Receipt of discount in lieu of brokerage by respondent wholesale food distributor
73 F.T.C. 1332 · May 7, 1968 · Digest No. 243
source volume section (73 F.T.C. 1332)
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. 243. Receipt of discount in lieu of brokerage by respondent wholesale food distributor.
A wholesale food distributor under order for having violated Section :2 (c) of the amended Clayton Act has been advised by the Federal Trade Commission that if he received or accepted a discount offered by one of his suppliers for rendering certain "special services " he would be in violation of order entered against him. offered to the The Conllnission noted that the 5 percent discount distributor was equal to commissions normally paid by the supplier to brokers; the services to be rendered by the distributor were services normally performed by brokers in connection with sales to other distributors; other circumstances and statements dearly indicated that both parties to the transaction considered the discount as compensation for elimination of brokerage expense, and the discount therefore amolUlted to an allowance in lieu of brokerage. No. 0-1201 , released COlmnissioner Elman did not concur. (File :Ma.y 7 , 1968. ) (Opinion issued under authority or Section 3. 61 (c) of the Commission s Rules of Practice (1967).