Consumer Law Library

Commission does not object to computerized inventory control system to be furnished suppliers by third-party…

74 F.T.C. 1679 · Nov. 25, 1968 · Digest No. 306

source volume section (74 F.T.C. 1679)

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. 306. Commission does not object to computerized inventory control system to be furnished suppliers by third-party promoter subject to certain safeguards for nonparticipating retailers. ,

1680 FEDERAL TRADE COMMISSIO:\ DECISIONS

The Commission issued an advisory opinion concerning a computerized inventory control system to be furnished suppliers by a third-party promoter.

The promoter proposed to computerize sales data and project product inventory requirements for subscribing suppliers pursuant to information periodical1y obtained from participating retailers. The Commission advised the applicant (the promoter) that, on the basis of the information submitted, the Commission does not object to the proposal subject to two safeguards for nonparticipating dealers: first, that the promoter satisfy the Commission that its subscribing suppliers "wil continue to provide personal salesman service or some noncomputerized equivalent to those dealers who do not participate " and second, that suppliers "make the results of the computer analyses of sales trends and other general market information available to nonparticipants' if and as they desire it. " (File No. 693 7025, released Nov. 25, 1968.