Fastline Publications, Inc

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IN THE MATTER OF 'IE PUBLICATIONS, INe. , ET AL.

, ETC., IN REGARD TO ALLEGED VIOLA TION OF HE FEDERAL TRADE COMMISSION ACT ol1plaint, July 1998--Decision. July 1998 This c, hibits, among other things, the two corporations from restrict L interfering with the advertising of prices or other terms or conditi . farm equipment or parts; from encouraging or assisting in any bo ) deal with the media regarding the advertising of prices tenns ( sale for farm equipment or parts; and from agreeing or combir ther person to prohibit, restrict or intcrfere with the adverti IDS or conditions of sale for farm equipment or parts. Participants sion: Nicholas Franczyk, Evan Siegel C. Steven Baker David Meyer and Jonathan Baker. nts: John S. Reed, Reed, Weitkamp, Shell, Cox & Vice . and Ronald C. Smith, Stewart Irwin Indiar COMPLAINT provisions of the Federal Trade Commission Act as am e. 41 et seq. and by virtue of the authority vest I '\ct, the Federal Trade Commission, having areas Fastline Publications, Inc. ("Fastline ), and Mid cnt Retailers Association ("Mid-America here referred to as respondents, have violated and are; of the Federal Trade Commission Act, 15 Iring to the Commission that a proceeding by it in uld bc in the public interest, hereby issues this com charges as follows: For purposes of this complaint, the following defi ns FastJine Publications, Inc. , its directors offi( agents and representatives, predecessors g., Complaint 126 F.TC. succe s; its subsidiaries, divisions, groups and afflia Fastline, and the respective directors, offcers emplc 1 representatives, successors, and assigns of each.

ilers Association means the Kentucky Farm and P, Retailers Association, its directors, offcers emplc representatives, predecessors, successors and assign divisions, groups and affliates controlled by the K s Association, and the respective directors offce 1gents and representatives, successors, and assign means the Mid-America Equipment Retailers Assoc 'ctors, offcers, employees, agents and repres :ssors, successors and assigns; its subsidiaries divisie ffliates controlled by Mid-America, and the respec lcers, employees, agents and representatives succe, : of each. ns any natural person, corporate entity, partn e, joint venture, government entity, trust, or other I e is a corporation organized, existing, and doing and by virte of the laws of the State of KentUi cipal offce and place of business located at 4900 F uckner, Kentucky.

:d in the business ofpubJishing and publishes among cture buying guides for new and used farm eqUipn me "Fastline. " Farm equipment advertised in F astline ran! I lawn mowers to heavy duty farm equipment such as trac )WS, planters, cotton pickers, and combines. Fastline cur Jublishes 20 monthly editions of its farm equipment b lides, serving 41 states. Thirteen editions are state-specific (e. Fastline Kentucky Farm Edition ); and seven are ref litions (e. Fastline Southeast Farm Edition (covering GE florida, and Alabama)). Approximately 20 000 copies of ea, m are distributed free of charge each month. Farm equiprr ers view the "Fastline Kentucky Farm Edition as a key vehi ldvertising to farmers in Kentucky. Fastline principal SOl evenue is its advertisers who pay from a few hundred doll: lonth per edition for a halfpage, black and white FASTLINE PUBLICATIONS , INC., ET AL.

Complaint ,re than a thousand dollars per month per edition :color advertisement.

america is a not-for-profit corporation organized Jusiness under and by virtue of the laws of the Jrincipal offce and place of business are located ::court, Indianapolis, Indiana. Mid-America was fo: gh the merger of the Indiana Implement Dealers d the Kentucky Retailers Association. At the tir he members of the Indiana Implement Dealers entucky Retailers Association became members is a trade association organized in substantial , interests of its members. Mid-America has lembers, constituting approximately 90% of the far llers in Indiana and Kentucky. Mid-America tI activities that further its members ' pecuniary int Jfits purposes and activities, Mid-America is a 1e meaning of Section 4 of the Federal Trade amended, 15 U. C. 44.

,america s members are farm equipment dealers en, ising, offering for sale, and sale ofagri-business , industrial and construction equipment and pre in Indiana and Kentucky. Except to the extent the ,een restrained as alleged herein, Mid-America md are now in competition among themselves an, :quipment dealers.

and practices ofthe respondents, including the act lleged herein, are in or affect commerce, as ed in the Federal Trade Commission Act, as entucky Retailers Association and members of the ers Association have combined or conspired bet themselves to restrain trade in the advertising, off I sale of new farm equipment, by agreeing to car threaten to cancel advertising in the "Fastline " in retaliation for Fastline publishing prices for ent.

