By-Line Publications, Inc.

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in which they have complied with this order. IN TH" Matrer OF BY-LIKE PUBLICATIONS, IKC., ET AL.

CO:\SENT ORDER ETC. , IN REGARD TO THJ' n.ALLEGED VIOLATION OF SEC. 2(d)' OJ!' THE CLAYTN ACT Docket C-17"/. Complaint, July 1962 Decision, J1lly, 1962 Consent order requiring the New York City publishers of "Confidential" and \Vbisper " magazines to f'asp. discriminating in price in violatioll of Sec. BY-Ll2\E PCBLICATIO , INC. ) ET AL. 105 104 Complaint :. ((1) of the Claywn .\.et by pa illg; prOllotional ullowallces to certain retail llstomer solle of whom operated chain retail outlets in railroad, airport. awl bus tprminals, an(l untlets ill hotels and office building's, and others of whom fnrnbhed :-en'iees iu c0I111cction with the handling of respondents publications su(:ll a:- taking purchase orders and distributing., billng, and rollccting-wJJile not making such payments available on proportionally t'qual ierl1S to tJJcir !'ompetitol' , iIJclnding drug chains, grocery chains, and nthl' r nE'WRstnU(j".

C02\:IPLAIXT The Federal Trade COl1unission, having reason to believe that the parties l'rspOl1rlent named in the caption hereof and hereinafter more pa.rticularly 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 ite charges with respect thereto as follows:

PARAGRAPH 1. Respondent By-Line Publica.tions, Inc., is a corporation organized and doing business under the laws of the State of Nmv York, \viUl its offce and principal p1ncc of business located at 152 "Vest 4211cl Street, New York, N. . Said respondent, among ()ther things, has been engaged a.nd is presently engaged in the business of publishing tnc1 distributing various publications including magazines under copyrighted titles including " Confidential" and 1Vhispcr . R.espondenfs sales of publications during the calendar year 1960 exceeded seven hundred fity thousand dollars. AR. 2. Respondent Hy Steirman, an individual, is the prcsident respondent By-Line Publications, Inc. Respondent IIy Steirman formulates, controls and directs the acts, practices and policies of respondent By-Line Publications, Inc. , and his address is the same -as that of said corporation.

PAR. 3. Publications published by respondent By-Line Publications, Inc., are distributed by said respondent to customers through its national distributor, Publishers Distributing Corporation, hereinafter referred to as PDC.

PDC has acted and is now acting as national distributor for the pllblieations of several independent publishers, including respondent publisher. PDC, as national distributor of publication published by respondent and other independent publishers, has peTformcd and -is now performing Yflrious services for these publishers. Among the services performed and still being performed by PDC for the benefit of these publishers are the t.aking of purchase orders and the dist.ributing, hilling and collecting for such publications from customers. _ ___ 106 FEDERAL TRADE COMMSSION DECISIOKS Complaint 61 F.

PDC has also negotiated promotional arrangements with the retail customers of the pubJjshers it represents, on behalf of and with the know ledge and approval of said pubJjshers, including respondent pubJjsher.

PAR. 4. Respondent By-Line PubJjcations, Inc., through its conduit or intermediary, PDC, has sold and distributed and now sells and distributes its publications in substantial quantitites 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 By-Line 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 sel" jces or facilities furnished, or contracted to be furnishec1 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 allowanees were not made available on proportionally equal terms to 0.11 other customers of respondent competing in the distribution of such puhJjcations.

PAn. 6. As an example of the practices alleged herein, respondent By-Line 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 offce buildings. SUc11 payments 01' allowances were. not offered or otherwise made available on proportionally equal terms to 0.11 other customers (including drug chains, grocery chains and other newsstands) competing with the favored customers in the sale and distribution of thc publications of respondent publisher. Among the favored customers receiving payments in 1960 which were not offered t.o other competing cllstomers in connection \with the purchase and sale of respondent's publications were:

ApprDwimaie Customer: Amount Received 'Cnion News Co. , New York, K.Y__ J03. 20 Greybound Post Houses, Forest Park, Ill--___--_-- ------ 2 187. ABC Vending Corp., Long Island City, r- Y--- _--__- 483. Barkalow Bros. , Omaba, Nebr----____---- - 755. Fred Harvey, Chicago, Ill____ - 535. (1spondent made said payments to its fflvored customers on the basis of individual negotiations. Among said favored customers such payments were not made on proportionally equal terms. BY-LINE PUBLICATION::S, I::C, , ET AL. 107 104 Decision and Order PAR. 7. The acts and practices of respondents as alleged above are in violation of the provisions of subsection (d) of Section 2 of the Clayton Act, as amended.

