Administrative Opinions and Rulings, Tripartite promotional plan
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Title 16— COMMERCIAL PRACTICES Chapter I-—Federal Trade Commission PART 15— ADMINISTRATIVE OPINIONS AND RULINGS Tripartite Promotional Plan Involv ing Use of “Cents Off” Coupons § 15.411 Tripartite promotional plan involving use of “cents off” coupons. (a) The Commission rendered an ad visory opinion concerning a tripartite promotional plan involving use of "cents off” coupons redeemable after purchase of certain products sold in fetail grocery stores.
(b) It was proposed that the promo tion, designed to ultimately coyer a single large metropolitan trading area, would be operated in a small portion of the area for 30 days and then moved to an adjoining area for another 30 day period until the entire metropolitan area had been covered. The value of each coupon will depend upon the product purchased and will be attached on the shelf where the product is displayed. Each package of the promoted product will bear a sticker which the shopper removes and places on the "cents off” coupon as proof of purchase.
(c) Participating manufacturers will pay a fixed fee fpr each retailer serviced, plus the value of the redeemed coupons, plus 2 cents to be passed on to cooperat ing retailers for services rendered. Each .such supplier will be cautioned to notify his retail customers that the plan is available to them. Notice of the avail ability of the promotional plan will be made to retailers through wholesale dis tributors, local trade associations, adver tising in the trade press, and through the buying offices of cooperatives and chain stores. In addition, spot checks of retail grocery stores in an intended area will be made by personal contact or tele phone to determine whether they have knowledge of the program and that it is available to them.
(d) The Commission expressed the view that implementation of the pro posed course of action in the manner described would be unlawful unless (1) the plan is offered to all competing sell ers of the supplier’s products regardless of the type of store or location of the seller and (2) the value of the "cents off” coupon is accurately and adequately made known to the prospective pur chaser prior to the purchase of the product to which the coupon relates. (38 Stat. 717, as amended; 15 U.S.C. 41-58, 49 Stat. 1526; 15 U.S.C. 13, as amended) Issued: April 15, 1970.
By direction of the Commission. [seal] J oseph W. Shea, Secretary.
[F.R. Doc. 70-4636; Filed, Apr. 15, 1970; 8:47 a.m.]