Tripartite promotional plan for larger supermarkets
76 F.T.C. 1109 · May 29, 1969 · Digest No. 374
source volume section (76 F.T.C. 1109)
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. 374. Tripartite promotional plan for larger supermarkets. The Commission issued an advisory opinion concerning a proposed tripartite promotional plan for larger supermarkets. The applicant proposed to solicit advertising from packagers of goods which are normal1y stocked in grocery stores. The applicant would arrange for the display of such advertising in its projector using a color sound film cartridge which would be instal1ed in supermarkets that record an average of 7 500 transactions per week or have an annual sales volume in excess of $1 milion. Consideration to participating retailers for the permission to instal1 the projector units would be one of the three commercial spots on each film cartridge provided while the units are in their stores.
The Commission expressed the view that implementation of the proposed course of action in the manner described probably would violate the Clayton Act, Section 2 (d) or 2 (e), as amended and/or the Federal Trade Commission Act, Section 5 for the reason that the proposed payment or services would be made available only to the larger supermarkets. See Guide 7 of the Commission s Guides for Advertising Al10wances and Other Merchandising Payments and Services (May 29, 1969). The proposed plan makes no provision for retailers for whom the basic plan is not usable and suitable. (See Guide 9. ) The plan makes inadequate provision for informing competing customers of the availability of the program. (See Guide 8. ) (File No. 703 7030 October 9, 1969)