The FTC held a workshop on slotting fees this spring, inviting industry representatives and others to talk. If the commission decides to act further, it could send a report to Congress, specify industry guidelines, undertake a formal study with subpoena power, or take enforcement action. Surprisingly little is known about the payments since they're seldom part of a written contract. For example, it's unclear whether the payment is applied to a chain's gross profit or used to discount prices. But fees are common in crowded product categories such as frozen foods, beverages, snacks, and now produce.
Some retailers say the fees are needed in part to cover the high costs of introducing a product.
The typical supermarket stocks about 30,000 products and can pick from among some 15,000 new offerings each year. Between 70 and 80 percent of new products don't survive, according to estimates. Slotting allowances . . . The FTC said that the Maryland-based company gave discounts to favored chains, which agreed to devote all or most shelf space to McCormick products.