[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4039]
[[Page Unknown]]
[Federal Register: February 23, 1994]
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FEDERAL TRADE COMMISSION
16 CFR Part 244
Industry Guide: Guides for the Greeting Card Industry Relating to
Discriminatory Practices
AGENCY: Federal Trade Commission.
ACTION: Final rules; Notice of repeal of industry guide.
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SUMMARY: The Federal Trade Commission announces the repeal of the
guides concerning discriminatory practices in the greeting card
industry, hereinafter referred to as the ``Greeting Card Guides'' or
the ``Guides.'' The Commission has reviewed the provisions of the
Guides, and has concluded that due to substantial duplication by later-
adopted statements of policy of general application, the Guides are no
longer in the public interest and should be withdrawn. Accordingly, the
Greeting Card Guides are rescinded.
EFFECTIVE DATE: February 23, 1994.
ADDRESSES: Requests for copies of this notice should be sent to the
Public Reference Branch, Federal Trade Commission, 6th Street and
Pennsylvania Avenue, NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Neil W. Averitt, Esq., Office of
Policy & Evaluation, Bureau of Competition, Federal Trade Commission,
Washington, DC 20580. Telephone: (202) 326-2885.
SUPPLEMENTARY INFORMATION:
Background
The ``Guides for the Greeting Card Industry Relating to
Discriminatory Practices'' were published in 1968. They discuss the
ways in which the Robinson-Patman Act, 15 U.S.C. 13, will apply to that
industry. The primary purpose of the Guides was to describe the
principles that the Federal Trade Commission would follow in applying
sections 2 (d) and (e) of the Act, which require that promotional
allowances and services be made available on nondiscriminatory
terms.\1\
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\1\See 15 U.S.C. 13(d), (e). One other portion of the Guides
discussed the standards of price discrimination under section 2(a).
See 16 CFR 244.1. The discussion of these issues was cast in fairly
general terms, however.
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The same year that the Guides were issued, the Supreme Court
decided the case of FTC v. Fred Meyer, Inc., 390 U.S. 341 (1968). In
that opinion the Court suggested that the Commission might wish to
expand on earlier guidance and issue detailed guidelines to promotional
allowances under sections 2 (d) and (e). The Commission accepted this
invitation the following year by publishing the so-called ``Fred Meyer
Guides.'' See 16 CFR part 240. These set out general standards for
promotional allowances, applicable to all industries. The Fred Meyer
Guides have since been amended as necessary to keep them current, most
recently in 1990.
With the Fred Meyer Guides in place, the Commission grew concerned
that earlier, industry-specific guidelines had become redundant and a
potential source of confusion. In July of 1993 it therefore requested
public comment on a proposal to repeal the Greeting Card Guides. Only
one comment was received.
Analysis
The Commission believes that the Greeting Card Guides are
duplicated and made redundant by the Fred Meyer Guides. Although the
Greeting Card Guides are tailored for the industry (e.g., ```supplier'
means any greeting card publisher or distributor,'' 16 CFR 240.0(d)),
the legal principles reflected in the Guides are not specific to that
industry. The applicable law is set out in the Robinson-Patman Act, as
interpreted and applied in Commission and judicial precedent. The same
principles are reflected in the Fred Meyer Guides. The retention of the
separate Greeting Card Guides therefore serves no purpose.
No members of the greeting card industry have requested that the
Guides be retained, suggesting that industry members do not perceive a
need to continue the Guides. The Commission has received a letter from
the Executive Vice President of the Greeting Card Association,
reporting that the Association ``has no objection'' to repeal of the
Guides, the some retailer members of the Association are already
familiar with the Fred Meyer Guides, and that ``it seems superfluous to
have two sets of the same guidelines.''\2\
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\2\Letter from Marianne McDermott, Executive Vice President,
Greeting Card Association, to Neil Averitt, Office of Policy &
Evaluation, Federal Trade Commission (Sept. 14, 1993).
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In view of these facts the Commission has concluded that the
Greeting Card Guides serve no present function and, therefore, has
determined to withdraw those Guides.
List of Subjects in 16 CFR Part 244
Greeting card industry, Price discrimination, Promotional
allowances, Trade practices, Unfair methods of competition.
PART 244--[REMOVED]
Accordingly, under the authority of 15 U.S.C. et seq. and 15 U.S.C.
13, title 16, chapter I, of the Code of Federal Regulations is amended
by removing part 244.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 94-4039 Filed 2-22-94; 8:45 am]
BILLING CODE 6750-01-M
