Field Music Sales, Inc.

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

In tur MatTrer or FIELD MUSIC SALES, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7831. Complaint, Lar, 18, 1960—Decision, June 28, 1960 Consent order requiring San Francisco, Calif., distributors for several record mutnusactirers to retail outlets and jukebox operators, to cease paying concenled “payola’ to television and radio dise jockeys to have their records broeadeast day after day in order to increase sales. Mr. John T. Walker and Afr, James H. Kelley tor the Commission. nr, Raymond HM. Levy, of San Francisco, Calif., for respondents. Envian Deciston py J. Earn Cox, Hrartne Examiner Lhe complaint charges respondents, who are engaged in the offering for sale, sale and distribution of phonograph records as independent distributors for several record manufacturers to retail outlets and jukebox operators in various states of the United States, with violation of the Federal Trade Commission Act, in that respondents, alone or with certain unnamed record manufacturers, have negotiated for and disbursed “payola,” ie., the payment of money or other valuable consideration to disk jockeys of musical programs on radio and television stations, to induce, stimulate or motivate the disk jockeys to select, broadcast, “expose” and promote certain records, 1 which respondents are financially interested, on the express or imphed understanding that the disk jockeys will conceal, withhold or camouflage the fact of such payment from the listening public.

After the issuance of the complaint, respondents, their counsel, and counsel supporting the complaint entered into an agreement containing consent order to cease and desist, which was approved by the Director, the Associate Director and the Assistant Director of the Commission’s Bureau of Litigation, and thereafter transmitted to the hearing examiner for consideration. The agreement states that respondent Field Music Sales, Inc., is a corporation organized, existing and doing business under the laws of the State of California, with its principal office and place FIELD MUSIC SALES, INC., ET AL. 1567 1564 Decision a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.