[Federal Register: March 24, 2000 (Volume 65, Number 58)]
[Notices]
[Page 15911-15912]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr00-70]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Public Workshop; Slotting Allowances and Other Grocery Marketing
Practices: When Should They Raise Antitrust Concerns?
AGENCY: Federal Trade Commission.
ACTION: Notice announcing workshop.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission has set May 31 and June 1 as the
dates for its public workshop examining the appropriate antitrust
assessment of slotting allowances, category management, and other
grocery marketing practices.
DATES: The workshop will be held on May 31 and June 1 in the Commission
Meeting Room (Room 432), 600 Pennsylvania Avenue, NW., Washington, DC
20580.
FOR PANEL PARTICIPATION OR FURTHER INFORMATION CONTACT: To obtain
information about possible panel participation or for questions about
the workshop, please contact: David Balto, Bureau of Competition,
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC
20580, telephone 202-326-2881, e-mail dbalto@ftc.gov; or William Cohen,
Office of Policy Planning, Federal Trade Commission, 600 Pennsylvania
Avenue, NW., Washington, DC 20580, telephone 202-326-2110, e-mail
wcohen@ftc.gov.
SUPPLEMENTARY INFORMATION:
Public Workshop: Slotting Allowances and Other Grocery Marketing
Practices: When Should They Raise Antitrust Concerns?
Overview
In recent years, debate has continued about when slotting
allowances and other grocery marketing practices appropriately raise
antitrust concerns and thus pose potential matters for antitrust
enforcement. The Commission last held hearings in this area in
November, 1995, and this past fall, both the Senate Small Business
Committee and the House Judiciary Committee held hearings that
addressed several issues, including antitrust issues, in connection
with slotting allowances.
The term ``slotting allowance'' typically refers to a lump-sum, up-
front payment that a food manufacturer must pay to a supermarket for
access to its shelves. Very often, debates over slotting allowances
have assumed that all slotting allowances, and all of the market
conditions in which they are used, are the same. In fact, the term
``slotting allowance'' has been used to cover an extremely broad range
of conduct, some of it clearly unlawful as commercial bribery, some
clearly lawful, and a great deal of it in the gray area in between, the
antitrust legality of which can be determined only in light of all the
surrounding facts and circumstances. At the same time, the legal and
economic literature on the appropriate antitrust analysis of these
practices has not been as well developed as would be desirable.
The FTC plans to convene a workshop that will focus on the
antitrust implications of slotting allowances and other grocery
marketing practices, such as category management, in which retailers
engage particular manufacturers to provide advisory or decisionmaking
functions in determining how best to market certain products of a type
produced by those manufacturers. The workshop is intended to facilitate
a discussion among manufacturers and retailers (both small and large
businesses), consumer groups, marketing experts, economists, and
lawyers that will increase factual knowledge and illuminate the
relevant antitrust issues with respect to these and other grocery
marketing practices. The format will consist of panel presentations and
discussions, which will include participation by attendees.
The goal of the workshop is to gain a better understanding of the
types of slotting allowances and other grocery marketing practices that
are used, the reasons for which they are used, and the criteria for
assessing whether slotting allowances or other grocery marketing
practices raise antitrust concerns. Interested parties are invited to
participate or attend.
Specific Question To Be Addressed
The workshop will address the following questions, among others:
What are the different types of slotting allowances, and
what prompts the use of one type rather than another?
Are slotting allowances used for both new and established
products? In what proportion?
How do slotting allowances vary from other types of
product promotion, and what circumstances lead to the use of slotting
allowances rather than other types of product promotion?
How do slotting allowances vary from market to market?
What is the impact of slotting allowances on new product
development and innovation?
Do slotting allowances significantly increase the capital
costs of entry or doing business in particular markets? If so, how do
capital markets respond?
How do supermarkets ultimately use the fees they receive
as slotting allowances?
Under what circumstances do slotting allowances have an
impact on prices to consumers and consumer demand? What is the impact?
Are slotting allowances sometimes paid in order to obtain
substantial exclusivity and, arguably, market power?
If slotting allowances were prohibited, would that lead to
material differences in the bargaining relationship between
manufacturers and retailers--or would discounts to retailers simply
take a different form?
[[Page 15912]]
What other types of grocery marketing practices--such as
category management--may raise antitrust concern? What are those
marketing practices, and under what circumstances might they pose
antitrust issues?
The Commission welcomes suggestions for other questions that should
be addressed as well.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-7268 Filed 3-23-00; 8:45 am]
BILLING CODE 6750-01-M