Regarding Proportionally Equal Treatment of Retail Cooperatives and Nonaffiliated Retailers
78 F.T.C. 1677 · May 27, 1971 · File No. 7037117
source volume section (78 F.T.C. 1677)
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.
Regarding Proportionally Equal Treatment of Retail Cooperatives and Nonaffiliated Retailers. (File No. 703 7117)
Opinion Letter
May 27,1971
Dear Mr. Law:
This is in response to your letter of January 15, 1971, requesting clarification or possible reconsideration of the advisory opinion issued to Frank Gomon Associates, File No. 703 7117, insofar as it relates to retailer-owned cooperatives.
The Commission’s view of what the law requires with respect to promotional allowances for services provided by retailer-owned cooperatives and chain store businesses to manufacturers of products which they sell is reflected in example 2 of Guide 3 of the Commission’s Guides for Advertising Allowances and Other Merchandising Payments and Services. This example states that headquarters of chains and of retailer-owned cooperatives are customers of the manufacturer, while the individual retail outlets of such chains or cooperatives are not customers of the manufacturer. A wholesaler’s independent retailer customers, however, are customers of the manufacturer. Consequently, the headquarters of each chain and retailer-owned cooperative, and individual nonaftiliated retailers as customers who compete in the resale of the manufacturer’s product, in accordance with Sections 2(d) and 2(e) of the Clayton Act as amended by the RobinsonPatman Act, must be treated on proportionally equal terms. *For prior opinion letter of August 7, 1970, see 77 F.T.C. 1752.