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VOLUME 24

1934

A/ITED

NUMBER 198

Washington, Friday, October 9, J 959

Title 16 COMMERCIAL
PRACTICES
Chapter I Federal Trade Commission D ocket 7395 c.o.

PART 13 DIGEST OF CEASE AND
DESIST ORDERS , Bayuk Cigars Inc.
SubpartDiscriminating in price un der section 2, layton Act, as amended Payment for services or facilities for processing or sale under 2 d: 13.824
Advertising expenses.
Sec. 6, 38 Stafc 721; 15 UJS.C. 46. In te rp re ts or applies sec. 2, 38 Stafc 730, as am ended;
15 U.S.C. 13 Cease a n d d e sist order, B ayuk Cigars In co rp o rated , P h ilad elp h ia, Pa., D ocket 7395, A ugust 27, 1959

This proceeding was heard by a hear ing examiner on the complaint of the Commission charging a well-known cigar manufacturerwith principal office in Philadelphia and branch offices, fac tories, and warehouses in a number of States, and having net sales in 1957 ex ceeding $37,000,000with violating sec tion 2d of the Clayton Act by such practices as participating in a coopera tive advertising plan with certain favored retail customers whereby it paid their full advertising costs in promoting its cigars; by making special display pro motional payments to certain retailers;
and by paying a certain chain customer $700 per month as consideration for ad vertising its cigars on book matches dis tributed to retail outlets, while not offering any of such payments to com petitors of the favored recipients.
After acceptance of an agreement for a consent order, the hearing examiner made his initial decision and order to cease and desist which became on Aurn,7 the decision of the Commission.
The order to cease and desist is as follows:
It is ordered, That respondent Bayuk Cigars Incorporated, a corporation, its officers, employees, agents and repre sentatives, directly or through any cor
porate or other device, in connection with the distribution, sale, or offering for sale of cigars in commerce, as com merce is defined in the amended Clay ton Act, do forthwith cease and desist from:
1. Paying, or contracting to pay or allow, anything of value to, or for the benefit of, any customer for advertising or display services or facilities furnished by or through such customer as an agreed percentage or proportion of dollar vol ume of purchases by such customer, different from the agreed percentage or proportion granted m any other cus tomer where both such customers com pete in fact in the resale of respondents products and where such payments are based on the amount of purchases made.
2. Paying, contracting to pay, or fur nishing anything of value, such as lump sum payments arrived at by negotiation with individual customers to, or for the benefit of, any customer for advertising or display services or facilities furnished by or through such customer on terms not available to, or not proportionally equal for, all other customers competing in fact with such customer in the resale of respondents products.
3. Paying or contracting to pay to any customer, directly or indirectly through a subsidiary or otherwise, anything of value which is above the market price for advertising on book matches, unless such payment or consideration, or some thing in lieu thereof, is affirmatively offered or otherwise made available on proportionally equal terms to all other customers competing in fact in the dis tribution of respondents products.
4. Paying, or contracting to pay or allow, anything of value to, or for the benefit of, a customer as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the han dling, processing, sale, or offering for sale of any products manufactured, sold, or offered for sale by respondent, unless such payment or consideration is affirm atively offered or otherwise made avail able on proportionally equal terms to C o n tin u e d on p. 8203

CONTENTS
Agriculture Department See Commodity Credit Corpora tion; Commodity Stabilization Service.
Air Force Department Rules and regulations:
Weather service to nonmilitary agencies or individuals_____
Army Department See Engineers Corps.

Pae
8225

Atomic Energy Commission Notices:
Aerojet-General N u c le o n ic s;
withdrawal of application for utilization facility licenseHarper Engineering Co.; order on motion to designate real party in interest and to dismiss______ .._____________

8242

Commerce Department See Federal Maritime Board.
Commodity Credit Corporation Rules and regulations:
Dry edible bean loan and pur chase agreement program, 1959 crop__________________

8212

8242

Commodity Stabilization Service Proposed rule making:
Peanuts; intention to establish date of referendum________ 8239
Rice; proposed changes for de terminationof acreage allot ments for 1959 and subsequent crops______ ______________ 1 8239
Sugar; proposed allotment of 1960 direct-consumption por tion of mainland quota for Puerto Rico______________ 8239
Tobacco; intention to make de terminations respecting mar keting quotas for 1960-61___ 8237
Rules and regulations;
Peanuts:
County normal yield for 1959
crop; determination______ 8209
National marketing quota, acreage allotment, and ap portionment to States of allotment, 1960 crop---------- 8211
8201