U.S. Pioneer Electronics Corp

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IN THE MATTER OF U.S. PIONEER ELECTRONICS CORP.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-2755. Consent Order, Oct. 24, 1975 -- Modifying Order, May 19, 1992 This order reopens the proceeding and modifies the Commission's consent order issued in 1975 (86 FTC 1002) with Pioneer Electronics (USA) Inc. so that Pioneer is no longer prohibited from unilaterally terminating a dealer who sells Pioneer home-electronics products at a price other than the suggested retail price.

ORDER REOPENING AND MODIFYING ORDER ISSUED OCTOBER 24, 1975 On December 6, 1991, Pioneer Electronics (USA) Inc., the successor corporation to U.S. Pioneer Electronics ("Pioneer"), filed a Petitions 1 9 1 3 3 889 1699 37 29 96.926727 to5 1 9 1 3 4 945 1694 148 44 96.255951 Reopens 1 9 1 3 5 1113 1693 239 45 95.956886 Proceedings5 1 9 1 3 6 1372 1694 69 34 96.500328 ands 1 9 1 3 7 1460 1700 36 28 96.211510 to5 1 9 1 3 8 1514 1693 146 46 96.123650 Modify5 1 9 1 3 9 1680 1694 160 35 96.689392 Consents 1 9 1 3 10 1860 1694 131 35 91.758247 Order ("Petition") in Docket No. C-2755, pursuant to Section 5(b) of the Federal Trade Commission Act, 15 U.S.C. 45(b), and Section 2.51 of the Federal Trade Commission's Rules of Practice, 16 CFR 2.51. The Petition requested that the Federal Trade Commission ("Commission”) reopen the consent order issued on October 24, 1975, U.S. Pioneer Electronics Corp., 86 FTC 1002 (1975), and previously modified on March 18, 1983, 101 FTC 372 (1983), to set aside and modify several provisions contained in paragraph I of the order. On April 8, 1992, the Commission issued an Orders 1 9 2 1 10 1765 2216 174 46 96.611885 Granting5 1 9 2 1 11 1955 2217 36 34 96.980164 in4 1 9 2 2 0 655 2274 1335 46 -1 5 1 9 2 2 1 655 2274 75 36 96.560257 Parts 1 9 2 2 2 743 2274 67 35 96.856995 ands 1 9 2 2 3 823 2274 164 46 96.441971 Denying5 1 9 2 2 4 1000 2274 36 34 96.989990 in5 1 9 2 2 5 1048 2274 76 35 96.679047 Parts 1 9 2 2 6 1137 2274 153 46 96.866112 Requests 1 9 2 2 7 1303 2280 35 29 96.037125 to5 1 9 2 2 8 1351 2274 145 46 95.738014 Reopens 1 9 2 2 9 1510 2274 66 35 95.738014 ands 1 9 2 2 10 1589 2274 142 46 96.365242 Modify5 1 9 2 2 11 1745 2274 112 36 96.800537 Orders 1 9 2 2 12 1869 2274 121 36 96.292664 Issued4 1 9 2 3 0 655 2332 1335 47 -1 5 1 9 2 3 1 655 2333 160 36 96.924248 October5 1 9 2 3 2 834 2333 58 41 96.404716 24,5 1 9 2 3 3 918 2332 103 42 96.215897 1975,5 1 9 2 3 4 1043 2333 69 35 96.215897 ands 1 9 2 3 5 1132 2332 115 36 96.338036 Orders 1 9 2 3 6 1265 2338 36 30 95.772530 to5 1 9 2 3 7 1321 2332 109 36 96.435364 Shows 1 9 2 3 8 1451 2333 136 35 88.550789 Cause ("Order Modifying Order and Show Cause") which granted part of Pioneer's Petition by deleting paragraph I.6., relating to restrictions on Pioneer withholding cooperative advertising allowances, and partially modifying paragraph I.10. to remove the restrictions on Pioneer's right to terminate a dealer unilaterally because the dealer has advertised Pioneer products at prices other than those Pioneer deemed appropriate or approved. The Commission, however, denied Pioneer's request to U.S. PONEER ELECTRONICS CORP. 591 590 Modifying Order modify paragraphs I.2., I.5., 1.8. and the other portions of I.10., which prohibit Pioneer from among other things, threatening, intimidating, coercing, delaying shipments or otherwise taking action against a dealer for not following suggested advertised prices. At the same time, the Commission ordered Pioneer to show cause within 30 days why the 1975 order against Pioneer should not further be modified to remove the prohibition on Pioneer terminating a dealer for selling its products at prices other than Pioneer deemed appropriate or approved.

On April 21, 1992, Pioneer filed its Answers 1 3 3 1 9 1551 1161 36 30 96.109650 to5 1 3 3 1 10 1605 1156 146 35 96.588799 Federal5 1 3 3 1 11 1770 1157 113 35 96.439240 Trade4 1 3 3 2 0 548 1208 1335 51 -1 5 1 3 3 2 1 548 1208 273 37 96.345551 Commission's5 1 3 3 2 2 838 1210 113 35 96.638046 Orders 1 3 3 2 3 964 1217 36 28 96.698357 to5 1 3 3 2 4 1016 1211 110 35 96.877724 Shows 1 3 3 2 5 1141 1211 130 42 96.895378 Cause,5 1 3 3 2 6 1286 1213 124 35 96.802460 Issued5 1 3 3 2 7 1425 1213 101 46 96.193146 April5 1 3 3 2 8 1543 1214 32 40 96.579582 8,5 1 3 3 2 9 1597 1214 109 36 96.796745 1992 with the Commission, stating that it does not object to the modification of paragraph 1.10. as stated in Part X of the April 8, 1992, Order Modifying Order and Show Cause. Accordingly, It is ordered, That this matter be, and it hereby is, reopened; and It is further ordered, That paragraph 1.10. of the order in this matter be, and it hereby is, modified to read as follows: Threatening, intimidating, coercing, delaying shipments, or taking any other action (other than terminating) to prevent the sale of respondent's products by a dealer because said dealer has advertised or sold, is advertising or selling, or is suspected of advertising or selling such products at other than prices that respondent may deem to be appropriate or has approved.

Complaint 115 F.T.C.