Evening star., 1955-11-25
|FTC Accuses
Grocery Chains
In Price Deals
Giant, Food Lane
Deny Charges Of
: Unfair Agreements

I y
Two major grocery chains and
III food manufacturers have beer
accused by the Federal Trade
Commission Of setting up spe-
Icial sales agreements which dis
Terminated against competing
lgrocers.
| Spokesman for the two bic
lchains denied to newsnen thai
lthey have taken any improper OF
illegal steps in the trade agree
iments.
The FTC's notice to them al
lows 80 days for a formal reply
Named in the complaint were
Giant Food Shopping Center.
Inc. OF WASHINGTON, and Food
Fair Stores. Inc. Of Philadelphia.
There Is no connection between
1.-THE Philadelphia chain and the
Food Fair Super Markets OPP
Ierating In this area.
The Philadelphia chain, how
lever, operates two Food Lane
IStores. Inc. in this area.
/ The FTC charged that the two
lcnains made special arrange
iments with suppliers and that
1.-THE suppliers did not make equal
advantages available to COM
lpeting stores.
Held Anniversary Sales
The charges, FTC said, were
that the manufacturers gave
special allowances to the chains
ito promote the sales OF their
products. FTC said Giant and
Food Fair induced these special
ALLOWANCES -as part Of a special
Anniversary sales put on by the
chains although they knew Of
should have known" that the
same advantages were not being
Offered to their competitors.
The food manufacturers
named, the FTC said, were:
Crosse 6S Blackwell Co. Pom.
Epeian Olive Oil Corp. Mccormick
l& Co. Inc; J.. H. Filbert. Inc.
lIall of Baltimore: Minute Maie
Corp. JOS. Martinson & Co., Inc.
Tetley Tea Co. Atalanta Trading
Corp, all of New York: Tht
Sweets Co. OF America. Hoboken
N. j.; Reed Candy Co. of Chi.
lcago and Chestnut Farms Chev,
Chase Dairy Of Washington.
Raymond Dtckey, genera
counsel OF the Giant concern
expressed conviction that til,
! arrangements complained d
!, were legally valid.
, Giant Denies Pressure
|. In an effort to give the great
j est possible notice to the pubiil
,Iof the savings available durinI
|. Its birthday sale. !, Mr.. Dicke,
lsaid. Giant offered its supplier
. la chance to participate by pay,
i ing their fair share OF the adver,
! gtiSing and promotion costs D
this annual chain-wide event
No suppIier was 'pressured' t,
J participate by any threats or Sin
!, duced by any promises. TIL
s,lppliers who did participate re
! lceived at least as much adyer,
tising and promotion as the,
paid for-and each was advised
!. ..Eof exactly what advertising h,
received.
! Giant had no knowledge ane
had no way Of obtaining an,
|, knowledge of what. II any. ar
arrangements its suppliers has
! with Giants competitors on sim,
! liar sales. Giant did know, Al
{ does everyone In the food INDUS,
try. that 1t has been common
. ipractice for many years for foot
] retailers to enter into co-opera,
iitive advertising arrangement,
with suppliers during specia
/ ilsales. Such practices have no
iliniured competition but insteas
shave fostered IT.. Mr.. Dicke!
lsaid. adding:
Complied with Law, Stein Say,
Giants birthday sales havl
resulted in more people beinI
able TO buy more and better foot
lat lower prices. Giants sup
/. pliers have gotten fair value TO
.. the moneys they paid as thei
share of participation in th'
sale
Louis Stein. president Of Foot
Fair Stores. Inc, of Philadelphia
. said: I'VE deny we used any co,
lercior. We fully complied will
Iall laws and regulations. Al
far as we know what was Offered
Ito US tby manufacturers wa
Offered to everyone else
Charles r. Mccormick, presi,
ldent OF the Baltimore spice com
Ipany. said. sIf we have ever vio.
lated d constitutional or lega
REGULATION and I'm not saying
I've haye-I'm sorry.
I'm sure our statesmen wouls
mot want to violate any laws
A manufacturer always wants x
lido the right and legal thing. WI
lean assure you we have nevel
tfaiiaya n fn.nnarofa With all 90.