Extended credit tel'H1S for ne\vly established stores in impoverished urban areas appl'oved

73 F.T.C. 1337 · date not parsed · Digest No. 253

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. 253. Extended credit tel'H1S for ne\vly established stores in impoverished urban areas appl'oved.

The. Commission acl\'i80l1 fin ftpp~ll'ellllallufuctll1'el' that under the ('jrC'1l1llstances de::;cl'ibed his proposed phn ",ould not likely contravene bws adminj~Jc'r0cl b:' the Commission, The m~mnfilC'tln'er proposes to gi'-e extended cl'edit tenus to one, class of his custO1ll(1 1'~ , excl !lc1ing other classes. Thn~,e to ,\'hom l'Xlit ' l'(' 1"0 , ~'O'i\- 1."("l'l tenf!,) (l ('l't),-, t 'n - L',_1 ' ioll \"o1' (1) The bnsiness is ~1 llewl~' established hn~illess located \\ ith.ill nIl nl'hnn inner core. gl10tto-tYl)(', ,Hen (:2) The proprietor 01' pri ncipill owner OT the business is :l l'esic1ent oJ the l1rbml , irm01' corE', gJ)(~tto-type area "\\'ithin which the business is locH tecl.

(:3) In Jight uf its O\\' llE'l'ship, 1\1~tllngt'1l1ellt. and locnticill the /.)U::::1J)PSS ~tnlld.s a l' pn~Ollablc chmwC:-' of sln'\'iYa1. To such C'ustomcl'S the Ioll()"\\'ing extended cl'(:,clit terms will be nilereel :

(1) One :' ;11 C'redjt un ol'Ch'1'splaced chll'ing the J11'~;t ll\(J1lth / l 1.

(:2) :~ix mont11:;; ('redit on nll orders pJn\'ed thereafti:~l' TIle C'xh'lldecl credit tl'iH'l1 is to he limitc'cl to the first fin~ years of it !lc',\' stOl'('.::, op('J' ~ltiol1~, It WitS :1180 1)J:oposecl that such new firms be gin'll on an intl'oclllct()l':~ basis cel't:lin in-stOl' !2 and point-oJ-sale nd-I:),'; ::- 7:!---_n_f;, ,,\

1338 FEDERAL THADE CO~llVnSSIOX DECISIONS (O. cost to tIll' crtising llwteriais. not. to exceed in total "nIne (i. l'(-' questing pH l'ty) ~ t hI:' sum of $500. The Commis~ion Jelt th,~t there IVoulcl be little, if any substantial competition ))('t",('e11 the. favored nnd c1isfa\.orl'Cl customers. The Commission announced that it \Hmlc1 not, currently nt least challenge the. reque'::ting party s proposa1. The Commission noted further that if changed circumstances required a. change in the Commission ~s present views, the l'equesting' party would be given ample opportunity, as provided by the COlllmission s Rules of Practiee~ to modify or abandon, "ithout pennlty. the pl'\.'sently approved proposal.

One year subsequent to the initiation of this program the l'cllLlesting party was requested to submit to the Commission a report describing the (letails of the implementatioll of tIlt", plan together "ith any objections it may hnye. 1'('('e1\,(-'(1. (File l.\ o. G8:3 711;3. released ::.\Iay :2;\ InG8, )