[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longer in the public interest and should be withdrawn.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Greeting Card Guides are rescinded.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