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1
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DECISION AND ORDER
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EXTRACTED KEY WORDS
COMMISSION ISP COMPLAINT REGULATING CONSENT AGREEMENT THEREAFTER PUBLICATIONS JURISDICTION ACT FEDERAL TRADE COMMISSION PARAGRAPH POLICY SUCCESSOR PROVISION JURISDICTIONAL FACTS VIOLATIONS COMPETITION STORE PLANNERS ISP INTERNATIONAL NEWS ISP WEBSITE CONNECTION GUIDELINE INTERPRETATION PROCEEDING YORK CONFORMITY REASON MATTER LAW |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Timothy J. Muris, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
Thomas B. Leary
____________________________________
)
In the matter of )
)
INSTITUTE OF ) Docket No. C-
STORE PLANNERS, )
)
a corporation. )
____________________________________)
DECISION AND ORDER
The Federal Trade Commission ("Commission") having initiated an investigation of certain
and practices of the Institute of Store Planners ("ISP"), hereinafter sometimes referred to as
"Respondent," and Respondent having been furnished thereafter with a copy of the draft of Complaint
that the Bureau of Competition presented to the Commission for its consideration and which, if
by the Commission, would charge Respondent with violations of Section 5 of the Federal Trade
Commission Act, as amended, 15 U.S.C. § 45; and
Respondent, its attorneys, and counsel for the Commission having thereafter executed an
Agreement Containing Consent Order ("Consent Agreement"), containing an admission by Respondent
of all the jurisdictional facts set forth in the aforesaid draft of Complaint, a statement that the
the Consent Agreement is for settlement purposes only and does not constitute an admission by
Respondent that the law has been violated as alleged in such Complaint, or that the facts as
such Complaint, other than jurisdictional facts, are true, and waivers and other provisions as
by the Commission's Rules; and
The Commission having thereafter considered the matter and having determined that it had
reason to believe that Respondent has violated the said Act, and that a Complaint should issue
its charges in that respect, and having accepted the executed Consent Agreement and placed such
Consent Agreement on the public record for a period of thirty (30) days for the receipt and
consideration of public comments, now in further conformity with the procedure described in
Commission Rule 2.34, 16 C.F.R. § 2.34, the Commission hereby makes the following jurisdictional
findings and issues the following Decision and Order ("Order"):
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2
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COMPLAINT
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EXTRACTED KEY WORDS
STORE PARAGRAPH ACT COMPETITION FEDERAL TRADE COMMISSION RESPONDENT PRACTICES STORE PLANNING DESIGN ISP CODE AGREEMENT STORE PLANNERS ETHICS RESTRAIN COMPLAINT VIOLATING PROVISIONS FEE PURPOSE BUSINESS YORK CHARGES THEREOF UNFAIR CONSUMERS PRICE RESPONDENT ACTING DESIGN FIRMS MEANING |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
____________________________________
)
In the matter of )
)
INSTITUTE OF ) Docket No. C-
STORE PLANNERS, )
)
a corporation. )
____________________________________)
COMPLAINT
Pursuant to the provisions of the Federal Trade Commission Act, as amended, 15 U.S.C. § 41
et seq., and by virtue of the authority vested in it by said Act, the Federal Trade Commission,
reason to believe that the Institute of Store Planners ("Respondent" or "ISP"), a corporation, has
violated and is violating the provisions of Section 5 of the Federal Trade Commission Act, 15 U.S.C.
§ 45, and it appearing to the Commission that a proceeding by it in respect thereof would be in the
public interest, hereby issues this Complaint stating its charges as follows:
PARAGRAPH ONE: Respondent Institute of Store Planners, is a corporation organized and existing
under the laws of the State of New York with its principal office and place of business at 25 North
Broadway, Tarrytown, New York 10591.
PARAGRAPH TWO: Respondent is a professional association organized for the purpose, among
others, of serving the interests of its members. It has approximately 860 members. ISP's members
consist of professional design practitioners who provide architectural, store design, store
merchandise planning, traffic flow planning, fixture design, lighting design, in-store graphics,
presentation services to retail stores. Its members also consist of trade members, such as,
and suppliers of products and materials used in store design, as well as general contractors who
provide labor and project management services and build the projects.
PARAGRAPH THREE: The general business practices of Respondent and its members, including the
acts and practices herein alleged, are in or affecting "commerce" as defined in the Federal Trade
Commission Act, as amended, 15 U.S.C. § 45.
