Advisory opinion letter

January 18, 1974 Dear Subscriber:

Several months ago you subscribed to a brand new magazine “Involvement” dedicated to more effective education through open classrooms, schools without failure, high motivation environment, self-motivated learning experiences. You and the few thousand other concerned committed educators, regrettably not a

ee Vana ed Uh BRU LOCI sufficient number of produce a periodical in these days of sky rocketing paper, printing and postage costs.

Dr. Glasser and the “Involvement” people contacted us at Media and Methods since we are so close in educational philosophy and journalistic style. Would we agree to fullfill these subscriptions, to send one year of Media and Methods ($7.00 pr. year now $9.00 beginning March 1, 1974) to the original “involvement” subscribers. Yes we would and if you are already subscribing to Media and Methods we will extend your subscription one year (at no additional cost of course).

A sampling of “Involvement” subscribers were reached by phone and readily agreed to this exchange. We offer this same arrangement to you. On February 15 we shall add your name to Media and Methods subscription roster or extend your present subscription to Media and Methods.

If for any reason this exchange is not satisfactory you may apply to the publisher of “Involveme

nt” for a refund. . . . before February 15.

Dr. Glasser’s article on discipline will appear in the early issue of Media and Methods. Other “Involvement” manuscripts are on the way. We hope “Involvement” subscribers will find Media and Methods a most pleasing and most helpful experience. Enthusiastically, Roger Damio Statistical reporting program by manufacturers of tricot knit fabrics. (File No. 743 7004, Digest 487)

Opinion Letter
March 7, 1974
Dear Mr. Korzenik:

This letter is in response to your request for an advisory opinion concerning a proposed statistical reporting program to be undertaken by a subdivision of the Knitted Textile Association (Association), comprised of manufacturers of tricot knit fabrics. It is the Commission’s understanding that the reporting program involves the collection from manufacturers of data on production, purchases, shipments, inventory, and unfilled or open orders. The collected data will be held in confidence and reported to the Association’s attorney or an outside accounting firm which will collate them and issue aggregate figures only. No individual firm’s figures will be disclosed to any other participant; nor will data on prices, future projections or estimates be collected.

The Commission would not initiate proceedings against the Association if such a program were adopted providing the reported data was collected only by an independent accounting firm. You are advised, however, that the program must not be used to secure adherence to prices, quotas of production, qoutas of sales or to create other unlawful trade restraints.

By direction of the Commission.

: 83 F.T.C.
Letter of Request
July 26, 1973
Dear Sir:

Request is here made in behalf of the Knitted Textile Association for an advisory opinion of the Federal Trade Commission with respect to the following:

The Knitted Textile Association is an unincorporated association of knitted fabric manufacturers. Among its activities is the gathering of statistical information on the industry’s operations. Pursuant to this purpose it has contracted with the Bureau of Census of the United States Department of Commerce for the publication of statistical data on a quarterly basis on the shipments of knitted fabrics and, by reason of the Association’s support, such reports have been regularly published (Series MQ-22K of the Bureau of Census, United States Department of Commerce). However, these reports sometimes suffer delay and consequently are less valuable than they might be. Moreover, it would be more valuable if statistical data could be made available not only more promptly, but on a monthly basis.

By reason of these considerations, therefore, one subdivision of the industry, namely manufacturers of tricot knit fabric, proposes to embark upon a statistical program which will report regularly at intervals of four and five weeks (three times each quarter) statistical data on:

(1) Production
(2) Purchases
(3) Shipments
(4) Inventory
(5) Unfilled or open orders.

These data will be reported and compiled by types on the tricot fabric according to fiber and yarn and in classifications common in the market. Hach individual participant’s statistics will be held in confidence. For this purpose they will be reported to the Association’s attorney or to an outside firm of certified public accountants who will collate them and issue aggregate figures reflecting only totals for each class of data. A copy of the form on which statistics are to be reported by the individual firm participants is enclosed and submitted herewith. The reports consisting of totals will be issued: in substantially the same form. No individual firm’s figures will be disclosed to any other participant. No data on prices or even value of shipments are called for, and none is contemplated. No future projections or estimates are to be issued orally or in writing.

