Advisory opinion letter to Mr. Helm
77 F.T.C. 1743 · date not parsed ·
source volume section (77 F.T.C. 1743)
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.
Dear Mr. Helm:
We manufacture a denture cleanser presently in distribution only in Orange County, California. We sell directly to the drug wholesalers without the use of brokers and/or agents. Our suggested consumer and retail prices are published in the Drug Topics’ Red Book, and the American Druggist’s Blue Book.
We intend to expand our sales and distribution into the grocery and related outlets, and to utilize the services of brokers. We will continue to service the drug wholesalers direct, at least in the Southern California Area. We are confronted by the problem of different selling costs between direct sales and brokerage sales and the restrictions of the Clayton Act. We wish to raise the wholesale price to the grocery and related wholesalers, over what we now charge the drug wholesalers. The amount of the increase would directly reflect the increase in selling costs.
We believe that Paragraph 2(a) of the Clayton Act allows us to increase the price as outlined above, and would appreciate your comments and opinion. Thank you for your cooperation, and are anxiously awaiting your
reply.
Very truly yours,
NORVAL COMPANY
Arthur J. Mullane