Consumer Law Library

Rebate pricing plan

Topics: Clayton Act §2(a): price discriminationAdvertising

69 F.T.C. 1215 · Apr. 13, 1966 · Digest No. 31

source volume section (69 F.T.C. 1215)

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. 31. Rebate pricing plan.

The Federal Trade Commission has informed a photoengraving company that its proposed rebate pricing plan granting a ten percent discount to all purchasers to whom it provides photoengraved plates through advertising agencies wm not violate Section 2 (a) of the amended Clayton Act. As it understands the p1an, the Commission said, the concern wm offer a direct year-end across-the-board rebate of ten percent of the dollar va1ue of purchases of photoengraved plates to aU purchasers to whom it provides photoengraved plates through advertising agencies. The rebate is to be contingent upon the advertisers specifying the use of the engraver s facilities to their respective advertising agencies. The concern wm provide photoengraved plates to the extent of its facilities to all purchasers classified as buying photoengraved plates through advertising agencies, and will affrmatively disclose and offer this rebate to all customers and prospective customers in this classification. (Fi1e No. 6337006, released Apr. 13, 1966.