Discount-buying membership organization
69 F.T.C. 1201 · Feb. 1, 1966 · Digest No. 13
source volume section (69 F.T.C. 1201)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 13. Discount-buying membership organization. A recent Federal Trade Commission advisory opinion informed a promoter that there were no actionable trade restraints inherent in his proposed plan. As explained by the promoter, the plan involved the formation "In conformity with lJolicy of the Commission, advisory opinions are confidential and a.re not available to the public. only digests of !irlvisol'Y opinions arc of public 1'('co)'(1. D:g-ests of advisory opinions al'e curnmtJy published in the Federal Register.
1202 FEDERAL TRADE COMMISSIO:- DECISIONS of a membership organization. Membership, availab1e at an annual fee to the general public without restriction, confers the right to purchase at a stated discount from the prevaiJng prices of retail merchants. Local retailers can participate in the plan without restriction.
The Commission pointed out that its approva1 was limited to the proposed plan itself and no views were expressed as to the plan s implementation. Without imputing any 1ack of good faith to the requesting party, the Commission noted that if, for example, members of the purchasing public were misled or deceived, or could be mis1ed or deceived, as to benefits availab1e under the plan, such result might be actionable. (File No. 663 7029, released Feb. 1, 1966.