Mercury Press, Inc.

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form in which it has complied vlith this order. Ix THE IATTER OF 1:ERCURY PRESS, INC.

CONSENT ORDER, ETC. , IN REGARD TO THE ALU::GED VIOLATlON OF SEC. 2(d) OF THE cr..YT ACT' Docket C-159. Complaint, July 10, 1962-Decision, July 10, 1962 Consent order requiring the Kcw York City publisher of "Fantasy & Science Fiction" and "Bestseller M;ystcry" magazines to cease discriminating in price in "'violation of Sec. 2(d) of the Clayton Ad by paying promotional allowances to certain retail customers-some of whom operated chain retail outlets in railroad, airport, and bus terminals, and outlets in hotels and offce buildings, and others of whom furnished services in connection with the handling of respondent's publications such as taking purchase oruers and distributing, biling, and collecting while not making such payments avail. able on proportionally equal terms to their competitors, including drug chains, grocery chains, and other newsstands. :):

FEDERAL TRADE COM:-rSSIOK DECISIONS Complaint 61 F.

COMPLAJXT The Federal Trade Commission, having reason to believe that the party respondent named in the capt.ion hereof and hereinafter more pa.rt.icularly c1esibrnated and desc.ribp, , has violated and is no,y yiolating the provisions of subsection (d) of Section 2 of the Clayton Aet (U. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act hereby issues its cOlnplaint stating its c.charges with respect thereto as follows:

PARAGRAI'H 1. I-Lcsponc1ent eTcur'y Press, Inc. , isa corporation organized and doing business under' t.he laws of the St.ate of New Yark with its offce and principal place of business located at 347 East Street Kew York, K.Y. Said respondent., nmong other things, has been engaged and is present.ly engaged in the business of publishing and distributing various publications including magazines under copyrighted titles inc.uding "Fantasy & Science Fiction:' and "Bestseller l\fysrery.': Responden(s sales of publications during the calendo.r year 19GO exceeded one hundrednincty thousand dollars. PAR. 2. Publimtions published by respondent are distributed by respondent to customers through its nat.ional distributor, Publishers Dist.ributing Corporate.ion, hereinaHer referred to as PDC. PDC has acted and is now acting as llationa.l distributor for the publications of several independent pnblishcrs, including respondent publisher. PDC, as national distributor of publications published by respondent and other independent publishers, IHIS perfofll1ed and is now pcrforrning various services for t.these publishers. Among the services performed and still being performed by PDC for the benefit of these publishers are the t.aking oJ purchase orders and t.he distributing, billing and collecting for such publications from customers. PDC has also negotiated promotional arrangements with the reta-iI customers of the publishers it represents, on behalf of and with the knmvledge and a.pprova.l of sn,id publishers, including respondent publisher.

In its e-apacity as national distributor for respondent in dealing with the customers of respondent, PDC served and is now serving as a conduit or intermediary for the sale, distribution and promotion of publications pubhshed by respondent.

PAR 8. Respondent, through its conduit or intermediary: PDC has sold and distributed and now sells and distributes its puh1ications in substantial quantities in comUH rC8 as "c.ornmeree:' is defined in the Clayton Act, as amended, to competing customers locate(1 throughout various States of the United States and in the Dist.rict of Columbia. MERCURY PRESS , IKC.

Decision and Order PAR. 4. In the course and conduct of its business in commerce, respondent has paid or contracted for the payment of something of value to or for the benefit of some of its customers as compensation or in consideration for services or facilities furnished, or contracted to be furnished, by or through such customers in connection with the handling, sale, or offering for sale of publications sold to them by respondent. Such payments or allowances were not made available on proportionally equal terms to all 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 allowances to certain retail customers who operate chain retail outlets in railroad, airport and bus ten-ninals, as ,veil as outlets located in hotels and offce buiJclngs. Such payments 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 which were not offered to other competing customers in connection with the purchase and sale of respondent' s publications were: 'Customers: n1o;;;;o11: Union :\Tews Co., New York City, N.Y--__----------------- -- $6 126. ABC Vending Corp. , Long Island City, N.Y____------------- - 124. Fred Harvey, Chicago, Ill-- - 1 261. 50 Respondent made said payments to its favored customers on the basis of individual.l negotiations. Among said favored customers sllch payments were not made on proportionally equal terms. PAR. 6. The acts and practices of respondent as alleged above are in violation of the provisions of subsection (d) of Section 2 of the CJayton Act as amended.

