ARLINGTON, Va.– The Federal Trade Commission (FTC) recently adopted revisions to the Guides for Advertising Allowances and Other Merchandising Payments and Services, which were initially implemented by the FTC in 1969 following the United States Supreme Court decision in the Fred Meyer case, and serve as guidelines for how a supplier can provide advertising allowances or furnishing services to a retailer under proportionally equal terms.
In comments to the FTC in March of 2013, NGA reaffirmed that it "has strongly supported the Fred Meyer Guides because of the assistance and guidance they provide to buyers, sellers, and their counsel in assuring voluntary compliance with Sections 2(d) and (e) of the Robinson-Patman Act."In its revised Guides, the FTC agreed with NGA on a number of points, keeping intact a number of provisions within Sections 2(d) and (e) of the Robinson-Patman Act that prohibit discrimination in promotions and allowances, as well as the Act's primary purpose of prohibiting anti-competitive price discrimination under Section 2(a).
"NGA has played an important role in the development and revisions of the Guides, and we applaud the FTC for upholding the principles that were implemented to assure consumers access to competitive prices and promotions. We believe this decision ensures all sizes of retail competitors, including independent, community focused grocers, will be treated equitably," said Peter J. Larkin, president and CEO of NGA.
Additionally, several sections were revised to reflect the changes from 1990 due to the development of technological advancements and online retailing. The most recent revisions were approved on Wednesday, September 24 by a 5-0 vote. To read the complete FTC commentary and Guides click here.
The National Grocers Association (NGA) is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for close to one percent of the nation's overall economy and is responsible for generating $131 billion in sales, 944,000 jobs, $30 billion in wages, and $27 billion in taxes. NGA members include retail and wholesale grocers, state grocers associations, as well as manufacturers and service suppliers. For more information about NGA, click here.
Source: National Grocers Association