Tysons Corner Regional Shopping Center, et al.

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IN THE MATTER OF ET TYSONS CORNER REGIONAL SHOPPING CENTER, . AL. MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8886. Decision, June 10, 1975-Modifying Order, Oct. , 1975 Order modifying an earlier order dated June 10, 1975, 85 F. C. 987, 40 F.R. 3656 issued against anew Yark City deparment store chain by expanding the order with the addition of Paragraph III(C) to permt respondent to negotiate to include agreements in its shopping center leases which would, provide that a W &J Sloane furniture specialty store shall be the only tenant in the center primarily engaged in the sale of furniture, home furnshings, and related accessories; and by modifying Pargrph rV(R) to allow respondent to limit distribution of copies of the order to those developers of shopping centers in which respondent is a tenant operating a store containing 50 00 square feet or more.

Appearances For the Commission: Anthony Low Joseph, David I. Wilson and Maynard F. Thomson.

For the respondents: Irvng Scher, Weil, Gotskal Manges New York City for City Stores Company.

ORDER REOPENING PROCEEDING AND MODIFYING ORDER To CEASE AND DESIST By petition dated Oct. 2, 1975, City Stores Company has requested the Commission to modify its order of June 10, 1975, in two respects described below. The Bureau of Competition has filed an answer objecting to the requested modification.

Respondent requests initially that a new subparagrph Ili(C) be added which would permit it to negotiate to include agreements in its shopping center leases which would provide that a W &; Sloane furniture specialty store shall be the only tenant in the center primarily engaged in the sale of furniture, home furnishings, and related accessories. (Such clauses would not prevent the competitive sale these items by tenants such as department stores for whom such sale was not their principal activity.

We agree with respondent's contention that the agreements contemplates were not at issue in the litigated case, and under the circumstances the requested narrow modification is appropriate. It should be noted that this change is not intended to signify the Commission s approval of such agreements, but merely to exempt them Order 86 FTC.

from coverage by the order in this matter; in view of the limited scope of the adjudicative proceedings. Given appropriate evidence of anti competitive consequences the- Commission will not hesitate to challenge shopping center lease agreements which provide for exclusive rights of occupancy, (e. , People s Drug Stores, Inc. File No. 721 0090, agreement containing order to cease and desist; placed on public record for comment, Oct. 5, 1975).

City Stores also requests that the order be modifed to require that copies of the order be provided only to developers of shopping centers in which City Stores operates stores larger than 50 000 square feet. Respondent points out that it operates more than 100. stores of size below 50 000 square feet. We agree it is doubtful that the practices condemned by the order are likely to exist as to these stores, and notification of the centers in which they exist would, therefore, seem of slight possible value and might indeed produce confusion as well as modest but unnecessary expense. For the foregoing reasons we will make the second requested modification. This change will not, of course, obviate respondent's obligation to ensur that practices prohibited by the order are not committed in any shopping center in which it is a tenant. Therefore It is ordered That the proceedings be reopened and that the order to cease and desist issued June 10, 1975, be modified by the addition of the following Paragraph IIl(C);

It is further ordered That this order shall not prohibit respondent from negotiating to include, including, carrng out, or enforcing an agreement or provision in any agreement which provides that a W &; Sloane furniture specialty store operated by respondent in a shopping center shall be the only tenant in the shopping center primarly engaged in the sale of furiture, home furishings, and related accessories.

It is further ordered That Paragraph IV(B) of the order to cease and desist issued June 10, 1975, be modified to read: Within thirty (30) days after this order becomes final, notify each developer of shopping centers in which respondent is a tenant operating a store containing 50 000 square feet or more of floor space of this order by providing each such developer with a copy thereof by registered certified mail.

STEVENS BEDDING WAREHOUSE, INC., ET AL. 923 923 Complaint