 36—1 3106 $1000 of our annual retail sales in the New York Metropolitan area, and that we will from time to time at your request report to you our annual retail sales in the Metropolitan New York area in order to determine the number of Magazines to which we may be entitled.

2. At our sole cost, we agree to promptly distribute the Magazines to each of our stores in the New York Metropolitan area and to cause each such store to. distribute one Magazine free to each of our customers from no later than 1:00 P.M. on the Wednesday immediately following delivery until our supply of that issue of Magazines shall be exhausted but no later than the close of business on Tuesday of the following week.

38. Except as otherwise provided in this Agreement, we shall have no control over any material appearing in the Magazine, except that the use of our name or of any of our trademarks shall only be in a manner approved by us. 4. The term of thig Agreement shall run from the date hereof until June 30, 1972 ; thereafter, such term shall be automatically extended for one year periods: unless We shall give you six months prior written notice of termination. You may 5. We will certify to you distribution figures Showing the number of Magazines of each issue distributed by each of our stores during each week of this Agreement and we will provide you with such other information pertaining to the distribution of the Magazine as you may reasonably request. 6. Except ag Stated in Section 9, you shall indemnify and hold harmless us, our successors and assigns, subsidiaries and affiliates from any claim, liability, loss, damage or expense arising out of a violation of any copyright, trademark or patent. :

7. We shall indemnify and hold harmless you, your successors and assigns, Subsidiaries and affiliates from any claim, liability, loss, damage or expense arising out of or claimed to arise out of any information or advertisement submitted or approved by us for inclusion in the Magazine. 8. You or your representatives shal] have the right to enter on our premises and those of our stores to inspect our procedures for distributing the Magazines at such reasonable times as you shall determine. 9. During the term of this Agreement we agree not to publish or distribute a Magazine under our name or that of a subsidiary or affiliate of ours with content Similar to the Magazine. If this Agreement is terminated by either party, we agree not to publish or distribute such a magazine within one year of such termination without first making available to you, on an exclusive basis, the opportunity to publish or distribute such a magazine on terms at least as favorable as those offered by us to, or to us by, any either person, firm or corporation. 10. Your status hereunder is that of an independent contractor and we do not and will not have actual, potential or any other control over you. 11. All notices required to be given pursuant to this Agreement will be given in writing or by telegraph, if to us ate and if to you at 41 Richmondville Avenue, Westport, Connecticut 06880 or to Such other address as may be designated in writing by either party hereto to the other -party. 12. This Agreement will be governed by the laws of the State of New York as if it were executed and to be performed entirely within such State and will not be assigned by either party, without the prior written consent of the other party hereto. This Agreement may be changed only by a writing signed by both parties ADYIDULe Yn Please indicate your agreement with and acceptance of the foregoing by dating and signing an enclosed copy of this letter in ‘the space indicated and returning it to us.

Very truly yours, Accepted and Agreed to this day of, 1971 IN-STORE PUBLICATIONS, INC.

Marketing of Form Letters To Be Used in Debt Collection Activity. (File No. 713 7023) Opinion Letier Marcu 22, 1971 Dear Mr. Brover:

This is in reply to your letter of October 9, 1970, on behalf of Eagle Credit Corporation, requesting advice from the Commission concerning the marketing of a number of form letters to be used by your client in its proposed debt collection activity. The Commission has given careful consideration to your request, and is of the view based on the materials and information submitted, that the proposed program is substantially the same as several others . which are currently being investigated by the Commission. Accordingly, pursuant to its Rules of Practice, Section 1.1 (b), the Commission considers it inappropriate to igsue the requested advisory opinion. By direction of the Commission.

Supplemental Letier of Request Novemper 8, 1970 Attn: William H. Wentz, Esq.

GENTLEMEN :

J wish to acknowledge receipt of your letted dated October 27, 1970. I wish to furnish you with the additional information which you requested. Eagle will base its fee on a flat fee basis. The form letters that are sent out, will be sent out by Eagle. The forms are not to be gold or distributed by Eagle’s clients, but will be sent out in the mail by Eagle.

In connection with the third paragraph of your letter, Eagle intends to make available to its clients information concerning the fact that it has been requested previously to aid a particular client relative to credit problems that client has faced with a specific individual. It will provide the client with such information as the nature of the request of the original client, so that the subsequent client can contact the original client if necessary, to determine the outcome. In other words, Eagle will not pass on the credit worthiness, financial responsibility, or paying habits, but merely report the fact that it has been involved in certain credit problems on behalf of a client, and involving a debtor. Any company so informed, may then check with the original company to determine the disposition. Eagle has not yet proceeded in this direction, and will not if your office determines that this service is not proper.

With regard to the fourth paragraph of your letter, the form letters will be sent to a debtor by our office when a client requests us to do so and furnishes us with the name and address, and the amount owing. The scope of authorization from the client may involve merely a letter writing function, or it may involve the subsequent referral by Eagle to a local collection agency or attorney. After the Sequence of letters are sent to the debtor by Eagle, Eagle will either submit the account to a local agency or attorney, or return the account to its client, in accordance with instructions and conditions under which we operate for that client, Eagle intends not to use any phrases involving “we shall proceed”, or “we are proceeding with appropriate action against you”, or “recommend that your account be placed for legal processing to collect”, where Eagle knows that such action is tain no threat at all, but merely appeal to the debtor’s moral and ethical] duty to pay an honest and just debt. If you wish, we will be happy to furnish you with a copy of that letter, With regard to your request for copies of contracts, Eagle has no such contract with any company, and does not intend to require any contract. At this time, Eagle intends to charge a client a fee of $1.80 per account handled, where more than one letter is requested, and $.50 if only one letter is requested. I am enclosing an introductory announcement which will be used. .

If there is any other information which you request, please do not hesitate to contact me.

Yours truly, (S) Sranney H. Brooerr..

Hacie Creprr Corp., Newark, N.J.

We are pleased to announce the establishment of a unique collection tool— Early Bird Pre-Collection Service.

Early Bird Pre-Collection Service provides you with a means of utilizing an outside agency (with its effective third party approach) to convert delinquent accounts into dollars at an unbelievably low cost. AVVIDUIEL ULAINLUIND W4i2st amu 2tetssee Yow 2uve Early Bird provides a bonded, letter-demand service with a series of up to nine proven effective collection letters that we send out for you on our letterheads. Each letter, containing progressively stronger but ethical language, is accompanied by a self-addressed envelope with your company name and address as well as the account number of your customers for easy identification. Our price for all of this is $1.80, per account, when 100 or more accounts are submitted at one time.

We will be happy to handle 50 collection accounts for you at no charge whatsoever, if they are submitted to us at one time. We are confident that this will demonstrate our prowess.

The only information needed is: (1) Name and address of customer; (2) Account #; (3) Amount owing.

You have nothing to lose in testing Early Bird’s proficiency, and many thousands of dollars to gain.

If you have any question, or wish to discuss our service, please feel free to telephone me “collect” at (201) 624-1600. We want to assure you that we will provide you with the same quality of service, integrity, and results that the Eagle name has always represented. Yours truly, EiaGLe Crepir Carp Pick-Up SERVICE,.

S. H. Broper, Ezecutive Director.

Letter of Request Ocrorrr 9, 1970 GENTLEMEN:

My client is about to engage in the collection business. They have not yet, however, commenced in this business yet. We request that the enclosed form letters be examined.* We believe that all of these letters are fair and not deceptive. We would appreciate an advisory opinion from you.

Yours truly, (S) Srantry H. Broper.

Legality of a Promotional Assistance Plan Whereby Grocery Products Will Be Advertised on Shopping Carts of Retail Grocery Stores. (File No. 713 7024) Opinion Letter Aprin 2, 1971 Dear Mr. Cuapman: ;

This is in response to your letter of October 2, 1970, requesting an advisory opinion on behalf of your client, Market Makers Interna- *These form letters have not been reproduced in this volume because of their great number. However, they are available for inspection at the Division of Legal and Public Records, Federal Trade Commission, Washington, D.C. 1668 “FEDERAL TRADE COMMISSION DECISIONS tional, concerning the legality of a proposed promotional assistance plan whereby grocery products will be advertised on shopping carts. of retail grocery stores. Alternatively, advertising placards will be offered to retailers who do not use shopping carts. - As the Commission understands the facts, each retailer will be placed in one of five categories depending upon the volume of business. it transacts in a month. Retailers then will be compensated on the basis of the volume of business per month per store, and the number of shopping carts rented for advertising purposes. Stores which do not use shopping carts will be paid for displaying placards at a certain rate per placard which varies in accordance with the volume of business transacted. 7 The Commission has given this matter careful consideration, and is of the view that implementation of the proposed plan in the manner described would result in discriminatory promotional allowances being granted customers competing in the resale of a participating supplier’s products. In such event, participating suppliers, the favored retailers and your client may be acting in violation of Sections 2(d) or 2(e) of the amended Clayton Act and/or Section 5 of the Federal Trade Commission Act.

' By direction of the Commission.

Letter of Request a Ocrozrr 2, 1970 Re: Michael Coleman Dear Mr. Levin:

We are writing this letter pursuant to your letter of September 25, 1970, addressed to Mr. Coleman.

The following is the proposed plan and procedure for obtaining an advisory opinion which my client requested in his letter of September 15, 1970.

1. Market Makers International proposes to lease space on the front inside and outside of grocery shopping carts owned and/or operated by food clearing companies and independent grocery stores for the purpose of attaching a placard which will be used as a vehicle for changeable copy advertising inserts. | .

2. Compensation to store chains or owners will be paid yearly by Market Makers. The amount of the compensation will be determined by the negotiated percentage of gross income as agreed to by the specific chain or store owner and Market Makers. 3. Market Makers proposes to lease the space on the front of said carts to food manufacturers and/or packers for one month periods for ADVISORY OPINIONS WITH REQUESTS THEREFOR: 1669 the purpose of displaying advertising inserts. Rates have not been established by Market Makers, but the rate will be uniform. Rates will be computed on a per store basis.

4, A national sales and advertising program will be implemented by Market Makers. Space will be sold on a regional basis as well as a national basis. Space on these carts will be sold on a first come-first serve basis.

Please forward your opinion on this matter at your earliest convenience.

Very truly yours, (S) Harry A. Cuarman, Jr.

Implementation of a Mail Order Business Involving Advertising and Sale of Dietary Information and Calamine Lotion as a Remedy for Acne. (File No. 713 7009) Opinion Letter Aprin 14, 1971 Dear Mr. THater:

This is in further reference to your request for advice as to the propriety of implementing a mail-order business for advertising and sale of dietary information and calamine lotion, as a remedy for acne. A fourteen-day money-back guarantee is offered in connection with this plan.

You are advised that the Commission has given the submitted advertising:careful consideration, and that it is impractical at this time for the Commission to make an informed decision as to whether or not the advertising which you propose constitutes a violation of any of the statutes which the Commission enforces.

By direction of the Commission.

Letter of Request Jury 11, 1970 GENTLEMEN! Before investing in a mail order business along the lines of the enclosure, I would greatly appreciate it if you could comment on the Federal propriety of such a plan. In other words, does the plan violate any Federal statutes? As you may notice, the plan offers 2 money-back guarantee, it is not medical, only standard “calamine” lotion would be used and it is basically a readjustment of the individual’s diet. . If I can be of any further help, kindly let me know. Thanking you for any consideration, I am, (S) Irwin R. Tuater.

In response to your inquiry of recent date, we are herewith furnishing you with information of the utmost importance to you. Acne is generally caused by faulty secretion of the sebaceous glands. This secretion is manufactured from certain food substances. Consequently, concensus of opinion indicates that improper diet may play an important part in certain poor complexions. A choice is made for you of the foods that you eat in order to give you the best selection of everyday foods that may improve the appearance of your skin. We are prepared to analyze your diet very carefully and supply you with a corrected personalized diet of everyday common foods for you. All we ask you to do is to submit to us the enclosed chart fully answered. As you undoubtedly know, obesity is being attacked by so-called “Weight Watchers” organizations. Our technique is more or less along those same lines. It is predicated on diet therapy and in no sense or manner should be considered a medical type of treatment.

Nonetheless, since skin trouble is such a stubborn and lasting problem and while it is our opinion that you may be able to obtain improvement by utilization of the above-mentioned diet therapy we also send you a small bottle of standard “ealamine” lotion. This is done so that the unsightliness of your acne may be diminished while you are endeavoring to correct it. Moreover, and this is important, we offer a moneyback guarantee for our method. So irrespective of your concern for a clearer skin, it will not cost you one cent to try this method. In other words you may follow our plan for a period of two weeks, meanwhile eating the everyday foods that are not known to foster skin eruptions while avoiding the prohibited foods. At the same time use our standard “calamine”’ complexion formula regularly and after a period of 14 days if you are not entirely satisfied you may return the unused portion of the lotion and your money will be cheerfully refunded with no questions asked. Imagine! At absolutely no cost to you, if you so desire, you may try our method to rid yourself of an ugly skin condition. Whether you have a few pimples or a very bad acne you have nothing to lose by answering the chart and sending it to us with . You, too, will be grateful when you receive the following : 1: Analysis of your diet and personal correction. 2. A suggested 7 day diet which you may follow. 3. List of foods which are believed to aggravate acne. 4. A bottle of calamine lotion. .

5. Generally acceptable instructions on how to take care of your skin while on our plan. . :

We feel that we do not have to emphasize to you the handicaps of a poor complexion such as embarrassment, self-consciousness, etc. Do not dismay. Let us have the opportunity of bringing you a method which may help you to achieve improved skin appearance.

ADVISORY OPINIONS writtt REQUESTS THEREFOR 1671 Legality of a Plan To Sell a Patented, Electric-Operated, Advertising Device Called a Vectograph to Suppliers for Their Advertising Use With the Retailers of Their Products, (File ) Opinion Letter . May 5, 1971 Dear Mr. Baron:

This is in response to your letter of October 9, 1970, requesting advice as to the legality of a proposed plan to sell a patented electric operated advertising apparatus called a vectograph. The device will be sold to suppliers for their advertising use with the retailers of their products. , As the Commission understands the facts, the vectograph will be sold outright to suppliers. No distribution or placement services are to be performed by you on behalf of the purchasing company, and except for the purchase price, no other compensation is received by you. Pursuant to this plan to sell the machine, there is no intention to promote use of the vectograph on behelf of the purchasing company, and your interests in the invention will terminate after the sale is consummated.

The Commission is of the view, based on the information furnished, that the plan for outright sale of the vectograph in the manner de- This opinion in no way relates to the legality of the patent or your right to use the patent.