DECISION AXD ORm The Commission having heretofore determined to issue its complaint charging tho 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; and The respondents and counsel for the Commission hu,ving thereafter executed an agreement 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 said agreement is for settlement purposes only and docs not constitute an admission by respondents that the law has been violat.ed as set forth in such complaint, and waivers and J?provisions as required by the Commission rules; and The Commission, having considered the agreement, hereby accepts same, issues it.s complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the follo"\ving order:

1. Hcspondent By-Line Publications, Inc., is a corporation organized, existing and doing business under and by virtue of the Jaws of t.he State of New York, with its oftice and principal place of business located at 152 West 42nd Street, in the city of New York, State of New York.

Respondent Hy Steirman is au offcer of said corporation, and his address is the same as t.hat of said corporation. 2. The Federal Trade Commission has jurisdiction of t.hc subject matter of t.his proceeding and of the respondent.s. ORDER It i8 ordered That respondents By-Line Publicat.ious, Inc. , a corporation, its offcers, and Hy Steirman, individually and as an offcer of said corpora60n, and respondents' employees, agents and representatives, directly or through any corporate or other device, in connection with the distribution, sale or ofT'cring for sale of publications including magazines in commerce, as "commerce" is defined in the amended Clayton Act, do forthwith cease and desist from: , , , , ,, , 108 FEDERAL TRADE: COMl\HSSION DECISIOXS Complaint 61 F.

Paying or eontractingfor 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 offered for sale by respondents, unless such payment or consideration is affirmatively offered and otherwise made fl\'ailable on propol'tionaJ1y equal terms to all of their other customers cornpeting "with sHeh favored customer in the distribution of sneh publications including magazines. The word "customer" as used above shall be deemed 1"0 mean anyone who purchases from a respondent, acting either as principal or agent or from a distributor or "\vholcsaler where such transaction with such purchaser is essentially a sale by such respondent: acting eit.her as principal or agent.

It is furthe'' ordered Thllt. the, respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in c1eta,il the lta,under and form in which they have complied with this order. IN THE )IATT OF STANLEY PUBLICATIONS, INC., ET AL.

CONSENT ORDER. ETC., IN REGARD TO TI-IE ALLEGED VIOI ATION OF SEC. 2(d) OF THE CLAYTON ACT /Jocket c-1":s. ('olilpla.i. nt. .J-uly 1,tU2-Dccision, July, 1962 Consent order requiring the loew York City publishers of " AU-::Vlan Fresh and Salt Water Fishing Glms and Games Real :\en )dan s Adventure Picture Spotlight" Popular Screen Popuiar TV" Battle Cry, and Conflict" 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 bus terminals, and outlets in hotels and offce buildings, and others of whom furnished services in connectioll with the handling of respondents publications such as taldng 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 newsstflnds.

COllPLAIXT 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 arc now vio- , , , : ,, . , STA EY PUBLICATION: .,T ) IKC. ) ET AL. 109 108 Complaint lating the provisions of Sn bsection (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 charge.s with respect thereto as follows:

PARAGRAPH 1. llespondent Stanley Publications, Inc., is a corporation organized and doing business under the laws of the State of New York, with its office and principal place of business located at 261 Fifth Avenue, New York, N.Y. Said respondent, among other things has bee.n engaged and is presently engaged in the business of publishing and distributing various publications including magazines under copyrighted titles including "All-Man Fresh and Salt 'Water Fishing Guns and Games Real MBn J\lan s Adventure Picture Spotlight': Popular Screen Popular TV" Battle Cri:, and Conflct". Saidl'respondent's sales of pnblicati ns during the call11dar year 1960 exceeded nine hundred thousand dollars. PAR. 2. Respondents Stanley P. Morse and Michael Morse, both individuals, are president and secretary, respectively, of Stanley Publications, Inc. They formulate, direct and control the acts and practices of said corporate respondent and their address is t.he same as that of the corporate respondent.

