Retail consolidation and produce buying practices: A summary by Richard J Sexton

By Richard J Sexton

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Extra resources for Retail consolidation and produce buying practices: A summary of the evidence and potential industry and policy responses (Giannini Foundation monograph)

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Federal Trade Commission. A Report on Agricultural Cooperatives. Federal Trade Commission, 1975. S. Federal Trade Commission. Statement of the Director of the Bureau of Competition. Docket No. 8883, December 11, 1981. S. Federal Trade Commission. In the Matter of McCormick & Company: Decision and Order. Docket No. C-3939, April 27, 2000a. S. Federal Trade Commission. : Complaint. Docket No. C-3917, January 10, 2000b. S. Federal Trade Commission. Report on the Federal Trade Commission Workshop on Slotting Allowances and Other Marketing Practices in the Grocery Industry.

Maryland Coop. Milk Producers, Inc. and Maryland and Virginia Milk Prod. , 145 S. Supp. 151 (DC, 1956)]. S. v. S. 188 (1939)]. However, mergers and joint ventures among cooperatives have never been challenged and are commonly believed to be protected under CapperVolstead (Manchester). S. FTC Staff, 1975). History records many instances of successful agricultural marketing cooperatives that have solved marketing problems, developed successful brands, acquired large market shares, and during most times earned higher returns for their members than were attainable elsewhere.

Critics of slotting fee guidelines argue that they are unnecessary, as existing antitrust law enforcement is adequate and overreaching (McAvoy). The requirement that would compel suppliers and retailers to post their slotting allowances is considered onerous and invasive. However, this type of requirement is similar to existing merchandising guidelines (see footnote 10). Critics also argue that the proposed slotting guidelines, unlike previous FTC guidelines, are not based on case law. However, there are few legal precedents involving slotting fees.

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