Belmont Productions, Inc.

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

and form in which he has complied with the order to cease and desist. IN TH MAT' BBLMOXT PRODUCTIONS, INC.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION O:P SEC. (d) OF THE CLAYTON ACT Docket 0-173. Complaint, July 1962-Decision, July, 1962 Consent order requiring a Xew York City publisher of paperback books 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 ,,,horn oper- BELMONT PRODUCTIONS , INC.

Complaint ated 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 hanuling of respondent's publications such as taking purchase orders and distributing, biling, and collecting while not making such payments available on proportionally equal terms to their competitors, in. eluding drug chains, grocery chains, and other newsstands. COMPLAINT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof and hereinafter more particularly designated and described, has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act (D. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act hereby issues its complaint stating its charges with respect thereto as follows:

PARAGRAPH 1. R.respondent Belmont Productions, Inc., is a corporation organized and doing business under the 1. ws of the State of New York, with its offce and principal place of business located at 66 Leonard Street, New York, X.Y. Said respondent, among other things, has been engaged and is presently engaged in the business of publishing and distributing various publications including paperback books under copyrighted titles.

'R. 2. Publications published by respondent are distributed by respondent to custOlners through its nationa.l distributor, Publishers Distributing Corporation, hereinafter referred to as PDC. PDC has acted and is now acting as national distributor for the publical.ions of severrd independent. publishers, including respondent publisher. PDC, as national distributor of publications published by respondent and other independent publishers has performed and is now performing various services for these publishers. Among the services performed and stil being performed by PDC for the benefit of these publishers are the taking of purchase orders and the distributing, billing and collecting for such publications from customers. PDC also has negotiated various promotional and display arrangements with the retail customers of such publishers, with the knowledge and approval of such publishers, including said respondent. In its capacity 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 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 defined in the FEDERAL TRADE C011IISSION DECISIONS Decision and Order 61 F.

Clayton Act, as amended, to competing customers located throughout various States of the United States and in the District of Columbia. 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 repondent. 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 a.allowances to certain retail customers who operate drug chains. Such payments or allowances were not offered or otherwise made available on proportionally equal terms to all other customers (including newsstands, grocery chains nnd other drug chains) competing with the favored customers in the sale and distribution of the publications of respondent publisher. Among the favored customers receiving payments in 1961 which were not offered to other competing customers in connection with the purchase and sale of respondent' s publications were:

Approa;imate Customer: Amolmt RoovetJ Drug Fair, "rashingtoll, D.C_---- ------------------- $514. Sun Ray Drug, Philadelphia, Pa__-- ---------- 550. Respondent made said payments to its favored customers on the basis of individual negotiations.

PAR. 6. The acts and practices of respondent as aUeged above are 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 having been served with notice of said determination and with a, copy of the 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 arnnission 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 does not constitute an admission by BELMONT PRODUCTIONS, INC.

Dedsion and Order respondent that the law 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 enters the following ,order:

1. Respondent, Belmont Productions, Inc" is a corporation organized, existing and doing business under and by virtue of the laws Df the State of N ew York, with its offce and principal place of business located at 66 Leonard Street, in the city of K ew York, State of X ew York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It i, oTdel'ed That respondent Belmont Productions, Inc., a corporation, its offcers, employees, agents and representatives, directly or through any corporate or other device, in connection with the distribution, sn.1e or ofiering for sale of publications including paperback books in COIllllcrce, as "commerce" is defined in the amended Clayton Act, do forthwith cease and desist from:

Paying or contracting for the payment of an a110wanee 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, saJe or distribution of publications including paperback books published, sold or offered for saJe by respondent, unless such payment or consideration is affrmatively offered and otherwise made available on proportionally equal terms to a11 of ils other customers competing with such favored,d customer in the distribution of such publications including paperback books. The word "customer:' as used above shall be deemed to mean anyone who purchases from Belmont Productions, 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.

I t further ordered That the respondent herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing set6ng forth in detail the manner and form in which it has complied with this order.

, , , , , ,, , . , FEDERAL 'I'HADE CO L\IISSION DECISIONS Complaint 61 F.

Ix THE fATTR 01' STERLING GROUP, IXC., ET AL.