PARAGRAPH FOUR: Respondent engages in substantial activities for the economic benefit of its
members. At all times relevant to this Complaint, Respondent is and has been organized in
part for the profit of its members, and is therefore a corporation within the meaning of Section 4
Federal Trade Commission Act, as amended, 15 U.S.C. § 44.
PARAGRAPH FIVE: Many of Respondent's members provide store planning services for a fee or are
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3
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
CONSENT AGREEMENT COMPLAINT COMMISSION ACCEPTANCE DRAFT FACTS LAW SERVE CONTEMPLATES PROCEEDING RESPECT THERETO STORE PLANNERS VIOLATION DISPOSITION WITHDRAW PUBLIC RECORD PURSUANT PROPOSED RESPONDENT WAIVES JURISDICTIONAL FACTS YORK OFFICERS HEREBY PRACTICES ACTS FEDERAL TRADE COMMISSION COMPLIANCE MANNER SUBSEQUENTLY WITHDRAWN ADMISSION |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
____________________________________
)
In the matter of )
)
INSTITUTE OF ) File No. 021-0144
STORE PLANNERS, )
)
a corporation. )
____________________________________)
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission ("Commission"), having initiated an investigation of
certain acts and practices of the Institute of Store Planners ("ISP"), and it now appearing that
ISP, hereinafter sometimes referred to as "Proposed Respondent," is willing to enter into this
Agreement Containing Consent Order ("Consent Agreement") providing for relief with respect
to such practices:
IT IS HEREBY AGREED by and between Proposed Respondent, by its duly
authorized officers and attorneys, and counsel for the Commission that:
1. Proposed Respondent, Institute of Store Planners, is a corporation organized and
existing under the laws of the State of New York with its principal office and place of
business at 25 North Broadway, Tarrytown, New York 10591.
2. Proposed Respondent admits all the jurisdictional facts set forth in the draft of Complaint
here attached.
3. Proposed Respondent waives:
(a) any further procedural steps;
- 1 -
(b) the requirement that the Commission's Decision and Order ("Order"), here
attached and made a part hereof, contain a statement of findings of fact and
conclusions of law;
(c) all rights to seek judicial review or otherwise to challenge or contest the validity
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4
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ANALYSIS
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EXTRACTED KEY WORDS
MEMBERS STORE COMPETITION PROPOSED CONSENT ORDER CONSENT ORDER COMPLAINT AGREEMENT ETHICS STORE PLANNING COMPLAINT ALLEGES DESIGN STORE PLANNERS PROVISIONS PRICE FEDERAL TRADE COMMISSION WEBSITE RESTRAIN ACT CHARGES FEE PRACTITIONERS PUBLIC RECORD ISP INTERNATIONAL NEWS GUIDELINEINCLUDING POLICY STATEMENT MONITOR COMPLIANCE RESTRICTING DISCOURAGING CONSUMERS |
ANALYSIS OF PROPOSED CONSENT ORDER
TO AID PUBLIC COMMENT
_______________________________________________________________
The Federal Trade Commission has accepted an agreement to a proposed
consent order from the Institute of Store Planners ("ISP"). ISP has
its principal place of business in Tarrytown, New York.
The proposed consent order has been placed on the public record for
thirty (30) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received, and decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
ISP's membership is composed of professional design practitioners who
provide architectural, store design, store planning, merchandise
planning, traffic flow planning fixture and lighting design, in-store
graphics and visual presentation services to retail stores. Its
membership is also comprised of trade members such as suppliers and
fabricators of products and materials used in store design, as well as
general contractors who provide labor and project management services
and build the projects.
The complaint alleges that ISP engages in substantial activities for
the economic benefit of its members. The complaint alleges that ISP
has approximately 800 members, many of whom provide store planning
services for a fee or who are employed by store planning or design
firms that provide store planning services for a fee. It alleges that
ISP is and has been organized in substantial part for the profit of
its members.
The complaint charges that ISP has violated Section 5 of the Federal
Trade Commission Act by acting as a combination of its members and in
agreement with some of its members to restrain price and non-price
competition among its members and others. The complaint alleges that
in furtherance of the combination and agreement, ISP has adopted and
maintained provisions in its Code of Ethics that state, among other
things, "a member shall not render professional services without
compensation" (ISP Code of Ethics, Section 2) and "a member shall not
knowingly compete with another member on the basis of professional
charges, or use donations as a device for obtaining professional
advantage" (ISP Code of Ethics, Section 3). The Code also provides
that "a member shall not offer his services in competition except as
provided by such competition codes as the Institute may establish"
(ISP Code of Ethics, Section 4). Applicants for membership in ISP must
agree in writing to follow ISP's By-laws, which contain its Code of
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