Consumer Law Library

Advisory opinion letter to Mr. Meisburg: a tripartite promotional assistance plan, featuring aisle-end…

Topics: Promotional allowances

93 F.T.C. 1085 · Jan. 11, 1979 ·

source volume section (93 F.T.C. 1085)

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.

January 11, 1979

Dear Mr. Meisburg:

On Januar 27, 1976, the Commssion issued to Don Odes sky, Inc., an advisory opinion concerning a tripartite promotional assistance plan, featuring aisle-end displays.' The Commission conditioned this advisory opinion on the following reporting requirement:

L 85 1426.

93 F.

To assure that the plan is implemented so as to provide allowances to all competing purchasers on proportionally equal terms , Don Odes sky, Inc. should report to the Commssion, after the plan has been in operation for one year, the full extent of retailer and supplier participation, including time periods and products involved, and the total allowances paid to each participating retailer by each supplier under the plan. Pusuant to this reporting requirement, on March 3, 1977, the Commssion received a submission from Don Odes sky, Inc. The Commission has determined that this submission failed to disclose " the full extent of retailer and supplier participation, the time perinds and products involved," and "the total allowances paid to each participating retailer by each supplier under the plan. " Based on the information provided, therefore, the Commission is unable to determine whether competing purchasers receive payments under the program on equal terms.

Due to the failure and refusal of Don Odes sky, Inc., to comply with the reporting requirements of the Commission s opinion, the Commission has decided to revoke the advisory opinion. By this action, the Commission s advisory opinion to Don Odessky, Inc. is rendered null and void. After the date of service of this lett.er, representations by Don Odessky, Inc. t.hat the Federal Trade Commission in any manner condones or approves any business proposal by that firm would be deceptive and untrue, and could result in such further action by the Commission as would be in the public interst.

By direction of the Commission.