By direction of the Commission.

Supplemental Letter of Request Marcu 18, 1971 Dear Mr. Levin: - Thank you for your letter of February 25, 1971. I hope to answer the various questions you posed in the aforementioned letter —_— (1) No further services are contemplated to the purchasing company by either Mr. Tamarin or Baron & Company. (2) If an outright sale of the patent is consummated, neither Mr. Tamarin nor Baron & Company would receive any compensation for the placement and disposition of the vectograph. _ *Iustrations of the Vectograph are not reproduced in this volume, but are available for public inspection at the Federal Trade Commission, Washington, D.C. . (3) Since we have not negotiated the purchase of our patent at this time, it is impossible to describe in detail any arrangements which we may have with the purchaser with respect to the use of the device in retail outlets which sell the company’s products. (4) Neither Mr. Tamarin nor Baron & Company have any intention of promoting the vectograph on behalf of a company or companies which might purchase the aforesaid patent rights. The inventor, Mr. Tamarin, has the patent or invention for sale. Once it is sold to a customer, the customer has the sole and exclusive right as to what is to be done with the invention. Both Mr. Tamarin’s interest and Baron & Company’s interest in the invention generally will terminate after the sale isconsummated. Tf there is anything further we can do to help you, please do not hesitate to contact me.

Very truly yours, (S) RoserrR. Baron, President.

Supplemental Letter Relative to Request Frsrvary 25, 1971 Dear Mr. Baron:

This is in further reference to your letter of October 9, 1970, requesting advice as to the legality of a proposed plan to sell to certain Manufacturers an electric operated advertising apparatus called a vectograph. By letter of February 12, 1971, you indicated that this device will be marketed by outright sale of the patent and jts manufacturing rights. On February 19, 1971, you informed me by telephone that your client was Mr. B. J. Tameron, and that the ultimate clients will be the companies who purchase the vectograph. T have studied your proposed plan, but it is still unclear to me what, if any, arrangements you will have with or services you will perform for the companies to whom you have sold the rights to the vectograph. The answer to the following questions, therefore, will be most helpful to further consideration of this plan: 1. After the sale of the vectograph, are any further services provided to the purchasing company by Mr. Tameron or Baron and Company 4 9, Does Baron and Company or Mr. Tameron receive any compensation from the purchasing company for the placement and distribution of vectographs with retailers who sell the companies products ? 3. Please describe in detail any arrangements which Baron and Company or Mr. Tameron may have with the companies who purchase vectographs with respect to the subsequent use of or the availavvISUKY OPINIONS WITH REQUESTS THEREFOR 1673 ability of the vectograph in retail outlets which sell the companies’ products.

4. If Baron and Company or Mr. Tameron will promote, on behalf of the companies which purchase the vectograph, the further use of the vectograph by the retailers who sell the companies’ prod- “ucts, please describe the promotional plan in detail. - Enclosed is a copy of the Commission’s Guides for Advertising Aland his retailer customers, Guide 13 on page 13 of the enclosed Guides will explain your obligations under the laws which the Commission administers, You are assured that your request will receive prompt attention when the necessary information is furnished. If I may be of further assistance, please advise, Very truly yours, Sruarr A. Levin, Attorney, Office of General Counsel.

Supplemental Letter 0 f Request Frrrvary 12, 1971 Dear Mr. Levin:

May.I belatedly thank you for your letter of October 28, 1970. Our client has had some health problems, and due to these problems, we have been unable to answer your correspondence of this date. Following are the answers to the questions as outlined in your letter - of October 28 - : me (1) The ultimate clients who will be using the vectograph will be anyone possibly of the following: - ~ American Tobacco Company Phillip Morris Liggett & Meyers Brown & Williamson General Motors Coca-Cola Budweiser Brewing Company:

R. J. Reynolds , Gillette Lever Brothers Procter and Gamble Warner-Lambert (2) The vectograph will be marketed by outright sale of the patent and its manufacturing rights to any one of the aforementioned companies for their advertising use with the retailers of their products. It will be the ultimate client’s decision as to the method and means of placement, whether the equipment be rented, given away Or sold to the retailer.

For your convenience, T am enclosing copies of your letter of October 28 and Miles W. Kirkpatrick’s letter of October 14. We shall look forward to hearing from you at your earliest possible convenience.

Very truly yours, (S) Rosert R. Baron, President.

Supplemental Letter Relative to Request a Ocrosrr 28, 1970 Dear Mr. Baron:

This is in reference to your letter of October 9, 1970, requesting advice regarding the use of a proposed promotional plan to be implemented through the use of a patented electric operated apparatus for displaying Vectographic prints. This matter has been assigned to me for further consideration.

Tt5 1 5 3 1 2 731 1548 73 33 84.496223 will5 1 5 3 1 3 820 1545 43 33 96.370453 be5 1 5 3 1 4 879 1538 139 43 96.806427 helpful5 1 5 3 1 5 1033 1539 37 29 96.889061 to5 1 5 3 1 6 1087 1534 58 32 96.915482 thes 1 5 3 1 7 1162 1521 253 42 91.920807 Commission’s5 1 5 3 1 8 1431 1516 104 41 96.833214 study5 1 5 3 1 9 1552 1512 39 33 96.971573 of5 1 5 3 1 10 1606 1508 72 34 96.714935 this5 1 5 3 1 11 1694 1507 125 32 96.893387 matters 1 5 3 1 12 1835 1499 31 32 96.752647 if5 1 5 3 1 13 1883 1506 67 33 96.752647 you4 1 5 3 2 0 631 1569 783 66 -1 5 1 5 3 2 1 631 1602 73 33 96.356308 will5 1 5 3 2 2 727 1596 139 36 96.887657 furnish5 1 5 3 2 3 887 1593 60 32 96.526581 thes 1 5 3 2 4 969 1584 182 39 96.743607 following5 1 5 3 2 5 1171 1569 202 51 93.305435 information5 1 5 3 2 6 1396 1581 18 21 88.848320 :3 1 5 4 0 0 682 1602 1155 81 -1 4 1 5 4 1 0 682 1602 1155 81 -1 5 1 5 4 1 1 682 1654 28 29 94.121613 1.5 1 5 4 1 2 731 1649 75 32 96.677193 Thes 1 5 4 1 3 820 1654 100 24 96.884445 names 1 5 4 1 4 934 1640 39 33 96.821213 of5 1 5 4 1 5 986 1647 88 33 96.844009 yours 1 5 4 1 6 1088 1633 102 33 96.844009 clients 1 5 4 1 7 1204 1629 77 31 96.986122 who5 1 5 4 1 8 1294 1624 71 32 96.820183 will5 1 5 4 1 9 1377 1622 42 31 96.990013 be5 1 5 4 1 10 1432 1617 102 39 96.699928 using5 1 5 4 1 11 1546 1613 58 32 96.852539 thes 1 5 4 1 12 1618 1602 219 45 92.795914 vectograph.3 1 5 5 0 0 643 1647 1321 243 -1 4 1 5 5 1 0 682 1647 1273 87 -1 5 1 5 5 1 1 682 1704 29 30 91.540009 9.5 1 5 5 1 2 734 1700 120 32 91.862923 Please5 1 5 5 1 3 865 1690 151 36 91.373466 describes 1 5 5 1 4 1024 1688 40 31 95.176643 in5 1 5 5 1 5 1074 1682 105 35 95.176643 details 1 5 5 1 6 1187 1680 78 32 96.978523 how5 1 5 5 1 7 1276 1686 67 32 96.628510 you5 1 5 5 1 8 1352 1668 120 36 96.099014 intends 1 5 5 1 9 1480 1671 37 28 96.099014 to5 1 5 5 1 10 1528 1662 131 35 95.255539 markets 1 5 5 1 11 1668 1658 59 31 92.615501 thes 1 5 5 1 12 1736 1647 219 45 91.713837 vectograph.4 1 5 5 2 0 643 1695 1316 97 -1 5 1 5 5 2 1 643 1755 71 31 93.310905 For5 1 5 5 2 2 729 1750 163 42 96.230629 instance,5 1 5 5 2 3 907 1743 59 31 97.020508 thes 1 5 5 2 4 985 1736 115 34 96.019539 devices 1 5 5 2 5 1114 1743 80 30 96.957901 may5 1 5 5 2 6 1208 1730 43 31 97.005363 be5 1 5 5 2 7 1266 1719 74 39 81.033890 gold5 1 5 5 2 8 1354 1727 37 28 96.097702 to5 1 5 5 2 9 1405 1716 276 36 96.416725 manufacturers5 1 5 5 2 10 1696 1707 58 32 95.480530 for5 1 5 5 2 11 1768 1695 191 55 96.650421 placement4 1 5 5 3 0 645 1746 1315 89 -1 5 1 5 5 3 1 645 1802 86 33 96.764847 with5 1 5 5 3 2 740 1797 92 35 89.031532 theirs 1 5 5 3 3 843 1793 167 36 96.782013 retailers,5 1 5 5 3 4 1021 1798 40 22 96.490021 or5 1 5 5 3 5 1070 1785 60 32 96.992455 thes 1 5 5 3 6 1141 1775 208 45 82.407639 vectograph5 1 5 5 3 7 1360 1782 80 30 96.328957 may5 1 5 5 3 8 1450 1769 43 31 96.492828 be5 1 5 5 3 9 1504 1764 75 34 90.800743 sold5 1 5 5 3 10 1588 1766 36 28 90.847473 to5 1 5 5 3 11 1636 1757 155 34 96.913528 retailers5 1 5 5 3 12 1801 1751 79 32 96.813683 who5 1 5 5 3 13 1889 1746 71 33 92.960243 will4 1 5 5 4 0 647 1799 1317 91 -1 5 1 5 5 4 1 647 1855 77 31 96.816681 rents 1 5 5 4 2 740 1859 100 31 96.936958 spaces 1 5 5 4 3 855 1849 38 28 96.780518 to5 1 5 5 4 4 909 1839 284 36 96.280952 manufacturers.5 1 5 5 4 5 1210 1830 36 33 96.506386 A5 1 5 5 4 6 1260 1824 96 35 96.506386 thirds 1 5 5 4 7 1372 1816 203 40 96.748566 alternatives 1 5 5 4 8 1590 1809 112 42 96.844765 might5 1 5 5 4 9 1717 1806 41 33 96.923889 be5 1 5 5 4 10 1773 1799 191 46 96.807732 placement3 1 5 6 0 0 632 1848 1336 194 -1 4 1 5 6 1 0 632 1848 1335 89 -1 5 1 5 6 1 1 632 1902 84 35 75.592285 ‘ands 1 5 6 1 2 728 1897 111 36 96.408234 rentals 1 5 6 1 3 853 1895 38 33 96.949760 of5 1 5 6 1 4 903 1894 60 32 96.594810 thes 1 5 6 1 5 975 1887 116 35 96.906586 devices 1 5 6 1 6 1101 1885 46 41 96.268326 by5 1 5 6 1 7 1159 1890 87 33 96.268326 yours 1 5 6 1 8 1258 1876 111 33 96.025345 client.5 1 5 6 1 9 1381 1872 45 32 96.270012 In5 1 5 6 1 10 1439 1878 67 30 96.881096 any5 1 5 6 1 11 1519 1860 148 42 96.545647 event,5 1 5 6 1 12 1634 1854 30 60 96.545647 it5 1 5 6 1 13 1679 1858 29 32 96.555359 is5 1 5 6 1 14 1720 1850 159 38 96.961166 essentials 1 5 6 1 15 1890 1848 77 31 96.798462 that4 1 5 6 2 0 650 1899 1318 98 -1 5 1 5 6 2 1 650 1965 69 32 96.350075 you5 1 5 6 2 2 741 1947 140 36 96.350075 furnish5 1 5 6 2 3 903 1954 41 23 96.717278 us5 1 5 6 2 4 966 1939 86 34 96.597633 with5 1 5 6 2 5 1074 1948 21 21 95.724182 a5 1 5 6 2 6 1116 1931 165 41 95.724182 completes 1 5 6 2 7 1302 1920 209 43 96.890320 descriptions 1 5 6 2 8 1533 1914 38 33 97.001053 of5 1 5 6 2 9 1592 1912 60 32 97.011993 thes 1 5 6 2 10 1673 1899 190 56 96.822533 particulars 1 5 6 2 11 1885 1899 83 41 96.299919 plan4 1 5 6 3 0 655 1971 849 71 -1 5 1 5 6 3 1 655 2002 111 35 96.596413 which5 1 5 6 3 2 777 2009 87 33 96.951477 yours 1 5 6 3 3 876 1994 104 34 96.668907 clients 1 5 6 3 4 991 1986 136 37 96.757050 intends5 1 5 6 3 5 1138 1988 38 29 96.991714 to5 1 5 6 3 6 1186 1977 208 44 96.624840 implement.5 1 5 6 3 7 1501 1971 3 2 52.788921 :3 1 5 7 0 0 658 2000 1315 137 -1 4 1 5 7 1 0 698 2000 1275 87 -1 5 1 5 7 1 1 698 2052 40 34 72.725830 If5 1 5 7 1 2 757 2061 50 21 96.924652 we5 1 5 7 1 3 826 2057 80 30 96.297752 may5 1 5 7 1 4 924 2044 41 32 96.355331 be5 1 5 7 1 5 985 2040 38 33 96.842552 of5 1 5 7 1 6 1043 2048 67 30 96.220276 any5 1 5 7 1 7 1130 2031 139 36 96.835953 furthers 1 5 7 1 8 1288 2025 193 34 96.839882 assistance,5 1 5 7 1 9 1500 2016 113 43 96.839882 please5 1 5 7 1 10 1633 2011 43 33 96.989799 do5 1 5 7 1 11 1695 2010 62 31 96.581497 not5 1 5 7 1 12 1774 2001 144 36 96.379456 hesitate5 1 5 7 1 13 1936 2000 37 29 97.019577 to4 1 5 7 2 0 658 2104 205 33 -1 5 1 5 7 2 1 658 2104 135 33 92.352318 contacts 1 5 7 2 2 814 2109 49 22 94.828918 us.2 1 6 0 0 0 786 2160 1154 123 -1 3 1 6 1 0 0 786 2160 1154 123 -1 4 1 6 1 1 0 786 2160 347 46 -1 5 1 6 1 1 1 786 2166 95 40 95.925415 Very5 1 6 1 1 2 901 2160 96 40 95.925415 truly5 1 6 1 1 3 1018 2163 115 36 96.421272 yours,4 1 6 1 2 0 1395 2174 461 58 -1 5 1 6 1 2 1 1395 2187 60 45 78.412460 (S)5 1 6 1 2 2 1507 2184 136 34 15.802292 Sruarr5 1 6 1 2 3 1665 2176 44 33 94.327934 A.5 1 6 1 2 4 1730 2174 126 35 92.887108 Levin,4 1 6 1 3 0 1225 2215 715 68 -1 5 1 6 1 3 1 1225 2247 181 36 96.926338 Attorney,5 1 6 1 3 2 1430 2236 102 43 95.590744 Offices 1 6 1 3 3 1555 2231 38 42 96.415825 of5 1 6 1 3 4 1616 2223 147 38 89.948204 General5 1 6 1 3 5 1786 2215 154 39 96.636536 Counsel.2 1 7 0 0 0 673 2323 1320 283 -1 3 1 7 1 0 0 673 2323 1320 283 -1 4 1 7 1 1 0 1153 2323 351 55 -1 5 1 7 1 1 1 1153 2343 117 33 95.523125 Letters 1 7 1 1 2 1294 2337 37 41 95.523125 of5 1 7 1 1 3 1356 2323 148 51 96.557762 Request4 1 7 1 2 0 1427 2356 561 47 -1 5 1 7 1 2 1 1427 2375 2 2 0.000000 .5 1 7 1 2 2 1676 2369 159 34 14.080048 Ocrozer5 1 7 1 2 3 1855 2363 31 38 96.321968 9,5 1 7 1 2 4 1908 2356 80 34 96.321968 19704 1 7 1 3 0 673 2455 485 42 -1 5 1 7 1 3 1 673 2466 101 31 86.909386 Dear5 1 7 1 3 2 796 2460 71 32 93.001244 Mr.5 1 7 1 3 3 891 2455 267 33 0.000000 KirkratTRIcK5 1 7 1 3 4 1145 2451 17 51 49.617241 :4 1 7 1 4 0 715 2461 1278 89 -1 5 1 7 1 4 1 715 2511 127 36 96.464645 Thanks 1 7 1 4 2 854 2518 70 32 96.686546 you5 1 7 1 4 3 937 2504 58 32 97.005943 for5 1 7 1 4 4 1009 2500 60 33 96.818321 thes 1 7 1 4 5 1083 2495 118 35 95.756721 advice5 1 7 1 4 6 1215 2490 69 34 95.677338 ands 1 7 1 4 7 1297 2485 184 35 95.677338 comments5 1 7 1 4 8 1495 2488 67 33 96.445854 you5 1 7 1 4 9 1576 2468 166 38 96.872910 extended5 1 7 1 4 10 1755 2470 37 28 96.023849 to5 1 7 1 4 11 1805 2474 52 22 93.264648 me5 1 7 1 4 12 1870 2461 123 41 92.965622 yester-4 1 7 1 5 0 679 2532 730 74 -1 5 1 7 1 5 1 679 2566 67 40 96.408768 days 1 7 1 5 2 760 2560 128 39 96.340027 during5 1 7 1 5 3 900 2566 63 22 96.695877 ours 1 7 1 5 4 974 2545 180 50 96.622963 telephones 1 7 1 5 5 1162 2532 247 53 96.921082 conversation. ADVISORY OPINIONS WITH REQUESTS THEREFOR 1675 evice used at the point of purchase. This device is a patented electric operated apparatus for displaying Vectographic prints. This device would be used to advertise various types of sundries—such as Tazors, tooth brushes, food products, cigarettes and toiletries. This device would be primarily used in areas of mass retail merchandising— such as super markets, discount stores, drug stores, etc. I have enclosed, for your edification, some background sketches of the device taken from the patents.