No statistics have yet been gathered. The program is now at its - threshold.

This program and this request are virtually identical to one which we filed with your office dated November 10, 1969, requesting an advisory opinion with respect to a statistical program then being prepared for another component group of manufacturers, namely those producing industrial circular knit jersey (for coating and laminating). In response to that request we were informed that the Commission would not object to our implementation program. It has been functioning on that basis since then.

The

program referred to herein is similar and would provide the same kind of statistical data for another group of our members. Your advisory opinion on the propriety of this program is requested. Your prompt consideration and action will be appreciated.

Yours very truly,
/s/ Sidney S. Korzenik
Counsel

Provisions regarding admission to and dismissal from membership in modeling association. (File No. 743 7005, Digest 488)

Opinion Letter
March 8, 1974
Dear Ms. Callas:

This is in response to your letter of October 1, 1973, in which you requested an advisory opinion regarding the revised draft of the Constitution and Bylaws of the Modeling Association of America, International. It is the Commission’s opinion, based on its reading of the proposed Constitution and Bylaws of MAAI, that the provisions regarding admission to and dismissal from membership in the association, if implemented, would raise questions regarding unfair methods of competition under Section 5 of the FTC Act. The law is well established that whenever membership in a trade association is a vital competitive factor for a business, then arbitrary or discriminatory refusal of membership to a qualified applicant, or arbitrary or discriminatory dismissal from membership, constitutes an unfair method of competition. The service that is the purpose of your organization to perform for its members and the privileges of membership—such as the opportunity to participate in the contests at the annual convention—indicate that membership in your organization is indeed advantageous. Yet the proposed bylaws would allow arbitrary and discriminatory decisions regarding who may become or remain a member. The Supreme Court has

condemned similar membership provisions under the antitrust laws. Associated Press v. United States, 326 U.S. 1 (1945). The Commission has also required that membership in a trade association must be offered on a fair and nondiscriminatory basis to all qualified applicants. FTC Advisory Opinion, Digest No. 373.

The membership provisions contained in the bylaws could be made acceptable with a few revisions. For example, an active member should not be given the right to block a non-member competitor from membership. The provision in Article I, §1(B)(5), under which active members within a given area must approve new membership applicants, should be eliminated. Membership should be open on the same basis to everyone who meets the general membership criteria described in Article II, §1 of the MAAI Constitution. The bylaw provisions regarding dismissal from membership should also be revised. Under Article I, §4 and Article 5, 1(E), a member can be dismissed or asked to resign for having engaged in unethical practices or unbecoming personal actions as determined by the Ethical Practices Committee. Article 4, §3 and Article 5, §1(D) reinforce the impression that members will be forced to conform to a certain, undefined standard of behavior in order to retain membership in the association. However innocent the intention behind these provisions may be, as written they would allow arbitrary or discriminatory determinations of what constitutes satisfactory conduct. Dismissal from membership should be allowed only for failure to comply with specific, nondiscriminatory, objective criteria that adhere closely to the requirements of the law. Once drafted, such criteria could be submitted to the Commission to determine their legality under Section 5 of the Federal Trade

Commission Act.
By direction of the Commission.
Letter of Request
October 1, 1973

Dear Mr. Buck:

Following our conversation of a few days ago about the FTC giving us an advisory opinion on the proposed Constitution and By-Laws of the Modeling Association of America, International, enclosed with this letter of transmittal is a copy of the document in question.* The proposed enclosed By-laws are not presently being used by MAAI, but are to be presented to our Executive Board and membership after we have the benefit of your advisory opinion on their contents as *A copy of this document is available upon request to the Division of Legal and Public Records, FTC, Wash., D.C. 20580.