Sl'San Thomas, Inc.

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

IN THE MATTER OF Sl'SAN THOMAS , INC.

CONSE T ORDER , ETC. , r:- REGARD TO THE ALLEGED VIOLATION OF SECTION 2(d) OF THE CLAYTON:- ACT Docket C-1185. Complaint, Mar. 20, 1967-Decision, Mar. 20, 1967 Consent order requiring a Ne\v York City wearing apparel firm to cease discriminating in payment of promotional allowances among its retail customers competing in the resale of its products. 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 (l'. Title 15, Section 13), 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 lnited 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 al1 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 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 * Formerly Susan Thomas Specialties, Inc. 338 FEDERAL TRADE COMMISSION DECISIOXS Decision and Order 71 F. 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 viulation 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 v.'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 Susan Thomas, Inc., formerly Susan Thomas Specialties, 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 198 Seventh Avenue, ::ew 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 Susan Thomas, Inc., formerly Susan Thomas Specialties, Inc. , a corporation, its offcers, directors, agents and representatives and employees, directly or through any corporate or other device, in the course of its business GCLF COAST ALCMINUM SUPPLY , INC. , ET AL. 339 337 Complaint 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 facilty, furnished by or through such customer in connection with the handling, sale or offering for sale of ,vearing 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.

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.