As discussed, our client wishes to determine FTC use and approval of a devi the Gillette razor.

From the foregoing simple illustration, it will be readily understood The foregoing brief description of this display device is the subject of a patent issued to my client bearing U.S. Patent No. 2,995,981. The enclosed patent office drawings, figures one to three inclusive, show one preferred embodiment of the display apparatus, and figure 7 shows a cross section of a constant fluorescent, light source, number 29, around which revolves oppositely polarized sheets 387 (green) and 36 (red) which project alternating polarized light on a parabolic reflector, number 28 as shown in figure 5, which reflects the alternating polarized case of the opening and closing Gillette razor. Your comments are most welcome concerning the above matter as counter to the directives of the Federal Trade Commission; therefore, I shall look forward to hearing from you concerning this matter at your earliest possible convenience.

Very truly yours, (S) Rozezrr R, Baron, President.

Proposed Advertising for a Book About Investing. (File No. 713 7012) Opinion Letter May 25, 1971 Dear Mr. AyYASH:

This is in reply to your request for an advisory opinion on your proposed advertisement of the book “Harian’s Investing for a Sound 6% and More.” The proposed advertisement reads: How to get gound 6%-15%.- Amazingly by profitable ways to make your money work. This new pook could be your best investment. Satisfaction guaranteed. Send $2.95; Ayyash Caravan, 3121 Princeton Ave., Phila., Pa. 19149. According to the Commission’s understanding of the proposal, the refund of the full purchase price under the guarantee will be subject to the condition that the book be returned within ten days of receipt by the purchaser.

Because the advertisement fails to state clearly and conspicuously the conditions on the guarantee, as required by the Commission’s “Guides Against Deceptive Advertising of Guarantees,” 16 C.F.R. 88 239.1, 239.3 (1970), the guarantee portion of the advertisement must be considered deceptive.

The Commission has given the remainder of the advertising careful consideration and is of the view that with respect to claims made by the author which state what is in the book, proceedings by the Commission would not be warranted provided: the advertising only purports to express the opinion of the author or to quote the contents of the book; the advertising discloses the source of statements quoted or derived from the contents of the book; the advertising discloses the author to be the source of opinions expressed about the book; and, the book is not promoting another product as part of a commercial scheme.

By direction of the Commission.

Letter of Request ; Sppremper 1, 1970 GENTLEMEN :.

T would like to promote the sale of the book “FJarian’s for a Sound 6% and more” by the editors of Harian Publications, Greenleaf, L.L., New York 11740.

This book is most helpful and informative to the average person who is interested in investing his money profitably without too great a risk. It offers sound investment suggestions in many cases, and, at the same time advises the reader to check-up on all suggestions before investing. Therefore, I believe this publication is honest and reliable, worthy of promoting its sale.

I propose to present its sale by advertising in a few reputable Men’s Magazines as follows:

How to get sound 6%-15%. Amazingly profitable ways to make your money work. This new book could be your best investment. Satisfaction guaranteed. Send $2.95; Ayyash Caravan, 3121 Princeton Ave., Phila., Pa. 19149. Will you please let me have your opinion about the legitimacy of this offer and advertisement. Your prompt reply will be greatly appreciated.

Very truly yours, (S) Susur M. Aryasn.

Denial of Petition for Reconsideration of Prior Advisory Opinion* Regarding Proportionally Equal Treatment of Retail Cooperatives and Nonaffiliated Retailers. (File No. 703 7117) Opinion Letter May 27,1971 Dear Mr. Law:

This is in response to your letter of January 15, 1971, requesting clarification or possible reconsideration of the advisory opinion issued to Frank Gomon Associates, File No. 703 7117, insofar as it relates to retailer-owned cooperatives.

The Commission’s view of what the law requires with respect to promotional allowances for services provided by retailer-owned cooperatives and chain store businesses to manufacturers of products which they sell is reflected in example 2 of Guide 3 of the Commission’s Guides for Advertising Allowances and Other Merchandising Payments and Services. This example states that headquarters of chains and of retailer-owned cooperatives are customers of the manufacturer, while the individual retail outlets of such chains or cooperatives are not customers of the manufacturer. A wholesaler’s independent retailer customers, however, are customers of the manufacturer. Consequently, the headquarters of each chain and retailer-owned cooperative, and individual nonaftiliated retailers as customers who compete in the resale of the manufacturer’s product, in accordance with Sections 2(d) and 2(e) of the Clayton Act as amended by the Robinson- Patman Act, must be treated on proportionally equal terms. *For prior opinion letter of August 7, 1970, see 77 F.T.C. 1752. The plan submitted to the Conimission by Frank Gomon Associates provided for a method of compensation pursuant to which each retailer-customer would receive a fixed payment per advertising unit. Intermediary third party wholesalers, jobbers, and cooperatives were to receive the same amount of money per advertising unit for notifying their accounts, securing advertising orders, and distributing the advertiséments. Although it was not clear whether the cooperatives mentioned by the requesting party were, in fact, retailer-owned cooperatives, the Commission was of the view that retailer-owned cooperatives should be specifically covered, and conditioned its approval of the plan accordingly.

For purposes of establishing proportionality of compensation in the particular factual situation present in Prank Gomon Associates, retailers who are not members of a retailer-owned cooperative must be treated on terms proportionally equal to other customers such as headquarters of the retailer-owned cooperatives. This result would seem to be impossible if the cooperative was compensated as the wholesaler, and individual retailers who own the cooperative received additional compensation. However, there is no double compensation in instances where retailer-owned grocery warehouse distributing firms which sell to retailers who have no share in the ownership or control of such firms, receive promotional assistance in connection with sales to such independent retailers, comparable to that accorded competing wholesalers, jobbers or other intermediaries.

The opinion in Frank Gomon Associates, therefore, appears to be consistent with the requirements of Sections 2(d) and 2(e) of the amended Clayton Act, and, as such, Commission review would not seem to be warranted. The Commission would not, however, initiate enforcement action under these sections where it appeared that the granting of “double” compensation to a retailer-owned cooperative for services actually performed under a promotional advertising program, did no more than equalize the net retailer allowance available: to the retail members thereof with the retailer allowance made available to independent retailers purchasing from wholesalers. Enclosed is a copy of the Commission’s Guides for Advertising Allowances and Other Merchandising Payments and Services, and a copy of the News Release dated November 6, 1970, which sets forth the Commission’s opinion in Frank Gomon Associates, and contains reprinted correspondence from the requesting party. Since the above interpretation does not agree with the position taken by you in your letter of January 15, 1971, the Commission has construed your request as a petition to reconsider Advisory Opinion File No. 703 7117, in accordance with the fifth paragraph of your letter. The petition to reconsider is hereby denied. By direction of the Commission.

ween eee aveyw Letter of Request January 15, 1971 Dear Mr. Sura:

We represent Cooperative Food Distributors of America, a national trade association whose members consist of retailer-owned grocery warehouse distributing firms located at various points in the United States. Said retailer-owned grocery warehouse distributing firms purchase merchandise from suppliers primarily for resale to the retail grocers which own said firms.

Accordingly, the firms which are members of Cooperative Food Distributors of America would be considered to be retailer-owned cooperatives of the type referred to in example 2 under Guide No. 3 of the Federal Trade Commission’s Guides for advertising allowances and other merchandising payments and services which were promulgated subsequent to the Supreme Court’s decision in the Fred Meyer, Tne. case.

Because example 2 of Guide No. 3 was relied upon by the Commission in the Advisory Opinion which it announced on November 6, 1970 pursuant to the request of Frank Gomon Associates, our client is extremely concerned as to one aspect, of that Opinion insofar as it relates to retailer-owned cooperatives. The portion of the Opinion which our client is concerned with is that part which apparently denies to retailer-owned cooperatives the right to receive both the payments which the supplier proposed to make for participation in its promotional plan and the additional payments of the same amount which the supplier proposed to make as compensation for making the supplier’s offer known to the customers of retailer-owned cooperatives and for other services performed in connection with the supplier’s plan. If the intent of the Opinion in this respect is that the retailer customers of ordinary wholesalers may receive payments for participating in the plan and that the wholesalers may receive additional equal payments for the services performed by them, but that retailer-owned cooperatives can only receive one payment, then, in our opinion, such a plan would be operated in a manner which would discriminate against retailer-owned cooperatives. Accordingly, it would be greatly appreciated if you would advise us if this is the intended effect of the portion of said Advisory Opinion to which we have referred. If the foregoing is the intended effect, then we respectfully request that the Commission reconsider said portion of its Advisory Opinion and publish a revision of it which would eliminate any discriminatory effect, on retailer-owned cooperatives. However, if such an effect. was not intended, then we believe it would be in order for the Commission to clarify the Opinion in order to make it clear that retailer-owned cooperatives would be permitted to receive both of the payments con- 470-536 O - 73 - 107 LUUU ee ee eS templated to be made by a supplier in connection with a plan such as that proposed by Frank Gomon Associates.

We might add that our client is not interested in this Advisory Opinion because of any specific instance which has been brought to its attention involving operation of the particular plan proposed by Frank Gomon Associates, but that our client’s principal concern is that the Opinion could be construed as containing an interpretation of Section 2(d) of the Clayton Act which would discriminate against retailer-owned cooperatives and which, in our opinion, would ‘be contrary to the proper legal application of Section 2(d) to participation by retailer-owned cooperatives in a supplier’s promotional plan. Very truly yours, Garensey, Sputter, Law & JOHNSON, By Fren H. Law, Jr.

Proposed Quality Certification Program for the Carpet Industry. (File No. 713 7026) Opinion Letter June 4, 1971 Dear Mr. Paves:

This is with further reference to your request for an advisory opinion regarding a proposed product quality certification program of The Carpet and Rug Institute.

The Commission has directed an in-depth study of the subject of industry self-regulation through standard certification. The study is referred to in the news release dated March 22, 1971, which was previously furnished to you with a letter of April 14, 1971, announcing the advisory opinion given the American National Standards Institute (ANSI). A copy of your proposal has been forwarded to the Bureau of Competition for its careful consideration in connection with its study of this subject. The Commission feels that, it would be inappropriate for it to act in this area until the results of its present study are known. Accordingly, as we previously advised the American National Standards Institute, we must decline to act at this time on your request for an advisory opinion.

By direction of the Commission.

Letter of Request Aprin 2, 1973 Dear Mr. Tosin:

Under Paragraph 1.1 of the Procedures and Rules of Practice of the Federal Trade Commission, permission is granted for any person, aes partnership, or. corporation. to’ request an advisory opinion from the -Commission with respect to a course of. action which the requesting party proposes to pursue. Pursuant to this’ provision, the Carpet and ‘Rug Institute, a trade association for the carpet and rug industry, whose members manufacture approximately 95% of the carpets and rugs produced in the United States, hereby requests the advice-of the . Commission on the acceptability i in whole or in part’ of “A Proposed - Quality: Certification Program for the Carpet Tndustry”; a copy ‘of --which is enclosed herewith.

