Consumer Law Library

Supplier services furnished through third party

Topics: Clayton Act §2(e): promotional services and facilities

76 F.T.C. 1098 · July 11, 1969 · Digest No. 357

source volume section (76 F.T.C. 1098)

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. 357. Supplier services furnished through third party. The Commission advised a requesting party that his proposed plan would be governed by the provisions of Section 2 (e) of the amended Clayton Act, as interpreted by the Commission s recently issued Guides for Advertising Allowances and Other Merchandising Payments and Services. In return for chain offcials' time in considering supplier proposals , a third party intermediary proposed to provide mer- ADVISORY OPINION DIGESTS 1099 chandising advice of a perhaps general nature. The requesting party considered his proposed action to be outside the scope of Section 2 (e).

The Commission conc1uded that implementation of the plan would be likely to result in a violation of Section 2 (e) if the plan were to be offered only to chains and if usable and suitable alternatives were not offered to those competing customers who could not use the basic plan. (File No. 693 711(; Released July 11, 1969)