Evening star., 1955-11-25
FTC Accuses
Grocery Chains
In Price Deals
Giunt, Food Lone
Deny Charges Of
Unfair Agreements

Two MhJOF BEOCcIy ClhiLiS httu
II food manufacturers have been.
accused by the Federal Trade
Commission of setting up spe-.
|cial sales agreements which dis
|criminated against competing
Igrocers.
Spokesman for the two big
chains denied to newsmen that
they have taken any improper or.
Illegal steps In the trade agree-+
|ments.
The FTCs notice to them al.
lows 80 days for q 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
the Philadelphia chain and the
Food Fair Super Markets OPP
Ierating in this area.
The FTC charged that the two
chains made special arrange
Iments with suppliers and that
the slippiiers did not make equal
advantages available to conn
|peting stores.
Held Anniversary Sales
The charges. FTC said, were
that, the manufacturers gave
special allowances to the chains
to promote the sales of their
products. FTC said Giant and
Food Fair induced these special
Allowances part Of a special
anniversary sales put on by the
chains although they knew or
should have known" that the
same advantages were not being
offered to their competitors.
The food manufacturers
named. the FTC said, were:
Crosse q Blackwell Co, POM
Ipeian Olive Oil Corp. Mccormick
|& CO., Inc: j. H. Filbert, Inc. !,
all OF Baltimore: Minute Maid
Corp. Jos. Martinson g. Co, Inc. I
Tetley Tea Co.. Atalanta Trading
Corp, all Of New York: The,
Sweets Co. Of America. Hoboken.
IN. il: Reed Candy Co. Of Chi
|cago and Chestnut Farms Chevy
Chase Dairy Of Washington.
Raymond Dickey, general
counsel Of the Giant concern.
expressed conviction that the
arrangements complained OF
were legally valid.
Giant Denies PRESSURE
I'm an effort to give the great
est possible notice to the public
of the savings available during
Its birthday sale. Mr.. DickeyI
said. Giant offered its suppliersI
q chance to participate by pay
ing their fair share OF the adyer-
tising and promotion costs of'
this annual chain-wide event.
No supplier was .pressured. toI
participate BY any threats or fn-I
duced' BY any promises. The
Islppiiers who did participate re-
|ceived at least as much adver-|
Using and promotion as they
paid for and each was advised
or exactly what advertising he
received.
Giant had no knowledge and
had no way Of obtaining any
knowledge Of what, II any, arr
rangements its suppliers had
with Giants competitors on SIM
liar sales. Giant did know. as
does everyone in the food indus
try. that It has been common
practice for many years for food
retailers TO enter into co-opera-
tive advertising arrangements
with suppliers during special
sales. Such practices have not
injured competition but instead
have fostered IT, Mr.. Dickey
said. adding:
Complied with Law, Stein Says
Giants birthday sales have
resulted In more people being
able to buy more and better food
at lower prices. Giants sup-
pliers have gotten fair value for
the moneys they paid as their
share Of participation IN the
sale.
Louis Stein. president Of Food
Fair Stores, Inc. Of Philadelphia,
said: I'VE deny we used any co..