“In compliance with Paragraph L 9, we hereby affirmatively: state a that the proposed program (1) is:tentative in form, (2) is not currently being followed, and (3) is not the subject of any: pending Anvestigation or other. proéééding by the Commission. ‘There i is, how-:: ever, involvement by another agency of the Government i in that this proposed program has been. developed at the request of and under the. guidance of the Architectural and Engineering Division, Federal Housing Administration, Pepartihent at Housing and Urban Devel- % - opment.

“At the suggestion of FHA, we have consulted with two ‘obbiek organi: a zations who currently administer industry certification programs—the _ Architectural Aluminum Manufacturers Association. and National . Particleboard Association—and ‘to: the ‘extent practicable have Pate terned our proposed program after theirs. In developing this proposed program, we have been guided. by various recommendations and principles published by the Commission in (1) previous advisory opinions on the subject of: industry. certification programs, and (2) Chairman Kirkpatrick’s speech of January 28 to the New. York State Bar Association. We feel that we have met the guidelines set forth i in these documents. ~~ Following is an individual discussion. of each of these points and i its applicability to our proposed program :

1. “. . the actual or likely effect of.a particilar program will usually. be ‘detetiminative; and the best of intentions will not: legitimize a means of self regulation which has a dampening ‘tipact upon competition.” (Kirkpatrick, M. W., speech to NY. State Bar “Assn., 1/28/71) The proposed program, embodying a classification system, whereby ‘standards are established for five separate levels of quality, should’ allow ample competition within and between these classes. Further- ‘more, 4 large aspect of the competition among individual carpets and rugs is attributable to esthetic differences, which are not controlled by ie certification program.

; “Due © process requirements . aliould” be scrupulously ob: served ” (id.) Paragraph 26 (a) of the proposed License Agreement outlines the procedure to be followed in instances where non-compliance with the program requires exclusion from the program or de-certification of an individual product. This procedure includes the right of appeal from the Administrator’s decision to an impartial Hearing Officer selected from a panel of technically qualified persons who are not connected with the industry. It is still not clear, because of pending investigations as to availability of other sources, whether the physical policing of compliance prior to the right of appeal will be handled directly by employees of the Carpet and Rug Institute or will be handled by some independent agency which is equipped to make the inspections and to administer the policing features of the program. It is the preference of the Carpet and Rug Institute to use an outside agency, but as of this moment the availability of such agency is somewhat questionable. 3. “The program should avoid exclusionary or coercive tactics or effects . . .” (¢bzd.) Three mechanisms are used in the proposed program for enforcement of compliance: (1) removal of product listing from Directory of Certified Products; (2) withdrawal of right to affix certification label and/or imprint; and (3) exclusion from program by termination of licensing agreement. While Chairman Kirkpatrick cautions that any enforcement mechanism could be considered “the private assumption of public power”, it is also obvious that no certification could succeed without some sanctions against the transgressor, and the steps proposed in the CRI program would seem to be the absolute practical minimum.

4. “The program should be based on clearly defined standards . . . (ibid. ) CRI Standard No. 1 (pp 21-33) was developed to provide a definitive statement of the quality levels necessary in carpet for consumer and commercial use.

”

5. “The standards should be . . . related to the legitimate purpose for which the program exists . . . sufficiently general to avoid unessential restraints on... imagination and freedom; but sufficiently precise to insure objectivity in their application and impartiality in their enforcement.” (ibzd.) CRI Standard No. 1, and in fact the entire Certification program, was developed in response to suggestions from the Federal Housing Administration. The standards, therefore, reflect primarily the needs of FHA for a definition of the qualities of carpet.acceptable for FHA financing, and secondarily the need of the ordinary consumer for information upon which she can make an informed choice among the varieties and qualities of carpet available to her on the market. vvsounY OPINIONS WITH REQUESTS THEREFOR 1683 No attempt has been made to stifle the creativity of the carpet manufacturer in the development of esthetic Properties which are such an important factoy in the marketing of the industry’s products. 6. “While... self-regulation May extend beyond a concern with deception . . . additional restraints on business activity [must not] contribute to restraints on desirable forms of competition.” (2bid.) While CRI feels that its Proposed program meets this guideline, the Commission must make its own evaluation, based on the program as submitted, TL, compliance must be voluntary.” (McLaren, R. W., Assistant Attorney General, as quoted in Final Report, Nationa] Commission on Product Safety, June 197 0, and referred to in Kirkpatrick speech cited above) paragraph 8 above.

8. “A wide cross section of interested parties should be invited to participate in developing a standard.” ( aid.) Previous experience, by CRI and other standards-setting groups, has pointed up the difficulty of obtaining assistance from “consumers”, or consumer representatives, in the development of standards. The function of setting standards for industria] products is highly technical, and requires the kind of expertise not Senerally available to con- Sumer representative organizations. However, the apparent lack of “consumer participation” in the standards development, is in fact, illusory because this program was developed at the behest of and in Cooperation with the Federal Housing Administration, and particularly its Architectural and Engineering Division, who in this instance is clearly in the Same situation as the “consumer”, particularly insofar as it concerns the protection of the public interest. It is contemplated that the FHA staff of the Architectural and Engineering Division wil] evaluate and approve the proposed Program or revisions of it as they may require, including the specific details of the standard, before it oes into operation. , 9. “Discrimination must be avoided. Testing procedures and certification should be made available on a non-discriminatory basis to all manufacturers,” (2béd.) The non-discriminatory basis of the Program is expressed in the preamble to the License Agreement on pages 2 and 3, where it states that “Licensor is willing to license any and all manufacturers -..of 1684 FEDERAL “TRADE COMMISSION DECISIUNS carpet to participate in said Certification Program under the. terms Ss ~and conditions hereinafter set: forth’. poor FOSTSRUEES at 10. “Undue restrictions on freedom of design should be avoided. Performance standards are preferable to material or design specifications, and grading systems have less competitive impact than a single standard for approval.” (abid.) a eee An earnest effort has been made in the proposed. program to avoid | ~ any: “undue restrictions on freedom of design.” Classifications for all. carpet types currently manufactured have been sneluded; and provigion.5 1 4 3 2 2 707 761 68 31 80.197533 has:5 1 4 3 2 3 789 756 77 32 94.210251 been5 1 4 3 2 4 886 748 101 37 96.158485 made5 1 4 3 2 5 1005 740 59 37 96.824173 for5 1 4 3 2 6 1085 740 62 41 88.457993 thes 1 4 3 2 7 1170 726 218 41 93.499542 additions 1 4 3 2 8 1349 713 40 58 96.358421 of5 1 4 3 2 9 1410 723 74 32 96.008003 news 1 4 3 2 10 1507 717 100 32 96.008003 fibers5 1 4 3 2 11 1615 705 55 44 71.570251 or5 1 4 3 2 12 1685 688 235 65 78.265312 ‘construction4 1 4 3 3 0 588 753 1331 104 -1 5 1 4 3 3 1 588 811 170 42 54.792839 “methods5 1 4 3 3 2 773 792 169 65 96.457817 developed5 1 4 3 3 3 963 798 33 35 96.551826 in5 1 4 3 3 4 1011 796 59 32 96.059326 thes 1 4 3 3 5 1075 783 132 57 96.166763 future.5 1 4 3 3 6 1282 779 66 27 4.226379 ER5 1 4 3 3 7 1427 776 48 30 22.884506 BS5 1 4 3 3 8 1592 749 241 36 24.944313 ee5 1 4 3 3 9 1866 756 105 31 28.759926 eee4 1 4 3 4 0 576 798 1378 102 -1 5 1 4 3 4 1 576 875 2 2 6.037743 -5 1 4 3 4 2 628 869 2 2 0.000000 .5 1 4 3 4 3 646 857 120 42 39.151932 While5 1 4 3 4 4 780 849 238 51 96.842224 performances 1 4 3 4 5 1033 838 183 49 96.126541 standards5 1 4 3 4 6 1230 836 89 31 96.523735 have5 1 4 3 4 7 1328 827 87 34 51.891235 been5 1 4 3 4 8 1430 821 82 47 88.412643 used5 1 4 3 4 9 1526 822 36 38 96.521271 to5 1 4 3 4 10 1577 815 59 32 95.503159 thes 1 4 3 4 11 1651 810 114 33 87.278397 extent5 1 4 3 4 12 1775 798 151 49 80.633003 possible5 1 4 3 4 13 1949 822 5 6 0.000000 .4 1 4 3 5 0 621 851 1324 113 -1 5 1 4 3 5 1 621 903 266 61 95.980003 (flammability,5 1 4 3 5 2 904 893 252 50 90.578712 colorfastness,5 1 4 3 5 3 1173 859 255 66 96.921822 delamination,5 1 4 3 5 4 1444 859 77 66 12.109177 etc.)5 1 4 3 5 5 1533 863 9 47 12.109177 ,5 1 4 3 5 6 1557 868 96 32 96.245735 there5 1 4 3 5 7 1670 858 57 36 69.833557 ares 1 4 3 5 8 1744 860 36 30 69.833557 at5 1 4 3 5 9 1792 851 153 46 64.582870 presents 1 4 3 5 10 1962 855 22 9 38.792274 —4 1 4 3 6 0 615 897 1347 105 -1 5 1 4 3 6 1 615 979 45 22 96.928574 no5 1 4 3 6 2 675 962 100 36 85.317093 valid5 1 4 3 6 3 786 950 238 52 95.337212 performances 1 4 3 6 4 1039 931 84 60 94.303970 tests5 1 4 3 6 5 1140 935 168 38 94.303970 available5 1 4 3 6 6 1325 931 57 32 96.063904 for5 1 4 3 6 7 1398 924 83 45 96.063904 such5 1 4 3 6 8 1496 911 191 54 96.542282 important5 1 4 3 6 9 1698 907 129 48 74.642365 carpets 1 4 3 6 10 1837 897 125 42 18.240501 char-4 1 4 3 7 0 619 951 1319 101 -1 5 1 4 3 7 1 619 1013 239 39 95.951660 acteristics5 1 4 3 7 2 828 995 37 61 96.049202 as5 1 4 3 7 3 874 999 190 43 96.826088 durability5 1 4 3 7 4 1082 990 69 38 95.639969 ands 1 4 3 7 5 1168 980 212 51 86.180130 appearances 1 4 3 7 6 1397 972 179 40 96.324005 retention.5 1 4 3 7 7 1594 966 108 41 96.895782 These5 1 4 3 7 8 1716 954 106 38 93.281662 latter5 1 4 3 7 9 1839 940 129 51 6.220032 char-—4 1 4 3 8 0 625 991 1339 112 -1 5 1 4 3 8 1 625 1063 185 40 96.595665 acteristics5 1 4 3 8 2 821 1061 90 32 96.422501 have5 1 4 3 8 3 922 1042 175 44 96.788834 therefore5 1 4 3 8 4 1108 1045 90 32 86.759010 been:5 1 4 3 8 5 1203 1033 98 38 69.977341 dealt5 1 4 3 8 6 1314 1031 85 43 96.224823 with5 1 4 3 8 7 1409 1028 47 41 97.016678 by5 1 4 3 8 8 1470 1025 59 45 96.729439 thes 1 4 3 8 9 1542 1017 59 36 95.861588 uses 1 4 3 8 10 1614 1012 38 37 96.988701 of5 1 4 3 8 11 1665 1007 157 39 96.912651 materials 1 4 3 8 12 1834 996 105 54 92.062927 speci-5 1 4 3 8 13 1962 991 2 2 0.000000 .4 1 4 3 9 0 626 1056 1324 102 -1 5 1 4 3 9 1 626 1104 243 54 91.944611 fications—on5 1 4 3 9 2 886 1106 70 43 96.283188 piles 1 4 3 9 3 973 1099 129 46 93.782356 weights 1 4 3 9 4 1118 1091 69 36 93.782356 ands 1 4 3 9 5 1204 1080 145 54 94.745667 density.5 1 4 3 9 6 1646 1059 137 16 13.453445 Pe5 1 4 3 9 7 1850 1056 100 34 29.783569 ERS3 1 4 4 0 0 631 1103 1368 310 -1 4 1 4 4 1 0 667 1103 1277 99 -1 5 1 4 4 1 1 667 1166 110 36 96.132278 Works 1 4 4 1 2 793 1163 31 31 93.304062 is5 1 4 4 1 3 838 1147 289 46 89.006454 continuing—by5 1 4 4 1 4 1145 1142 84 35 95.429878 CRI5 1 4 4 1 5 1246 1148 37 35 95.429878 as5 1 4 4 1 6 1297 1133 77 33 96.888123 wells 1 4 4 1 7 1392 1140 36 23 95.993980 as5 1 4 4 1 8 1444 1128 44 41 95.993980 by5 1 4 4 1 9 1506 1118 101 38 93.286224 others 1 4 4 1 10 1619 1103 325 53 92.687492 standards-setting4 1 4 4 2 0 631 1142 1361 119 -1 5 1 4 4 2 1 631 1211 252 50 96.598030 organizations5 1 4 4 2 2 893 1206 83 34 96.303276 such5 1 4 4 2 3 985 1214 37 22 96.666481 as5 1 4 4 2 4 1032 1184 204 53 89.163696 ASTM—on5 1 4 4 2 5 1257 1188 63 34 96.949669 thes 1 4 4 2 6 1329 1176 236 44 96.945145 developments 1 4 4 2 7 1576 1170 37 33 96.941208 of5 1 4 4 2 8 1623 1172 77 28 96.786003 true5 1 4 4 2 9 1710 1149 237 61 96.896248 performances 1 4 4 2 10 1954 1173 18 21 0.000000 standards for durability and appearance retention. As progress is made in this work, its results will be incorporated in ainendments to” the program. AY he OD The desirability of a “orading system” over @ single standard from: the standpoint of competitive impact has been recognized in the proposed program. Five classes, ‘as defined on pages 28 and 29 of CRI. Standard No. 1, have been established to represent the range of possible consumer and commercial applications. The definitions of these Classes : will be available to the consumer, and will provide her with the kind of technical information she needs in order to make an informed purchase. oe :

11. “All present or future producers are to have free, unrestricted, and non-discriminatory access to the program, whether association members or not.” (FTC Advisory Opinion Digest, No. 96, October 19, 1966) © - ‘See comment No. 9 above.

19, “The association will affirmatively offer and accord to nonmembers an equal opportunity for certification at a cost no greater than, and on conditions no more onerous than, those imposed upon comparably situated association members for ‘whom comparable gervices are rendered.” (ibid.) . ed - The License Agreement, set forth on pages 1-20 of the attached program, makes no distinction between members of CRI and non-members. % “oo vestavans Woe AREQUMSIS LHEREFOR 1685 in either the benefits accorded to licensees, or the obligations required thereof. Fees for participation in the program, which will be established by the CRI Board of Directors, will apply equitably to all licensees. “ 13. “A uniform certification mark will be awarded to all who qualify.” (2bid.) The CRI certification mark (label and/or seal) has not yet been designed; but its use and appearance will be uniform for all licensees, whether or not they are members of CRI.