CONSENT ORDER, In' , IN REGARD TO THE ALLEGED VIOL\.TION OF SEC. 2 ( d) OF THE CLAYTON ACT Docket 0-171;. Comphlint, Ju.ly 19Gz-Decision, July, 1962 Consent order requiring two New York City publishers of magazines including Movie Mirror Real Confessions TV & Movie Screen Movie firror Yearbook" Beauty )lirl'or TV Picture Life Teen Time, and "H()lly wood Secrets Annual", and their common pre:-idcllt 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 bus terminals, and outlets in hotels and offce buildings, and others of whom furnished services in connection with the handling of respondents' publications such fls taking purchase orders and distributing, biling, and collecting-while not making such payments a vailable on proportionally equal terms to their competitors including drug chains, grocery chains. and other newsstands. CO:\fPLAINT The Federal Trade Comlrussion, hn;ving reason to believe that the parties respondent na.med in the caption hereof and hereinafter more particularly desig11ated and describe.c, ha.ve violated and are now violating the provisions of subsection (d) of Sect.ion 2 of the Clayton Act (V. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act, hereby issues its complaint stating its charges with respect thereto as follows:

PAR. 1. Respondent Sterling Group, Inc., is it corporation organized and doing business under the laws of the State of New York with its offce and principal place of business located at 260 Park Avenue South, New York, N. Y. Said respondent, among other things, has been engaged iu the business of publishing and distributing various publications including magazines lU1cle1' copyrighted titles including "1\fovie 1\fi1'ro1' R.eal Confessions TV & :..fovie Screen Movie 1\firror Yearbook" and " Beauty firror . Said respondent' sales of publications during the calendar year 1960 exceeded nine hundred thousand dollars.

P AU. 2. R.respondent Publication House, Inc., is a corporation organized and doing business under the laws of the State of New York with its offce and principal place of business located at 260 Park Avenue South, New York, X.Y. Said respondent, among other things, has been engaged in the business of publishing and distributing , STERLIXG GROUP ET AL.

Complaint various publications including magazines under copyrighted titles including "TV Picture Life Teen Time" and "Hollywood Secrets Annual". Said respondent's sales of publications during the calendar year 1960 exceeded three hundred thousand dollars. PAR. 3. Respondent "forris S. Latzen, an individual, is the president of both corporate respondents named herein. He formulates, directs and controls the acts and practices of said corporate respondents and his address is the same as that of the corporate respondents. PAR. 4. Publications published by respondent Sterling Group, Inc. and by respondent Publication House, Inc., are distributed by said respondents to customers through their national distributor, Publishers Distributing Corporation, hereinafter referred to as PDC. PDC has acted and is now acting as national distributor for the publications of several independent publishers, including said corporate respondents. PDC, as national distributor of publications published by said respondents 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, biling aud collecting 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 knowledge and approval of said publishers, including respondent publishers.

In its capacity as national distributor for said corporate respondents in dealing with the customers oJ said respondents, PDC served and is now serving s a conduit or intermediary for the sale, distribution. and promotion of publications published by said respondents. PAH. 5. R.e.spondents Sterling Group, Inc., and Publication 1Iou8e, Inc., through their conduit or intermediary, PDC, have sold and distributed and now sell and distribute their publications in substantial qua.entities in commerce as "commerce" is defined in the Claywn Act as amended, to competing customers located throughout various States of the United States and in the District of Columbia. PAR. 6. In the. course a.nd conduct of their businesses in cormncrce said corporate respondents have paid or contracted for the payment of something of value to or Jar the benefit of some oJ their customers as compensation or in consideration for services or facilities furnshed or contracted to be furnished, by or through such customers in connection with the handling, sale, or offering Jor sale of publications sold to them by said corporate respondents. Such payments or allowances were not made available on proportionally equal terms to all y____ FEDERAL TRADE CO mission DECISIONS Decision and Order 61 F.

other customers of said respondents competing in the distribution of such publications.

PAR. 7. As an example of the practices alleged herein, said corporate. respondents have 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 offce buildings. 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 said corporate respondents. Among the favored customers receiving payments in 1960 which were not offered to other competing customers in connection with the purchase and sale of repondents' publications were:

STEING GROUP, INC.

Approa:imate Customer: .Amou.nt Received "Union ews Co., New York 1\. 691. 47 Greyhound Post House, Forest Park, 11L______------- -- L, 444. 70 ABC Vending Corp., Long Island City, K,Y____---- 141. 60 PUlLICATIO:: HOUSE, INC.