DECISION AND Onder The Commission " having heretofore determined to issue its complaint clmrging the respondent named in t.he caption hereof with "violation of subsection (d) of Section 2 of the Clayton Act, as amended, and the respondent having been served with notice of said determination and wit.h a copy of t.he complaint the Commission intended to issue, together with a proposed form of order; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of aU the jurisdictional facts set forth in the complaint FEDERAL TRADE CON1ISSION DECISIOKS Decision and Oruel' 61 F.

to issue herein, a statement that the signing of said agree,ment is for settlement purposes only and does not constitute an achnission by respondent thrt the bw has been violated as set forth in such complaint, and waivers and provisions as required by the Commission 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 findings, and enter"S the following order:

1. Respondent :Mercury Press, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 347 East 53d Street, in the city of New York, State of New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered That respondent Mercnry Press, Inc., a corporation its offcer, employees, agents and represeniatives, directly or through any corporate or other device, in connection wit.h 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 value 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 ofierec1 for sale by re spondent, unless such payment C?r consideration is affrmatively offered and otherwise made available on proportionally eqnaJ terms to all of its other customers competing with such favored customer in the distribution of such publications including magazines.

The word"customer" as used above shall be deemed to mean any01ie who purchases :froln J\iercury Press, 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 i8 further onlered That the respondent herein shall, within sixty (GO) days after service upon it of this order, file with the Commission , , , , , , , FEATURE PUBJ-,JCATIO),T , INC., ET AL Complaint a report in writing setting forth in detail the manner and form in which it has complied with this order.

Ix Tile L\ TIER OF FEATURE PL"BLICATIOXS, INC., ET AL.

CONSENT ORDER: ETC" IN REGARD TO THE ALLEGED VJOLATION OF SEC. 2 (d) OF THE CLAYTON ACT Docket 0-160. Couplaint, July 10, 19GB-Decision, July 10 , 196'2 Consent order requiring the Ne\" York City publishers of magazines, comic hooks, and paperback books including "True :.len Young'Loye Army Fun Young Romance Guilty, and "Broadway Laughs, to cease discriminating ill price in violation of Sec. 2(d) of the Clayton Act by paying promotional allowances to certain retail customers-some of whom operated chain retail outlets in railroad, airport, and bus terminals, and outlets in hotels and offce buildings, and others ' of whom furnished services in connection with the handling of respondents' pnblicatioDs such as the taking of purchase orders and distributing, biling, and collecting-while not making such payments available on proportionally equal terms to their competitors, including drug chains, grocery chains, and other lw\ysstands. COlllPLAIXT The Federal Trade Commission, having reason to believe that the parties respondent named in the caption hereof and hereinafter more particularly designated and described, have violated and are nmv violating the provisions of subsection (d) of Section 2 of the Clayton Act (U. C. Title 15, Sec. 13), as amended hy the Hohinson-Patman Act, hereby issues its complaint stating its charges with respect thereto as follm\"s:

PARAGlL\PU 1. R,esponclent Fe.ature Publications, Inc., is a corporation organized and doing business under the la "\ys of the te of K ew York, "\with its office and principal place of business located at 32 ,Vest 22.d 'Street, New. York, N.Y. Said respondent, among other things has been engaged and is presently engaged in the business of publishing and distributing various publications including magazines, clinic books and p tperback books under copyrighted tit.Js including "True )Ien Young Love :' "Army Fun Young Hmnance Guilty and "Broac1wa.y Laughs . Respondent/s sales of publications during the calendar year 1960 exceeded three hunc1rf'd fifty thousand dollars. PAIL 2. Respondent Paul Epstein, an individual, is the presidf'Dt of Feature Publications, Inc. He formulates, directs nnd controls the Complaint 61 F.

acts and practices of said corporate respondent and his address is the same as that of the corporate respondent. PAR. 3. Publications published by respondent arc distributed by respondent to customers through its national distributor, Independent News Company, hereinafter referred to as Independent News. Independent ews has acted and is now acting as national distributor for the publications of several independent publishers including respondent publisher. Independent Kews, as national dis tributor of publications published by respondent and other independent publishers, has performed and is now performing various services for these publishers. Among the services performed a,nel still being performed by Independent News for the benefit of these publishers are the taking of purchase orders and the distributing, billing a.nd col1acting for such publications from customers. Independent News also had participated in the negotiation of various promotional arrangements with the retail customers of said publishers including said respondent.

In its capacity as national distributor for respondent Feat.ure Pub. lications, Inc., in dealing with the eustome.rs of respondent, Independent K ews served and is now serving as a conduit or intermediary for the sale, distribution and promotion of publications published by said respondent.

PAR. 4. Respondent Feature Publications, Inc., through its conduit or intermediary, Independent News, has sold and distributed and now sells and distributes its publications in substantial quantities in commerce, as "commerce" is defined in the Clayton Act, as amended, to competing customers located throughout various States of the United States and in the District of Columbia.