PAR. 3. Publications published by respomlent Stanley Publications Inc., are distributed by said respondent to cllstomers through its national distributors, Pnblishers Distributing Corporation, hereinafter referred to as PDC, and Kable News Company, hereinafter referred to as Kable.

PDC and Kable have acted and arc now acting- as national distributors for the publications of several independent publishers: including said respondent publisher. PDC and Kable, as national distributors of publications published by respondent and other independent publishers, have performed and are now performing various services for these publishers. A.among the services performed and still being- performed by PDC and Kable for the benefit of these publishers are the taking of purchase orders and the distributing, billing and collecting for such publications from customers. PDC and Kable also had participated in the negotiation of various promotional arrangements"\with the retail customers of said publishers, including said respondent. In their capacity as national distributors for respondent, Stanley Publications, Inc., in dealing with the customers of said respondent PDC and Kable served and are nmv serving as conduits or intermediaries for the sale, distribution and promotion of public.ations published by said respondent.

110 FEDERAL TRADE CO SSION DECISIONS Decision and Order 61 F.

PAR. 4. Respondent, Stanley Publications, Inc., through its conduits or intermediaries, PDC and Kable, has sold and distributed and now sells and distributes its publications in substantial quantities in COffnerce, 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, Stanley 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 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 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.

PAR. 6. As an example of the practices alleged herein, respondent Stanley Publications, Inc., has made payments or allowances to certain retail customers who operate chain retail outlets in railroad ail' port and bus terminals, as well as outlets located in hotels and OffCB buildings. Such payments or allowances "ere 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 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 said respondent' s public-tions were:

Approl1fmate Customers: Amount Received Union News Co., New York, N.Y_n__n_--_n__________n__n__- $2 054. Greyhound Post Houses, Forest Park, 11L______-______n__n___- 516. ABC Vending Corp., Long Island City, N.Yn_--_______n______n- 85. Respondent made said payments to its favored customers on the basis of individual negotiations. Among said favored customers such payments "ere not made on proportionally equal terms. PAR. 7. The acts and practices of respondents as alleged above are in violation of the provisions of mbsection (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 , ET AL. 111 STANLEY PUBLICATI01\ J INC. 108 Decision and Order 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 compla.int the Comlnission intended to issue, to. gether 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 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 repondents that the l!1\Y has been violated as set forth in such complaint and waivers and provisions as required by the Comnlission s rules; The Commission baving considered the agreement, hereby accepts same, issues its complaint jn the form contemplated by said agreement makes the following jurisdictional fmdings, and enters the following order:

1. Respondent Stanley l)ublications, Inc., is a corporation 01'ganized existing and doing business under and by virtue of the bws of the State of New York, with its offce and principal place of business located at 261 Fifth A venue, in the city of New York, State of New York.

Respondents Stanle)' P. Ylorse and Michael Morse are offcers of said c.orporation, and t.their address is the same as that of said corpora, tion.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of t.he respondents. ORDER It is (JI 'dei. That the l'e pondents Stanley Publications, Inc. , a corporation, its offcers, and Stanley P. Morse and :YIichael Morse, individuaUy and as offcers of Stanley Publications, Inc., and respondents' 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 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 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 offered for sale by respondents , , , , . , , ,, 112 FEDERAL TRADE COMMISSIOC' DECISI02\S Complaint 61 F.

unless such payment or consideration is afil'matively offered and other-wise made available on propOliionally equal terms to all of their other cust.omers competing "\Ylth such favored customers in tile distribution of such publications including magazines. The word "customer" as used above shall be deemed to mean anyone who purchases from a respondcllt, acting either as prineipal or agent, or from it distributor 01' wholesaler where such transaction ,with such purchaser is essentially a sale by such respondent, acting either as principal or agent. It is fUTtheT oTdel'ed That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writ.ing setting forth in detail the manner and form in which they have complied with this order. Ix THE MATTER OF PETERSEN PUBLISHl~G COMPANY ET AL.

