Promotional assistance; Newsstand display
69 F.T.C. 1230 · June 11, 1966 · Digest No. 54
source volume section (69 F.T.C. 1230)
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. 54. Promotional assistance; Newsstand display.
The Federal Trade Commission recently rendered to the publisher of a magazine a favorable advisory opinion regarding his promotional assistance plan providing basically for payments of 991 per issue, per newsstand and alternatively, at the newsstand operator s option , payment at a rate of 1121 per copy sold, per issue. Payments would be subject to a $75 maximum per issue to any single newsstand operator. Payments wou1d be made quarterly provided the operator had reported daily sales and permanent1y displayed the magazine in a high traffc 10cation full cover exposed within easy reach of customers. The p1an wou1d be offered each calendar quarter by a notice on the magazine cover with details printed on an inside page. Plans such as this come within the purview of Section 2 (d) of the Robinson-Patman amendment to the Clayton Act. Section 2 (d) provides in essence that it is unlawful for a supplier in interstate commerce to offer promotional assistance to his resel1ing customer unless a proportionally equal offer a1so is made to the customer s competitors who sell the same product. The Commission s Guides for Advertising Al10wances discuss the requirements for such promotional assistance Plans in considerab1e detail and wil be of assistance to persons contemplating their use. Copies of the Guides are available from the Secretary, Federal Trade Commission, Washington , D.C. 20580. (Fi1e No. 6637020, released June 11, 1966.
ADVISORY OPINION DIGESTS 1231