Time Incorporated

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IN THE MATTER OF TIME INCORPORATED, ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Doket G-1919. Decis, May 1971-Modify1l Or, June 1980 This order reopens proeding and modifies a consent order issued on May 13, 1971, 78 C. 100 36 FR 11916, against a major New York City magane publisher and its wholly-owned subsidiary, Family Publications Services, Inc., by adding to subparagraph (g) of the It is further D'red" paragraph of the order a modification which deals with the matter of confidential treatment of the material terms of any contract between Time Incorprate and the "paidduring-service" companies.

ORDER REOPENING THE PROCEEDING AND MODIFYING CEASE AND DESIST ORDER Time Incorporated (Time Inc.) filed a request that the proceeding be reopened pursuant to Rule 2.51 of the Commission s Rules of Practice on October 17, 1979. In its request, Time Inc. stated that prior to the issuance of the consent order, Time Inc. had been engaged through its wholly-owned subsidiary, Family Publications Service, Inc. (Family) in door-to-door and telephone sales of magazine subscriptions to the public at a fixed contract price paid in monthly installments for a term of years (This sale method is still in use and is referred to in the industry as the "Paid-During-Service" (PDS) plan); and that three months prior to issuance of the order, Family ceased PDS sales, and Time Inc. has not directly engaged in PDS sales since that time. Time Inc. also stated that it is at a competitive disadvantage vis-avis other magazine publishers, because it had been unable to use the service of independent PDS companies due to the order which requires that the sale and collection practices of any company retained by Time Inc. to sell its magazines under a PDS plan, must conform to the provisions of the order, and that Time Inc. must discontinue dealing with those companies whose practices violate the order and must institute a monitoring program adequate to reveal whether the retained companies are complying with the requirements of the order. Time Inc. requested that it be relieved from these requirements of the order because all the PDS companies have refused to seu its magazines and to be bound by the order.

The Commission informed Time Inc. by letter dated December 19 1979 that it had determined to deny the October 17, 1979 request, but that it was wiling to reopen the proceeding and modify the order as . , ; ,,,,,, ,.? ,,,. . . .... . . ... ... . , ... . . . ,,,, ..... , . . ,,,. ..., . , ,,,,, .. . . ...; .....,. .,.,,.,,,.... \.,. ,,.,... ... ,, , . ,, , ;.., , ,;,,& ,..,,,,.,, ,,,,,.,, , p,,,,\...., ...,..:;, .....,, .,..;;.,.... .....,.. ,,....:; ,,.,,%,,,,,,. ,,.....,,,.., ,:;.:,, .; ,,.\,.,,.,, ,.,. ::,:,..,, .,..,.. ...,, .. . .,,/.,,,..,.,..,,,,,,,, ?,.,...,.. .....,.,.. ,. ..,..,.._..... ....,... \,..,,,... . . ..\.;;,, ,:, ,,..;..,.,,, ,_..,,,,g,, ,,,,:,,,...: ,,,.,,,,,,. ,., ,., ..,. ,...,,,. ,.,.,,.. .,. .. , .,,,, .......,.,,., _. ., ,... .,,, .,.,.. . ... . ,, , ..., .. .. .,.. ., ,. . . , ,.. .. .. .. , 9" :r, $C1S101\S CO!A!A1SS10 . 1"e o '" . co1111\S-. i\J t1\!'r . lj\"g o ."r . 1"e"oest toe ., (\ ""ot'oe1". rise(\\J . ,".e,rp l"c ,\,e....o, ".". . ,,,Wi' \Z:;"t .,." W' " ""fJ"' . J1t,,o oo' . . rim 5\0" ",\t'o " . (W,,,, . C .""", ""0' "" ,,,1 _"i''' ,f. ""1,' or'"' , f' ",'0''' ,'0" , ri ,no.'"'0"" ",',"" 'e '" ,,A :z ';P' ",.f "" I' " t:;:.", _'5"""'t 0" 'te1" so\J\,"1""gr"1' \Ssoe 01"(\e1"\ go"ge ', ,,,there' or 'f!J'fe o:e, (\ or ,,,oogn "" 1) 15\0" f tns o '0'" o a.'fe l' .f -t!J'f o'f oo. S") or ,,,oogn" o" of ",,,g""'"'' \\ eYoero'" ,,'v- .n" o,ner e,, 'o" \." o.. .OU ,,,e l"e. or "",1e ",, - 1 ....n.,, . ,ro ," ,n e,e"" ' v-. f ,ne cO"'" - ' ,ne 'lS N"''"''.,O' W 01 a. \''' , ,n"t ,ne "' .oon ,n,r " "gn' \.

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821 Modifying Order received by Time Inc. about the sai: of a subscription to a Time Inc. magazine sold through a "PDS" plan or "cah sale" plan, and shall make them available during such period to the Federal Trade Commission at its reuest, together with the identity of the PDS" agency which sold such subscription; and (e) Time Inc. wil, upon notice of any customer s request, made either to the third party seller or to Time Inc., cancel any subscription to a Time Inc. publication and provide a prorata refund of the subscription price of the publication(s) to the customer when the request for cancellation alleges or indicates that the seller engaged in any practice prohibited by the order in Docket C-1919. (2) In the event Time Inc. or any of its Subsidiares and/or Mfiliate or any other entity in which the Company shan have a substantial financial or stock interest or over which it shall exercise" control shall engage in "PDS" business or "cah sale" busines it shall give the Federal Trade Commission at least sixty days prior notice of its intention to engage in such business.

Commissioner Pitofsky did not participate.

824 FEDERAl, TRADE COMMISSION DECISIONS Modifying Order 95 F.