[Federal Register Volume 63, Number 95 (Monday, May 18, 1998)]
[Notices]
[Pages 27296-27297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13141]


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FEDERAL TRADE COMMISSION

[File No. 971-0039]


Fastline Publication, Inc., et al.; Analysis To Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before July 17, 1998.

ADDRESSES: Comments should be directed to: FTC/Office or the Secretary, 
Room 159, 6th St. and Pa. Ave., NW., Washington DC 20580.

FOR FURTHER INFORMATION CONTACT: Willian Baer or Willard Tom, FTC/H-
375, Washington, D.C. 20580. (202) 326-2932 or 326-2786.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the above-captioned consent agreement containing a consent 
order to cease and desist, having been filed with and accepted, subject 
to final approval, by the Commission, has been placed on the public 
record for a period of sixty (60) days. The following Analysis to Aid 
Public Comment describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for May 11, 1998), on the World Wide Web, at ``<a href="http://www.ftc.gov/os/
actions97.htm">http://www.ftc.gov/os/
actions97.htm</a>.'' A paper copy can be obtained from the FTC Public 
Reference Room, Room H-130, Sixth Street and Pennsylvania Avenue, NW, 
Washington, DC 20580, either in person or by calling (202) 326-3627. 
Public comment is invited. Such comments or views will be considered by 
the Commission and will be available for inspection and copying at its 
principal office in accordance with Section 4.9(b)(6)(ii) of the 
Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement to a proposed consent order from Fastline 
Publications, Inc. (``Fastline'') and Mid-America Equipment Retailers 
Association (``Mid-America''). The agreement would settle allegations 
that Fastline and Mid-America violated Section 5 of the Federal Trade 
Commission Act by agreeing not to advertise or publish prices for new 
farm equipment in the Fastline Kentucky Farm Edition.
    The proposed consent order has been placed on the public record for 
sixty (60) days for receipt of comments by interested persons. Comments 
received during this period will become part of the public record. 
After sixty (60) days, the Commission will review the agreement and the 
comments received, and will decide whether it should withdraw from the 
agreement and take other appropriate action or make final the 
agreement's proposed order.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent order. The analysis is not intended to constitute an 
official interpretation of the agreement and proposed order, or to 
modify in any way their terms. Further, the proposed consent order has 
been entered into for settlement purposes only, and does not constitute 
an admission by Fastline or Mid-America that the law has been violated 
as alleged in the complaint.

The Complaint

    Fastline publishes, among other things, picture buying guides for 
new and used farm equipment, which are mailed free to farmers and 
ranchers in over 40 states. Farm equipment advertised in Fastline's 
buying guides ranges from relatively inexpensive lawn mowers to heavy 
duty farm equipment such as tractors, plows, planters, cotton pickers, 
and combines costing tens of thousands of dollars. Fastline's principal 
source of revenue is the farm equipment dealers who advertise in its 
buying guides. Fastline currently publishes 20 monthly editions of its 
farm equipment buying guides, serving 41 states. Farm equipment dealers 
view the Fastline Kentucky Farm Edition as a key vehicle for 
advertising to farmers located in Kentucky.
    Mid-America is a trade association for farm equipment dealers. It 
was formed in 1992 through the merger of the Indiana Implement Dealers 
Association, Inc., and the Kentucky Farm and Power Equipment Retailers 
Association (the ``Kentucky Retailers Association''). About 90 percent 
of the farm equipment dealers in Kentucky and Indiana are members of 
Mid-America.
    In early 1991, several Kentucky farm equipment dealers complained 
to Fastline about dealers advertising prices, including discount 
prices, for new farm equipment in the Fastline Kentucky Farm Edition. 
The price advertisements were, among other things, facilitating 
downward pressure on prices for new farm equipment. In protest, several 
dealers withheld their advertising from the Fastline Kentucky Farm 
Edition until Fastline agreed not to publish advertisements that 
included prices for new farm equipment.
    Price advertisements for new farm equipment began to reappear in 
the Fastline Kentucky Farm Edition by the end of 1991. In early 1992, 
Fastline was invited to the annual meeting of the Kentucky Retailers 
Association, during which several of its members expressed their 
dislike for price advertising and threatened to withdraw or otherwise 
cancel their advertisements in the Fastline Kentucky Farm Edition if 
Fastline continued to publish advertisements that included prices for 
new equipment. Fastline, threatened with the loss of substantial 
advertising

[[Page 27297]]

revenue, acquiesced and stopped accepting advertisements that included 
prices for new equipment. Following the merger of the Kentucky and 
Indiana trade associations, Mid-America sought and obtained Fastline's 
reaffirmation of the agreement not to publish prices for new equipment 
in the Fastline Kentucky Farm Edition.
    These agreements have injured consumers by: (1) reducing price 
competition among farm equipment dealers for new farm equipment; (2) 
depriving consumers of truthful and nondeceptive price information; and 
(3) depriving consumers of the benefits of competition.

The Proposed Consent Order

    Fastline and Mid-America have signed a consent agreement containing 
a proposed order. Part II of the proposed order would enjoin Mid-
America from impeding the advertising of prices or other terms of sale 
for farm equipment or parts. Additionally, Mid-America would be 
enjoined from participating in or assisting in any boycott regarding 
the advertising or prices or other terms of sale for farm equipment or 
parts.
    Part III of the proposed order would enjoin Fastline from agreeing 
to prohibit or restrict the advertising or prices or other terms of 
sale for farm equipment or parts. Notwithstanding this provision, 
however, the proposed order would not prevent Fastline from adopting 
and enforcing reasonable guidelines with respect to advertisements that 
Fastline reasonably believes would be false or deceptive within the 
meaning of Section 5 of the Federal Trade Commission Act.
    Part IV of the proposed order would require Mid-America to amend 
its by-laws to incorporate by reference Paragraph II of the order, and 
distribute a copy of the amended by-laws to each of its members. In 
addition, the proposed order would require Mid-America to distribute 
copies of the proposed order and accompanying complaint to: (a) Persons 
whose activities are affected by the order; or who have 
responsibilities with respect to the subject matter of the order, and 
(b) each of its members.
    Part V of the proposed order would require Fastline to distribute 
copies of the order and accompanying complaint to persons whose 
activities are affected by the order, or who have responsibilities with 
respect to the subject matter of the order. In addition, the proposed 
order would require Fastline to publish annually for each of the next 
five years in each edition of its farm equipment buying guides a copy 
of the NOTICE attached to the order.
    Parts VI, VII, and VIII of the proposed order impose certain 
reporting requirements in order to assist the Commission in monitoring 
compliance with the order.
    The proposed consent order would terminate twenty (20) years after 
the date it is issued.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-13141 Filed 5-15-98; 8:45 am]
BILLING CODE 6750-01-M