Sansui Electronics Corporation

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

IN THE MATTER OF SANSUI ELECTRONICS CORPORATION MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-2754. Consent Order, Oct. 1975-Modifying Order, Aug. , 1983 This order reopens the proceeding and modifies the Commission s order issued on October 24, 1975 (86 F. C. 995) by modifying Paragraph I (11), so as to allow the company to impose nondiscriminatory standards on the kind of retailers its dis tributors and dealers can serve.

ORDER MODIFYING CEASE AND DESIST ORDER ISSUED ON OCTOBER 24, 1975 By a petition fied on March 23, 1983, Sansui Electronics Corporation C"Sansui") requests that the Commission reopen the proceeding in Docket No. G-2754 and modify Paragraph I (11) of the order issued by the Commission on October 24, 1975 so that the order would no longer prohibit Sansui from restricting transshipment by sellers of its products. Pursuant to Section 2.51 ofthe Commission s Rules ofPractice, Sansui' s request was placed on the public record for comments. One comment was received.

On March 8, 1983 , the Commission issued a modified order in Us. Pioneer Electronics Corporation Docket No. G-2755 (101 F. C. 372), allowing Pioneer (one of Sansui's competitors) to prevent transshipment of its products to dealers who do not meet reasonable, nondiscriminatory standards of promotion, service and display. The Pioneer and Sansui orders contain most favored respondent clauses pursuant to which the Commission may modify the respective orders to bring them into conformity with less stringent restrictions imposed on the respondents' competitors.

In view of the Commission s action in Pioneer and upon consideration of Sansui's request and supporting materials, the Commission now finds that Sansui would likely suffer significant competitive injury unless the order is modified to conform to the Pioneer order in accordance with Sansui's request. Such modification would be in the public interest.

Accordingly, It is ordered That this matter be, and it hereby is, reopened and that Paragraph I (11) of the order in Docket No. G-2754 be modified to read as follows:

noo Modifying Order Preventing or prohibiting any independent dealer or distributor from resellng his products to any persons or group of persons, business or class of businesses, except as expressly provided herein. This order shall not prohibit respondent from establishing lawful, reasonable, and nondiscriminatory minimum standards for its dealers, including standards that relate to promotion and store display, demonstration, inventory levels, service and repair, volume requirements and financial stability, nor shall this order prohibit respondent from requiring its dealers who sell respondent's products for resale to make such sales only to dealers who maintain such minimum standards.

Complaint 102 F.