14. “General supervision of the certification program will be vested in a policy board, or committee, substantially representative of all producers, such board, or committee, to have, among its other duties, the responsibility for ensuring non-discriminatory access to the program.” (zbid.) The proposed program assigns the responsibility for general supervision to the Board of Directors of CRI. Non-members of CRI are not, of course, represented on the Board; but the necessity for the Board to operate within the legal framework established by the License Agreement—which prescribes the non-discriminatory character of the program—will protect the interests of all participants. On the basis of adherence to the above guidelines, we submit that the proposed CRI Certification Program should meet any possible objection the Commission may raise; however, we are receptive to suggestions if the Commission feels that a modification should be made so long as the suggestions are within the realm of feasibility and enforceability. We submit further that the advantages of such a program—to the ordinary consumer, as well as to the Federal Housing Administration at whose request it was developed—far outweigh any remote possibility of the lessening of competition. Because of the importance of this proposed program to the overall mortgage financing program of the Federal Housing Administration, we believe the FHA would join with us in urging the Commission to grant an advisory opinion on this submission. We refer you to Mr. Porter Driscoll, Director of the Architectural and Engineering Division, FHA, for further information on their position in this matter.

The staff and members of the Carpet and Rug Institute stand ready . to confer with the Commission staff, or to provide any further information desired.

Sincerely yours, (S) Gores E. Paunss, President.

Proposal To Publish and Distribute to Manufacturers of Competing Product Lines Sold in the Automotive Aftermarket a Composite Interchange Which Will Show the Interchangeability of Their Products With Parts Produced by Original Equipment Manufacturers and With Each Other. (File No. 713 7028) Opinion Letter June 25, 1971 Dear Mr. TwEbDLe:

This is in further response to your request of March 28, 1971, for Commission advice concerning your proposal to publish and distribute to manufacturers of competing product lines sold in the automotive aftermarket a composite interchange which will show, by part number only, the interchangeability of their products with parts produced by original equipment manufacturers and with each other. The Commission has given careful consideration to your request and has concluded that implementation of your proposal to publish and distribute a composite interchange under the circumstances described in your correspondence would not warrant a proceeding under the laws it administers, providing the following conditions are observed : 1, All manufacturers of competing product lines ‘for resale. in the automotive aftermarket will, in fact, be accorded an equal and continuing opportunity to participate in the program you have proposed. 2. The part number references contained in the proposed publication are not used in a manner as would result or be likely to result in the unlawful stabilization of existing pricing structures’ within the industry.

By direction of the Commission.

Letter of Request Marcw 23, 1971 Dear Mr. Tosin:

J am the Assistant to the President of the Tweddle Litho Company, and I am taking this opportunity to request from you an advisory opinion, in writing, on a service that we are planning to offer. The following background information is needed to give you a full understanding of why I am requesting your opinion. T was in Chicago on March 9, 1971, and attended a M.E.M.A. Luncheon, whose speaker, was a substitute guest speaker from the Federal Trade Commission. At the end of his speech he suggested that if anyone had anything that might give them reason to doubt the legality of certain actions to contact the Federal Trade Commission for their advice.

I have had reason to call the Federal Trade Commission in Cleveland, Ohio and talked to a Mr. Leslie Spisak your Attorney there. He said, after explaining my query, “that he did not see any illegality in it but suggested that I write to you for an advisory opinion prior to proceeding.”

The service that we are planning to offer has to do with the Automotive Aftermarket. In the automobile market there are two (2) main markets. One is original equipment manufacturers, to be referred to as O.E.M. (Ford, G.M., Chrysler and AMC.) The second is the Automotive Aftermarket, which is made up of approximately 3,500 manufacturers of replacement parts all of various sizes. These companies make parts for replacement in cars, trucks, etc. For example, when a fan belt breaks in your new car you may go to a Gas Station or Jobber to buy a new one rather than to the dealer you purchased the car from. To give an approximation of size, A.S.I.A. claims its members’ gross sales amount to $26,000,000,000.00.

All manufacturers make different replacement parts, no one manufacturer makes all of them; however, there may be ten (10) manufacturers of one part. These manufacturers find the O.E.M. part and do engineering work on it and then develop their own part which is equivalent to the O.E.M. part. They then assign their own part number to this part, and from this create an O.E.M. number to their own number interchange.

Example O.E.M. Manufacturer (A) 1234 A 789 D 71146 B 790 D 7478 C 791 D This gives them a cross-reference to O.E.M. part numbers when they sell their parts to Warehouse Distributors, who in turn, sell to Jobbers who then sell to retail Gas Stations and the general public. The consumer may come to a Jobber that carries Manufacturer A’s product he may have a Ford part number 1234 A. The Jobber does not stock Ford parts, only A’s, so he looks in the interchange and finds the appropriate part number and sells the consumer Manufacturer A’s equivalent part. The next phase of interchanging is that all manufacturers must _ interchange to each others part number; i.e., Manufacturers A, B, C, D, and E, must interchange to O.E.M. and to each other. This happens because a consumer may have already had the part replaced by some other manufacturer, goes to a Jobber that does not handle the manufacturer’s product but his competitors. This means that there must be both competitive as well as O.E.M. interchanges. Our company plans to offer the following computer service along with computerized typesetting and printing of and distribution of the interchanges. We plan to use this service to open doors for the larger typesetting and printing jobs within each manufacturer. This service consists of our offering to all manufacturers of competing product lines. Those that don’t want it won’t have to use it. My personal opinion is that the smaller manufacturers will and the larger ones that have O.E.M. information more readily available will not. Each manufacturer will feed to us his O.E.M. part number interchange and feed new numbers as they appear. We will sort on the computer based upon O.E.M. number sequence and printout in the following format :

OEM a -- 1234D A --- --- -- 1789 B --- - ~-- 348 Cc -- 9710 D _-_- 8391 A E — 7934 Z From this we can generate more accurate O.E.M. to manufacturer interchanges, also by computer sorts competitive interchanges for each manufacturer. Our Company would then via computer typeset and print all interchanges.

We feel that this service will accomplish the following: A. Cut down on manufacturer’s manpower.

B. Clean up all existing interchanges.

C. Cut down on production time.

D. Save money to the manufacturers.

E. Save time and trouble to the consumer. F. Make manufacturers more competitive and save consumer’s money.

G. Give our Company added volume.

H. Give our Company a better chance to do more volume. Your kind consideration of the above information will be appreciated and should your advisory opinion prove favorable it would be extremely beneficial to all parties concerned. I am forwarding carbon copies of this letter to Senators Hart and Griffin from Michigan so that I may also have their reaction to this planned service.

Sincerely, Tweppie Lrrao Company, (S) Micuart E. Tweppte, Assistant to the President.

DECISIONS AND ORDERS Page Advertisements, unauthorized ... 2.2.22... 000 eee eee eee ‘, 589 Aluminum siding .. 2... 2... 2... eee ee eee ee eee 570, 1016 Appliances, electrical ....-....- 2-020 cee eee ee eee eee 60 Aprons... 1 ee ee es 1133 Audio tapes ...........- ee ee ee 525 Automobiles, sale and distribution .................2.000- 347 Automobiles, used .. 1... 0-0... ee ee ee ee 1178 Book club, mail order .. 0... 2... ee ee ee ee ee 562 Candles 2... .. ee es 1158 Carpeting ... 2... 0... eee ee et ee es 1325, 1328 Carpeting and floor coverings ..... 2... --. ee ee eee ee eee 371 Children’s wearing apparel ................-22+22-- 578, 585 Chinchillas 2... 2... . , ee ee ee ee ee ee 39, 259, 358 Clothing franchise stores .. 2... 00. fe eee ee ee es 1245 Coal reserves and mining facilities ..............-..022000- 744 Collection notices, simulating official documents ............. 1088 Concrete well casings... 6-6 6 ee ee eee eee 1163 Contracts, franchise distributors .......-....... 0020220 ee 265 Correspondence schools:

Law... ee ees 307, 1272 Nursing, practical .......... ee ee ee ee eee 303 Cosmetics:

Facecream ... 2... ee ee ee te 323 Skin preparations .. 1... 20.0.0... 0022 eee eee ee eee 680 Credit insurance .........-..0.0 22000 e tees De ee eee 959 Dance instructions ... 2.2... ee ee ee ee ee 401 Debt collection service... 2... --...-.- 2002 2c were eee 541, 963 Devices:

Hearing aid . 2.2... ee ee ee es 709, 1265 “Tone-O-Matic” belt 2... 2... ee ee ee ee es 1099 Electronic products ............22+02-502000- 46, 53, 1183 Face masks, disposable paper .......... 2.02 ee ee eee eae 1137 Firearms, sporting and accessories .............+0+22220005 1104 Floor coverings . . Lee ee ee ee 371 Food and hardware products .............0 0220 eee eee 527 Franchise distributors contracts ..........-0.2..+0-0200000- 265 Franchise stores, clothing .... 6.6.2... 022 2c ee eee eee 1245 Fuel pump manufacturing facilities ©... ...........22000- 310 Fur products 2... 2.0... ee ee ee ee eee 17, 248, 390, 395, 398, 508, 514, 582, 697, 1130 1commodities involved in dismissing or vacating orders are indicated by italicized page reference.

FEDERAL TRADE COMMISSION DECISIONS | Page “Germ Fighter” toothbrush ..... . ee eee eee ee eee 1250 Gift wrapping manufacturing facilities .. 2.2... 2.2... eee eee 1352 Greeting cards ... 2.2... 2... cee ee ee ee ee 317 Hardware products ...........-.2.0 02 ee eee eee ee ene 1023 Health club memberships ...........-.--2. 22.2002 ee eee 187 Hearing aid “devices”. 2... ce ee eee 709, 1265 Home improvements .......-.-..... 0002 eee 484, 1254, 1313 Hospital garments .. 2... 20... ee ee ee es 517, 973 Household appliances .... 2.2.2... 2.04.2 eee eee ee eee ee 492 Household furnishings ................ 60, 532, 978, 1112, 1116 Insurance, credit .. 2... . 0. ee ee ee eee 959 Jewelry 2... ee ee 1195 Jobber stores, automotive parts ..........0 0.02200 eee eee 216 “Kava Instant Coffee”... 2... ee 686 Lace 2... . ee ee ee 383, 1140, 1341 Ladies’ coats 2... .... ee ee ee 949, 1313 Ladies’ dresses . 1.2... ee ee ee 14, 32, 985 Laundry preparations containing enzymes ........... 619, 625, 631 Leis 2... ee ee 1525 Lottery punch cards ..... 0... 2-2... 2 ee ee ee ee ee es 454 Macaroni manufacturing facilities ..................2020- 63 Magazine subscriptions .......... 020.2 c eee ee ee eee 990 Mail order book club... 1.2... 2. .... 2. 2 cee eee ee ee ee ee ee 562 Mail order merchandise ..........-.2 22.0: eee een nee ae 502 Maternity dresses... 2... oe ee eee 29 Medical and surgical apparatus ...........2. 0000002 ee uae 327 Merchandise, miscellaneous ............020 00000. eee eeae 60 “Metromail Elites” mailinglist ................-22.2000. 331 Milk, fluid... 2... 2. ee ee ee eee 603 Mobilehomes ......... 2.2.0.0. epee eee eee ee ees 340 Motion picture equipment .......-...- 0.020 eee eee eee 676 Neckties... . .. . ee ee eee 9 Phonograph records ..........0 2.00. eee eee ee ee eee 525 Prize contests 2... ee ee ee ee 606, 616 Promotional in-store broadcasts .. 2... 2.6... ee ee ee 22 Publications:

Athletic, ““Who’s Who in High School Athletics” ............ 1297 Magazine “The Saturday Evening Post” .............00008.4 1472 Subscriptions, magazine ...........-.-.-.20 0 ee eee eee 1004 Radio broadcast time ............ 0.022 ee eee eee ees 211 Radio equipment, amateur ..........-. 02000 eee eee 593, 598 Radios, transistorized .......0.0.000 002 eee eee eae 1169, 1173 Residential siding ...............000220000 484, 1016, 1254 Robes, chenille ... 2.2... 2.0.2.2... 2-22.22 eee eee eee 1 Scarves, ladies ............ 36, 521, 701, 1084, 1092, 1095, 1148, 1151, 1155, 1321, 1337, 1529, 1540, 1544, 1548 School, detectives/investigators .. 1... 0... 2. eee ee ee ee 1428 Sewing machines, newand used .........-----2-2+0-0050. 203, 1304 TABLE OF COMMODITIES Page Silk scarves . 2... ee eee eee 701 “Spangle” and sheer fabric .............0.0-.00eeeeeece 376 Stationery... 2. ee ee ee eee 317 Sterling silver tableware... 0... 0.0 eee ee ee eee 297 Sugar... eee eee eee 537 Sweat shirts, vacation type .........00000 0000 cece eeeee 956 Television sets 2... 2. ee ee ee eee 353 Textile fiber products ............02..0. 00000 eaee 464, 1533 Bedspreads .. 2... 0... ee ee ee eee 706 Carpeting... 2... 2. 2 ee ee ee ee 371, 1325, 1328 Garments .. 2... 2 eee ee eee 1331 “Italian” 6... ee ee ee eee 637 Organdy ............... 252, 255, 383, 953, 1140, 1144, 1536 Yarn and fabric 2... ee eee 1122 Tires,commercial ..........0. 0000 ee eee eee ee ee ne 1344 “Tone-O-Matic” belt... 20... 0. ee ee eee 1099 Toys 2... ee eee ee ee ee eae 21 Trade shows, apparel... 1... 0.020.000.0000 eee eeueeeae 446 Upholstery fabrics .. 2... 2... ee een 4 Vacuum cleaners .. 1... ee ee ee eee 1304 Warehouse distributors, automotive parts ............02.00. 216 Watches ©... eee ee eee 556 Wearing apparel:

Dresses, ladies’... 2... 2. ee ee ee ee cee 6693 Infants’ shirts, nurses’ caps ....... 2... De ee eee 517 Wedding gowns ............. 2000000 cee eee ee eee 379 Wood chipleis ......... 20... 0.0000 cee eee eee ee eee 1125 Wood fiber chips ......... ee ee ee 387 Wool products: .

