Consumer Law Library

Organization of warehouse distribution center for a jobber buying group

Topics: Cooperative buying groups

75 F.T.C. 1114 · date not parsed · Digest No. 328

source volume section (75 F.T.C. 1114)

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. 328. Organization of warehouse distribution center for a jobber buying group.

The Commission issued an advisory opinion warning of probable violations of law in the proposed organization by an automotive replacement parts manufacturers’ representative of a warehouse distribution center buying group of jobbers. According to the information submitted, the applicant is now, and intends to continue to be, a sales agent for several automotive parts manufacturers. He proposes to organize and operate a warehouse distribution center for automotive parts, obtaining quantity discounts on purchases from suppliers and then reselling at a 5 percent to 7 percent markup to “member” jobbers. The quantities will be the result of pooled orders from the jobbers.