Advertising aJlowances by book publisher The Commission rendered an advisory opinion in regard to the…
72 F.T.C. 1045 · Aug. 30, 1967 · Digest No. 140
source volume section (72 F.T.C. 1045)
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. 140. Advertising aJlowances by book publisher The Commission rendered an advisory opinion in regard to the legality of a book publisher s promotional plan calling for the payment of advertising allowances. Specifically, the Commission ruled that the proposed plan would be in compliance with Sec. 2(d) of the Clayton Act, as amended.
Under the terms of the proposed plan, the book publisher proposes to offer to retailers, wholesalers and retailers who purchase through wholesalers advertising allowances equal to 75 percent of the actual cost for newspaper and magazine advertisements at local rates, but not to exceed 10 percent of the net value of confirmed orders for the advertised titles. Additionally, allowances wil be paid for the use of stuflers, circulars and catalogs, but not to exceed 10 percent of the dealers' net purchases. Regardless of which method of advertising is used, promotional payments wil not exceed 10 percent of the buyers' total net purchases. (File No. 673 7107, released Aug. 30, 1967.