Cooperative advertising program
69 F.T.C. 1219 · Apr. 30, 1966 · Digest No. 39
source volume section (69 F.T.C. 1219)
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. 39. Cooperative advertising program.
The Federal Trade Commission announced today that it has advised a manufacturer of women s wear that its proposed cooperative advertising a110wance program and a furnishing of services or facilities if in practice worked out as presented, would be unobjectionab1e under Sections 2(d) and (e) of the Clayton Act, as amended by the Robinson-Patman Act. Under the supplier s first offer, a11 vendees (who are to be effectively informed of the offer) wi1 be paid, on request and on proof made, for one-half their cost of cooperative advertising. ,
Supplier s contribution at anyone time wi1 be Jimited to, and wi1 amount to, 10 percent of the dol1ar value of a single sale to a requesting vendee. Over a year s time, however, supplier contribution is to be restricted to 2. 5 percent of the dol1ar va1ue of a vendee s annual purchases. Any vendee who has received in excess of this amount wi1 be bi1ed therefor and a refund wi1 be required.
The Commission cautioned the manufacturer, however that should one or more , but not al1, competing vendees fail to refund an excess al10wance as determined by yom plan, Robinson-Patman Act questions would arise, Upon suppJier s second offer, statement encJosures wi1 be provided, the number furnished being based on the number of items purchased by a vendee. Enclosures wi1 be imprinted for those entitled to quantities of 5, 000 or more; unimprinted enclosures wi1 be furnished to those entitled to fewer than 5,000 enclosures. (File No. 633 6020, released April. 30, 1966.