Archie Comic Publications, Inc.

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IN THE MATTER OF ARCHIE COMIC PUBLICATI0KS, I , ET AL. CONSENT ORDER, ETC. , IX REGARD TO THE ALLEGED VIQLATIOX QJ' SEC. 2 (d) OF THE CLAYTON AC' Docket 0-1"iG. COliplaint, July lf12 Decf8i()!I Jllly 19C2 Consent order requiring three Xcw York City publishers of comic booksincluding "Archie Tnghead" Pep Betty and Veronica Katy Keene Laugh" The Fly and "Katy Keene Pinup -and their common offcers, to cease discriminating in price ill violation of Sec. 2(d) of the Clayton Act by paying promotional allowances to certain retail customers- Some of wbom 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 n taking purchase ordcl's and distributing, biling, and collecting-while not making such Imymcnts available on proportionally equal terms to their competitors, including dll1g chains. grocer:v ('chains, and other newsstands.

C O:.IPLAIX T 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 now violating the provisions of subsection (d) of Section 2 of the Clayton Act (U. 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. Hesponclent Archie Comic Publications, Inc., is a corporation organized and doing business under the laws of the State of K ew York with its offce and principal place of business located at 241 Church Street, K ew 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 comic books W1cler copyrighted titles including "Archie Jughead", and "Pep Said respondent's tot,tl sales of publications during the calendar yea 1960 exceeded one million dollars.

PAR. 2. Hesponclent Close lJp, Inc., is a corporation organized and doing business under the laws of the State of New York, with its olIice 'Uld principal place of business located at 241 Church Street New York, N. Y. Said respondent, among other things, has been engaged and is presently engaged in the business of publishing and dist.ributing various publications including comic books under copy- , AHCHIE COMIC PUBLICATIONS , INC. ET AL. 101 100 Complaint righted titles including " Betty and Veronica 1(aty Keene, and Laugh"

Paint. 3. Respondent R.ac1io C0111ics, Inc., is a corporation organized and doing business under the laws of the State of New York, with its offee and principal place of busines located at 241 Church Street K ew York, N. Y. Said respondent, among other things, has been engaged and is presently engaged in the busines of publishing and distributing various publications including comic books under copyrighted 6tles including "The Fly" and "Katy l(eene Pinup Said respondents operate and do business jointly under the trade name and style of Harvey Comic Group. PAR. 4. Respondents Louis H. Silberkleit, John L. Goldwater and Maurice Coyne, all individuals, are president, vice president and secretary-treasurer, respectively, of each of the above-named corporations. They formulate, direct and control the acts and practices of said corporate respondents and their addresses arc each the same as that of the corporate respondents.

PAIL 5. Publications published by the corporate respondents named herein 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, billing and collecting for such publications from customers. PDC has also negotiated promotional arrangements with the retail customers of 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 of said respondents, PDC served and is nmv serving as a conduit or intermediary for the sale, distribution and promotion of publications published by said respondents. PAR. 6. The corporate respondents named herein, through their conduit or intermediary, PDC, have sold and distributed and now sell and distribute their publications in substantial quantities in commerce, as "commerce" is defined in the Clayton Act, as amended, to 728-122-G5- _______ __ _______ 102 FEDERAL TRADE CO:MISSION DECISIONS Complaint 61 F.

competing customers located through various States of the United States and in the District of Columbia.

PAR. 7. In the course and conduct of their business in commerce the corporate respondents named herein have paid or contracted for the payment of something of value to or for the benefit of some of their customers as compensation or in consideration for services or facilities furnished, or contracted to be furnished, by or through such customers in connection with tho handling, sale, or offering for sale of publications sold to them by said respondents. Such payments or allowances were not made available on proportionally equal terms to all other customers of said respondents competing in the distribution of mid publications.

PAR. 8. As an example of the practices alleged herein, respondents have made payments or allo"\vances to certain retail cllstomers who operate chain retail outlets in railroad, airport and bus terminals as well as outlets located in hotels and offce buildings. Such payment.s or allowances were not offered or otherwise made available on proportionally equal terms to all uthcr customers (including drug elutins, grocery chains and other nmvsstanc1s) competing with the favored customers in the sale and distrib!ltion of the publications of respondent publishers. Among tho 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:

ARCHIE COMIC PUBLICATIONS, INC.

Approximate Customer: Amount Received union :News Co. , Kew York, K.Y___ ------------------- $581. Garfield Kews Co. New York, 1'Y_--------_--____n--_____------- 621. ABC Vending Corp., Long Island City, K.Y-- --------- 582. Greyhound l' ost Houses, Forest Park, 11L -------- 2 484. CLOSE UP, INC.

Greyhound Post Houses, Forest Park, I1L-- 429. Fred Harvey, Chicago, Ill_--____------ 178. 00 Barkalow Bros., Omaha, Nebr-----_----------------------------- 40. RADIO CO:MICS , INC.

Greyhound Post Houses, Forest Park, I1L___--_---- 275. 00 ARC Vending Corp. , Long Island City, Y ------ _n_- 55. Ilespondents 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. I Received in 1961.

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ARCHIE COMlC PUBLICATION , Th' ) ET AL. 103 100 Decision and Order PAR. 9. The acts and practices of said respondents as alleged above are in violation of the provisions of subsection (d) of Section 2 of the Clayton Act, as amended.

DECISIO:: 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 Chlylon Act, as amended, and the respondents ha.ving bE'-Bl1 served "with notice of said detcrmination and ""1th a copy of the complaint the Commission intended to issue, together ,with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of aD the jurisdictional facts set forth in the complaint to issue herein, a stat"ement tlutt t118 signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such complajnt, a.nd waivers a.nd provisions as required by the Commission rules; and The Commission, having considered 018 agreement, hereby acce.pts same, issues its complaint in the form contemplated by said agreement makes t.he following jurisdictional findings, and enters the following order:

1. Respondent. Archie Comic Publications, Inc.: is a corporation organized, existing and dohlg business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 241 Church Street, in the city of New York, State of New York.

Respondent, Close Up, 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 241 Church Street, in tbe city of ~ew York, Stlle of New York. Respondent, Radio Comics, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of thc State of New York, with its offce and principal place of business located at 241 Church Street, in the city of New York, Slale of New Yark. Respondents, Louis H. Silberkleit John L. Goldwater and Maurice Coyne are omcers of said corporations, and their address is the sarno as that of said corporations.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. , .

104 FEDERAL TRADE COM.\1:SSIOX DECISIONS Syllahus 61 F.

ORDER It i8 ordered That respondents Archie Comic Publications, Inc. Close Up, Inc., Radio Comics, Inc., all corporations, their respective offcers, and LOllis H. SiJberkleit Tohn L. GoJdwater and Maurice Coyne, individually and as offcers of said corpomtions, and respondents' employees, agents and representat.ives, directly or through any corporate or other de.vice, in connection Trith the distribution, sale oroffering for sale of publications including comic books in commerce as "commerce" is define.d in the amended Clayton Act, do forthwith cease and desist from:

Paying or contracting for the payment of an allowance or anything of value t.o, 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 comic books published, sold or offered for s"le by respondents, unless such payment or considerat,on is affrmatively oflered and otherwise made available on proportionally equal terms to all of their customers competing with such favored customer in the distribution of such publications including comic books.

The word " customer" as used above shah be deemed to mean anyone who purchases frolll a respondent, acting either as principal oragent, or from a distributor or wholesaler where such transaction with such purchaser is csselltiaJJy a saJe by such respondent, acting either as principal or agent.

It is furthe o1.dered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form'