Children’s apparel ...........0.0 0.000000 ce ee eeuae 578 Coats, ladies’... 2... 2. ee re 1331 Fabrics 2... ee ee ee ne 464, 1551 “Italian” 2... ee ee ee eee 637 Men’ssuits .. 2... . 0. ee ee ee eee eee 690 DECISIONS AND ORDERS Page Acquiring corporate stock or assets:

Clayton Act, Sec.7 .........-..2-000- 216, 310, 744, 1023, 1352 Federal Trade Commission Act ...........-+++08. 63, 216, 1023 Advertising and promotional expenses, discriminating in price through. See Discriminating in price. Advertising falsely or misleadingly:

Business status, advantages, or connections — Collection agency ....... 2.2... c eee eee eee nee eee 963 Financing activities .. 1... 0. ee ee ee ee ee 541 Individual or private business being — , “Association” ... 0... ee ee ee ee ee ee ee 1297 “College” 2... ee ee ee ees 3807 Nonprofit organization — ‘“‘Who’s Who in High ; School Athletics” 2.2... 22 ee ee ee ee 1297 “Law,” qualified to practice 2... 1 ee ee ee ee 307 “Medical Service Division”... 2... 1... eee ee ee ee ee 541 Nature 2... ee te ees 303, 1254, 1265 Nonprofit organization .. 2... 0... eee ee ee ee ee 1297 Offices in principal cities ........ ee ee ee ee eee 1254 Personnel or staff... 1... ee ee ee 709 Qualifications and abilities: Size/extent — timein business .... 2... 0. . ee ee ee ee ee te ee ne 1313 Composition of product — Fur Products Labeling Act 2... 0... ee ee ee ee 508, 697 Textile Fiber Products Identification Act ............ 706, 985, 1325, 1331 _ Wool Products Labeling Act ..........05--. 578, 1331, 1551 Dealer or seller assistance .. 2... 6 6 ee eee ee ee ee 39, 265, 358 Demand, business or other opportunities ............. 1297, 1428 Earnings and profits ............... 39, 259, 265, 358, 541, 1313 Endorsements, approval and testimonials .............+-- 1297 Financing... ........22-200- 297, 340, 347, 358, 527, 532, 570, 676, 959, 978, 1016, 1112, 1116, 1178, 1195, 1254 Free goods or services .... 2... 0-020 ee ee eee eee eee 401, 1297 Furnishing means and instrumentalities of misrepresentation or deception .. 2... ... 2.0. eee eee ene we eee 331, 1313 1Covering practices and matters involved in Commission orders. For index of commodities, see Table of Commodities. References to matters involved in vacating or dismissing orders are indicated by italics. DECISIONS AND ORDERS Page Government approval, action, connection or standards ........ 53, 963 Guarantees, fictitious or misleading .............. 39, 46, 187, 203, 358, 484, 502, 562, 570, 1016,.1254, 1265, 1304 Identity ............... 303, 307, 331, 541, 709, 1265, 1297, 1313 Individual’s special selection or situation ............ 401, 484, 492, 570, 1254, 1304 Jobs andemploymentservice ............0.0000000- 303, 1428 Legality orlegitimacy ................ Le ee ee ee ee 963 Limited offersorsupply ...........-2.2.2000000. 187, 484, 492 Medicinal, therapeutic, healthful,ete. ...............2000- 1099 Opportunities 2.2... ee ee ee 303 Premiumsand prizes ........ ee ee 606, 616 Prices .. 2... 2.0.20. Le ee 340, 347, 358, 527, 532, 570, 676, 1195 Additional charges unmentioned ...............00. 541, 562 “Bait” . 0. ee 203, 401, 1254, 1304 Comparative ...................2... . 208, 492, 562, 1304 Demonstration reduction ..............0.0008.4 484,1016, 1254 Exaggerated as regular and customary ........ 358, 492,1304,1313 — List of catalogas regularselling .................00--. 1104 Repossession balances .........--0. 032 ee ee ee eee eee 203 Retail as cost, wholesale, discounted,ete. ............-0... 562 Sales belowcost .. 2... ee ee ee ee eee 603 Termsandconditions ..........6.... 297, 340, 347, 358, 527, 532, 541, 570, 676, 1112, 1116, 1254 Usual as reduced, special,etc. ...........2..2.0004 187, 203, 484, 492, 562, 570, 1016, 1254 Prizecontests .........2.-000 0002 cease 484, 492, 606, 616, 1304 Promotional sales plans... .. ee ee ee ee 22, 401, 606, 616 Qualities or properties of product or service: Cleansing/purifying .............2..0002000- 619, 625, 631 Corrective, orthopedic, ete. ............. 00000 ee eee 1265 Cosmetic or beautifying ...-............0220000. 323, 680 Durability or permanence .......... 0.0.0 ce eee enue 484 Economizing orsaving .. 2... 20. 0, ee ee es 570 Educational, informative, training ......... Lee ee 303, 1272 Medicinal, therapeutic, healthful,ete. ........ 502, 709, 1250, 1265 Reducing, non-fattening, low-calorie,ete. ..............- 187 Rejuvenating ©... 2... ee ee ee es 323 Quality of product orservice .............. 39, 358, 502, 686, 1099 Quantity instock 2.2... ee ee ee ee ne 562 Reducing, non-fattening, low-calorie,ete..............200- 1099 Refunds, repairs, andreplacements ...........:... 265,502, 562 Safety of product ...... ee ee eee eee 353 Scientific or other relevant facts ................. 307, 709, 1265 Services 2... ee ee ee ee ee 1428 Special or limitedoffers ...............002.002008 562, 1304 Special situation .. 0.2... ee eee ee ee eee 1016 DECISIONS AND ORDERS Page Specifications or standards conformance ......... 353, 1169, 1173 Standards, specifications, or source — size or weight See ee ee eee 53 Statutory requirements — :

Fur Products Labeling Act ..............2.0-0000.-. 508 Truth in Lending Act ............ 297, 340, 347, 358, 527, 532, 570, 676, 1016, 1112, 1116, 1254 Surveys 2... ee ee eee eee ee eee 492 Terms and conditions ............ “187, 203, 265, 401, 570, 1016, 1254, 1304, 1428 Tests and investigations .............0 0.000 eee euveeee 680 Aiding, assisting and abetting unfair or unlawful act or practice ..... . 446 Allowances for services and facilities, discriminating in price through. See Discriminating in price.

“Bait” prices 2. ...... 0.0000 cece eee eae 203, 401, 1254, 1304 Boycotting seller-suppliers ............0..000c0000e 446, 1163 Clayton Act:

Sec. 2 — Discriminating in price — Sec. 2(a) — Illegal price differentials — Cumulative quantity discounts and schedules ............ 327 Customer classification ..................20.4. 593, 598 Quantity rebates or discounts ...............00.0.4 593, 598 Sec. 2(d) — Payment for services or facilities for processing or sale — Advertising expenses .................0.0. 537, 593, 598 Allowances for services or facilities ........... 327, 537, 1158 Sec. 2(e) — Furnishing services or facilities for processing, handling, etc. Promotional enterprises ...................0. 327, 1158 Sec. 7 — Acquiring corporate stock or assets ...... 216, 310, 744, 1352 Cleansing/purifying ..........0... 000.000 eae 619, 625, 631 Coercing and intimidating:

Customers or prospective customers ........., 556, 1104, 1163, 1344 Distributors 2... 2... ee eee ee ne 1183 Suppliers and sellers... ......... 0000000 ceeeeae 446, 1163 Collection agency .. 2.2... 0.0.00... eee eee eee eee eee 963 Combining or conspiring tc:

Boycott sellersuppliers .............0-0000cvaee 446, 1163 Control marketing practices and conditions ...... 446, 525, 603, 1183 Eliminate competition in conspirators’ goods .............. 1344 Enforce or bring about resale price maintenance see 556, 1183, 1245 Guarantee against price decline .......5.0.......000004 1104 Maintain monopoly ..........0.0. 0000 cee eee eee eae 525 Restrict competition in buying ................. 22, 556, 1344 | Comparative prices, misrepresenting as to ......... 203, 492, 562, 1304 Concealed subsidiary, fictitious collection agency — using misleading mame............. ee ee ee eee ee 541 470-536 O - 73 - 108 DECISIONS AND ORDERS : Page _ Condition of goods, misrepresenting asto ..-- +--+ +e eee 's 1169, 1173 Connections or arrangements, advertising falsely ..--- +--+ --+--> 1016 Contracts restricting customers’ handling of competing products: Cutting-off access to customers or market .....--..-+2-0% 11638, 1245 Controlling marketing practices and conditions .....- 446, 525, 603, 1183 Controlling, unfairly, seller-suppliers ....- +--+ eee eerie 22 Corrective, orthopedic, etc... 6. - ee eee ee 1265 Cosmetic or beautifying... 6. ee eee et ts 323, 680 Court documents, simulating another or product thereof ....------ 541 Customer classification, discriminating in price through .....-.-- 593, 598 Customers or prospective customers; coercing and intimidating ...... 556, 1104, 1163, 1344 Cutting off access to customers or market — Contracts restricting customers’ handling of competing products 2... ee eee eee tee 1163, 1245 Interfering with:

Advertising mediums .... +--+ +e eee tert tts 446 Distributive outlets... 0. tee et es 22, 446, 525 Organizing and controlling seller-suppliers .----- +--+ ses -> 1344 Supplies or service... 6 te 556 Threatening disciplinary action ...-- +++ esse rere 1104, 1183 Dealer or seller assistance — Advertising falsely or misrepresenting as to . . - 39, 265, 358, 1169, 1173 Dealing on exclusive and tying basis ©. --- +--+ eer tre 265, 525 Demand, business or other opportunities, advertising falsely 307, 1297, 1428 Demonstration reduction — Advertising falsely — misrepresenting as to: Prices 2.0 ee ee 484, 1016, 1254 Devices for lottery selling ...---- eee ee tte eters 454, 492 Discriminating in price in violation of:

Sec. 2, Clayton Act — Sec. 2(a) — Illegal price differentials — Cumulative quantity discounts and schedules ..-.-----+-- > 327 Customer classification ...---- +e eee ert 593, 598 Quantity rebates or discounts ©... +--+ +e eee rrr 593, 598 Sec. 2(d) — Allowances for services or facilities — Advertising expenses .-.- +--+ +e eee 327, 537, 593, 598, 1158 Sec. 2(e) — Furnishing services or facilities for processing, handling, etc. Promotional enterprises ...- +--+ e seer errs 327, 1158 Sec. 5, Federal Trade Commission Act — Knowingly inducing or receiving discriminating payments ....-.-- 22 Dismissal orders:

Complaint against national magazine dismissed when magazine ceased publication .. 6... - +e ee eee ret 1472 Complaint as to Standard Brands, Inc., dismissed ....-.-+-e+-e- 536 Complaint charging importer of Italian woolens and textiles with violations dismissed ....-- +--+ eee errr rte 637 DECISIONS AND ORDERS Page Order granting complaint counsel’s motion that the complaint in this matter, 48 F.T.C. 1379, be dismissed without prejudice .... . 502 Recinding orders against 27 toy manufacturers and dismissing the complaints .. 2... 0... 0... eee eee eee ee ee ee ee 21 Durability or permanence ..........0. 2.02. eee ene eee eee 484 Earnings and profits:

Advertising falsely or misrepresenting asto ..... 39, 259, 265, 358, 541 Securing agents or representatives by misrepresentation ......... 541 Economizing or saving, advertising falsely ..............0.-204. 570 Educational, informative, training ...............2.2.20-6- 803, 1272 Eliminate competition in conspirators’ goods ...........-.-:5.- 1344 Endorsements ........2.0 0 2 eee eee ee te eee ene 853, 1297 Enforcing dealings or payments wrongfully . 317, 401, 541, 589, 1004, 1245 Espionage, systems of, reporting price cutters ......-..-...200- 556 Exaggerated as regular and customary, prices ........-.... 1304, 1813 Federal Trade Commission Act:

Sec. 5 — Aquiring corporate stock or assets ............ -. . 63, 216, 1023 Boycotting seller-suppliers .. 1.0... 2... 00 e eee ec eeee 1163 Cutting off supplies or service .........000 2220 ee eee 556 Dealing on exclusive and tying basis ...........--.-- 265, 525 Enforce or bring about resale price maintenance ............ 556 Enforcing dealings or payments wrongfully .... . 541, 589, 990, 1004 Furnishing means and instrumentalities of misrepresentation or deception 2... 2. ee 1304 Misrepresenting oneself and goods ............. eee eee 963 Restrict competition in buying ................--24-. 556 Securing orders by deception ...........--..+040. 317, 1331 Securing signatures wrongfully ............ 331, 401, 484, 1428 Selling belowcost ........- 0000 ee eee eee ee eee 603 Fictitious collection agency ... 12... 0.2... eee ee ee ee eens 963 Financing, misrepresenting asto ........ 297, 340, 347, 358, 527, 532, 570, 676, 959, 1016, 1112, 1116, 1254, 1313 Flammable Fabrics Act:

Importing, selling, or transporting flammable wear . 1, 14, 29, 32, 36, 252, 255, 376, 379, 383, 387, 517, 521, 585, 693, 701, 949, 953, 956, 973, 1084, 1092, 1095, 1125, 1133, 1137, 1140, 1144, 1148, 1151, 1155, 1321, 1337, 1341, 1525, 1529, 1533, 1536, 1540, 1544, 1548 Free goods or services ........-.2.0 00 eee eee 401, 990, 1004, 1297 Furnishing means and instrumentalities of misrepresentation and deception ...........-.--2--0000- 208, 331, 454, 1304, 1313 Fur Products Labeling Act: - Composition ...... Lk ee eee ee ee 248, 504, 508, 697, 1130 Guaranties, furnishing false ..........-..00 0202 eee 390, 395 Invoicing products falsely .. 17, 248, 390, 395, 398, 514, 582, 697, 1130 Misbranding or mislabeling . ... 248, 395, 398, 508, 514, 582, 697, 1130 Neglecting ............-.. 17, 248, 395, 398, 508, 514, 582, 697 Statutory requirements .......... 2.0000 ee eee eee 390, 1130 DECISIONS AND ORDERS Page Government approval, action, connection or standards ........ 53, 1088 Government endorsement .. 2... 66 ee et es 963 Government insignia, stamps, questionnaires, etc. .......-..--.-- 1088 Guarantees, fictitious or misleading ........ 39, 46, 187, 203, 358, 484, 502, 562, 570, 1016, 1104, 1254, 1265, 1304 Guaranties, furnishing false:

Fur Products Labeling Act .. 2... 0.6 ee ee ee ee ee eee 390, 395 Textile Fiber Products Identification Act ...........08... 9, 578 Harassing competitors 2... ee ee ee 1163 “Hypoing” temporary increase of broadcast audience .....-....-.- 211 Identity of product, misrepresentating asto ....-. 3038, 307, 331, 541, 709, 990, 1004, 1016, 1254, 1265, 1297, 1313 Importing, selling, or transporting flammable wear .. 1,14, 29, 32, 36, 252, 255, 376, 379, 383, 387, 517, 521, 585, 693, 701, 949, 953, 956, 973, 1084, 1092, 1095, 1125, 1133, 1137, 1140, 1144, 1148, 1151, 1155, 1321, 1337, 1841, 1525, 1529, 1533, 1536, 1540, 1544, 1548 Individual or private business being:

“Association” . 2... ee ee ee 1297 Educational, religious or research institution or organization ... 303, 307 Individual’s special selection or situation .....-. eee 401, 484, 492, 570, 1004, 1016, 1254, 1304 Institute 2.0. ee ee ee 307 Interfering with: .

