Harvey Publications, Inc., et al.

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form in which t.hey have complied with this order. IN 'rile MATTER OF HARVEY PUBLICATIONS, lKC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2( d) OF TIIE CLAYTON ACT Docket C-182. Complaint, July 19GB-Decision, July, 1962 Consent order requiring the five ew York City corporations with the same ad. dress and offcers, publishers of comic books including (1) "Blondie, "Dagwood" Mutt & Jeff" Sad Sack" Dick 'Tracy Joe Palooka; (2) Harvey lIits Sad Sack and the Sarge Sad Sack's Funny friends (3) "Hot Stuff" Hot Stuff Sizzler; (4) "Little Dot" Richie Rich" Mutt & Jeff Jokes; and (5) "Little Lotta Playful Little Audrey, and Wend;y, to cease discriminating in price in violation of Sec. 2(d) of the Clayton Act -by paying promotional allowances to certain retail customerssome of whom operated chain retail outlets in railroad, airport, andbns terminals, and outlets in hotels and offce buildings, and others of whom furnished services in connection with the handling of respondents' publications such as taking purchase orders and distributing, biling, and collecting-while not making such payments avai1ah1e on proportionally equal terms to their competitors, including drug chains, grocery chains, and other newsstands.

CO::IPLAINT The Federal Trade Commission, having re.ason to believe that the pa,rties 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 (1;. C. Title 15 , Sec. 13), as amended by the Robinson-l'aLman Act, hereby issues its complaint stating its charges in respect thereto as follows:

PARAGRAPH 1. Respondent Harvey Publications, Inc., is a corporation orga.nized and doing business under the laws of the State of York, ,with its offce and principal place of business located at 1860 Broadway, Kc,,, York, New York. Said respondent, among other things, has been engaged and is presently engaged in the business of publishing and distribut.ing various publications including comic books , , , , , , , 126 FEDERAL TRADE COl\ISSION DECISIO).T Complaint 61 F.

under copyrighted titles including "Blondie Dagwood" j)1utt & Jeff", "Sad Sack" Dick Tracy, and "Joe Palooka PAR. 2. R.respondent Harvey Hits, 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 1860 Broadway, New Yark, 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 under copyrighted titles including "Harvey Hits Sad Sack and the Sarge, and "Sad Sack' Funny Friends PAR. 3. Respondent Illustrated Humor, 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 1860 Broadway, N ew York, ~. 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 under copyrighted titles including "Hot Stuf!" and "Hot Stuff Sizzler PAll 4. Respondent IIarvey Enterprises, Inc., is :1 corporation organized and doing business under the la.ws of the State of New York having its offce and principal place of business located at 1860 Broadhasway, K ew Y ork Y. Sa.id respondent, among other things, been engaged and is presently engaged in the business of publishing and distributing various publications including comic books under copyrighted titles including "Litte Dot" Richie Rich" and "Mutt & Jeff Jokes PAn. 5. Respondent Harvey Picture l\lagazines, Inc., is a corporation organized and doing business under the laws of the. State of New York with its offce and principal pla.ce of business located at 1860 Broadway, Kew 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 under copyrighted tiUes including "Little Lotta PJayfuJ Litte Audrey and "\Vend:i PAn. 6. Respondents Alfred Hmvey, Leon Harvey and Robert Harvey are the sole offcers of each of the corporations named as respondents above. They formulate, direct and control the acts and practices of each corporate respondent, and their address is the srune as that of each (,fJrpol'ate respondent named herein. m. 7. Publications published by an corporations named as respondents herein are distributed by said respondents to customers through their national distributor, Publishers Distributing Cal'para. han, hereinafter refe.rred to as PDC.

HARVEY PUBLICATIONS , IXC. , ET AL. 127 125 Complaint PDC has acted and is now acting as national distributor for the publications of several independent publishers, including the corporations named as respondents herein. 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 perfanned by PDC for the benefit of these publishers are the taking of purchase orders and the distributing, biling and collecting for such publications from customers. PDC also has negotiated various promotional arrangements with the retail customers of such publishers, with the knowledge and approval of said pnblishers, including said respondents.

