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Commission rejects slotting fee guidelines.(Brief Article)
A unanimous FTC has formally denied a petition filed two years ago for guidelines on the legal use of slotting fees (payments by manufacturers for retail shelf space) in the grocery industry. The Independent Bakers Assoc., the Tortilla Industry Assoc., and the National Assoc. of Chewing Gum Manufacturers requested guidelines in April 2000.
A June 19 FTC letter formally denying the petition repeated the same rationale offered in a February 2001 slotting fee report: (1) the slotting fee issue is not sufficiently mature; (2) developing guidelines is highly resource intensive; and (3) there are other more efficient means to address the issue.
Senate Small Business Ranking Member Christopher "Kit" Bond (R-Mo.) was not happy with either the FTC's tardiness or its apparent indifference to an issue that potentially places small businesses at a competitive disadvantage when trying to get products into main-stream distribution channels.
"The FTC's unqualified and open-ended denial of the petition offers no inducement to discourage big manufacturers and retailers who are effectively gaming the system to limit competition and exclude small manufacturers from grocery store shelves, Bond said."
The petitioners don't appear concerned by this outcome. Their counsel, Robert Skitol of Drinker, Biddle & Reatg, told us that the FTC staff report on "Slotting Allowances and other Business Practices in the Grocery Industry" in February 2001 actually did provide a lot, although not all, of the guidance his clients were seeking on ...
- Supermarket Slotting Fees Questioned In Senate Hearing.(Government...
- Magazine article from: The Food Institute Report September 18, 2000 700+ words
...who led the hearing, Slotting Fees and Family Farms, Sen...to investigate whether slotting fees are eventually costing consumers. Slotting fee are "threatening the...are "hearing about [slotting fees] it for the first time...
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- Magazine article from: Advertising Age Teinowitz, Ira February 26, 2001 700+ words
...powerhouses is announced. Slotting fees, the funds many marketers...would partly be waged via slotting fees. Heinz, meanwhile, claims the slotting fee wars actually hurt consumers...in stores and fighting slotting-fee battles, neither has...
- Retailers And Manufacturers Face Off Over Slotting Fees.(Brief...
- Magazine article from: The Food Institute Report June 12, 2000 700+ words
...called "pay to stay" slotting fees recently for the first...on the new product slotting fee. Pierre Tada, CEO...VA claimed that slotting fees transfer the risk...all retailers charge slotting fees said John Egan, Vice...
- FTC, McCormick reach accord on slotting fees;Agency examines widespread...
- Magazine article from: Advertising Age Teinowitz, Ira March 13, 2000 700+ words
...competitive effect of slotting fees, and the McCormick...billions of dollars on slotting fees for shelf space and...considered part of the slotting fee. $16 BILLION A YEAR...the total spent on slotting fees at $16 billion a year...
- Slotting fees under fire.
- Magazine article from: Food Processing Neff, Jack May 1, 2000 700+ words
...of a typical slotting fee, which can rim...legislation on slotting fees. But the most...industry sees slotting fees as necessary...heart of the slotting fee issue," said...the option of slotting fees, retailers would...
- FTC urged to get tough on retail slotting fees.(Federal Trade Commission)(Brief...
- Magazine article from: Advertising Age Teinowitz, Ira June 5, 2000 700+ words
...limiting the level of slotting fees. "Slotting is a little...Retailers are demanding slotting fees not only on new products...already had paid one slotting fee to get an item into...amp; Shop chain, slotting fees are set by category...
- Slotting fees are short sighted. (Fine Print).
- Magazine article from: Automatic Merchandiser Maras, Elliot September 1, 2001 700+ words
...something in return. Slotting fees are growing in vending...our industry Are not slotting fees essentially prepaid...suppliers could also view slotting fees as product development...menu machines based on slotting fee revenue instead of...
- Tortilla Slotting Fees Tested -- Verdict For Defendant.(Grama Corp)
- News wire article from: Mondaq Business Briefing June 21, 2004 700+ words
...incentive an "up-front" payment or "slotting fee" to the retailer to manage and control...court found no evidence that Grama used slotting fees to create, maintain or attempt to...opinion on behalf of the plaintiffs that slotting fees inherently resulted in exclusivity...