Union News Co., New York, i\r, 258. 63 ABC Vending Corp., Long Island City, XY_---------------------- 71. 22 Respondents made said payments to their favored customers on the basis of individual negotiations. Among said favored customers such payments were not made on proportionally equal terms. PAll. 8. The acts and practices of respondents as alleged above are in violation of the provisions of subsection (d) of Section 2 of the Claytn Act, as amended.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of subsection (d) of Section 2 of the Clayton Act, as amended, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order;

The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admissjon by the respondents of an the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for STEHLING GROUP INC. ET AL.

Decision and Order settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such complaint and waivers and provisions as required by the Commission 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 findings, and enters the following order:

1. Respondent., St.erling Group, 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 260 Park A venue South, in the city of N ew York, State of K ew York. Respondent, Publication I-Iouse, 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 260 Park A venue South, in the city of N ew York, State of New York.

Respondent lorris S. Latzen is an ofIceI' of each of said corporations, and his address is the same as that of said corporations. 2. The Federal Trade Commission has jurisdiction of the subject matte.r of this proceeding and of the respondents. DRDF..

It;" O1'de1'ed That respondents Sterling Group, Inc., and Publication IIouse, Inc., both corporations, their respective offcers, and Morris S. Latzen, individually and as an offcer of said corporations, and respondents' employees, agents and represent.atives, directly or through any corporate or other device, in connection with the distribution, sale or offering for sale of publications including magazines and paperback books 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 compensat10n 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 and paperback books, published, sold or offered for sale by respondents, unless such payment or consideration is affrmatively offered and otherwise mme available on proportionally equal terms to all of their other customers competing with such favored customer in the distribution of such publications including magazines and paperback books.

FEDERAL TRADE C01Il\nSSIO?\ DECISIOKS Complaint 61 J;' The word ': cl1stomel' ' as used above shall be deemed to mean anyone who purchases from it respondent, acting either as principal or agent or from a distributor or wholesaler ,yhere such transnetion 'with such purchaser is essentia11:y a sale by sllel1responc1enl. aCj-ing either as principal or agent.

It is further 01Ylered That the respondents herein shall ,yit hill sixty (60) da.ys after service upon them of this order, file -with the Commission a report in writing setting forth in detail the JlflllH'l' and form in which t.hey have complied with this order.

IN THE :;U,\TTIil OF KABLE NRIYS COMP AXY CONSgNT ORDER , ETC., IX REGAlm TO THE ALLEGED VIOLATION OF SEC. 2(d) OF 'II-IT: CL. \YTO:N ,\CT Docket C. 1"(5. COIIphlint. Jill!! .18. 19a2-IJecisirJ!. .1l1l.l18 , 1!J(J! Consent order requiring n .Mount .Mon' 111. IJublisl1pl' of llagRzines Rl1(l paperback books to cease discriminating in priec in violation of Sec. 2(d) of the Clayton Act by paying- promotional :111o\yances to certain retail cllstomen;some of \\'hom operated chain retail (11tlet in raih'ond, nil'pol't, :111(1 bus terminals, anrl outlets in hotels ami offce buildings, and others of whom furnished services in (:connection \vitb the handling of respondent' s publications such ns taking purchase 01'le1'8 alld distributing', lJillng, and collecting-while not making such payments Hyailable on pruportionally equal terms to their competitor::, including r11'l1g" d1fins, QTOCery ('chains, and other lle\ys.' tallds, COJ.\1PL\lXT The Federal Trade Conllnission. having reason to belie\'e that the part.y respondent named in the caption1l hereof and hereinafter more partic.nlarly c1esjgnated and desc.ribed, has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act (V. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act hereby issues its complaint stating jts c.charges \with respect thereto as follows:

PAfu\.RAPH 1. R.respondent Kable \!"mys Company js a corporation organized and doing business under the la ,vs of the State of I11inojs with its of lice anel principal place of business located at 16 South "' esley Avenue Iollnt 1\lorris, 111. Said respondent, among other things has been engaged and is presently engaged jn the business of selling and dist.ributing various pnbJicatjons including mag,lzines and paperback books ,which flre published by independent publishers under KABLE NEWS CO.

