Growers Marketikg Service, Inc.

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IN THE J\L TTER OF GROWERS MARKETIKG SERVICE, INC.

SEXT ORDER, ETC. , IN REGARD TO THE ALLEGED \;"10LATIQl\T OF SEC. 2. (c) OF THE CLAYTON \CT Docket 8090. Complaint, Aug. 24, 196' Decislon, May, 1961 Consent order requiring a packer of citrus fruit in Leesburg, Fla. , to cease violating Sec. 2(c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their own accounts for resale. CO:MPLAIXT The Federal Trade Commission, having reason to believe that the party respondent named in the cap60n hereof, and hereinafter mote particularly described, has been and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U. A. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows: PARAGRAPH 1. Hesponclent Growers J\larketing Service, Inc. : is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its offce Hnd principal place of business located at Leesburg: Florida, with mailing address as Post Offce Box 1061, Leesburg, Florida. PAn. 2. Respondent is now and for the past several,l years has been engaged in the business of packing, selling and dist.ributing citrus fruit, such as oranges, tangerines and grapefruit, all of TIhich ate hereinafter sometimes referred to as citrus fruit, or fruit products. Respondent sells and distributes iis citrus fruit through brokers as well as direct to customers located in many sections of the Unit.ed States. 'Vhere brokers are utilized in making sales for it respondent pays them for their services a brokerage or commission usually at the rate of 10 cents per J%th bushel box, or equivalent. Respondents annual volume of business in the sale and distribution of citrus fruit. is substantial.

GROWERS MARKETING SERVICE , INC. 957 956 Decision \H. 3. In the course and conduct of its business over the past several years, respondent has sold and distributed and is now selling and distributing its citrus fruit in commerce., as "commerce" is defined in the llforesaid Clayton Ad, as amended, to buyers located in the several Stlltes of the United Slates other thlln the State of Florida in which respondent is 10catc(1. R.respondent transports or causes such citrus fruit, when sold, to bc transported from its place of business or packing plant in the State of Florida, or from other places within the State, to such buyers or to the buyers: customers located in various other States of the United States. Thus there has been at all times mentioned herein a continuous course of trade in commerce in said citrus fruit across state )ines between said respondent and the respective buyers of such fruit. PAn. 4. In the course and conduct of its business as aforesaid respondent has been and is now making substantial sales of citrus fruit to some, bnt not all, of its brokers and direct buyers purchasing for their own account for resale, and on a large number of these sales respondent paid, grant.ed, or allowed, and is now paying, granting or allowing to these brokers a,nd other direct buyers on their purchases, a commission, brokerage, or other compensat.ion, or an allowance or discount in lieu thereof, in connection therewith. m. ;J. The acts and practices of respondent in paying, granting or allo\ving 11 brokerage or commission, or an allowance or discount in lieu thereof, to buyers on their own purchases, as hereinabove alleged and (1escribed, are in violation of subsect.ion (c) of Section 2 of the Clayton Act, as amended (U. A. Title 15, Section 13). Jlr. Cecil G. 111iles and lift. Ernest G. Ba-r'lws for the Commission. Johnson John, by illr. Cmmts Johnson' of Tampa, Fht. : for respondent.

IXITBL DECISION BY "'VILLIAII L. PACK , HL\RING EXA UINER The complaint in this matter charges the respondent with violation of Section 2 (c) of the Chlyton Act, as amended. An agreement for disposition of the proceeding by mefLns of a consent. order has now been executed by respondent and its counsel and counsel snpporting the complaint and snbrnittec1 to the hearing examiner for his consic1erfLtlon. Attached to and made a part of the agreement is a stipulation entered into by the same parties for the purpose of making clear the intent of the comp1ainl. and of the proposed order to cease and desist. The y,oid "agree.nent as used herein :ther ,will include the st.ipn lation.

958 FEDERAL TRADE CO L\IISSION DECISIONS Order 58 F.

The agreement provides, among other things, that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint und the agreement; that the jnclusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition or the proceeding, such order to have the same force and effect as if entered after a Iu11 hearing, respondent specifically waiving any and al1 rights to challenge or contest the validity of such order; that the order may bc altered, modified or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in thc complaint. The hearing examiner having considered the agreement and the proposed order, and being of the opinion that they provide an adequate basis ror appropriate disposition or the proceeding: the agreement is hereby accepted, the follo\ving jurisdictional findings made and the following order issued:

1. Responde,nt Growers 1\Iarketing Service, Inc. is a corporation existing and doing business under and by virtue of the Jaws of the State of Florida, with its offce and principal place of business located in the city of Leesbnrg, State of Florida, with mailing address as Post Offcc Box 1061 , Lcesbnrg, Florida. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered That the respondent Growers :Marketing Service Inc., a corporation, and jts officers, agent.s, representatives and emin con-ployees, directly or through any corporate or other device, nect,ion \"with the sale of citrus fruit or fruit products in commerce as "commerce" is defined in the aforesaid Clayton Ad, do fort.hwith cease a.nd desist from:

Paying, granting or allowing, direei1y or -indirectly, to any buyer or to anyone acting for or in behalf of, or who is subject t.o the direct or indirect control of such buyer, anything of value as a commlSSlOn, brokerage, or other compensation, or any al1mvance or ITith any sale of discount in lieu there, , upon or in connection citrus fruit or fruit products to such buyer for his own account. Dr GIORGIO FRun CORPORATION 959 956 Complaint DECISION OF THE C02\IMISSroX AND OIilER TO FILB REPORT OF CO fPLIAXcE The Commission having now determined that the hearing examiner s initial decision, fied January 18, 1961, is adequate and appropriate to dispose of this proceeding:

It i8 ordered That said decision be, and it hereby is, adopted as the decision of the Commission.

It is further ordered That the respondent sha1J, within sixty (60) days after service upon it of t.his order, fie 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 contained in the aforesaid initial decision.