Pooling of allowances for purposes of joint advertising

No. 269. Pooling of allowances for purposes of joint advertising. The Commission was requested to render an advisory opinion concerning the legality of a proposal by a group of independent retaiJers to pool the advertising allowances due the members for purposes of joint advertising.

Under the proposal, a1l money earned by the members under the suppliers' cooperative advertising programs would be assigned to the group in a collective advertising effort for the suppliers. Each supplier would receive, on the basis of the amount of money earned from him by all members of the group, radio advertising through the medium of three minute programs, each of which would have one minute of time available for the suppliers' commercial messages. The content of the one minute commercial would be governed by the suppliers themselves and would not be connected in any way with the retailers' advertising. As part of the proposal, for each program a supplier receives the retailers would receive broadcast time on the same stations for their message, which would be institutional in nature and would extol the advantages of dealing with independent retailers. Under this type of advertising program, it would not be possible to mention indiv.idual dealers nor will prices be mentioned in such advertising.

The opinion advised that the Commission could see no objection to the proposal on the understanding that the fund used by or on behalf of the participating group to purchase advertising space wi1 consist only of the aggregate of advertising aIlowances properly available to the members individuaIly under the terms of Section 2 (d) of the Clayton Act, as amended by the RobinsonPatman Act. In brief, that Section prohibits the payment by sellers of allowances to some customers which are not made available on proportionally equal terms to all competing customers. In this connection, the opinion further advised that it would unlawful if the combined power of the group was used to induce from the suppliers allowances greater than those to which the ADVISORY OPINION DIGESTS 1657 individual members were entitled under this Section. (File No. 6837147, released July 17 1968.

:-0. 270. Necessity for disclosing country of origin of imported ski.

The Commission was requested to render an advisory opinion as to the marking requirements applicable to a ski which is imported from abroad in an unfinished state and which would have to have the decal and the top finish applied in this country, as weIl as the final process for finishing the bottom or the running surface. The opinion advised that in the Commission s view it wiIl be necessary to disclose the country of origin of this ski in a clear and conspicuous manner to prospective purchasers at the point of sale. (FiJe No. 683 7135, released July 17 1968.