The Kramer Company

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

In THE MATTER OF THE KRAMER COMPANY CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF sec. 2(d) OF THE CLAYTON ACT Docket C-882. Complaint, Feb. 23, 1963—Decision, Feb. 23, 19657 Consent order requiring a New York City manufacturer of wearing apparel to cease violating Sec. 2(d) of the Clayton Act by paying advertising and promotional allowances to certain favored customers for promoting the sale of its wearing apparel products, while not making such payments available, on proportionally equal terms, to all its customers competing with favored customers in the sale of its products, and postponing effective date of the order 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, Sec. 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: Paragraph 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 1This 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. 393. 3879-702—71——_16 Decision and Order 67 F.T.C, 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. 8. Included among, but not limited to, the practices alleged herein, respondent has granted substantial promotional payments or allowances for the promoting and advertising of its wearing apparel products to certain department stores and others who purchase respondent’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 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 The Kramer Company is-a corporation organized and existing under the laws of the State of Delaware, with its office SYLVANIA ELECTRIC PRODUCTS, INC. 235 233 Opinion and principal place of business located at 1405 Broadway, New York, New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER Lt is ordered, That respondent The Kramer Company, 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 from: (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 customers competing with such favored customer in the distribution or resale of such products.

Lt 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.