PAR. 5. In the course and conduct of its business in commerce respondent Feature Publications, Inc., has paid or contracted for the payment of something of value to or for the benefit of some of its customers as compensation or in consideration for services or facilby or through suchities furnished, or contracted. to be furnished, customers in connection with the handling, sale, or offering for sale of publications sold to them by said respondent. Such payments or allowances were not made available on proportionally equal terms to all other customers of said respondent competing in the distribution of such publications.

respondent PAR. 6. As an example of the practices alleged herein, Feature Publications, Inc., has made payments or allowances to certain retail customers who operate chain retail outlets in railroad airport and bus terminals, as well as outlets located in hotels and (;., ._ FEATURE prBLICATIOXS ) IXC. ) ET AL.

Decision and Order offce buildings. Such payments or ftlloTVances "\were not offered or otherwise made available on proportionally equal terms to all othet customers (including drug chains, grocery chains and other newsstands) cornpeting "\with t.Ile favored cllstomers in the sale and clistribution of the pubhcations of sflid respondent publisher. Among tho i'a.vored customers receiving payments in 1860 , and during the first six months of 1961 , "\which "\\"ere not offered to other competing customers in connection "with the purchase and sale of respondents publications were:

Approxfmate Amou.nt Received Customer: 1960 --!T (Ja,G June)1 - Interstate Hosts, 1,08 Augele. . Calif GO. \)1 cG. 00 ABC Ycndillg Corp. , Long Islanrl City, ,13- 22 35. l:union 1\e\ys Co. , Ke,," York City, X.Y_-- , 134. 00 , 502. 54 Said respondent Innc1e said payments to its favored cust.Olners on the basi.s of individual negotiations. AnJong said fayorec1 customers such paynwnts liere llot made on proportionally equal.l terms. PAR. 7. The acts and practices of respondents as nllcged above nre in violat.ion of the provisions of subsection (c1) of Section :2 of the Clayton \ct, as amended.

DECISION AXD Onder The Commiss,ion having heretofore determined to i.'3ue its C0111plaint charging the respondents named in the caption hereoi' "\\-ith i'violation of subsection (d) 01 Sectjan 2 of the Clayton Act, as amended, and respondellts having been served with notice of said deterrninaticl1 and "\with a, copy of the complajnt the Commission intended to issu2, together "\\"ith 11 proposed form of order; and The respondents and counsel for the Comm ission having thereaftcr executed an agreem2nt containing a consent order, an admission by the respondents of all the jurisdictional facts set :forth in the complaint to issue herein, a statement that the signing of sa,i(l ngreemcnt is -for settlement purposes only and docs not constitute an admission 11y respondents that the law has been violated as set forth in such complaint, and "\yalvcrs and provisions as required by the Commission s rules; and The Commission, having considered t.he agreement, hereby accepts s:line, issues its complaint in the form cont.emplated by said agreenlGnt makes the following jurisdictional findings, and enters the following order:

1. l esponclent Feature Publications, Inc., is a corporation orga- JJized, existing flna doing business under and by 'Tirtnc of the laws of .72S122- FEDERAL TRADE CO:'vL\IISSION DECISIONS Decisioll and Order 61 l' the State of New York, with its offce and principal pbce of business located at 32 IV est 22ncl Street, in the city of New York, State of Xew York.

Respondent Paul Epstein is President of the corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent and his address is the same as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER I t is ordered That respondents Feature Publications Inc. a C01'porltion, its offcers, and PfLUl Epstein, individually and as an offcer of Feature Publications, Inc., and respondents' employees, agents ancl representatives, directly or through any corporate or other device, in connection with the distribution, sale or ofrel'lng for sale of publica.tions including magazines, paperback books a.nd comic books in commerce, as "commerce" is defined in the alnenc1ed Clayton Act, do forthwith cease and desist from:

Paying or contracting for the payment of an allowance or any. thing of value to, or for the benefit of, any customer as compensation OJ' in consideration for any services or fa.cilit1es furnished by or through such Clu:tomer in connection with the handling, offering for sale, sale or distribution of publications including magazines, pa.perback books and comic books published, sold or offered for sale by respondents, unless such payment or consideration is affrmatively offered and otherwise made available on proportionally equal terms to all of their other customers competing with such favored customer in the distribution of such publications including magazines, paperback books and cOillie books.

The -word "customer" as used above shall be deemed to mean anyone who purchases from a respondent, acting either as principal or agent or ITom a distributor or wholesa.ler where such transaction with such purchaser is essentially a sale by such respondent, acting either as principal or agent.

It is jnrtheT o1'do' That the. respondents herein shall, 1within sixty (60) days after service upon t.hem of this order, liJe with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order. BALLANTINE BOOKS , IXC.

Complaint