Complaint copyrighted titles. Respondent's total sales of publications during the period from January 1 , 1960, through June 30, 1961, exceeded $26 000 000.

Said respondent has acted and is now acting as national distributor for the publications of several independent publishers. As national distributor, respondent has performed and is now performing various services for the benefit of such publishers including the taking of purchase orders and the distributing, billing and collecting for such publications from customers. Respondent has also participated and now participates in the negotiations of various promotional and display arrangements with the retail customers of the publishers it represents.

While dealing with the customers of the publishers it represents in its capacity as national distributor, respondent has served and is now serving as a conduit or intermediary for the sale, distribution, and promotion of publications published by said publishers, PAH, 2. In its capacity as n!ttional distributor for publications of various independent publishers, respondent is in charge of the newsstand sttes of all such publications. Respondent has distributed !tnd now distributes such publications to retail outlets through local wholesalers. These local wholesalers have served and are now serving as conduits or intermediaries for the sale, distribution and promotion of the publications for which respondent serves as n!ttional distributor. PAR. 3. Respondent 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. 4. In the course and conduct of its business in commerce, respondent has paid or contracted for 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 including magazines and paperback books sold to them by 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 publjc!ttjons.

P AIt. 5. As an example of the practices alleged herein, respondent Kable News Company has made payments or allowances to certain I'etail customers who operate chain retail outlets in railroad, airport and bus terminals, as well as outlets located in hotels and offce build- __ Decision and Order 61 F.

ings. 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 said respondent. Among the favored customers receiving payments in 1960, and during the first 6 months of 1961, which were not offered to other competing customers in connection with the purchase and sale of said respondent's publications were: Approximate Amount Reoeived Customer: 1960 (,JQjf::;me) $52H. 77 Airport Canteen, Cllicago, Ill___--__ - Sts04.09 Freel Haney, Chicago, Ill_--__ ----- 3, 178. 23 1 302. Interstate Hosts, Los Angeles, Calif--__--_ -------- 2 413. 03 2 804. Greyhound Post Houses, Forest Park, 11L--__-- --- 4 656. 87 1 751. ABC Vending Corp. , Long Island City, Y_-- ------ 3. 030. 93 1 189. Union l\€\Ys Co., 1\ew York, N. - 23, 044. 62 11 532. In the year 1960, respondent paid a total of $42 787.32 to recipients located in tho cities of N ew York, New Yark; Baston AlassRchllsetts; Philadelphia, Pennsylvania; Chicago, Illinois and 1Vashington, D. Respondent made such payments to its fayorec1 customers on the basis of individual negotiations. Among such favored cllstomers such p lyments 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 (el) of Se.cion g of the Clayton Act, as ftmended.

DECISION AND ORDER The Commission having heretofore deterulined to issue its complaint charging the respondent named in the caption hereof with violation of subsection (c1) of Section 2 of the Clayton Act, as amended, and the respondent having been served with notice of said determination and with a copy of the 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 ftl! 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 does not constitute an admission by respondent that the law luts been violated as set forth in such complaint, and waivers and provisions as required by the Commission rules; and KABLE NEWS CO.

Decision and Order 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 enters the following order;

1. Respondent Kable News Company, is a corporation organized existing and doing business under and by virtue of the hnvs of the State of Illinois, with its offce and principal place of business located at 16 South vVesJey Avenue, in the city of .Mount Morris, State of Illinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered That respondent Kable News Company, a corporation its offcers, employees, agents and representatives, directly or through any corporate or other device, in connection with the distribution, sale or offering for sale of publications including magazines and paperback books 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 Of' distribution of publications including magazines and paperback books distribntcd, sold or offered for sale by respondent, unless such payment or consideration is affrmatively offered and otherwise made available on proportionally equal terms to all of its other customers competing with such favored customer in the distribution of such publications including magazines and paperback books.

The word "customer" as used above shall be deemed to mean anyone who purchases from Kable News Company, acting either as principal or agent, or from a distributor or wholesaler where such transaction with such purchaser is essentially a saJe by such respondent, acting either as principal or agent.

1 t is further ordered That the respondent herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the manner and form in ,' .which it has complied with this order.

, , , , , , . , 100 FEDERAL TRADE COMMISSIQX DECISIONS Complaint 61 :U'