Complaint 126 F. B. TheF Retailers Association, Fastline, and members of the Kentuc lers Association have combined or conspired between an themselves to restrain trade in the advertising, offering for sale of new farm equipment, by agreeing not to advertise pr lew farm equipment in the "Fastline Kentucky Farm Editic Mid- , Fastline, and members of Mid-America have combined 0 ed between and among themselves to restrain trade in the ;ing, offering for sale, and sale of new farm equipment :eing not to advertise prices for new farm equipment i lstline Kentucky Farm Edition. PAR. 6. :ntucky Retailers Association, members of the Kentucky Association, Mid-America, members of Mid- America, an e have engaged in various acts and practices in furtherance I nbination or conspiracy, including, among other things:

A. In on lruary 1991 , the Kentucky Retailers Association and at least he Kentucky Retailers Association s members withdrew or e canceled, or urged other members to withdraw or otherwise ldvertisements in the "Fastline Kentucky Farm Edition" in In for Fastline publishing advertisements that included pri ,w equipment;

B. In 0 February 1992: (I) the Kentucky Retailers Association ast some member of the Kentucky Retailers Association ,d to withdraw or otherwise cancel advertisements in the: Kentucky Farm Edition" ifFastline continued to publish ad nts that included prices for new equipment; and (2) as a resu, the Kentucky Retailers Association, and the members ntucky Retailers Association agreed not to advertise pri ew farm equipment in the "Fastline Kentucky Farm Editio Inor, e 1993: (1) Mid-America and members of Mid- America urf lne to abstain from publishing prices for new equipment a in all Fastline farm equipment buying guides; and (2) as a I stline, Mid-America, and the members of Mid- America agr ) advertise prices for new farm equipment in the Fastline Ke arm Edition.

FASTLINE PUBLICATIONS, INC., ET AL.

Decision and Order s and practices of the respondents, as described II para nd six, have had the purpose or effect, or the tenden( ty, to restrain competition unreasonably and to deprive f the benefits of competition in one or more of the fol1 among others:

and restraining price competition among farm eqmpm Ir new farm equipment; B. I consumers of truthful and nondeceptive price inform1 ing farm equipment dealers ' products; and C. I ;onsumers of the benefits of competition among farm eq ers in the advertising, offering for sale, and sale of new ,nt.

PAl resaid acts and practices of the respondents are to the pi ljury of the public and constitute unfair methods of coml lffecting commerce in violation of Section 5 of the Fed Immission Act, as amended, 15 U. e. 45. The acts am he respondents, as herein alleged, are continuing and wil recur in the absence of the relief requested. DECISION AND ORDER The e Commission having initiated an investigation of certa actices ofthe respondents named in the caption hereof ndents having been furnished thereafter with a copy 01 complaint which the Chicago Regional Office propos. to the Commission for its consideration and which ,e Commission, would charge respondents with violatio eral Trade Commission Act; and The their attorneys, and counsel for the Commission having cuted an agreement containing a consent order an admit ,spondents of all the jurisdictional facts set forth intheaj )f complaint, a statement that the signing of said agreem ement purposes only and does not constitute an admissi Jents that the law has been violated as alleged in such co waivers and other provisions as required by the Commi and The I having thereafter considered the matter and having lat it had reason to believe that thc respondents Decision and Order 126 F. have violated the said Act, and that a complaint should issue stating and having thereupon accepted theits charges 'espect, executed cc ement and placed such agreement on the public record for, sixty (60) days, and no comments having been erested parties pursuant to Section 2.34 of itsfiled therea ion hereby issues its complaint, makes theRules, the following j lal findings and enters the following order: 1. Res astline Publications, Inc. , is a corporation organized md doing business under and by virtue of the laws of the :entucky, with its principal office and place of business 10 )00 Fox Run Road, Buckner, Kentucky. 2. Rest id-America Equipment Retailers Association is a not-for- 'ration organized, existing, and doing business under and of the Jaws of the State of Indiana, with its principal 0 Jlace of business located at 9800 Association Court, Indi ndiana.

3. The practices of the respondents alleged in this " iscomplaint in or affecting commerce, as "commerce defined in . I Trade Commission Act. 4. The ade Commission has jurisdiction ofthe subject matter in tl ling and of the respondents, and the proceeding is in the pu st.

ORDER It is OJ Iat, for purposes of this order, the following definitions A. ,ans Fastline Publications, Inc. , its directors predecessors offcers, I , agents and representatives, successors gns; its subsidiaries, divisions, groups and affiliates c' y Fastline, and the respective directors, offcers employees nd representatives, successors, and assigns of each.

B. " " means Mid-America Equipment Retailers Associatio tors, offcers, employees, agents and representatives, pred, uccessors and assigns; its subsidiaries, divisions groups am controlled by Mid-America, and the respective FASTLINE PUBLICATIONS, INC. , ET AL.

Decision and Order direl, employees, agents and representatives, successors and ch.

neans any natural person, corporation, partnership, unm association, or other entity. arm means the Fastline buying guide for new and usee lent and parts. "Fastline Farm Edition" means each sepa Fastline Kentucky Farm Edition ) of Fast line Farr ion means the Federal Trade Commission.