Competitors or their goods . 6. 6 6 ee ee ee 1163 Distributive outlets 2... ee ee 525 Interlocutory orders: See also Interlocutory orders with opinions. Adopting suggestions of S.0.U.P. as to the number of documents required to be submitted, and payment by Commission of any costs charged for production of documents specified in subpoena requested by S.0.U.P. 2... ...--2-- ee ee ee 1572 Denying — Appeals challenging examiner’s order as requiring admissions on alleged irrelevant information and as denying or nullifying respondents’ assertions of privilege against self-incrimination under the Fifth Amendment .........-2- 002 eee eee 1591 Joint appeals by two cement companies and appeal by respondent from order denying so-called Mississippi River Treatment for certain subpoena specifications and granting such treatment as to certain other specifications ... 2... 2... ee ee ee eee 1566 Request — For leave to file interlocutory appeal and rescheduling the evidentiary hearings in hopes that, as a courtesy to the court, such extension of time may facilitate the expeditious conclusion of the collaterial suit in the district court ......... 1583 For oral argument on an appeal for reconsideration of order .. 1584 For reconsideration or reopening of the case and for certain confidential information ........ 2.2 eee eee eee 1597 INDEX 1699 DECISIONS AND ORDERS Page That Commission reconsider the issuance of complaint and that Chairman be disqualified .................000- 1587 To dismiss or stay case because of pending trade regulation rule 1588 To reconstder Commission’s order denying disqualification of Chairman .. 1... 2. 2 ee ee ee 1580 Directing General Counsel to file documents advising court that Commission has found issuance of complaint against five respondents to be in the public interest ................ 1577 Granting — Appeals of two third-party companies and quashing the subpoenas issued by hearing examiner directed to said companies ..... . 1559 Motion requesting permission to file a consent agreement on a nonpublic basis and holding in abeyance motion to withdraw from adjudication ........ 2... 0.02.2 e eee ee ee ee eee 1582 Request to file reply to answer of Commission counsel to respondent’s motion for reconsideration and disqualification ....... 1595 Holding in abeyance S.O.U.P.’s suggestion that Commission pay fees of S.0.U.P’s witnesses . 2... 0. ee ee eee eee 1572 Remanding matter of protective order to hearing examiner for reconsideration ... 2... 2.00.02. ee ee ee es 1566 Vacating hearing examiner’s denial of protective order on subpoenaed material ...............0.4. De ee eee 1566 Interlocutory orders with opinions:

Denying — Petition for reconsideration of Commission’s decision on grounds ofambiguity .........0... 02. eee ee eee ee eee 1576 Petition that case be reopened for purpose of suspending effective date of Paragraph Three of the-order ................ 1560 Request by respondent that Commission assign him free defense counsel ... 2... ee ee ee ee 1557 Request for permission to file an interlocutory appeal from hearing examiner’s ruling striking the testimony of Commission attorney-investigator ...........0 0 eee eee weenie 1564 Respondent’s motion for issuance of a subpoena duces tecum ... 1562 Respondent’s petition for reconsideration of denial for extension of time to comply with provisions of order to construct a plant for the manufacture of low density polyethylene resin ........ 1572 Granting complaint counsel’s motion for issuance of subpoena ad testificandum directed to a government official . ... . ek eee 1562 Vacating initial decision on motion for partial summary judgment and remanding case to hearing examiner ......... bee eee 1556 Invoicing products falsely .......... ee eee 17, 248, 390, 395, 398, 514, 582, 697, 1130 Jobs and employment service ...........0.00..020000% 303, 1428 Legal requirements, misrepresenting asto ..............4.- 963, 1088 Limited offers or supply, advertising falsely asto ........ 187, 484; 492 Lottery selling, devices for ........0....2 000 eee unease 454, 492 Maintaining resale prices:

™ DECISIONS AND ORDERS Page In favor of price maintainers ......-.. 60s ee eee ee eee eee eee 1245 Refusal to sell .. 0... cece ce ee eee terete eee ee eens 1104 Systems of espionage ... 2... --- eee eee eee tee teeters 556, 1183 Manufacturer, dealer falsely representing self as .......-.2.-+-50-4- 1254 Medicinal, therapeutic, healthful, etc. ..... 187, 502, 709, 1099, 1250, 1265 Misbranding or mislabeling: :

Composition of product — Fur Products Labeling Act ..... 17, 248, 390, 395, 464, 508, 697, 1130 Textile Fiber Products Identification Act .............---4-- 9, 371, 706, 985, 1122, 1325, 1331 Wool Products Labeling Act ........---++---- 464, 578, 1331, 1551 Statutory requirements — Fur Products Labeling Act........-- 248, 390, 398, 508, 514, 582, 697 Textile Fiber Products Identification Act ...........--++6. 4, 9, 371, . 106, 985, 1122, 1325, 1328 Wool Products Labeling Act ......-..---+---- 578, 690, 1331, 1551 Misrepresenting business status, advantages, or connections: Collection agency, fictitious .. 1... 2... ee ee cee eee eee eee 963 Financing activities ©... 0.66. e eee 541, 1313 Government connection ........ 0c eee cee ene ete eect ences 1088 Government endorsement ......-. 0. e sec e eee eee reece rece eens 963 Individual’s special selection or situation ...... 2-6. eee ee ee eeee 484 Nature .... 0. ccc ec ee eee eee ete ee eee eee eens 1265 Personnel or staff... 2... 2.20 ee eee eee ee eee 541, 709, 963, 1313 Producer status of dealer... 2.2... cece ce eee eee eee nee 1254 Qualification 2.0.2... ee eee eee eee eens 1313 Size, extent or equipment .... 2... 6. ee eee eee eee eens 1313 Misrepresenting oneself and goods:

Condition of goods .. 1... 6. . cece ee eee ee ee eee ee ete -.. 1169, 1173 Connections or arrangements with others ........ cece teens 1016 Dealer or seller assistance ........2. 0220-000 39, 265, 358, 1169, 1173 Demand for or business opportunities ......---. 000s ee eee eee eee 1428 Earnings and profits ..........2- 0s eee eee eens 39, 259, 265, 358, 541 Free goods 2... 60. e eee ere ee tee ee eeee eens 990, 1004 Guarantees........ 39, 187, 203, 484, 562, 570, 1016, 1254, 1265, 1304 “Hypoing” temporary increase of broadcast audience ....... eee eee 211 Identity 2.0... cc eee eee eee tenets 990, 1004 Individual’s special selection or situation ..............-- 492, 570, 990, 1004, 1016, 1254, 1304 Jobs andemployment ........ 6.0. e eee eect ee eee eens 1428 Legal requirements ......-.- eee ee eee teeter eee teens 1088 Nonprofit character»... 2.60 - eee eee eter eee 331 Prices, terms and conditions ...... 2.20. e eee eee eee eee eee eens 60 Prize contests ......- 0. cee ee cee eee eee 484, 492, 606, 616, 1304 Qualities or properties .........--- 187, 259, 484, 680, 709, 1265, 1272 Quality of product .. 2.6.0.0... eee eee eee ees -,. 89, 259, 358, 570 Quantity 2.0... ec ee eee eee e ete eens 1169, 1173 Refunds ..... 0.0. cee ee eee eee eee ee eee ee ence tteee 265, 562 DECISIONS AND ORDERS Page Scientific or other relevant facts .........0.0. 0000 ce eeceee 709, 1265 Selection or situation .......00.00.0 000. c ccc cece cee cece cececee 990 Special or limited offers... ...........0.0000c05e 187, 484, 562, 1304 Special selection ........ 00.0.0... 000 cece eee ee eee cece eees 990 Statutory requirements 358, 676, 959, 978, 1016, 1112, 1116, 1195, 1254 Surveys 2.0... 0... cece cece ce cence eee ceeeneeeee + 1004 Terms and conditions. ....... 60, 187, 203, 265, 340, 347, 358, 401, 484, 570, 1004, 1016, 1112, 1116, 13804, 1428 Tests, purported ........... 000... e cece cece eee eeeeecee 680 Misrepresenting prices: : ;

Additional costs unmentioned .................... Lea ee ee 541, 562 “Bait? eee ccc eee eeeeebeeuees 203, 1254, 1304 Comparative .........0. 00.0000. cece cece e cee 203, 492, 562, 1304 Demonstration reductions ............-..00c0cceuee 484, 1016, 1254 Exaggerated as regular and customary ..... tee e ee eee eee ee ees 13813 Retail as cost, etc., or discounted ..........0.0.0 cece cecccceaee 562 Terms and conditions ...... 541, 570, 676, 959, 1004, 1016, 1178, 1195 Usual as reduced or to be increased ..........0...0000. 203, 484, 562, 570, 990, 1004, 1016, 1254 Misrepresenting promotional sales plans — “hypoing”............... 211 Modified orders:

Previous order, 50 F.T.C. 1070, modified by further requiring respondent to cease (1) failing to disclose that its courses will not qualify students to take the bar exams, (2) using the word “college” without disclosing that respondent is a correspondence institution and (3) offering to confer any standard law degree .... 0... ee cece eee cence eee eues 307 Previous order, 80 F.T.C. 1083, modified by further requiring respondent to disclose that its courses, alone, will not qualify students for a barexamination .............0..0.0ceueceeee 1272 Monopoly, combining or conspiring to maintain ................... 525 National organizations, using endorsements falsely ................. 353 Nature, misrepresenting as to... 0.0.0.0... ccc cece eee ececcccceece 1265 Neglecting, unfairly or deceptively, to make material disclosure: Composition of product — :

Textile Fiber Products Labeling Act .............04; 4, 9, 371, 985, 1122, 1325, 1331 Wool Products Labeling Act ............. 00.00 c cece eee ee 1551 Prices... eee cena 46, 484, 492, 502, 541, 562 Sales contract, right-to-cancel provisions ............... 187, 265, 358, 401, 492, 990, 1004, 1304, 1428 Statutory requirements:

Fur Products Labeling Act .............0 0000 ee eeeeee 17, 248, 390, 395, 398, 508, 514, 582, 697 Textile Fiber Products Identification Act ............. 4, 9, 371, 464, 706, 985, 1122, 1325, 1328 Truth in Lending Act.......... 60, 297, 340, 347, 358, 527, 532, 570, 676, 959, 978, 1016, 1112, 1116, 1178, 1254 Wool Products Labeling Act ............. 464, 578, 690, 1331, 1551 DECISIONS AND ORDERS Page Terms and conditions ... 2... 0.6 eee ee te te ee ens 60, 297, 340, 347, 358, 401, 484, 492, 527, 532, 570, 606, 616, 676, 959, 1004, 1016, 1112, 1116, 1178, 1254, 1304, 1428 Nonprofit character, misrepresenting asto ...-...--+.5--- 331, 1297 Opportunities ©... ee 303 Organizing and controlling seller-suppliers ....- 26+. +e +e esse 1344 Personnel or staff:

Advertising falsely or misrepresenting ........-. 541, 709, 963, 1313 Practical nursing «2.1 1 ee ee 303 Premiums and prizes, advertising falsely ....-.- +--+ ee ee ees 606, 616 Preventive or protective 2... 1. ee ee ee ee es 1250 Price cutters, discrimination against ... 1... 2-6 - eee eee ee eee 556 Prices:

Additional costs unmentioned ... 2... 2... 2 eee eee eee 541, 562 Advertising ... 0.6.0.2. ee ee ee 340, 347, 358, 527, 532, 570, 676 “Bait? . ee ee ee ee 203, 401, 1254, 1304 Comparative .. 1.2... ee ee ee es 46, 203, 492, 562, 1304 Demonstration reductions ..........---- . ee. 484, 1016, 1254 Discount savings ... 1... 6 eee eee eee a a as 46 Exaggerated as regular and customary ......- 46, 358, 492, 1304, 1313 Neglecting ..... 2... 00+ eee eee eee 46, 484, 502, 541, 562, 676 Regular selling ©... 0 ee ee ee eee 1104 Repossession balances... 1. ee ee ee ee ee 203 Retail as cost, wholesale, discounted, etc. ©... 6... -2 220s 562 Sales below cost .. 6... ee ee ee 603 Terms and conditions ........-...0-65 297, 340, 347, 527, 532, 541, 570, 676, 959, 978, 990, 1112, 1116, 1195, 1254 Usual as reduced, special, etc. .. 46, 187, 203, 484, 562, 570, 1016, 1254 Prize contests, advertising falsely .........-.-- 484, 492, 606, 616, 1304 Producer status of dealer orseller . 2... 2... eee ee ee ee eee 1254 Professional or scientific status .. 66. 6 ee ee ee ee ee 307 Promotional enterprises .. 2.66 ee ee ee es 327, 1158 Promotional sales plans 2... 2. ee ee tt ee 401, 606, 616 Publication services — nonprofit organization ......---.-.+++5- 1297 Qualities or properties of product or service, misrepresenting as to: Cleansing/purifying .. 1... 6. ee ee eee eee ee es 619, 625, 631 Corrective, orthopedic, ete. 2... ee ee ee es 1265 Cosmetic or beautifying ..... ee ee ew ee ee 323, 680 Durability or permanence .......-0 2-0 eee eee eee ee + 484 Economizing or saving «6... ee ee ee eee 570 Educational, informative, training ........---.-.+----- 303, 1272 Medicinal, therapeutic, healthful, ete. ........- 502, 709, 1250, 1265 Reducing, non-fattening, low-calorie, etc. ©... - 5-2-2 eee eee 187 Rejuvenating ©... 2. ee 323 Size andextent ... 2... 0.2.6 2 eee eee te ee ee ees 1313 Quality of product or service:

