FOR IMMEDIATE RELEASE                                          AT
WEDNESDAY, FEBRUARY 8, 1995                        (202) 616-2771
                                               TDD (202) 514-1888

    JUSTICE DEPARTMENT ALLOWS LOS ANGELES AREA HEATING AND AIR
    CONDITIONING DEALERS TO ENGAGE IN COOPERATIVE ADVERTISING


     WASHINGTON, D.C.-- The Department of Justice's Antitrust
Division will allow competing Los Angeles area heating and air
conditioning companies that sell the same brand name equipment to
get together to jointly advertise the products.  The Department
concluded that is would not reduce competition.
     The proposed cooperative advertising program will be
implemented by the Southern California Independent Lennox
Dealers, a recently formed trade association of Los Angeles area
dealers that distribute heating and air conditioning equipment
manufactured by Lennox Industries Inc.
     The program, funded by Lennox, will inform consumers in the
Los Angeles area of the nature and quality of Lennox's heating
and air conditioning products and provide them with a 1-800
number that they can call for additional information.  Incoming
calls on the 1-800 number will be automatically routed, by the
local telephone company, in accord with directions from the SCILD
Board of Directors, to the SCILD member located nearest to the
caller. 
     SCILD members will be required to compile a daily list of 
1-800 calls received, to promptly transmit that list to SCILD
which in turn will promptly make the identity of all such callers
available to all other interested SCILD members.  By these means,
all SCILD members will have an opportunity to compete for the
business of those who respond to the cooperative advertising
program by dialing the 1-800 number.    
     The purpose of the cooperative advertising program is to
enhance Lennox's relatively small position in the Los Angeles
area by providing sales and repair service in a prompt, reliable
and efficient manner.
     The Department's position was stated in a business review
letter to counsel for SCILD from Anne K. Bingaman, Assistant
Attorney general in charge of the Antitrust Division.
     SCILD's membership will consist of any of the 40 Los Angeles
area heating and air conditioning dealers who currently sell and
service, on a non-exclusive basis, Lennox products in competition
with over 1000 other contractors who represent other heating and
air conditioning manufacturers.  SCILD'S Lennox dealer members
currently advertise independently and compete with one another as
well as with dealer representatives of other brands.  
     Bingaman said that to the extent that the cooperative
advertising program is implemented as warranted by SCILD, it
should not reduce any competition between SCILD's members.   They
will continue to have pricing and territorial freedom in
competing with each other.    
     The Department stated that the proposed cooperative
advertising program should not have any anticompetitive effects
because it has been designed with sufficient safeguards to avoid
collusion.  The program is not likely to deprive consumers of
competitive options in buying Lennox equipment or service.
     To the extent that the cooperative advertising program
provides information that reduces consumer search costs, it may
have the procompetitive effect of intensifying interbrand
competition.  
     Under the Department's business review procedure, a person
or organization may submit a proposed action to the Antitrust
Division and receive a statement as to whether the Division will
challenge the action as a violation of the antitrust laws.
     A file containing the business review request and the
Department's response will be made available in the Legal
Procedure Unit of the Antitrust Division, Room 3235, Department
of Justice, Washington, D.C.  20530.  After a 30-day waiting
period, the documents supporting the business review request will
be added to the file.
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95-075