Lake Charm Fruit Company

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IN THE )'IA TTER OF LAKE CHARM FR1JIT COMPANY CONSE:ST ORDER, ETC. , IN REGARD TO THE AJ,LEGED VIOLATIO:S OF 2(c) OF THE CLAYTON ACT Docket C-75. Complaint, Feb. 1962-Decrs'ion, Feb. , 196'2 Consent order requiring Oviedo, Fla. , citrus fruit packers to cease violating Sec. 2 (c) of the Clayton Act by granting commissions or brokerage on a large number of purchases made by brokers and other direct buyers for their own accounts for resale.

COMPLAIKT The Federa.l 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 LAKE CHAR 1 FRUIT CO. 271 270 Complaint of subsection (C) of Section 2 of the Clayton Act, as amended (U. Title 15, Sec. 13), hereby issues its complaint, stating its charges with respect thereto as follows:

P ARAGRAPII 1. Respondent Lake Charm Fruit Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida with its offces and principal place of business located at Oviedo, Fla.

PAIL 2. Respondent is now and for the past several years has been engaged in the business of packing, selling and distributing citrus fruit: such as oranges, tangerines and grapefruit, all of which are hereinafter sometimes referred to as c.itrus fruit or fruit products. Respondcmt sells and distributes its citrus fruit directly, and in many instances through brokers, to buyers located in various sections of the United States. \Vhen brokers are utilized in making sales, respondent pays said brokers for their services a brokerage or commission, usually at the rate of 5 cents per carton or 10 cents per 1 /5 bushel box or equivalent. Respondent's annual volume of business in the sale. and distribution of citrus fruit is substantial. n. 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 citrus fruit, in commerce, as "commerce" is defined in the aforesaid Clayton Act, as amended, to buyers located in the several states of tho United States other than the State of Florida in which respondent is located. Respondent transports, or causes such c.itrus fruit, when sold, to be transported from its place of ine,ss or prlCking plant in the State of Florida, or from other places within said state, to such buyers or to the buyers' customers located in various other states of the United Statos. Thus there has been t all times mentioned herein, a continuous course of trade in commerce in citrus fruit across state lines between said respondent and the respective buyers thereof.

PAR. 4. In the course and conduct of its business, as aforesaid respondent Jlas been and is now making substantial sales of citrus fruit to some, but not all, of its brokers and direct buyers purchasing for their 0',n account for resale, and on a la.rge number of these sa.1es respondent pa- , granted or allowed, and is now paying, granting or fljlowing to these brokers and other direct buyers on their purchases a. commission: brokerage, or other compensation, or an allo":ance or disc-count in lieu thereof, in connection thcrcwjth. PAR. ;j, The RctS Rnd practices of respondent in paying, granting or allowing to brokers a.nd direct buyers a commission, brokerage or other compensation, or an allowance or discount in lieu thereof, on 272 :FEDERAL TRADE COMMISSIO:LT DECISIONS Deeision and Order 60 F.

their o\Yl1 pure-hases, as above al1cgccl and described, arc in violation of subsection (c) of Section 2 of the Clayton Act, as amended (U. Title 15, Section 13).

DECISION AND onder.

The Commission having heretofore detennillecl to issue its complaint charging the respondent, named in the caption hereof with violation of subsection (0) of Section:2 of the Clayton Act lS amended and the respondent. having been served with notice of said determination and with a copy of the complaint. the Comnlission intended to issue, together with a proposed form of order; and The respondent and counsel for the Commission having thereafter executeel an agreement containing n, consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint to issue herein a statement that the signing of said agreement is for settlement purposes only nlld does not cons6tute an flchnissioll by respondent. that the Jaw has beell violated as set. forth in such complaint, flnd waivers a.nd provisions as l'e,quired1 by the Commission rules; and The Commission, having considered the n.agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement makes the follmring jurisc1ictional findings, rl1d enters the following 1. Respondent L,lke Charm Fruit Company is a corporation orga-order:nized. existing and doing business under and by virtue of the laws of t.he State of Florida: with its offce and principal place of business located at Oviedo, Fla.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER 1 t is ordered That the respondent Lake Charm Fruit Company, fl, corporation, and its officers, agents, representatives and employees directly or through any corporate or other device, in connection with the sale of citTHs fruit. or fruit products. in commerce, as "commerce is defined in the Clayton Act, as amended, do forthwith cease and desist from:

Paying, granting, 01' allo"\. ing, directly or indirectly, to any buyer or to anyone acting for or in behalf of or \\ ho is subject to the direct or jndirect control of such buyer anything of value as a commission brokerage, or other compensation, or any allowance or discount in lieu thereof, upon or in connection 'with any sale of citrus fruit or fruit products to such buyer for his own account. LAKE HEGION PACKING ASSX. 273 270 Complaint It i8 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 manne.r and forln in which it has complied with this order.