us-ftc-advisory-opinions-7ee94eddadf7a1cd667c876526de24e3•Independent Video Services
Independent Video Services
us-ftc-advisory-opinions-7ee94eddadf7a1cd667c876526de24e3Independent Video ServicesGuidance
re: Concerning price differences in the sale of educational video programs to physicians and hospitals.
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION K'ASMINGTON. D.C. 20580 January 1 7 , 1990 Bonnie B. Larson Marketing Manager Independent Video Services Nult Plaza, Suite 160 401 East 10th Avenue Eugene, Oregon 97401 Dear Ms. Larson: This is in response to your letter of Septe r 28, 1989, requesting an advisory opinion regarding t b pricing structure for educational video progrants that Independent Video Services (PVS) intends to produce and distribute. Pour letter was referred to me because I direct the office within the CommissionQsBureau of Competition %hat is responsible for investigating possible restraints on competition in health care service markets. In a telephone conversation on November 21, 1989, with Judy Moreland of this office, I understand that the distinction between Commission and staff advisory opinions was explained to you. At that time, you indicated that IVSisneeds would be served by a staff advisory opinion. Based on your letter and additional information given to us by telephone, I understand that IVS produces educational video programs and distributes then to schools, libraries, and professionals. IVS is planning a new video that will be marketed primarily to physicians and health institutions. The videos would be purchased for use by the buyer and not for resale. Because of differences in marketing costs, IVS intends to charge institutional buyers a higher price than will be charged to physicians. The Roblnson-Patman Act generally prohibits a seller in interstate commerce from discriminating in price between purchasers of goods, where the effect of the discrimination may be substantially to lessen competition among those buyers or their customers. However, a seller may charge different prices to buyers in competition with one another to the extent that the price differential reflects differences in the cost of manufacture, sale or delivery of such goods to such buyers. The Act also permits sellers to offer lower prices to customers to meet a competitor's price.
0 Bonnie B. Larson -- Page 2 Based on the infomation p u have given us, it does not appear that IVS- proposed sales of videos is likely to violate the Robinson-Patman Act, hcause it does not appear that such sales are likely to cause any injury to competition. In the first place, many of the institutional buyers who will be charged the higher price appear not to be in competition with the individual physicians who will receive the more favorable price, Sales at different prices to buyers who do not compete with one another, and who do not resell to customers who compete with one another, do not run afoul of the Robinson-Patman Act. Second, even to the extent that some inslAtu%ions, such as hospitals, may cc)mpe%e with individual p%ryeicians, it does not appear likely that charging a higher peiee to Lhe institutions will cause the injury Lo competition Lhat is a necessaq element of a violation of the Robinson-Patman A c t . The videos will be purchased for use by the buyer, not for resale. Therefore, the higher price charged to some buyers will not affect competition in any resale market. In the market for health ease services, where competition between pwsicians and hospitals may exist to a limited extent, there does not appear to be any reasonable probability that having to pay a higher price for educational videos will hpair the ability of the hospitals to compete with physicians. The videos are rplatively inexpensive, and it is nota anticipated that any institution would purchase them in large quantities. As a result, the price difference would not be likely to have a substantial effect on competition between hospitals and physicians. This opinion is that of staff of the Bureau of Competition only. Under the Comissionls Rules of Practice 1.3(c), the Commission is not bound by this advice and reserves the right to rescind it at a later time and take such action as the public interest may require. This office retains the right to reconsider the questions involved and, with notice to the requesting party, to rescind or revoke its opinion if implementation of the proposed progragl results in substantial anticompetitive effects, if the progrm is used for improper purposes, or if it would be in the public interest to do so, Sincerely, / Assistant Director
Ti chiedi come si applica questo testo alla tua situazione?
Consulenza gratuita, senza impegno
Descrivi la tua situazione. Il nostro team ti ricontatterà via e-mail per la tua consulenza.
Continua la tua ricerca in ChatGPT o Claude
Collega Omnilex per cercare nel corpus legale dal tuo assistente IA.