Seeman Brothers, Inc.

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

In rus Matrer or SEEMAN BROTHERS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-787. Complaint, July 13, 1964—Decision, July 13, 1964 Consent order requiring a Carlstadt, N.J., processor of frozen fruits and vegetables and wholesaler of groceries through its various divisions and subsidiaries, with sales in the year ending Mar. 3, 1962, in excess of $134,000,000, Complaint 66 E.T.C.

to cease inducing and receiving payments for institutional promotions from its suppliers when it knew, or should have known, that such payments were not offered or made available on proportionally equal terms to its competitors purchasing from the same suppliers. : ComMPLaINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that the respondent, Seeman Brothers, Inc., has violated and is now violating the provisions of Section 5 of the Federal Trade Commission Act, (15 U.S.C., Sec. 45), and it appearing to the Commission that a proceeding by it in respect thereof would be in the interest of the public, issues its complaint charging as follows:

PanracrapH 1. Respondent, Seeman Brothers, Inc., hereinafter sometimes referred to as Seeman, is a corporation organized, existing and doing business under the laws of the State of New York, with its principal office and place of business located at 600 Washington Avenue, Carlstadt, New Jersey. Respondent through its various divisions and wholly owned subsidiaries is now and for many years last past has been engaged in processing frozen fruits and vegetables and in selling groceries at wholesale to retail grocery stores. Respondent's sales are substantial, totaling more than $134,600,000 for the fiscal year ending March 3, 1962.

Par. 2. In the course and conduct of its business respondent has engaged in, and is presently engaged in, commerce, as “commerce” is defined in the Federal Trade Commission Act. It purchases grocery products from suppliers throughout the United States and causes such products to be transported from various States to other States for distribution and resale to retailers throughout the United States. Par. 3. In the course and conduct of its business, respondent has been for many years, and is now in substantial competition in the yroduction, sale and distribution of food products, in commerce between and among the various States of the United States, with other corporations, persons, firms and partnerships. , Par. 4. In the course and conduct of its business as aforesaid, respondent has induced and received from its seller-suppliers so engaged in commerce, payments of value which accrued to respondent’s benefit, for services or facilities furnished by or through respondent SEEMAN BROTHERS, INC. 135 183: Decision and Order in connection with the handling, sale and offering for sale of the said products of such seller suppliers. Respondent knows or had reason to know, that such payments of value were not offered or made available on proportionally equal terms to respondent’s competitors also purchasing from such same seller-suppliers and that such same sellersuppliers were in violation of subsection (d) of Section 2 of the Clayton Act, as amended.

Par. 5. In the course and conduct of its business in commerce, respondent on June 7, 1961, commemorated its seventy-fifth year in business by holding a dinner dance which was attended by 1,482 persons. Each of respondent's seller-suppliers was sent an invitation to attend the dinner dance, together with from one to ten tickets which cost $100 apiece. Over 400 suppliers purchased tickets: thirty-six purchased $400 worth, ten purchased $600 worth, and twenty-two purchased $1,000 worth. The receipts from the sale of tickets totaled $105,800.

Par. 6. The $105,800 gross receipts from the sale of tickets to the respondent’s seller-suppliers benefited respondent in the following manner:

1. $16,930.82 of the gross receipts was expended on the publication of 12,000 copies of a booklet entitled “rowarp new Horizons—The Story of Seeman Brothers on the Move” and 5,000 copies of a booklet entitled “rE FORCE BEHIND THE procREss” in both of which respondent’s growth is depicted together with a lengthy exposition praising respondent’s food growing and processing techniques, and respondent’s facilities and personnel.

2. $6,281.40 of the gross receipts was expended upon public relations, publicity and promotional services. 3. $32,335.90 of the gross receipts was expended on the dinner, the dance, and the entertainment and on providing these. without charge to several hundred employees and cther guests of the respondent. 4. The remainder, or $36,280.20, became part of respondent's income for the fiscal year ending March 3, 1962. Par. 7. The acts and practices, as alleged above, are all to the prejudice of the public and constitute unfair methods of competition and unfair acts and practices within the intent and meaning of Section 5 of the Federal Trade Commission Act.

DECISION AND OnrbER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation of the Federal Trade Commission Act and the respondent having 856-438 —70—_10 Decision and Order 66 F.T.C.

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 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 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. Respondent Seeman Brothers, Inc., is a corporation organized, existing and doing business under the laws of the State of New York, with its principal office and place of business located at 600 Washington Avenue, Carlstadt, New Jersey.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER Zt ts ordered, That respondent, Seeman Brothers, Inc., a corporation, its officers, employees, agents and representatives, directly or through any corporate or other device, in or in connection with the purchase of food products im commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: .

1. Receiving, or soliciting and receiving, payment from any vendor for institutional promotions when respondent. knows, or should know, that such payment is not affirmatively offered or otherwise made available by such vendor on proportionally equal terms to all of its other customers competing with respondent in the sale and distribution of the vendor's products. 2. The term “institutional promotions” as used in this order means promotions primarily designed for, or primarily resulting in, the enhancement of the reputation, name, good will or prestige of the respondent.

ft 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.

H. MAURER & SON 137 Complaint