Peoples Packing Company, Inc.

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I:- THE latter OF PEOPLES PACKI G COMPANY, IXC.

CONSENT OR.ER ETC., IN REGARD TO Tile ALLEGED VIOLATION OF SEC. 2(e) OF THE CLAYTON ACT Docket 8148. Complaint, Oct. 1960-Decision, May, 1961 Consent order requiring a Lakeland, Fla., packer of citrus fruit to cease violating Sec. 2(c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their O,VD accounts for resale. IPLAIXT The Federal Trade Commission, having reason to believe that the party respondent. named in the capt.ioll hereof, and hereinafter more particularly described, has been and 'is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended (U. c. Title 15, Section 13), hereby issues its complaint stating its charges with respect t.hereto as follows: P AHAGR"\PH 1. Respondent Peoples Packing Company, Inc. is n corporation organized, e,existing and doing business under and by virtue of the laws of the State of Florida, with its offce ltnd principal phLce of business located at Lakelancl, Florida, with mailing address as Post Offce Box 1658, Lakelancl Florida. PAR. 2. Respondent is now and for the past ,everaJ years has been engaged in the business of parking, selling, and distributing citrus fruit, such as oranges, tangerines, and grapefruit, all of which arc hereinafter sometimes referred to as citrus fruit or fruit products, Respondent seDs and distributes its citrus fruit through brokers, as "Well as direct, to customers located in many sections of the United States. 1Vhen brokers are utilized in making sales for , t.he respondent pays them for their services a brokerage or commission usually at the rate of 10 cents per 1% bushel box. R.respondent' s annual volume of business in the sale and distribution of eitrus fruit is substantial.

PAR. 3. In the course and conduct of its business over the past several ye,ars, respondent has sold and distributed, and is nmv seIJing and distributing, its citrus fruit, in commerce as "commerce is defined in the aforesaid Clayton Act, as amended, to buyers located in the several slates of the United States other than the State of Florida in \',which respondent js located. ltespoJl(1cnt transports or eanscs such citrus fruit hen sold, to be transported from its place of business or packing plant in t.he State of Florida, or 964 FE DE HAL TRADE COMMISSIOK DECISIOXS Decision 58 F.

from other places "within said st.ate, to sneh buyers or to the buyers customers located in various other states of the Cnited States. In many instances respondent sells t.o brokers or buyers located in the State of I.f florida, but ships or causes the citrus fruit or fruit products to be shipped t.o the buyers' customers located outside of said state. Thus, there has been at all times mentioned herein a con- 6nuous course or t.trade in commerce in said citrus fruit across state lines between said respondent and the respective buyers of such citrus fruit.

. 4. In the course and conduct of its business, as aforesaid for the past several years, but more particularly since J annary 1 ID58, respondent has been and is now making numerous and substantial sales of citrus fruit to some, but not a11 , of its brokers and direct buyers purchasing for their own account for resale, and on (1, large nnmbcr of these sales respondent paid, granted, or allo\fed and is now paying, granting, or allmdng to these brokers and direct buyers on their own purchases, a commission, lJrokerage, or other compensation, or an allowance or discount in lieu thereof in connection therewith.

PAIL 5. The ads and practices of responde,nt in paying, granting, Ol' allowing a ol'okerage or commission, or an allowance.e or discount in lieu thereof, to buyers on purchases for their O\yn account, as hereinabove aJJcged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (D. C. Title 15 Section 13).

Jjl'. Cecil G. Jlilc8 and llir. Ernest G. Barnes for the Commission. S'/ndh (0 Pette1_cay, by 1f'i. Gordon Pettelcay, of Lakeland, Fla. for respondent.

IxrI'u. L DECISION BY An ER E. LIPSCOllfB , I-IEAHIXG EXA::IINER The complaint herein \fDB issued on October 17 , 1060, charging Respondent "ith ,ciolation of S2(c) of the CJa ton .Act, as amended by paying, granting, or allot\ing commission, brokerage, compcnsation at (11) able\ffU1Ce or discollnt in lieu thereof, to certain or its h1'o1\e1's !tncl (Erect buyers, on purchases for their O\TD account for resale.

Thcreafter, on December 12,: 1D60, Hesponclent, its counsel, and counsel supporting the complaint herein entered into an Agreement Conti' lning Consent Order To Cease And Di'sist, \which was approved by the Director and Associate Director of the Commission BUl'eall of Litigation, and thereafter, on ,J arnw.ry D 1961 , submitted PEOPLES PACKING COMPANY, INC. 965 963 Decision to the Hearing Examiner for consideration. Attached to and made a part or the agreement is a stipulation entered into by the same parties for the purpose of making CIeRI' beyond any possible doubt the intent of the complaint and of the proposed order to cease and desist.

The agreement identifies Respondent Peoples Packing Company, Inc. as a Florida. corporation, "ith its offce RIHl principal place of business located in Lake1fnd Florida, with IT8.filing address as Post OiJice Box 1658, LakPhnd, Florida.

Respondent admits 8.11 the jurisdictional facts alleged in the compJnint., and agrees t.hat the record may be taken as if findings of jurisdictional facts had been duly made in accordance. 'Ylth such allegations.

Respondent '\\ai,Tcs any further procedure before the I-Iearing Examiner ::nc1 the Commission; the making of findings of fact and conclusions of law; and aJl of the rights it may have to challenge or contest the validity of the order to cease and desist ent.ered in accordance with the agreement. All parties agree that the record on which the initial decjsion and the decision or the Commission shall be based shall consist solely of the complaint and the agreement that the order to cease and desist, as contained in the agreement, when it shan have become a part of thr: decision of Ow Commission, shall have the same force and eiIeet as if entered after a full hearing, and may be altered, modified or set aside in the manner provided for other orders; that the complaint herein may used in construing the terms of said order; and that the agreement is for settlement purposes only and does not constitute an admission by Respondent that it has violated the la,y as a1Jeged in the complaint..

After' , considerat.ion of the allegations of the complaint and the provisions of the agreement. and the proposed order, the Hearing Examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the nforesaid agreement, the I-learing Examiner accepts the Agreement Containing Consent Order To Cease And Desist; finds that the Commission has jurisdiction over the Respondent and aver its acts and practices as alleged in the complaint; rli(l finds that this proceeding is in the public interest. Therefore It is odel' That the Respondent Peoples Packing Company, Inc., 11 corporation, and its offcers, agents, representat.ives and employees, directly or through any corporate or other device, in connection wit.h the sale of citrus fruit or fruit products in COil- 966 liEDERAL TRADE COMMISSION DECISIONS Complaint 58 F.

merce \ as "commerce" is defined in the aforesaid Clayton Act, do forthwith cease and desist from:

Paying, granting or allowing, directly or indirectly, to any buyer or to anyone acting for or in behalf of, or ,yho is subject to the direct or indirect control of such buyer, anyt.hing of value as a commission, brokerage, or other compensation, or any allmnl.ce or discount in lieu thereof, upon or in connection "ith the sale of citrus fruit or fruit products t.o such buyer.r for his o,yn account. DECISIOS QJ THE COJ\DIISSTQN ,\ND ORDER TO FILE RF.POHT OF COTlI:PLIAN"CE The Commission having now determined that the hearing examiner s initial decision, filed January 17, 1961 is adequate and appropriate to dispose of this proceeding: It is O1'de1'ed That said decision be, and it hereby is, adopted as the decision of the Commission.

, within sixty (60) It is further ordered That the respondent shad 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 conta,ined in the aforesaid initial decision.