Consumer Law Library

Advisory opinion letter to Mr. Sretnpacu: the shelf movement of the product advertised

Topics: Advertising

78 F.T.C. 1611 · Aug. 25, 1970 ·

source volume section (78 F.T.C. 1611)

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.

Srrremeer 15, 1970 Dear Mr. Sretnpacu:

Thank you for your letter of August 25, 1970. The delay in responding was due to my vacation. In paragraph 2 of your letter, you inquire as to alternative plans available for stores selling the advertisers’ goods who do not or cannot provide space for postads. It should clearly be understood that the fixtures containing the postads can be installed on shelves and walls in any retail outlet wishing to participate and every store wishing to participate has adequate space available for display of advertisements. Stores which do not wish to provide space have determined not to participate in this part of the Plan. We therefore, feel that the Plan will be “functionally available” to all competing customers.

1612 FEDERAL ‘TRADE COMMISSION DECISIONS It is stated (p. 2) that PostAds, Inc. will pay the participating stores a certain sum each week as (i) rental for the space utilized, and (ii) in reimbursement for services rendered. It is also stated (pp. 4-5) that PostAds, Inc. will reimburse the participating outlets at the same rate for the space leased and for the services rendered. It is currently anticipated that PostAds, Inc. will pay the participating outlets between $1 and $3 for the space leased and service in connection with installation and removal of posters, and between $1 and $3 for information regarding the shelf movement of the product advertised. When the program is instituted, fees for the space rented and servicés rendered will be definitively established. As a result of your comments and to conform the rental fee to the requirements of Guide 11, we wish to eliminate footnote 1 on page 2 of our earlier letter. Space will be paid for only if PostAds, Inc. utilizes it. a Similarly, we wish to inform you that our proposal (p. 5) to offer back-lighted color transparencies to stores having sales in excess of $25,000 per week has also been eliminated. We trust that these comments have adequately responded to your inquiries.

Our clients are anxious to proceed with their proposed program, and we therefore ask that our request be processed as expeditiously as possible.

If you have additional comments or requests for information, please

call me collect.
Very truly yours,
(S) Rosert S. Bernstern.
Supplemental Letter Relative to Request