Annual Report 1989 3
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1989 ANNUAL REPORT U.S. FEDERAL TRADE COMMISSION WASHINGTON, D.C. Annual Report of the FEDERAL TRADE COMMISSION For the Fiscal Year Ended September 30, 1989 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 FEDERAL TRADE COMMISSION DANIEL OLIVER, Chairman* JANET D. STEIGER, Chairman** TERRY CALVANI, Commissioner MARY L AZCUENAGA, Commissioner ANDREW J. STRENIO, JR., Commissioner MARGOT E. MACHOL, Commissioner*** DONALD S. CLARK, Secretary __________ * From April 21, 1986 to August 10, 1989. ** Sworn in August 11, 1989. *** From November 29, 1988 to October 24, 1989. ii EXECUTIVE OFFICES OF THE FEDERAL TRADE COMMISSION Pennsylvania Avenue at Sixth Street, N.W. Washington, D.C. 20580 Regional Offices Atlanta, Georgia Denver, Colorado Room 1000 Suite 2900 1718 Peachtree Street, N.W. 1405 Curtis Street Zip Code: 30367 Zip Code: 80202-2393 Boston, Massachusetts Los Angeles, California Room 1184 Room 13209 10 Causeway Street 11000 Wilshire Boulevard Zip Code: 02222-1073 Zip Code: 90024 Chicago, Illinois New York, New York Suite 1437 150 William Street 55 East Monroe Street 13th Floor Zip Code: 60603 Zip Code: 10038 Cleveland, Ohio San Francisco, California Suite 520-A 901 Market Street 668 Euclid Avenue Suite 570 Zip Code: 44114 Zip Code: 94103 Dallas, Texas Seattle, Washington Suite 500 28th Floor - Federal Building 100 N. Central Expressway 915 Second Avenue Zip Code: 75201 Zip Code: 98174 iii LETTER OF TRANSMITTAL July 13, 1990 The Honorable Dan Quayle President of the Senate United States Senate Washington, D.C. 20510 The Honorable Thomas Foley The Speaker of the House House of Representatives Washington, D.C. 20515 Dear Mr. President and Mr. Speaker: It is a pleasure to transmit the seventy-fifth Annual Report of the Federal Trade Commission covering its accomplishments during the fiscal year ended September 30, 1989. By direction of the Commission. Janet D. Steiger Chairman iv FEDERAL TRADE COMMISSION 1989 ANNUAL REPORT Table of Contents page Summary.................................................................................................................................................1 Maintaining Competition Mission..........................................................................................................3 Premerger Notification.....................................................................................................................4 Mergers and Joint Ventures..............................................................................................................4 Horizontal Restraints........................................................................................................................8 Distributional Restraints.................................................................................................................10 Single Firm Violations...................................................................................................................10 Antitrust Policy Analysis...............................................................................................................11 Consumer Protection Mission...............................................................................................................11 Advertising Practices......................................................................................................................11 Marketing Practices........................................................................................................................13 Credit Practices..............................................................................................................................17 Service Industry Practices..............................................................................................................18 Enforcement...................................................................................................................................21 Office of Consumer and Business Education.................................................................................24 Economic Support..........................................................................................................................25 Economic Activities..............................................................................................................................25 Antitrust..........................................................................................................................................25 Consumer Protection......................................................................................................................26 Regulation......................................................................................................................................26 Executive Direction, Administration and Management, and Regional Offices.............................................................................................................................26 Appendix Part II (Investigative Stage) Consent Agreements Accepted and Published for Public Comment Maintaining Competition Mission.................................................................................................31 Consumer Protection Mission........................................................................................................34 Part II (Investigative Stage) Consent Orders Issued Maintaining Competition Mission.................................................................................................35 Consumer Protection Mission........................................................................................................39 v Part III Administrative Complaints Maintaining Competition Mission.................................................................................................42 Consumer Protection Mission........................................................................................................45 Part III (Adjudicative Stage) Consent Agreements Accepted and Published for Public Comment Maintaining Competition Mission.................................................................................................47 Consumer Protection Mission........................................................................................................47 Part III (Adjudicative Stage) Consent Orders Issued Maintaining Competition Mission.................................................................................................48 Consumer Protection Mission........................................................................................................49 Initial Decisions Maintaining Competition Mission.................................................................................................49 Consumer Protection Mission........................................................................................................50 Final Commission Orders Maintaining Competition Mission.................................................................................................50 Consumer Protection Mission........................................................................................................52 Order Modifications Maintaining Competition Mission.................................................................................................53 Consumer Protection Mission........................................................................................................55 Preliminary and Permanent Injunctions Maintaining Competition Mission.................................................................................................56 Consumer Protection Mission........................................................................................................58 Civil Penalty Actions Maintaining Competition Mission.................................................................................................69 Consumer Protection Mission........................................................................................................70 Economic Reports Completed..............................................................................................................74 Economic Issues Series.........................................................................................................................76 Working Papers.....................................................................................................................................76 Miscellaneous Economic Policy Papers...............................................................................................77 Consumer and Competition Advocacy.................................................................................................78 Table of Cases Listed in Appendices....................................................................................................98 vi SUMMARY The Federal Trade Commission enforces a variety of federal antitrust and consumer protection laws. The Commission seeks to ensure that the nation's markets function competitively, and are vigorous, efficient, and free of undue restrictions. The Commission also works to enhance the smooth operation of the marketplace by eliminating acts or practices that are unfair or deceptive. In general the Commission's efforts ate directed to stopping actions that threaten consumers' opportunities to exercise informed choice. Finally, the Commission undertakes economic analysis to support