Popular Publications, Inc.

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

IN THE MATTER OF POPil,AR PUDLICATIOKS, INC.

CONSENT ORDER, ETC. , IN HEGAlil TO THE ALLEGED VIOL\TIONOF SEC. 2(0.) OF THE CLAYTON ACT Docket C-183. Complaint July 1962--IJecision, July, 1962 Consent order re(lniring the New York City publisher of "Argosy" and "Railroad" magazines to cease discriminating in price in violation of Sec. 2 (d) of the Clayton Act by paying promotional anon"ances to certain retail customers-some of \y!1om operated chain retail outlets in railroad, airIJort, and bus tenninals, and outlets in hotels and offce buildings, and others of whom furnisl1ed services ill connection with the hant'ling of respondent' publication1Js sllch as taldng pm' chase orders and distributing, billing, and oUrding-while not making such payments a,ailable on proportiOllally equal terms to their competitors, including drug chains, grocery chains, and other ncwsstands.

COl\IPLAIST The Federal Trade Commission having reason to believe that the party respondent. named in tho caption hereof, and hereinafter more particularly designated and described, has violated and is now vio !ating the provisions of subsection (c1) of Section 2 of the Clayton Act POPCLAR PUBLICATIONS , IXC. 131 130 Complaint (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:

P ARAGRAPjj I. Respondent Pop ubI' Publications, 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 205 East 42nd Street, Kew York, N.Y. Said respondent, among other things, has been engaged and is pre ently engaged in the business of publishing and distributing various publications including maga,zines under copyrighted titles including "Argosy " and "Railroad". Respondent' s sales of publications published by it during the calendar year 1960 exceeded one million seven hundred thousand dollars. PAR. 2. Publications published by respondent are sold and distributed throughout various States and the District of Columbia by respondent through local wholesalers t.o ret.ail outlets. Each local wholesaler whose services are used by respondent has acted and is now acting as wholesaler for the publica60ns of several independent publishers, including re,spondent publisher. These wholesalers, in dealing with the retailer customers of respondent, have served and are now serving as conduits or intermediaries for the saJe distribution and promotion of publications published by respondent. Argosy'1 is one of the most popular and widely circulated magazines in the United States and is sold and distributed throughout various States by respondent through local wholesalers to retail customers. PAR. 3. Respondent, through its conduits or intermediaries the local wholesalers, 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, re- ::pondent has paid or contracted for the payment of something of value to or for the benefit of some of its customers as compensation or jn consideration for services or facilities furnished, or contracted to be furnished, by or through s11:h customers in connection with the handling sale, or ofj'ering for sale of publications sold to them by respondent. Such payments or allowances were not made available on proportionany 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, respol1(lent has made payments or allowances to certain retail customers ,vho operate chain retail outlets in railroad, airport and bus terminals, as well "s outlets located in holels and offce buildings. Such payments or _ _ Decision and Order 61 F.

a.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 respondent. Among the favored customers receiving payments jn 1960, and during the first six months of 1961, which were not offered to other competing customers in cOlmection with the purchase and sale of respondent' s publications were:

Appl Oximate Amount Received Customer: o=- Airport Canteen Service, Chicago, 11L_ ____----------------------- $142. Fred Harvey, Chicago, Ill__n_-- -- 1, 145. 03 Union I\ews Company, New York, N.Y----__-------- ---- G, 901. 56 Sky Chefs, New York, K.Y--__----n._--___- _----- 442. ABC Vending Corp., Long Island City, N.Y__---------- -- 133. Greyhound Post Houses, Forest Park, Ill____--_------------------ 1 327. Respondent ma.de such pa.yments to its favored customers on the basis of individual negotiations. Among said favored customers such payments were not made on proportionally equal tcnns. PAR. 6. The acts and practices of respondent as alleged above are in violation of the provisions of subsection (d) of Section 2 of the Clayton Act.

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 admission by the respondent of all t.he jurisdictional facts sets 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 la\v 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. Responde,nt Popular Publications, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of peBLISHERS DISTHIBUTING CORP. 133 130 Syllabus the State of New York, with its of lice and principal place of business located at 205 East 'J2nd Street, in the city of New York, State of New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent OHDEH It is ordered That respondent Popular Publications, Inc. , a corporation, its oircers, employees, agents and representatives, directly or through any corporate or other device, in connection with the distri bution, 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 pa.yment of an allowance or anything of value to, or for the benefit of, any customer as compensation or in consideration for l.y services or facilities furnished by or through such customer in connection with the handling, offering for sale, sale or distribution of pubEcations including magazines, published, sold or offered for sale by respondent, unless such payment or consideration is affrmatively offered and otherwise made available on proportionally eqmd terms to all of its other customers competing with such favored customer in the distribution of such publications including magazines. The word "cllstomer" as used above shall be deemed to mean anyaile who purchases from Popular Publications, 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.

