Gernsback Publications, Inc.

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

IN THE 1L4. TT.EH OF GERNSBACK PUBLICATIONS, INC.

COXSEXT ORDER, ETC. , IX REGARD TO THE ALLEGED VIOLATIO OF SEC. 2 (d) OF THE CLAYTON ACT Docket C-j58. Complaint, July 10, 19C2-Decision, July 10, j902 Consent order requiring the New York City publisher of "Radio-electronics magazine to cease discriminating in price in TioJation of Sec. 2(d) of the Clayton Act by paying promotional allowances to certain retail Cl1stomcl'Ssome of whom operated chain retail outlets in railroad, airport, and bus terminals, and outlets in hotels and ofike buildings, and others of whom furnished services in connection with the hanclJing of respondent' s pu1J1ications such as taking purchase orders and distributing, biling, and collecting-while Ilot making snell payments available all DrollortioImlly equal terms to their comDe-titors, including drug chains, grocery chains, nnd other newsstands.

:Il'LAIXT The Federal Trade Commission having reason to believe that the party respondent named in the caption hereof and hereinafter marc particularly designated and described, has violated and is nm\' vio1nt ing the provisions of subsection (d) of Section 2 of the Clayton Act (U. C. Title 15, Sec. 13), as amended by the, Hobinson-Patman Act hereby issues its complaint stating its c:-charges with re.spect thereto as follows:

\HAGRAPH 1. Respondent Gernsbaek Publications, Inc. , is a corporation organized and doing business under the hnvs of the State of ew York with its offce and principal place 01 business loc.ated at 154 'Vest 14th Street ew York Y. Said respondent, among 001cr t.things, has been engaged and is presently engaged in the business of publishing and distributing various publications including ma,gazines under copyrighted titles including "Radio-Electronics Respondent' s sales of publications during the mJendar year 1960 exceeded two hlU1dred t.housand dollars.

2. Publications published by respondent are distributed by respondent to cust.omers through its national distributor, Independent :y ewe: Company, Inc. , hereinafter referred to as Independent ews. Independent News has acted and is now acting as national distributor of publications of several independent publishers, inc.uding respondent publisher. Independent News, as national distributor of publications published hy respondent and other independent publishers, has performed and is now performing various services for these puhlishers. Among the services performed and 8tm being GERNSBACX PUBLICATIOXS ) IKC.

Complaint performed by Independent K ews for the benefit of these publishers are the taking of purchase orders and the distributing, billing and collecting for such publications from customers. Independent X ews also had participated in the negotiations of various promotional arrangements with the reta.il customers of said publishers, including said respondent.

In its capacity as national distributor for responde,nt in dealing with the customers of respondent, Independent N B'VS served and is now serving as a conduit or intermediary for the sale, distribution and promotion of publications published by respondent. "Radio- Electronics" is one of the most popular and ,viclely-read magazines of its type in the "United States and is distributed throughout various States by Independent News through local distributors to retail outlets.

PAR. 3. Respondent, through its conduit or intemlediary, Independent News, has sold and distributed and now sells and distributes its publications in substantial quantities in commerce, as "commerce is defined in the Cla,yton Act, as amended, tD competing customers located throughout various St.ates of the United States and in the District of Columbia.

PAR. 4. In the course and conduct. of its bm:iness in commerce, respondent has paid or contracted for the payment of somet.hing of vnJue to or for the benefit of some. of its customers as cOlnpensation or in consideration for services or facilities furnished, or contracted to be furnished, by or through sneh customers in connection with the ha,ndling, sale, or offering for sale of publications sold to them respondent. Such payments or alloVi-ances were not made available on proportiona.lly equal terms to HIJ other customers of respondent competing in the distribution of such publications. PAR. 5. As an example of the practices alleged herein, respondent has made payments or allmva,nces to certain retail customers -who operate chain retail outlet.s in railroad, airport and bus terminals, as ,veil as outlets located in hotels and offce buildings. Such pa.yments or allowances were not offered or otherwise made available, on proportionally equal terms to all other customers (including drug chains grocery chains and other newsstands) competing with the favored customers in the sale and distribution of the publications of respondent publisher. Among the favored customers receiving payments in 1960, and during the first six months of 1961, which were not of fereel to other compf',ting customers in connection with the purchase and sale of respondent's publications \were: FEDERAL TRADE C01nussion DECISIONS Decision and Order 61 F.

Approximate Amount Received 1961 Customer: 1960 (Jan.-June) Union Kews Co., New Yorl;: City, N.Y-__ 306. 96 252. ABC Vending Corp. , Long Island City, ),T Y____----- - 138. 64 72. Respondent made said payments to its favored customers on the basis of inclividualnegotiations. Among said favored customers such payments \\-ere not made on proportionally equal terms. PAR. 6. The acts and practices of respondent as alleged above ate in violation of the provisions of subsection (d) of Section 2 of the Clayton Act, as amended.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation of subsection (d) of Section 2 of the Clayton Act, as amended, and the respondent ha,ving been served with notice of said determination and with a copy of the complaint the Commission intenclecl to issue together with a proposed form of order; and The respondent ancl counsel for the Commission having t.hereafter executed an agreement containing a 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 and docs not constitute an admission by respondent that the law ha,s been violated as set forth in such complaint, and waivers and provisions as required by the Com- Inission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional !-ndings, and enters the following order:

1. Respondent Gernsback Publications, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 154 ,Vest 14th Street, in the city of Xew York, State of New York.

2. The Federal Trade Commission bas jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered That respondent Gernsback Publications, Inc., a corporation, Hs offcers, employees, agents and representat.ives, directly MERCURY PRESS , INC.

Syllabus or through any corporate or other device, in connection ,with the distribution, sale or offering for sale of publications including magazines in commerce, as "commerce" is defined in the amended Clayton Act do forthwith cease and desist from:

Paying or contracting for the payment of an allowance or anything of vaJne to, or for the benefit of, any customer as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the handling, offering for sale, sale or distribution of publications including magazines published, sold or olIerecl for sale by respondent, unless such payment or consideration is affrmatively offered and otherwise made ava.ilable on proportionally equal terms to all of its other customers competing with such favored customer in the distribution of such publications including, magazines. The ,vord "customer" as used above shall be deemed to mean anyone who purchases from Gernsback Publications, Inc., acting either as principal or agent, or from a distributor or wholesaler where such transaction with such purchaser is essentially a sale by such respondent, acting either as principal or agent.

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