Advertising falsely... 2... 22. eee ee eee 259, 358, 502, 686, 1099 Misrepresenting asto ......--+ eee ee eee 39, 259, 358, 570, 1313 - = atveo DECISIONS AND ORDERS Page Quantity, misrepresenting as to .................2..... 562, 1169, 1173 Rebates or discounts .............000 000 cee eec ccc ececcecee 593, 598 Reducing, non-fattening, low-calorie, etc. .................... 187, 1099 Refunds, repairs, and replacements ...................... 265, 502, 562 Rejuvenating ......... 0.00.0 c cece eee eee eeceeeee 323 Repossession balances ............. 0.0 0c cc ee cee eceeeeucececces 203 Restricting competition in buying ....................000000-... 1344 Retail as cost, wholesale, discounted, etc. .................-00--... 562 Safety of product .......... 0. ccc e cece cece ee cece eee ec cece. 353 Sales below cost... 6.0... 0... cece cece eee eee e eee eeeeee 603 Sales contract, right-to-cancel provision....... 187, 203, 265, 358, 401, 484, 570, 990, 1004, 1016, 1304, 1428 Scientific or other relevant facts ..................--... 307, 709, 1265 Securing agents or representatives by misrepresentation: earnings ....... 541 Securing information by subterfuge ...............000.00-0- 0000. 331 Securing orders by deception. ............0000cc0cccccee ee. 317, 1313 Securing signatures wrongfully ................ 187, 331, 401, 484, 1428 Selling below cost ..............-...005. Be ec e eee eee cance 603 Shipping, for demand, goods in excess of or without order ............ 317 Simulating another or product thereof:

Court documents ........... 00... cece cece cece eee 541 Government insignia, stamps, questionnaires, etc. ................ 1088 Size, extent or equipment .............000 0000. e cece e cece cece. 1313 Size or weight ...... Be ee eee eee ene e teen eeees 53 Special or limited offers...............0.00.00-45. 187, 484, 562, 1304 Special situation .............0 0.000000. cee ee eee eee ee - 1016 Specifications or standards conformance ................ 353, 1169, 1173 Spying on and reporting price cutters .........000000 0000000000... 556 Standards, specifications, or source ...............0..... eee eee 53 Statutory requirements:

Fur Products Labeling Act... 17, 248, 395, 398, 508, 514, 582, 697, 1130 Textile Fiber Products Identification Act ............ 9, 371, 464, 706, 985, 1122, 1325, 1328, 1331 Truth in Lending Act.............. 297, 340, 347, 358, 527, 532, 570, 676, 959, 978, 1016, 1112, 1116, 1178, 1195, 1254 Wool Products Labeling Act ............... 464, 578, 690, 1331, 1551 Suppliers and sellers... 2.0... 0.0... ccc cece cece cee c cence cecee 1163 Surveys, misrepresenting as to ....... 00000000 cee cceecccceee 990, 1004 Television depictions:

Using deceptive techniques in advertising ........... 619, 625, 631, 686 Terms and conditions, misrepresenting as to: Advertising .......... 187, 203, 265, 401, 570, 1016, 1254, 1304, 1428 Goods ... 0... cece cece eee eect cence 187, 358, 1304, 1428 Neglecting .................. 297, 340, 347, 358, 527, 532, 570, 606, 616, 959, 978, 1112, 1116, 1254, 1428 Prices 2.2... 0... eee eee 297, 340, 347, 358, 527, 532, 541, 570, 676, 959, 990, 1004, 1016, 1112, 1116, 1178, 1254 Sales contract ......... 208, 265, 401, 484, 570, 990, 1004, 1016, 1304 DECISIONS AND ORDERS Page Tests and investigations ......--- +e sees rere rere e reteset 680 Textile Fiber Products Identification Act: Composition .......-.--0++++0-5 4, 9, 371, 464, 706, 985, 1122, 1325 Guaranties, furnishing false .....---- eee eee eer eer ttre 578 Misbranding or mislabeling ..-..-.----- 4, 9, 706, 985, 1122, 1325, 1328 Neglecting ........ 0s eee eee eens 4, 9, 371, 464, 985, 1122, 1325 Statutory requirements ......----+--- 4, 9, 706, 985, 1122, 1328, 1331 Threatening disciplinary action .-....---+--+eer eres re erect 1104 Time in business .......--¢e eee e cee e eee etter reset etter erres 1313 Truth in Lending Act:

Advertising falsely ....---.- eee eee eee teers 297, 340, 347, 358, 570, 959, 978, 1016, 1116, 1254 Financing ..... 0.022 e eee eee eee eeee 297, 340, 347, 358, 527, 532, 570, 676, 959, 978, 1016, 1112, 1116, 1178, 1254 Misrepresenting ........--- eee eee e eee etree 60, 297, 347, 358, : 676, 959, 978, 1016, 1112, 1116, 1178, 1254 Neglecting ......-.-----065 340, 570, 676, 959, 978, 1016, 1112, 1116 Prices ......----+- 340, 358, 527, 532, 570, 676, 978, 1016, 1112, 1254 Statutory requirements ... Luce eee eee 60, 297, 358, 527, 532, 570, 676, 959, 978, 1016, 1112, 1116, 1178, 1195, 1254 Terms and conditions ........06- eee eee eee eee 297, 340, 347, 358, 527, 532, 570, 676, 959, 978, 1112, 1116, 1195, 1254 Unfair methods or practices, etc., involved in this volume: Acquiring corporate stock or assets.

Advertising falsely or misleadingly.

Aiding, assisting and abetting unfair or unlawful act or practice. Boycotting seller-suppliers.

Coercing and intimidating.

Combining or conspiring.

Controlling, unfairly, seller-suppliers.

Cutting off access to customers or market. Dealing on exclusive and tying basis.

Discriminating in price.

Enforcing dealings or payment wrongfully. Furnishing false guaranties.

Furnishing means and instrumentalities of misrepresentation or deception. Importing, selling, or transporting flammable wear. Interfering with competitors or their goods. Invoicing products falsely.

Maintaining resale prices.

Misbranding or mislabeling.

Misrepresenting oneself and goods — business status, advantages or connections — goods — prices.

Neglecting, unfairly or deceptively, to make material disclosure. Securing agents or representatives by misrepresentation. Securing information by subterfuge.

Securing signatures wrongfully.

Selling below cost.

-— a2ivu DECISIONS AND ORDERS * Page Shipping, for‘payment demand, goods in excess of or without order. Simulating another or product thereof.

Using deceptive techniques in advertising. | Using misleading name — vendor.

Using, selling, or supplying lottery devices. Using:

Deceptive techniques in advertising ................ 619, 625, 631, 686 Misleading name .................... bee eee 303, 307, 541, 1297 Selling, or supplying lottery devices........................ 454, 492 Usual as reduced, special, prices................. 46, 187, 203, 484, 562, 570, 990, 1004, 1016, 1254 Wool Products Labeling Act:

Composition .......... 0.0.0. c cece ccc eeeceee 464, 578, 13138, 1551 Misbranding or mislabeling .................... 578, 690, 1331, 1551 Neglecting ............0. 0. cee cee eececee 464, 578, 690, 1331, 1551 ADVISORY OPINIONS AND REQUESTS THEREFOR File Number Acquisition of concrete and block producer by cement and aggregate producer ....:.......-....-20..4 (713 7008) Advertising:

Book about investing .................0.0. (713 7012) Foreign origin disclosure ...............00. (713 7020) Free balloon ..............0 0000 cee eae (713 7011) In-store promotional plan ...... (703 7116) 1653, (713 7017) Reciprocal .. 2.2... 20... 2.0.0.0... 0 eee eee (713 7019) Slide projection .........0.........0000. (713 7022) Weekly menu-recipe-coupon ................ (713 7006) Advertising device called Vectograph ............ (713 7025) Advertising plan, reciprocal — no opinion .......... (713 7019) Automotive parts, interchangeability of; dissemination ofinformationon..............0.00000004 (713 7028) Book about investing — advertising for ........... (713 7012) Certification Program:

Quality ............ Pee ee ee ee ee (713 7026) Standard ................. eee eee (713 7002) Clayton Act:

Sec. 2 — Discriminating in price — Sec. 2(d) and 2(e) — Promotional Assistance — Proportionally equal treatment ........... (703 7117) Tripartite promotional assistance — :

Advertising in free weekly ............. (703 7116) Free distribution of weekly magazine ...... (703 7116) Menu-recipe-coupon advertising ......... (713 7006) “PostAds” at pointofsale ............ (713 7017) Reciprocal advertising ............... (713 7019) Shopping cart displays ............... (713 7024) Slide projection advertising ............ (713 7022) Coats, leather; imported from Spain ............. (713 7020) Contest, game of chance — ‘Play the STOCK MARK-IT”_. (713 7013) Dealer purchase stimulation plan— no opinion ....... (713 7021) Debt collection; form letters, marketing of ......... (713 7023) Denial of petition for reconsideration of prior advisory prior advisory opinion, 77 F.T.C. ..... (703 7117) Device, electric operated advertising ............. (713 7025) Device, electric relay control .............-2.24. (713 7016) Diamond, synthetic ...............0200005 (713 7014) Dissemination of information regarding interchangeability of automotive parts .................2044. (713 7028) Page ADVISORY OPINIONS File Number Federal Trade Commission Act:

Sec. 5 — Deceptive Advertising — “Free” balloon offer ....---.--.-+0++++2+08 (713 7011) Satisfaction guaranteed .......----+++0:5 (713 7012) Use of word ‘“‘Diamonflare:”’ to describe synthetic diamond .......-.--+++-+e++285 (713 7014) Sec. 5 — Deceptive Practices — © ; ;

Misrepresenting — Goods: Guarantees .........- (713 7012) Sec. 5 — Trade Restraints — Promotional assistance plans — Advertising in free weekly magazine .......-.- (703 7116) Shopping cart displays .....--- 2-2 -++ ee (713 7024) Slide projection advertising ............. (713 7022) “PostAds” at point ofsale .....--.--.--+- (713 7017) Foreign Origin:

Disclosure not required — Advertising, newspaper .....---- eee eres (713 7020) . Beyond requirements of Bureau of Customs .... . (713 7016) Form letter, debt collection, marketing of ...--.....- (713 7023) “Free” distribution of weekly magazine ....-....-.-- (703 7116) “Free” offer, balloon . 2... 2.2... cee ee ee ee (713 7011) Game or contest — “Play the STOCK MARK-IT” ..... (713 7013) Interchangeability of automotive parts; dissemination of information regarding ........---++e2ee8- (713 7028) Jewelry: Use of word “‘Diamonflare” in marketing synthetic diamond .......-.---+ +++ e eee (713 7014) Mail order business involving advertising and sale of dietary information and calamine lotion .........-.- (713 7009) “Play the STOCK MARK-IT,” game of chance ......-.- (713 7013) Promotional assistance plan, tripartite .......-.-...-. (703 7116) (713 7006) (713 7017) 1610, (713 7019) 1625, (714 7022) 1649, (713 7024) “PostAds” at point ofsale .....-.-- +++ eee eee (713 7017) Quality certification program; carpet industry ....... (713 7026) Reciprocal advertising plan ....---- +--+ e+ ees (713 7019) Report on movement of advertised products ........ (713 7017) Sales report on advertised products .......--+..--- (713 7017) Soft drink — free balloon offer .......-.-2-+-e-55 (713 7011) Standard certification program .......--.--+--5 (713 7002) Synthetic jewel... 0. ee ee ee ee es (713 7014) Tripartite promotional assistance plan ........---.- (703 7116) (713 7006) 1602, (713 7017) (713 7019) 1625, (713 7022) 1649, (713 7024) Vectograph; sale of... 6. eee ee et ee ee (713 7025) Page 1653, 1602, 1607, 1610, ADVISORY OPINIONS AND REQUESTS THEREFOR File Number Proposal to distribute free to retail outlets a weekly magazine .. 1... 2... epee eee ee ees . 703 7116 Denial of petition for reconsideration of prior advisory opinion regarding proportionally equal treatment of retail cooperatives and nonaffiliated retailers ........... 703 7117 Legality of proposed standard certification program... . . 713 7002 Legality of promotional plan involving a weekly menurecipe-coupon featuring supplier advertising ........ 713 7006 Proposed acquisition by a cement and aggregate producer of certain assets of a producer and seller of concrete and block, and dry building materials .............. 713 7008 Implementation of a mail order business involving advertising and sale of dietary information and calamine lotion asaremedy foracne .........-.02+2000000. 713 7009 Advertisements offering a free balloon displayed at the point of sale to promote soft drinks .......:......... 713 7011 Proposed advertising for a book about investing ....... 713 7012 Legality of game or contest called “Play the STOCK MARK- IT,” wherein contestants try and select five stocks from a list of fifty stock on the NYSE which will show the greatest appreciation during the two-week period of thecontest ........0 2.0.0. eee ee ee ee ee 713 7013 Use of word ‘“‘Diamonflare”’ in marketing a product which isnotanatural diamond .........-.......00- 713 7014 Foreign origin labeling requirements before electric relay control devices imported from West Germany may be sold in United States ...........2..--000008. 713 1076 Legality of proposed advertising and promotional plan which contemplates the placing of “‘PostAds’’ within retail outlets at the point of sale of the supplier’s products, and compensation to merchants for “reporting on a historical and current basis the shelf movement of the advertised product” 2.2... ee ee ee es 713 7017 Legality of proposed reciprocal advertising plan ....... 713 7019 Disclosure of foreign origin in newspaper advertisements .. 713 7020 Proposed dealer purchase stimulation plan whereby dealers earn points in order to quality for an expenses paid trip 2... ee ee ee eee wee ee 713 7021 Proposal to provide packagers of food and grocery products with slide projection advertising of their products in retail outlets 2... 0. fe ee ee 713 7022 Marketing of form letters to be used in debt collection activity 2... ee ee Lee 713 7023 Page LISTING File Number Legality of promotional assistance plan whereby grocery products will be advertised on shopping carts of retail grocery stores ..........-...2.000000- 713 7024 Legality of plan to sell a patented, electric-operated, advertising device called a Vectograph to suppliers for their advertising use with the retailers of their products .... 713 7025 Proposed quality certification program for the carpet industry ....--.......0. 00022 eeee ‘ee eee 713 7026 Proposal to publish and distribute to manufacturers of competing product lines sold in the automotive aftermarket, a composite interchange which will show the interchangeability of their products with parts produced by original equipment manufacturers and with each other ............. 713 7028 Page