Republic Molding Corporation

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IN THE 1rIA'ITER OF REPUBLIC l\1:0LDING CORPORATION CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SECS. 2(d) AND 2(e) OF THE CLAYTON ACT Docket C-212. Complaint, Sept. 19GB-Decision, Sept. 5, 1962 Consent order requiring a Chicago manufacturer of plastic kitchen products and other houseware accessories, to cease violating Sec. 2 (d) of the Clayton Act by promulgating advertising arrangements with its department store customers providing that it would pay 10 percent of their total annual purchases of its products to be used in advertising the products, and then in many instances exceeding the 10 percent limitation in allowances to certain customers in ~.\kron, Cincinnati, and Cleveland, Ohio, but not to their competitors; and to cease violating Sec. 2 (e) of the same Act by furnishing the services of demonstrators to certain customers in the aforesaid cities but not to others.

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 subsections (d) and (e) of Section 2 of the Clayton Act (U. C. Title 15, Sec. 13), as amended by the Robinson-Patman Act, approved Jude 19, 1936, hereby issues its complaint stating its charges with respect thereto as follows: Complaint 61 F.

COUNT I PARAGRAPH 1. Respondent, Republic ~10lding Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 6465 North A vondaJe A venue, Chicago, Ill. PAR. 2. Respondent is now, and for many years past has been engaged in the manufacture, sale and distribution of plastic kitchen products and other houseware accessories. Respondent sells its products to a large number of customers located throughout the United States. Respondents sales of its products are substantial, amounting in the year 1958 to over $3 800 000; and for the year 1959 to over $4 500 000. PAR. 3. Respondent has this principal methods of sale and distribution for its plastic kitchen and other houseware products. It sells direct to department store customers and also sells to jobbers and distributors .who purchase said products in varying quantities for resale. PAH. 4. In the course and conduct of its business, respondent has engaged and is nOVi' engaging in commerce, as "commerce" is defined in the Clayton Act, as amended. Respondent sells and causes its products to be transporteel from the respondent's principal place of business, located in the State of Illinois, to customers located in other States of the, lTnited States. There has been at all times mentioned herein a continuous course of trade in commerce in said products across state lines betweeil said respondent and the purchasers of such PAR. 5. In the course and conduct of its business in commerceproducts. respondent 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 their offering for sale or sale of products sold to them by respondent, and such payments were. not made available on proportionally equal terms to all other customers competing in the sale and distribution of respondents products. PAR. 6. As illustrative of such practices responclent has promnlgatecl advertising agreements or arrangements ""ith its department store c.customers providing that respondent. will pay to each customer 10 percent of that customer s total annual purchases of respondents products, said payments or allowances to be used by the customer in advertising respondents products. In applying the terms of its advertising agreements or arrangements respondent did not limit its payments and allo""ances to 10 percent of the cnstomel' s total annual purchases, but in many instances exceeded this 10 percent limitation REPUBLIC MOLDING CORP. 441 439 Complaint for some of its customers, while adhering to this limitation in the case of allmvances or payments made to other competing custonlers. During the years 1958 and 1959 respondent offered to pay, and paid allmvances for advertising in excess of 10 percent of total annual sales to various of its customers located in Akron, Cincinnati and Cleveland Ohio. During this same period other customers of respondent eompeting in the aroresaid cities did not receive allo-wances ror advertising in excess or 10 percent of their total annual purchases from respondent.

PAR. 7. The acts and practices of respondent as alleged above are in violation of subsection (d) of Section 2 or the Clayton Act, as amended by the Robinson-Patman Act (D. C. Title 15, Sec. 13). COU:NT II PARAGRAPH 1. Paragraphs 1 through 4 or Count. I are hereby adopted and made a part of this Count as fully as if herein set forth verbatim.

-\.R. 2. In the course and conduct of its business in commerce respondent contracted to furnish, furnished, or contributed to the furnishing to some of its purchasers, services Hnd facilities in connection ,with the handling, offering lor sale or sale or such conllllodities so purchased from respondent, and such services and facilities were not made available on proportionally equal terms to all other purehasers competing in the sale and distribution of responclenfs products. As illustrative of such practices respondent has contracted to furnish, and has furnished or contributed to the furnishing to various purchasers located in Akron, Cincinnati and Cleveland, Ohio, the services and facilities of special personnel known as "demonstrators Such personnel eompensated and furnished by the respondent are installed in the places of business of such purchasers to assist in advising customers and to display, demonstrate, offer for sale and sell respondent' s commodities to the said purchaser s customers. PAR. 3. During the same period of time respondent hfls sold its commodities to other purchasers competing with the purchasers described a:bove, and has not contracted to furnish, furnished, or contributed to the rurnishing of services and facilities of demonstrators to said purchasers on proportionally equal terms. PAR. 4. The acts and practices of respondent as alleged above violate subsection (e) of Section 2 of the Clayton ..:-~ct, as amended by the Robinson-Patman Act (n. c. Title 1;3, Sec. 13). 442 FEDERAL TRADE COl\IMISSION DECISIONS Decision and Order 61 F.

DECISION AND ORDER The Commission having heretofore determined to issue its com. plaint charging the respondent named in the caption hereof with violation of subsections (d) and (e) 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 ColIl1nission intended to issue, together with a proposed form of order; and The respondent and counsel for the Com~mission having thereafter executed an agreement containing a consent order, an admission 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 respondent that the law has been violated as set forth in such COlllplaint 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 foll11 contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent Republic :Molding Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 6465 North Avondale Avenue, in the city of Chicago, State of Illinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. onder It i8 oide-red That respondent Republic l\Iolding Corporation, a corporation, its officers, directors, agents, representatives and employees, directly or through any corporate or other device, in the course of business in eommeree, as ': conll11erce" is defined in the Clayton Act as amended, do forthwith cease and desist from: (1) Paying or contracting for the payment of anything of value to, or for the benefit of, any customer of respondent as compensation or in consideration for advertising, or any other services or facilities furnished by or through such customer in connection with the processing, handling, sale or offering for sale of plastic kitchen products, houseware accessories and related products manufactured,. sold or offered for sale by respondent unless such paynlent or consideration is made available on pro- ACTUAL PUBLISHING CO. , INC. , ET AL. 443 439 Complaint portion ally equal terms to all other customers competing with such fa vored customer in the distribution or resale of such products.

(2) Discriminating, directly or indirectly, among competing purchasers of its plastic kitchen products, houseware accessories and related products, by contracting to furnish, furnishing, or contributing to the furnishing of the services of demonstrators or any other services or facilities connected with the processing, handling, offering for sale or sale of respondent's products, to any purchaser fronl respondent unless such services or facilities are made available on proportionally equal terms to all purchasers competing in the distribution or resale of such products. t 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 maimer and form in which it has complied with this order.