In its capacity as national distributor for said respondents, PDC served and is now serving as a conduit or intermediary for the sale distribution and promotion of publications published by respondents. PAR. 8. Respondents, 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 nme-ndecl, to competing customers located throughout various States of the United States and in the District of Columbia. PAR. U. In the COUr c. and conduct of their businc s in commerce :respon(lpllts lw,"p. paid or contracted for the payment of something of value t.o 01' for the benefit of some of their customers as compensation 01' in consideration for services and facilities furnished, or contracted to be furnished, by or through such customers in connection with the ha.ndling. aJe or offering for sale of publications sold to thenl by responde-Hts. Such payments or allowances were not made availa.ble on proportiomdly equal terms to all other cnstOlners of respondents competing in the distribution of such publications. PAn. 10. As an example of the practices alleged herein, respondents ha.ve made pa.yments or a.allowances to certain retail customers who operate chain retail outlets in railroad, airport and bus terminals, a well as outlets located jn hotels a.nd offce buildings. Such payments or allowances ,,-ete not offered or otherwise made available on proportionally equal terms to ftll other customers (including drug chains grocery chains and other newsstands) competing with the favored customers in the sale and distribution of the publications of respondents. Among t.he favored customers receiving payments in IDeo which were not offered to other competing customers in connection with the, purchase and sale of respondents' publications were: __ ______ 128 FEDERAL TRADE COMMISSION DECISIOXS Decision and Order 61 F.

HARv"EY PUBLICATIONS, l::c.

Approximate Customer: Amount Recdved Greyhound Post Houses, Forest Park, Ill_ ---- $2 244. 92 ABC Vending Corp., Long Island Y------ 411. 48 -------- 117. Barkalow Bros., Omaha, :!TebL__n---_n Fred Harvey, Chicago, Ill___ _n__n___--_ 371. 58 HAH'V'"Y HITS , INC.

Grey hound Post II ouses_____ n ----- 421.14 ABO Vending Corp-- 151. 38 II.LUSTRATED Ilc- '(OR , INC.

140. 38 Greyhound Post Houses_ ABC Vending Corp__ 104. 88 TIARVEY EC'TERPUISES, IC'c.

ABC Vending Corp- 38. HARVEY PICTURE MAGAZIJ'ES , INC.

421. 08 Greyhound Post Houses___ ABC Vending Corp-- 39. Respondents mado said payments to their favored cu.tomers on the basis of individual negotiations. AnlOng said favored customers such payments were not made on proportionally equal terms. PAR. 11. The acts and practices of rcspondentsas alleged above are in violation of the provision of subsection (d) of Section 2 of the Clayton Act, as amended.

DECISION AND ORDER The Conunission having heretofore detennined to issue its complaint charging the respondents named in the caption hereof with violation of subsection (d) of Section 2 other Clayton Act, as amended and the respondents having been served with notice of said determination and with a copy of the complaint the Commssion intended to issue, together with a proposed fornl of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an arnnission by the respondents of al1 the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agremnent is for settlement purposes only and does not constitute an admission by respondents that the law has been violated a.s set forth in such complaint and wa,ivers and provisions a.s required by the Cnmmission s rules; and HARVEY PUBLICATION INC. , ET AL. 129 125 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, I-Iarvey Publications, Inc., is a corporation organized, existing and doing business under and by virtue of the la \vs of the State of K ew York, with its offce and principal place of business located at 1860 Broadway, in the city of ~ew York, State of New York. Respondent Harvey Hits, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of K ew York, with its offce and principal place of business located at 1860 Broadway, in the city of New York, State of New York. Respondent Illustrated Humor, 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 1860 Drmldway, in the city of New York, State of New York. Respondent IIarvey Enterprises, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of K ew York, with its office and principal place of business located at1860 Broadway, in t.he city of New York, Stat.e of New York. Respondent Harvey Picture Magazines, Inc., isa corporation organized, existing and doing business under and by virtue of the Jaws of the State of N ew York, with its offce and principal place of business located at 1860 Broadway, in the city of New York, State of Kew York.

Respondents Alfred Harvey, Leon Harvey and Robert Harvey are ofJccrs of said corporations, and their address is the same as that of saidc.orporations.

2. The Federal Trade Commission has jui sdietion of the subject matter of this proceeding and of the respondents. ORDER It is ordered That respondents Harvey Publications, Inc., Harvey Hits, Inc., Illustrated Humor, Inc., Harvey Enterprises, Inc., and I-Iarvey Picture J\fagazines, Inc., all corporations, their respective offcers, and Alfred Harvey, Leon Harvey ,md Robert Harvey, individually and as offcers of said corporations, and respondents' employees, agent.s and representatives directly or through any corporate or other device, in connection with the distribution, sale 01' oilering for sale of publications including comic books in commerce, as '" Colt4 merce" is defined in the amended Clayton Act, do forthwith cease and desist. from:

, , 130 FEDERAL TRADE COMMISSIO DECISIONS Complaint 61 F.

Paying or contracting for the payment of an allowance or any thing 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 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 comic books. The word "customer" as used above shall be deemed to mean anyone who purchases from a. respondent, acting either as princi pal or agent, or from a distributor or wholosaler where such transaction with such purchaser is essentially a sale by such respondent, acting either as principal.l or agent. It i8 InTtheT ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the COJrunission a report in writing setting forth in detail the manner and form in which they have complied with this order.