Legality of plan to display signs at newsstands callng attention to advertisements in magazines

No. 56. Legality of plan to display signs at newsstands callng attention to advertisements in magazines. An advisory opinion made public today by the Federal Trade Commission informed an advertising company that its plan for display on newsstands of signs relating to specific magazine advertisements wi1l not subject the company itse1f or participants to adverse action by the Commission, if the p1an is carried out as outlined below.

It is proposed that the requesting company wi1l arrange for the display of advertising promotional signs directly below or adjacent to copies of magazines on newsstands in high traffc areas, which wil remain on the newsstand for the same period of time as the magazine. This sign wi1l direct attention to an advertisement which appears in the magazine in question. The cost of the signs wil be borne by the manufacturer or se1ler of the product advertised , who wi1l also assume the cost of renta1 payments to the operators of the newsstands for the disp1ay of the signs. A1l payments are to be made through the requesting company, which wil act as an intermediary hetween the advertisers and the newsstands. A1l signs wi1l be of a uniform three and one-half inches in height and of the same width as the magazine involved.

It is understood, the Commission advised the requesting party, that there wil be no business relationship, direct or indirect between you and the magazines involved, other than may be necessary to secure permission to refer to the magazines in your signs; it is further understood that you in no way participate in any price concessions, direct or indirect, made to your advertisers by the magazines as a resu1t of your program. " (File No. 643 7005, released June 16, 1966.

Modified July 11, 1968, p. 1211 herein.