II.

-dered That Mid-America, directly or indirectly, or thro )orate or other device, in or in connection with its acti, trade association, in or affecting commerce, as cor :fined in Section 4 ofthe Federal Trade Commission Act 15 U. e. 44, shall forthwith cease and desist from: 19, restricting, regulating, impeding, declaring unet rfering with the advertising of prices or other terms or c, ;ale for farm equipment or parts by any person. Jut, participating in, inducing, suggesting, urging, ence lssisting in any boycott or threatened boycott of, or cone to deal with, any newspaper, periodical, publication tele, , radio station or other medium (including, but not limi ternet) regarding the advertising of prices or other tern ns of sale for farm equipment or parts. ordered That Fastline, directly or indirectly, or thw orate or other device, in or affecting commerce, as cor fined in Section 4 ofthe Federal Trade Commission Act 15 U. e. 44, shall forthwith cease and desist from agre ining, attempting to agree or combine, or taking any actie nce of any agreement or combination with any other . t, restrict, regulate, impede, or interfere with the ces or other terms or conditions of sale for farm s by any person.

vever, that nothing contained in this order shall from formulating, adopting, disseminating to its Decision and Order 126 F.TC. advel rcing reasonable guidelines with respect to repre lstline reasonably believes would be false or decep meaning of Section 5 of the Federal Trade Com IV.

That Mid-America:

)) days after the date this order becomes final amer incorporate by reference paragraph II of this ordel lY first-class mail a copy of the amended bylaws m bers;

0) days after the date this order becomes final distri complaint and order in this matter to each of its ( and directors, and to each other agent repre ployee of Mid-America whose activities are affect or who have responsibilities with respect to the subj. order;

0) days after the date this order becomes final distr: s mail a copy of the complaint and order in this matt, lembers;

five (5) years after the date this order becomes final, (30) days of the date the person assumes such posit opy of the complaint and order in this matter to each director of Mid-America, and to each other agen or employee of Mid- America whose activities are a der, or who have responsibilities with respect to th )f this order; and five (5) years after the date this order becomes final ,w member with a copy of the complaint and orde ,d the amended by-laws, within thirty (30) days ofthe admission to Mid-America. That Fastline shall:

\0) days after the date this order becomes final distr Ie complaint and order in this matter to each of other agent its I and directors, and to each repn )Ioyee ofFastline whose activities are affected .

F ASTLINE PUBLICA nONS , INC., ET AL.

Decision and Order , lave responsibilities with respect to the subject five (5) years after the date this order becomes fil . (30) days ofthe date the person assumes such opy ofthe complaint and order in this matter to director of Fastline, and to each other agent Iloyee of Fast line whose activities are affected lave responsibilities with respect to the subject 0) days after the date this order becomes final conspicuous manner, a copy of the NOTICE in is order in the next scheduled issue of each ; and five (5) years after the date this order becomes fil ear and conspicuous manner, a copy of the lent to this order in the February issue of each , or in the next issue of each FastJine Farm no Fastline Farm Edition is published in VI.

That each respondent shall fie a verified : Commission within sixty (60) days after the les final, and annually thereafter for five (5) lry of the date this order becomes final, and at e Commission may by written notice require the manner and form in which the respondent I is complying with this order.

VIl.

,red That the respondents shall noti fY the lirty (30) days prior to any proposed change in lent, such as dissolution, assignment, sale or re, Ig in the emergence of a successor corporation creation or dissolution of subsidiaries, or any : corporation that may affect compliance 01: der this order.

Decision and Order 126 F. VIII.

It is) That each respondent shall, for the purpose ofdetem ing compliance with this order, and subject to any legal Jrivilege, permit duly authorized Commission represent respondent' s offce hours, in the presence of counsel facilities and to inspect and copy all books ledgers espondence, memoranda, reports, and other records i s in respondent's possession or control that relate to Itained in this order; and B. A I, subject to respondent's reasonable convenience respondent, and offcers, directors, employees agents, 0 ntatives of respondent, who may have counsel present 1 matters.

IX.

It is That this order will terminate on July 28 2018.

ATl CONSENT ORDER TO CEASE AND DESIST IMPORT. EGARDING PRICE ADVERTISING IN F ASTLINE As a ussions with the Federal Trade Commission F astline Inc., has entered into an order prohibiting it from agr ing to agree, or taking any action in furtherance of any a any other person, including, but not limited to , restrictany oth, I advertises in Fastline, to prohibit regulate. terfere with the advertising of prices or other terms or ,ale for farm equipment or parts by any person. The ord, oent purposes only and does not constitute an admissi( on by Fastline. Copies of the order can be obtaincc; Fastline.

BOGDANA CORPORATION, ET AL.

Complaint