Dot Records, Inc.

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

IN THE :MATTER OF DOT RECORDS , INC., ET AL.

ORDER , ETC. , IX REGARD TO THE ALLEGED VIOLATION 01 THE FEDERAL TRADE CO::U:ISSlON ACT Docket 8036. CO'llJlaint, July 1960-ordel' , June, 1961 Order di;:missing without prejudice-the public interest considered to be fully protected by recent amendment to tlle CommllniCa tions Act of 1934-complaint charging ilegal payment of "payola" to radio and television disc jockeys.

, DOT RECORDS, INC. , ET AL. 1017 1016 Order Mr. Harold A. Kennedy and Mr. Arthur .Wolter, Jr. for the Commission.

Mr. E. Oompton Timberlal,e and llfr. Leonard Kaufman of New York, N. , for respondents.

INITIAL DECISION BY AB ER E. LTPSCO , IIEARING EXAMINER On July 11 , 1960, the Commission issued its complaint herein charging the Respondents, who are engaged in the manufacture and distribution, offering for sale, and sale of phonograph records to distributors and various retail outlets, with violation of the Federal Trade Commission Act, in that Respondents, alone or with certain unnamed record distributors, have negotiated for and disbursed payola, which consists of the payment of money or other valuable consideration to disc jockeys of musical programs on radio and TV stations, to induce the disc jockeys to select, broadcast expose" and promote certain records, in which the Respondents are financially interested, on the express or implied understanding that the disc jockeys wjj conceal the fact of such payment from the listening On March 27, 1961 , prior to the offering of any evidence hereinpublic.counsel supporting the complaint submiUed a motion requesting that the complaint be dismissed without prejudice. In support of their request c.ounsel supporting the complaint state that the Communications Act of 1934 has been amended in several particular.rs, and that as a result of those amendments, they consider "the continued prosecution of this matter an unnecessary expenditure of time effort and funds hl determining the legaljty of the alleged practice, since the protection of the public interest is now fully assured by specjfic statute . Counsel for the Respondents offers no objection t.o the granting of this motion.

After considering the motion to dismiss the la \v and amendments referred to therein, and the oral reply thereto of counsel for the Respondents, the Hearing Examiner accepts the reasons offered in support of the motion, and concurs in the opinion of counsel supporting the complaint that the dismissal without prejudice of the complaint herein will be in the public interest. Therefore It i8 ordered That the complaint herein be, and the same hereby , dismissed without prejudice to the right of the Commission to initiate further proceedings against the Respondents, should future events so warrant.

1018 FEDERAL TRADE CQMMISSIOX DECISIONS Complaint 58 F:T.

FIX AL ommR By its order of May 9, 1961, the Commission extended until further order the date on which the initial decision of the hearing examiner herein would become the decision of the Commission; and The Commission now having concluded that said initial decision dismissing the complaint without prejudice constitutes an appropriate and adequate disposition of this proceeding: It is ordered That the initial decision of the hearing examiner filed April 5, 1961, be, and it hereby is, adopted as the decision of the Commission.