Jamie Record Co.

Text (OCR of the scan at left; may contain errors)

In THe Marrer oF JAMIE RECORD Coo.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7724. Complaint, Jan. 6, 1960—Decision, Apr. 26, 1960 Consent order requiring a Philadelphia manufacturer of phonograph records for distribution to retail outlets and jukebox operators, to cease giving concealed ‘‘payola” to television and radio disc jockeys as inducement to play his records in order to increase sales. Mr. John T.’Walker and Mr. James H. Kelley for the Commission.

Mr. Charles R. Weiner, of Philadelphia, Pa., for respondent. InrrtaL Deciston sy Enear A. Burrin, Hearing Examiner On January 6, 1960, the Federal Trade Commission issued its complaint against the above-named respondent charging it with violating the provisions of the Federal Trade Commission Act in con- 1296 FEDERAL TRADE COMMISSION DECISIONS, Decision 56 F-.T.C.

nection with the manufacture, distribution and sale of phonograph records to independent distributors for resale to retail outlets and jukebox operators in various states of the United States. On February 26, 1960, the respondent and counsel supporting the complaint entered into an agreement containing a consent order to cease and desist in accordance with section 3.25(a) of the Rules of Practice and Procedure ot the Commission. Under the foregoing agreement, the respondent admits the jurisdictional facts alleged in the complaint and agrees, among other things, that the cease and desist order there set forth may be entered without further notice and shall have the same force and effect as if entered after a full hearing. The agreement includes a waiver by the respondent of all rights to challenge or contest. the validity of the order issuing in accordance therewith; and recites that the said agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission, and that it is for settlement purposes only and does not constitute an admission by the respondent that it has violated the law as alleged in the complaint. The hearing examiner finds that the content of the said agreement meets all the requirements of section 3.25(b) of the Rules of Practice.

This proceeding having now come on for final consideration by the hearing examiner on the complaint and the aforesaid agreement for consent order, and it appearing that said agreement provides for an appropriate disposition of this proceeding, the aforesaid agreement is hereby accepted and is ordered filed upon becoming part of the Commission’s decision in accordance with section 8.21 of the Rules of Practice; and in consonance with the terms of said agreement, the hearing examiner makes the following jurisdictional findings and order:

1. Respondent Jamie Record Co. is a corporation existing and doing business under and by virtue of the laws of the State of Pennsylvania, with its office and principal place of business located at 13830 West Girard Avenue, in the City of Philadelphia, State of Pennsylvania. ;

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

JAMIE RECORD CO. 1297 1295 Decision ORDER It is ordered, That respondent Jamie Record Co., a corporation, and its officers, and respondent’s agents, representatives and employees, directly or through any corporate or other device, in connection with phonograph reocrds which have been distributed, in commerce, or which are used by radio or television stations in broadcasting programs in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Giving or offering to give, without requiring public disclosure, any sum of money or other material consideration, to any person, directly or indirectly, to induce that person to select, or participate in the selection of, and broadcasting of, any such records in which respondent has a financial interest of any nature. 2. Giving, or offering to give, without requiring public disclosure, any sum of money, or other material consideration, to any person, directly or indirectly, as an inducement to influence any employee of a radio or television broadcasting station, or any other person, in any manner, to select, or participate in the selection of, and the broadcasting of, any such records in which respondent has a financial interest of any nature.

There shall be “public disclosure” within the meaning of this order, by any employee of a radio or television broadcasting station, or any other person, who selects or participates in the selection and broadcasting of a record when he shall disclose, or cause to have disclosed, to the listening public at the time the record is played, that his selection and broadcasting of such record are in consideration for compensation of some nature, directly or indirectly, received by him or his employer.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to section 8.21 of the Commission’s Rules of Practice, the initial decision of the hearing examiner shall, on the 26th day of April, 1960, become the decision of the Commission; and, accordingly:

It ts ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. Decision 56 E.T.C.