Jdat1427. 1089 Proposed statistical reporting program entailing the forecasting of annual sales and captive…

'Jdat1427.

Proposed statistical reporting program entailing the forecasting of annual sales and captive use of selected thermoplastic resins. (793 7002, Society of the Plastics Industry, Inc, ~ay 1, 1979

Dear ~r, Bercovici:

Ths responds to your request for an advisory opinon on the use by the proSoet of the Platics Industr (SPI) of a propose statistica rert annual sales and captive use of selectegram entag the forecsti of thermoplastic resins,

The Commission understands that SPI is a trade association with membership open to all firms in the industry upon payment of annual dues graduate accordig to sales volume, and that cuent membership accunts for approxitey 95% of the tota domestic prouction of platics raw materials, The Commssion fuher understands that under the proinvite to report their respetivepose program, resin suppliers would be forests for the current year and each of the following four years to an independent accounting firm, which would compute the mean and median of the reported forecasts and publish the low forecast, the high forecst, the mean, and the medan (not broken down by type or grade), There would be no exchange or disclosure whatever of individual firm data and no narrative or interpretation wil be placed on the compiled pro-figu, Nonmember producers would be invite to paricipate in the copies of thegram on the same basis as members and wil receive forecasts, The reports would also be available by subscription to the public after a trial period, No forecast would be reported, however more thanunless at least four industry membes, excludi any fi with 65% of any reporting category, submit forecsts. Initialy, the program would encompass six of the major plastics materials: polyvyl chloride (PVC); low density polyethylene (LDPE); high density polyethylene (HDPE); polypropylene; polystyrene; and acrlonitrie-butadiene-styrene (ABS),

Some types of forecast arrangements among competitors do raise seous antitrst concerns in parcu maket envionments, On the basis the of available information concerning the slowing rate of growth, degree of concentration, the relatively smal number of fis engaged the manufacture of the individual thermoplastic resins 1090 FEDERAL TRADE CO~MISSlON DECISIONS

93 F,

and the spefics of the proposed pla, the Commssion is of the view that ther is a signcat risk that SPI's program could be use to foster an anticompetitive consensus on production levels, The Commission is therefore unable to approve use of the proposed statistica reportig program, By direction of the Commission, Letter of Request