CONSENT ORDER, ETC.. I.: REGARD TO THE -\ALLEGED YIQLi.TION OF SEC. :2((\1 OF THE CLAYTON ACT lJucket ('-lid. Complaint Tnt!! 19U2-1Jcci8ion, July, 1962 Consent onler requiring Los Angeles publishers of magazines and paperback books-inclUlling " ::.Jotor Trend" Hot Hoc!" Car Craft" Guns and Ammo Prn- I-'ootbllll" Custom Cllrs, ;r iodel Railroad" Sport Car Specials 31lJtor Life, ami .. ' TcCJl to crn.'3C discriminating in price in yiolfltion of Sec. 2(1) of tll ' Clnytun Ad b ' Va dllg promotional allowances to certain retail cnstOJlel' SOile of whom operated chain retail outlets in railroad, airport, anl! bus terminals, find outlets in hotels and offce buildings, and others of whom furnished ser'dces in connection with the handling of respondents' publications such as taking pmchase orders and distributing, biling, and collecting-while not making such payments available all proportionally equal terms to their competitors, including (lrugchains, grocery chains, and other ne\vsstands. CO:l\PL-\INT 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 ag follows:

. , , PETERSEN PUBLISHING CO. ET AL. 113 112 Complaint PARGRAPH 1. Respondent Petersen Publishing Company is a corporation organized and doing business under the laws of the State of California, with its ollce and principal place of business located at 5959 Hollywood Boulevard, Los Angeles, Calif. Said respondent among other things, has been engaged and is presently engaged in the business of publishing and distributing various publications including magazines and paperback books under copyrighted titles including M:motor Trend" Hot Rod" Car Craft" and "Guns and Ammo PAR. 2. Respondent Trend Books, Inc., a corporation organized and doing business under the laws of the State of California, having its offce and principal place of business Jocated at 5959 Hollywood Boulevard, Los Angeles, California, is a subsidiary of respondent Petersen Publishing Company. Respondent Trend Books, Inc., among other things, has been engaged and is prcsently engaged in the business of publishing and distributing various publications including magazines and paperback books under copyrighted titles including "Pro- Footbalr: Custom Cars :\1odel Railroad" and "Sport Car Specials PAR. 3. Respondent Quiun Publications, Inc., a corporation organized and doing business under the Jaws of the State of California having its offce and principal place of busille s located at 5959 Honywood Boulevard, Los Angeles, Calif., is a subsidiary of respondent Petersen PubEshing Company. Respondent Quinn PubEcations Inc.. among other things, has been engaged and is presently engaged in the business of publishing and distributing various publications ;nelnding magazines under copyrighted titles including "Motor Life P AU. 4. Respondent 'Teen Publications, Inc., a corporation orga- "i7.ed and doing business under the laws of the State of CaEfornia having its offce and principal place of business Jocated at 5959 Holywood Boulevard, Los Angeles, Calif., is a subsidiary of respondent Petersen Publishing Company. Respondent 'Teen Publications, Inc. among other thjngs, has been engaged and js presently engaged jn the business of publishing and distributing various publications including magazines under copyrighted tjtles jnc1uding Teen PAR. 5. Respondent Robert E. Petersen, an individual, is the president of each of the corporations named as respondents herein. formulates, directs and controls the acts and practices of each of said Tespondent corporations, and his address is the same as that of each of the respondent corporations.

PAR. 6. Publications including magazines and paperback books published by each of the corporations named as respondents herein are sold and distributed by said respondents to customers through their na- 114 FEDERAL TRADE CO "\SSION DECISIOKS Complaint 61 F.

tional distributor, Independent News Company, Inc., 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 each of the corporations named as respondents herein. Independent l\ews, 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 Independent K ews for the benefit of these publishers are the taking of purchase orders and the distributing, biling and collecting for such publications from customers. Independent ~ ews also had participated in the negotiation of various promotional arrangements with the retail customers of said publishers, including said respondents. In its capacity as national distributor for each of the corporations named as respondents herein, Independent News has served and is now serving as a conduit or intermediary for the sale, distribution and promotion of publications by said respondents. PAR. 7. Respondents Petersen Publishing Company, Trend Books Inc., Quinn Publications, Inc., and 'Teen Publications, Inc., through their conduit or intermediary, Independent News, 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 competing customers located throughout various States the United States and in the District of Columbia. Total sales of publications of the corporations named as respondents herein for the calendar year ID60 exceeded five milion dollars. PAR. 8. In the course and cond uet of their business in commerce respondents Petersen Publishing Company, Trend Books, Inc., Quinn Publications, Inc., and 'Teen Publications, Inc. 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 1n connection with the handling, sale, or offering for sale of publications including magazines and paperback books 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 such publications.

