Slots Lead to Sue You, Sue Me Blues
Supermarket News reports that the decision by the Federal Trade Commission to not issue guidelines on slotting fees may increase suits by manufacturing companies denied access to grocery store shelves as a result.
SN quotes David Balto, a former attorney with the FTC, as saying, “I think the place where these issues are increasingly going to be resolved will be in the courts. Mr. Balto added, “I think the staff report made it clear it would be difficult to issue guidelines in an area that was so complex, where the research was just beginning. In addition, the report questioned whether guidelines could be nimble enough to cover all practices that could be considered alternatives to slotting allowances.”
The FTC in a letter sent last month to the Independent Bakers Association, the Tortilla Industry Association and the National Association of Chewing Gum Manufacturers, said developing guidelines for slotting fees would be too resource intensive for it to handle.
Moderator Comment: Should the FTC develop slotting allowance guidelines?
They could. It would be an incredible waste of money, but they could. [George Anderson – Moderator]
- FTC Inaction on Slotting Fees Could Result in Extra Litigation, David Ghitelman, Supermarket News, July 1, 2002