Florida Citrus Distributors, Inc.

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

In THE Martrer OF FLORIDA CITRUS DISTRIBUTORS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2(c) OF THE CLAYTON ACT Docket 8206. Complaint, Dec. 6, 1960—Decision, Oct. 16, 1961 Consent order requiring an Orlando, Fla., broker and representative of various citrus fruit packers, to cease violating Sec. 2(c) of the Clayton Act by re- Complaint 59 E.T.C.

ceiving commissions on its own purchases for resale, such as a discount at the rate of 10 cents per 134 bushel box or equivalent, or a lower price reflecting brokerage.

ComMPLaINt The Federal Trade Commission, having reason to believe that the party respondent named in the caption 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.S.C. Title 15, Section 13), hereby issues its complaint, stating its charges with respect thereto as follows.

Paracrary 1. Respondent Florida Citrus Distributors, Inc. is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Florida, with its office and principal place of business located at Orlando, Florida, with mailing address as Post Office Box 8791, Orlando, Florida.

Par. 2. Respondent is now, and for the past several years has been, engaged in business as a broker, buyer and distributor, and in the course and conduct of this business it represents, and has represented, various packer-principals in the sale and distribution of citrus fruit, produce and other food products, hereinafter sometimes referred to as food products. In particular, respondent has represented, and now represents, a number of citrus fruit packers Jocated in the State of Florida in the sale and distribution of citrus fruit, for which respondent was and is paid for its services in connection therewith a brokerage or commission, usually at the rate of 10 cents per 134 bushel box, or equivalent. A substantial part of respondent's business is acting in a capacity of a buyer and a distributor purchasing citrus fruit and produce for its own account for resale. Par. 8. In the course and conduct of its business for the past several years in representing packer-principals, as well as when purchasing for its own account, respondent has, directly or indirectly, caused such citrus fruit or produce, when sold or purchased, to be shipped and transported from various packers’ packing plants or places of business located in the State of Florida to respondent’s customers located in many states other than the State of Florida. Thus, for the past seveval years, respondent. has been, and is now, engaged in a continuous course of trade in commerce, as “commerce” is defined in the aforesaid Clayton Act, as amended.

Par. 4. In the course and conduct of its business in commerce, as aforesaid, during the past several years, but more particularly since Jannary 1, 1959 to the present time, respondent has made, and is now making, numerous and substantial purchases of citrus fruit and prod- FLORIDA CITRUS DISTRIBUTORS, INC. 791 789 Decision uce for its own account for resale from various packers or sellers on which purchases said respondent has received and accepted, and is now receiving and accepting, directly or indirectly, from said packers or sellers, something of value as a commission, brokerage, or other compensation, or an allowance or discount in lieu thereof, in conngction therewith.

For example, respondent. has made substantial purchases of citrus fruit for its own account from various packers or sellers located in the State of Florida and has received from these packers or sellers on said purchases, a brokerage or commission, or a discount in lieu thereof, usually at the rate of 10 cents per 1% bushel box, or equivalent. In many instances, respondent. receives a lower price from said packers or sellers which reflects said brokerage or commission. Par. 5. The acts and practices of respondent in receiving and accepting a brokerage or commission, or an allowance or discount in lieu thereof, on its own purchases, as hereinabove alleged and described, are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (U.S.C. Title 15, Section 13). DECISION AND ORDER This matter having come on to be heard by the Commission upon a record consisting of the Commission’s complaint charging the respondent named in the caption hereof with violation of subsection (c) of Section 2 of the Clayton Act, as amended, and an agreement by and between respondent and counsel supporting the complaint, which agreement contains an order to cease and desist, an admission by the respondent of all the jurisdictional facts alleged in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint, and waivers and. provisions as required by the Commission’s rules; and -The Commission having considered the agreement and order contained therein and being of the opinion that the agreement provides an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings are made, and the following order is entered: 1. Respondent Florida Citrus Distributors, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Florida, with its office and principal place of business located in the city of Orlando, State of Florida, with mailing address as post Office Box 3791, Orlando, Florida.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. 59 E.T.C.

ORDER It is ordered, That respondent Florida Citrus Distributors, Inc., a corporation, and its officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the purchase of citrus fruit or produce in commerce, as “commerce” is defined in the Clayton Act, do forthwith cease and desist from: Receiving or accepting, directly or indirectly, from any seller, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection with any purchase of citrus fruit or produce for respondent's own account, or where respondent is the agent, representative, or other intermediary acting for or in behalf, or is subject to the direct or indirect control, of any buyer.

It is further 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 this order.