Advisory opinion letter to Mr. Flanagan: the propriety of the Beauty and Barber Supply Institute (BBSD…

BBSI members. (File No. 743 7009)
Opinion Letter
June 5, 1974
Dear Mr. Flanagan:

This is in response to your letter requesting an advisory opinion regarding the propriety of the Beauty and Barber Supply Institute (BBSD compiling a list of the terms of delivery offered by various suppliers to BBSI members.

It is the Commission’s understanding, in essence, that the BBSI plan calls for preparation of a list of suppliers of beauty products which would include information as to whether sales are made (1) F.O.B., (2) freight prepaid—minimum required, (8) freight—deduct from invoice, (4) full freight paid—minimum required, (5) half-freight paid—minimum required, (6) merchandise given to cover the cost of freight, (7) full freight allowance—minimum required, (8) half-allowance—minimum required, (9) the number of days within which freight would be allowable, and (10) whether the supplier offers other allowances. In other words, the list

will consolidate delivery terms information which suppliers now provide to their customers on an individual basis.

Based on its understanding of the BBSI proposal as outlined above, the Commission is of the opinion that the plan itself, if implemented, would not necessarily raise antitrust questions. You are cautioned, however, that the plan should not be used in such a manner that it leads to a boycott, to the blacklisting of certain suppliers or to rigidification of prices or terms of delivery. If it does, questions under Section 5 of the Federal Trade Commission Act could arise.

Lastly, this opinion should not be construed as relating in any way to the suppliers’ terms of delivery in and of themselves because those terms of delivery have not been examined in connection with rendition

of this advisory opinion to the Institute.
By direction of the Commission.
Letter of Request
October 22, 1973