Ideal Publishing Corporation

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IN THE fA TTEH OF IDEAL PUBLISHING CORPORATION CONSENT ORDER, ETC., IN REGAR '10 THE ALLEGED VIOLATlON OF SEC. 2(d) OF THE CLAYTON ACT Docket C-163. ComlJl( int, July 1962-Dccision, J-nly, 1962 Consent order requiring the Kew York City publisher of lovie Life l\ovie Stars TV Star Parade, and "Personal Homances" magazines to cease discriminating in 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 bn8 terminals, and outlets in hotels and offce buildings, and others of ,,,ham fnrnlshed services in connection with the handling of respondent's publications such as taking purchase orders and distributing, biling, and collecting-while not making such payments a "ailable on proportionally eql1Rl terms to their competitors including drug chains, grocery chains, and other newsstands. CO:;'.lpl.c\IXT The Federal Trade Commission, having reason to believe that tho pflTty TespollC1011t nfll1ed in the caption hereof and hereinflftBr more , , IDEAL PUBLISHING CORP.

Cmnp1aint pa.rticularly designated and described, has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act (l:. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act hereby issues its complaint stating its c,charges with respect thereto as follows:

P ARAUHAPH 1. Respondent Ideal Publishing Corporation is a corporation organized and doing business under the laws of the State of NC\v York, ,with its offce and principal place of business located at 295 J\iadison Avenue, Ne'iv 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 under copyrighted titles including "Movie Life :Movie Stars Star Parade" and "Personal Romances . Respondent's sale.s of publications during the calendar year 1960 exceeded one and one-half million dollars.

PAn. 2. Publications published by respondent arc distributed by respondent to customers through its national distributor, Publishers Distribut.ing Corporation, hereinaiter referred to as PDC. PDC has acted and is now acting as national distributor for the publications of several independent publishers, including respondent publisher. PDC s national distributor of public tioIls published by respondent and other independent publishers, has performed and is now performing various services for these publishers. Among the services performed and still being performed by PDC for the benefit of these publishers are the taking of purchase orders and the distributing, billing and col1acting for such publications from customers. PDC has also negotiated promotional arrangements with the retail customers of the publishers it represents on behalf of and with the Imowlcdge and approval of said publishers, including respondent publisher. In its capacity as national distributor for respondent in dealing with the customers of respondent, PDC se.rved a.nd is now serving as a conduit or inte.rmediary for the sale, distribution and promotion of publications published by respondent.

PAR. 3. Respondent, through its conduit or intermediary PDC, has sold and distributed and now sells and distributes its publications in substantial quantities in commerce, as "commerce': is defmecl in the Clayton Act, a.s amended, to competing customers located throughout various States of the -United States and in the District of CoJmnbia. PAR. 4. In the course and conduct of its business in commerce, respondent has paid or contracted for the p tyrnent of something of value to or for the benefit of some or its customers as compensation or in cOllsic1e.ra tion for E:crviccs or 1'ac.ilities furnished, or contracted to be _ _ FEDERAL TRADE CG:IMISSION DECISIONS Decision and Order G1 F.

furnished, by or through such customers in connection with the han. (Using, sale, or offering for sale of publications sold to 1,hen1 by respondent. Such paynwnts or allmYlLlces 'were not made available on proportionally eqwl1 terms to all other cust.orners of respondent competing in the distribution of such publications. PAR. 5. As an example of the practices alleged herein, respondent has 11fide payment.s or aJ10wances to certain retai customers who opelate chain retail outlets in railroad, airport and bus terminals, as well as outlets located 1n hotels and oHic,e buildings. Such payments or allo"\ances "ere not afre.reel or otherwise made available on proportionally equal terms to all other c.nstomers (including drug chnins grocery chains and other ne\"\sstanc1s) competing with the favored customers in the sale and distribution of the publications of respondent publisber. Among the fa.vored customers receiving payments in 1960 whicll were not offered to other c.competing customers in connection '\ith the pnrc1wse and sale of respondent's publications were: Approa;i1lwle Customers: .Amount Received Greyhound Post Houses, Forest Park, Ill_ - $3 343. ABC Vending Corp. , Long Island City, X.l-- 2S0. US Fred Harvey, Chh ago, Ill-- - 4 6'17. Barkalow Bros. , Omalm. ;.TelJr -- --- 406. JI. 1G Interstate Hosts, Los .Angeles, Calif-- ------ l Respondent made said payments to iis favored customers on the basis of individual negotiations. AnlOng said favored customers such payments \"\cre not made on proportionally equal terms. PAR. 6. The acts and practices of respondent as alleged above are in violation of t.he provisions of subsection (c1) of Section 2 of the Clryton Act, as arnendec1.

DECISION Axn Onder Th8 Commission having heretofore determined to issue Hs complaint cha.rging the respondent named in the caption hereof with violation of subsection (d) of Section 2 of the Chtyton Aet, as amended, and the respondent having been served with notice of sa.id determination and with a copy of the compbint the Commission intended to issue together with a proposed form of order; and The respondent fwd counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint to issue heroin, a staternont that the signing of said agreement is for settlement purposes only and does not constitute an admission by 1'e- IDEAL PUBLISHING CORP.

Decision and Order spondent that the law has been violated as set forth in such complaint and waivers and provisions as required by the Comlnission s rules; and The C0111nis510n, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement makes the following jurisdictional findings, and enters the following order:

1. Respondent Ideal Publishing Corporation is a corporation organized, existing and doing business under and by virtue of the Ia ,vs of the State of X ew York with its offce and principal place of business located at 295 fadison Avenue, in the city of X ew York, State of New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER I t is oTde'ied That respondent Ideal Publishing Corporation, a corporation, its offcers, employees, agents and representatives, directly or through any corporate or other device, in connection with the distribution, sale or ouering for sale of publications including maga.zines in commerce, as "cOlmncrce" is defined in the amended Clayton Act, do forth'\with cease and desist from:

Pa.ying 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 cllstomer in connection \with the handling, offering for saJe, sale or distribution of publications including magazines published, sold or offered for sale by respondent, unless such payment or consideration is affrmati very offered and otherwise made rtvailable on proportionally equal terms to all of its other customers c01npeting with such favored custOlner in the distribution of such publications including magazines. The word "customer" as used above shall be deemed to mean anyone who purchases from Ideal Publishing Corporation, acting either as principal or agent, or from a distributor or \"ho1esaler where such trans ctjon T\it.h such purchaser is essentially a sale by such respondent, acting either as principal or agent. It is further ontered That the respondent herein shall, within sixty (60) clays 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.

Complaint 61 F. l'.