Federal Trade Commission v. Fred Meyer, Inc.

390 U.S. 341 (1968)

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Federal Trade Commission v. Fred Meyer, Inc.

United States Supreme Court
390 U.S. 341 (1968)

Facts

Fred Meyer, Inc. (Meyer) (defendant) induced two of its suppliers—Tri-Valley Packing Association (Tri-Valley) and Idaho Canning Company (Idaho Canning)—to take part in a promotional coupon-book campaign. Under the campaign, Meyer provided its customers with coupon books featuring coupons to purchase products supplied by Tri-Valley and Idaho Canning at substantial discounts. Meyer charged Tri-Valley and Idaho Canning $350 for each coupon. But Tri-Valley and Idaho Canning also supplied products to two wholesalers—Hudson House and Wadhams & Co. Hudson House and Wadhams & Co., in turn, sold the products to retailers who competed with Meyer. But neither Tri-Valley nor Idaho Canning ever paid either the wholesalers or the competing retailers for a similar promotional coupon program. The Federal Trade Commission (FTC) (plaintiff) brought administrative proceedings against Meyer and concluded that Meyer’s inducing of Tri-Valley and Idaho Canning to take part in the coupon program violated the Robinson-Patman Act because no similar allowances were offered to Meyer’s competitors. The United States Court of Appeals for the Ninth Circuit reversed, holding that the promotional allowances did not violate the Robinson-Patman Act. The FTC sought review in the United States Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Warren, C.J.)

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