Advisory opinion letter to Mr. Fellman

ADVISORY OPINiUN:: ANlJ tir."tUL:dLV ' u.'---1173

industrial transportation, while implementing Section 2(a) of the Robinson-Patman Act, as interpreted by the Commission. While awaiting your reply, r have discovered a Dec. 26, 1973, FTC. news release which "clarifies" Opinion 147, seemingly by authoriing the establishment and use of true " B. factory" prices by sellers which continue to use zone delivered pricing systems. The Dec. 26 statement continues, however, to prohibit al10wances for backhaul. The statement also discloses the Commission s stated intent to: I. Scrutinize delivered pricing systems in the food products industry in order to determne whether they are unfair to customers or to ultimate consumers, and thus violate Section 5 of the F. C. Act. 2. Develop empirical information on the impact on food prices of such delivered price systems which wil enable it to make this determnation.

In view of continuing douhle-digit food inflation, the outcome of these inquies is, obviously, of great interest and signcance to consumers. Therefore, I would appreciate it if, in your forthcoming reply to my original letter, you could indicate some approximate target date by which the Commission anticipates that it will be able to take some action on or make some disposition of the delivered pricing system inquiry.

I look forward to your reply witb interest, and appreciate your

attention to this matter.
Sincerely,
/s/ Mark Silbergeld

Collection and distribution of cost production statistics from and to members in the printing industry. (Docket 41)9 - United Typothetae of America, et aI., 6 F. C. 345Y Opinion Letter

Mar. 24 1971) Dear Mr. Fellman:

The Commission has considered the request in your letter of Dec. 19 1974, for advice as to whether your client, Prnting Industries of America, r nc.. (hereinafter referred to as " LA."), may engage in a proposed course of action without violating the cease and desist order issued by the Commssion in the above-captioned matter on Aug. 17 . Your letter states that your client, P.LA., is the successor to United Typothetae of America.

'00 n - 7" - c 11HO F'EDEHAL THADE COMMISSION DECISIONS

85 F.

From your letter, it appears that P.I.A. proposes to collect certain statistics and disseminate them to the industry it represents. The proposal is referred to as the "Budgeted Hourly Cost Program" and wil. he available to both P.LA. members and non-members. The program will include three basic features: (1) seminar; (2) collection and dissemination of information; and (3) providing computerized data services. In regard to (I), P.LA. will hold a series of regional educational seminars to acquaint printers with the realities of cost accounting techniques as applied to the printing industry and inform them of the "Budgeted Hourly Cost Program." The seminar will be designed to sell printers the value of accurate cost accounting. In regard to (2), members joining the program will provide ba,ic cost data. This data will be compiled on a regional basis and average regional costs will be developed. Such costs will be retured to the members for comparison purposes. In regard to (:i), P. LA. wil transmit the sheets containing the members' basic cost data to a computer servce company for processing. P.LA. will receive back a printout by the computer of the Budgeted Hourly Cost Comparson Sheets. These sheets will be distributed to the regional affiiate association of members. P.I.A. will encourage the affiiates to hold their own educational seminars in conjunction with the distribution of the sheets. Thus, industry members wiU be provided "with a method of acclldtely computing their own costs of operation and with a means .of comparing an individual company s cost with an average of the costs that have been reported in the geographic region in which the industry member competes. The order in Docket No. 459 inter aha prohibits respondent: 2. From requiring or receiving from members and others using respondents' unifonn cost accounting Hystem, identified and itemized statements of production costs for the purpose of calculating average , nonnal or standard costs of prod action and from publishing them to members and the tmde generaJJy as "Standard Pl;ce List" or Standard Guide" or association cost or price list under any other name. On the hasis of the facts submitted, you are advised that the Commission is of the opinion that the operation of proposed "Budgeted Hourly Cost Program," particularly the publishing or dissemination to members and others of average costs of production, would violate the order issued in this matter.

By direction of the Commission.

Letter of Request With Exhdnts