It i, further ordered That the respondent herein shail, within sixty (60) days 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. Ix TI-IE 1\IATTER OF PUBLISHERS DISTRIBUTING CORPORATION CONSEJ.TT omn ETC. : IX REGARD TO THE ALLEGED VIOLATION OF SEC, Zed) OF THE CLAYTON ACT Docket C-184. Complai. , J1tlll 1962-Deafsion, July, 1962 Consent order requiring a 1\-ew York City corporation acting' as national distributor of magazines, comic books, and paperback hooks for several independent 728-122-;.'- 134 FEDERAL TRADE CQMMISSIO:- DECISIONS Complaint 61 F.

publishers, to cease discriminating in price in violation of Sec. 2(d) of the Clayton Act by paying promotional allowances to certain retail cllstomerssome 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 respondent's publications such as taking purchase orders and distrilmting, biling, and collecting-while not making such payments available on proportionally equal terms to their competitors, including drug cbains, grocery chains, and other newsstands.

COJ1PLAINT 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 (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:

PAIL-\GRAPH 1. Respondent Publishers Distributing Corporation is a corporation organized and doing business under the la,ws of the State of New York, with its offce and principal place of business located at 1841 Broadway, New York, N.Y. Said respondent, among other things, has been engaged and is presently engaged in the business of selling and distributing various publications including magazines comic books and paperback books under copyrighted titles. Respondent' s total sales of publications during the calendar year 1961 ex. ceeded seventeen milion dollars.

Said respondent has acted and is nmy 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 also has participated and now participates in the negotiations of various promotional and display arrangements -with the retail c.nstomers of the publishers it represents.

While dealing- with the customers of the pl1blishers it represents in its eapncity fib national distributor, respondent has served and is now serving as a conduit. or inte-rmec1iary for the sale, distribution and promotion of publications published by said publishers. PAll. 2. In its capacity as national distributor for publications of various independent publishers, respondent is in charge of the newsstand sales of all such pnblicntions. Respondent has distributed and now distributes such publications to retail outlets through local whole- _ , PUBIJISHERS DISTRIBFTING CORP. 135 J:", Complaint salers. ThBse 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 national 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 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 by or through such customers in connection with the handling, sale or offering for sale of publications including magazines, comic books 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 publications.

PAR. 5. As an example of the practices alleged herein, respondent Publishers Distributing Corporation has made payments or allowanees 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 ch lins and other newsstands) competing with the favored customers in the saJe and distribution of the publications of said respondent. Among the favored customers receiving paymenis in ID60 \which were not offered to other competing customers in connection \with the purchase and sale respondent's publications were:

ApTJroa:imate Customer: Amount Received Greyhound Post Houses, Forest Park, Ill___----_-- , 352. 36 ADC Vending Corp., Long Island City, l'. Y_-- -- 2 408. Fred Harvey, Chicago. Ill_ - 4 834. Barkalo," Bros., Omaha, l'ebL- -- 1 824. Interstate Hosts, Los Ang-eles, Calif_--__--_---- 306. Sky Chefs. ew York, N.Y__--_ 481.18 Garfield :\ews, New York, K.Y----__---------- ---_._- 918. Respondent made such payments to its favored customers on the basis of individual negotiations. Among such favored customers such payments were not made on proportionally equal terms. 136 FEDERAL TRADE CO:VIMISSIO!- DECISIONS Decision and Order 61 F.

PAR. 6. The acts and practices of respondent as alleged 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 c.aption hereof ,,,ith violation of subsection (d) of Section 2 of the Clayton Act, as amended, and the respondent Jwving been served with notice of said determination and with a copy of tile 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 n, consent order, an admission uy the respondent of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said a.agreement is for settlement purposes only and does not constitute an admission by respondent 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 a.ccepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent, Publishers Distributing Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with it.s offce and principal place of business located at 1841 Broadwa)', in the city of New York, State of :'ew York.

2. The Federal Trade Commission has jurisdiction of ihe subject matter of this proceeding and of the respondent. Order It is ordered That respondent Publishers Distributing Corporation 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, comic books 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 allowa,nce or anything of value to, or for the benefit of, any customer as compensation or in cOJlsjderation for anv services or facili6es iur- ALPIN , INC. , ET AL, 137 133 Complaint nished by or through such customer in connection with the handling, offering for sale, sale or distribution of publications including magazines, comic books and paperback books, distributed sold or oil'ered 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 cllstomer in the distribution of such publications including magazines, comic books and paperback books. The word "customer" as used above shall be deemed to mean anyone who purchases from Publishers Distributing Corporation, 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 ordered That the respondent herein shall, within sixty (60) days 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.