Advisory opinion letter

Dear Sirs: ;

We are a.company that specializes in sales and new market development for products, in Supermarkets, Drug Stores, Department Stores and Variety ‘Stores. It ‘is our intention to offer to the supermarkets and Radio or T.V. stations the following proposal : a) To the supermarket we propose the use of their private label packaging; such as milk cartons, orange juice cartons, bread wrappers and shopping bags.

The packaging will carry a printed message promoting the T.V. or radio station. The imprinted message will always carry, the name of the station, its logo, and its number on the dial. On occasion it may also make mention of a specific program the station carries. ‘Example:

I. One side of a milk container will carry the following message : “Watch the Mike Douglas Show” Channel 13 WXAV T.V. Also Station Logo Il. Shopping bag might read: “For the best young sound listen to Joe Jive” WXAV Radio 777 on your dial. ‘b) At no'time will we promote a particular product. c) We will never promote any program that is fully sponsored by ‘a‘manufacturer whose products appear ‘in the supermarkets. Tixample:

KRAFT MUSIC HALL.

d) For-each milk carton; etc,:that carries:a‘station’s message inthe local marketing area, the supermarket will receive for example; a one

ADVISORY OPINIONS. WITH REQUESTS THEREFOR Loa? penny credit for advertising time at full rate card from the station. e) The supermarket will develop a time credit with the local radio or T.V. station. This time credit will be used by the supermarket to promote their stores and the sales of their private label products. At no time will the supermarket use this time credit to promote or advertise any standard brand merchandise. The fees for originating and coordinating this type of premotion will be paid for by the supermarket, at the standard advertising agency rate of fifteen percent.

We are seeking your advice because in some of the programs mentioned on the cartons the station may have sold spot time to vendors of products sold in the supermarkets. It is our opinion that this factor would not constitute a violation of the Robinson Patman Act, since neither ourselves, or the supermarket would have any knowledge or control of who had been sold spot time by the station. Since we have many supermarkets interested in the above proposal we would appreciate an opinion by the Bureau of Advisory Opinion before we proceed further with this promotion. We would be pleased to furnish any additional information you would desire.

Respectfully yours,
(S) Ex.rotr B. Braunstein,
President.