PAR. D. As an example of the practices alleged herein, respondents Petersen Publishing Company, Trend Books, Inc., Quinn Publieations, Inc., and 'Teen Publications, Inc. have made payments or allow- _ __ PETERSEN PUBL1SHIG CO. ET AL. 115 112 Decision and Order anees to certain retail customers who operate chain retail outlets in railroad, airport and bus terminals, as wen as outlets Jocated in hotels and offce buildings. Such payments or aJ10wances were not offered or otherwise made available on proportionally equal terms to an 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 respondents. Among the favored customers receiving payments in 1960, and during the first six months of 1961, which were not offered to other competing customers in connection with the purchase and sale of publications from said respondent were:

Appro:ri71ate PETERSE PUBISHING COMPANY Amuunt Received 1961 196rJ (Ja,z.-June)Customer:Greyhound Post Houses, Forest Park, 11L_____------- - $1 112. , 839. 46 ABC Vending Corp., Long Island City, N.Y_______n__- 147. 121. 69 Fred Harvey, Chicago, Ill---_n_ _n__--_---__n__- 866. 489. 27 Union News Co., New York, N.Y__n_n______------- 13, 434. 7, 488. 51 TREND BOOKS, INC.

Interstate Hosts, Los Angeles, Calif_____n_____---- 11. If''red Harvey, Chicago IlLn ____nnn__ nn_- 214. 93 76. QUINN P"L""r.CATIONS, INC.

Greyhound Post Houses, Forest Park, 11L----____--- 594. 15 494. 7 Fred Harvey, Chicago, Ill_______n__ 186. 60 95. Garfield News, New York, ),TY__ 262. 12 88. Union News Co., New York, N.Y____------------ 837. , 756. 05 TEEN Pt:JLICATIONS, INC.

Greyhound Post Houses, Forest Park, Ill___ ___------- 814. 38 874. Garfield News, New York, N.Y_____n___-- ---- 430. 28 170. Fred Harvey, Chicago, Ill_____ -------- 223. 36 138. Lnion News Co., New York, N. n______----------- 2 676. 55 1 637. Said respondents made solid payments to their favored customers on the basis of individual negotiations. Among said favored customers such payments were not made on proportionally equal terms. PAR. 10. The acts and practices of respondents as aJ1eged above are in violation of the provisions of subsection (d) of Section 2 of the Clayton Act, as amended.

DECISION AND Onder The COIl1l1ission 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 , Decision and Order 61 F.

the respondents having been served with notice of said determination and with a copy of the compla-int 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, a.n admission by the respondents of "ll the jurisdictional facts set forth in the com. plaint to issue herein, a statement that the sigl1ing of said agreement is for settlement purposes only and dops not c.onstitute 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 rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form conte.mplatec1 by saiel agreement makes the following jurisdictional findings, and enters the following order:

1. Respondent, Petersen Publishing Company, is it corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its offce and principal place of business located at 5D59 Hollywood Bonleyard, in the city of Los Angeles, Stat.e of California.

Respondent, Trend Books, Inc., is fl. corporation organized, existing and doing business under and by virtue of the 1a ws of the State of California, with its offce and principal place of business located at 5959 Hollywood Boulevard, in the city of Los Angeles, Stat.e of Califoria. Respondent, Quinn Publications, Inc., is a corporation organized existing and doing businpss under and by virtue of the laws of the State of California, with its offce and principal place of business located at 5959 Hollywood BonJevard, in the city of Los Angeles, State of California.

Respondent Teen Publications, Inc., is a corporation organized, existing and doing business under and by "irtne of the. Jaws of the State of California, with its offce and principal place of business located at 595D Hollywood Boulevard, in the city of Los Angeles. Stato of California.

Respondent, Robert E. Petersen, is an ollcer 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 matter 01 this proceeding and of the respondents. ORDER 1 t is orclend That respondents Petersen Publishing Company, Trend Books, Inc., Quinn Publications, Inc., and 'Teen Publications , E. C. peBL1CATIO J I:L 117 112 Syllabus Inc., all corporations, their respective offcers, and Robert E. Petersen individually and as an offcer of said corporations, and respondents employees, agents and representatives directly or through any corporate or other device, in connection with the distribution, sale or offering for saJe of publications including magazines and paperback books in conunerce, 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 compensa tion 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 affrmatiwJy oiIered and otherwise made available on proportionally equal terms to alj of their 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 a respondent, 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 orde?' That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.