Regal Knitwear Co., Inc.

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

In the Matrer or REGAL KNITWEAR CO., INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 2(d) OF THE CLAYTON ACT Docket C-836. Complaint, Sept. 18, 1964—Decision, Sept. 18. 1964* Consent order requiring a New York City distributor of wearing apparel to cease discriminating in price in violation of Sec. 2(d) of the Clayton Act by such practices as granting substantial promotional payments, for the advertising *This order was made effective on Aug. 9, 1965, see Abby Kent Co., Inc., et al., docket No, C-828, et al., Aug. 9, 1965, 68 F.T.C. 893. REGAL KNITWEAR CO., INC. 785 784 Complaint of its products, to certain department stores and other favored customers while not making proportionally equal allowances available to all competitors of favored customers. The effective date of the order has been postponed until further order of the Commission.

Complaint The Federal Trade Commission, having reason to believe the respondent named in the caption hereof has violated and is now violating the provisions of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act (U.S.C., Title 15, Section 18), and it appearing to the Commission that a proceeding by it in respect thereto is in the interest of the public, the Commission hereby issues its complaint stating its charges as follows:

Paracrapy 1, The respondent is a corporation engaged in commerce, as “commerce” is defined in the amended Clayton Act, and sells and distributes its wearing apparel products from one State to customers located in other States of the United States. The sales of respondent in commerce are substantial.

Par. 2, The respondent in the course and conduct of its business in commerce 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 and facilities furnished by or through such customers in connection with their sale or offering for sale of wearing apparel products sold to them by respondent, and such payments were not made available on proportionally equal terms to all other customers competing with favored customers in the sale and distribution of respondent’s wearing apparel products.

Par. 3. Included among, but not limited to, the practices alleged herein, respondent has granted substantial promotional payments or alicwances for the promoting and advertising of its wearing apparel products to certain department stores and others who purchase respendent’s said products for resale. These aforesaid promotional payments or allowances were not offered and made available on proportionally equal terms to all other customers of respondent who compete with said favored customers in the sale of respondent’s wearing apparel products.

Par. 4. The acts and practices alleged in Paragraphs One through Three are all in violation of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson-Patman Act. Decision and Order 66 E.T.C.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and subsequently having determined that complaint should issue, and the respondent having entered into an agreement containing an order to cease and desist from the practices being investigated and having been furnished a copy of a draft of complaint to issue herein charging it with violation of subsection (d) of Section 2 of the Clayton Act, as amended; and The respondent having executed the agreement containing a consent order which agreement contains an admission of all the jurisdictional facts set forth in the complaint to issue herein, and a statement that the signing of the said agreement is for settlement purposes only and does not constitute an admission by the respondent that the law has been violated as set forth in such complaint, and also contains the waivers and provisions required by the Commission’s rules; and The Commission, having considered the agreement, hereby accepts the same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent Regal Knitwear Co., Inc., is a corporation organized and existing under the laws of the State of New York, with its office and principal place of business located at 1833 Broadway, New York, New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER It is ordered, That respondent Regal Knitwear Co., Inc., a corporation, its officers, directors, agents and representatives and employees, directly or through any corporate or other device, in the course of its business in commerce, as “commerce” is defined in the Clayton Act, as amended, do forthwith cease and desist fron: (1) Paying or contracting for the payment of anything of value to, or for the benefit of, any customer of the respondent as compensation or in consideration for advertising or promotional services, or any other service or facility, furnished by or through such customer in connection with the handling, sale or offering for sale of wearing apparel products manufactured, sold or offered for sale by respondent, unless such payment or consideration is made available on proportionally equal terms to all other cus- HOUSE OF MARBET, INC., ET AL. 787 784 Complaint tomers competing with such favored customer in the distribution or resale of such products.

It is further ordered, That the effective date of this order to cease and desist be and it hereby is postponed until further Order of the Commission.