Advisory opinion letter to Mr. Paves

LUUU ee ee eS templated to be made by a supplier in connection with a plan such as that proposed by Frank Gomon Associates.

We might add that our client is not interested in this Advisory Opinion because of any specific instance which has been brought to its attention involving operation of the particular plan proposed by Frank Gomon Associates, but that our client’s principal concern is that the Opinion could be construed as containing an interpretation of Section 2(d) of the Clayton Act which would discriminate against retailer-owned cooperatives and which, in our opinion, would ‘be contrary to the proper legal application of Section 2(d) to participation by retailer-owned cooperatives in a supplier’s promotional plan.

Very truly yours,
Garensey, Sputter, Law & JOHNSON,
By Fren H. Law, Jr.

Proposed Quality Certification Program for the Carpet Industry.

(File No. 713 7026)
Opinion Letter
June 4, 1971
Dear Mr. Paves:

This is with further reference to your request for an advisory opinion regarding a proposed product quality certification program of The Carpet and Rug Institute.

The Commission has directed an in-depth study of the subject of industry self-regulation through standard certification. The study is referred to in the news release dated March 22, 1971, which was previously furnished to you with a letter of April 14, 1971, announcing the advisory opinion given the American National Standards Institute (ANSI). A copy of your proposal has been forwarded to the Bureau of Competition for its careful consideration in connection with its study of this subject. The Commission feels that, it would be inappropriate for it to act in this area until the results of its present study are known. Accordingly, as we previously advised the American National Standards Institute, we must decline to act at this time on

your request for an advisory opinion.
By direction of the Commission.
Letter of Request
Aprin 2, 1973