FTC Releases Report on Slotting Fees

FTC Releases Report on Slotting Fees

WASHINGTON--Released on Feb. 20, the "Report on the Federal Trade Commission [FTC] Workshop on Slotting Allowances and Other Marketing Practices in the Grocery Industry" is a staff report that details last year's public workshop on slotting allowances. The staff advised FTC to gather data on current industry practices and recommended that it should continue to pursue anticompetitive conduct on a case-by-case basis.

Slotting allowances are lump-sum, up-front payments from a manufacturer to a retailer to carry a new product. The FTC staff report also included views that were expressed at the workshop, such as the claimed benefits and harms of these kind of marketing activities, and topics raised by supermarkets' reliance on suppliers designated as 'category' captains who gave advice and assistance in managing particular department in retailers' stores.

The FTC staff concluded that the agency should conduct empirical studies on slotting allowances, beginning with gathering data on current grocery marketing practices. The Commission approved the staff report 5-0. For a copy of the report, visit www.ftc.gov/opa/2001/02/slotting.htm.