9710039
B241961
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
FASTLINE PUBLICATIONS, INC., and MID-AMERICA EQUIPMENT RETAILERS
ASSOCIATION, corporations.
Docket No. C-3819
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, having reason to believe that Fastline Publications, Inc.
("Fastline"), and Mid- America Equipment Retailers Association
("Mid-America"), hereinafter sometimes referred to as respondents, have violated
and are violating 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: For purposes of this complaint, the following definitions shall
apply:
A. "Fastline" means Fastline Publications, Inc., its directors, officers,
employees, agents and representatives, predecessors, successors and assigns; its
subsidiaries, divisions, groups and affiliates controlled by Fastline, and the respective
directors, officers, employees, agents and representatives, successors, and assigns of
each.
B. "Kentucky Retailers Association" means the Kentucky Farm and Power
Equipment Retailers Association, its directors, officers, employees, agents and
representatives, predecessors, successors and assigns; its subsidiaries, divisions, groups
and affiliates controlled by the Kentucky Retailers Association, and the respective
directors, officers, employees, agents and representatives, successors, and assigns of
each.
C. "Mid-America" means the Mid-America Equipment Retailers Association, its
directors, officers, employees, agents and representatives, predecessors, successors and
assigns; its subsidiaries, divisions, groups and affiliates controlled by Mid-America, and
the respective directors, officers, employees, agents and representatives, successors, and
assigns of each.
D. "Person" means any natural person, corporate entity, partnership,
association, joint venture, government entity, trust, or other entity.
PARAGRAPH TWO:
A. Fastline is a corporation organized, existing, and doing business under and by
virtue of the laws of the State of Kentucky, with its principal office and place of
business located at 4900 Fox Run Road, Buckner, Kentucky 40010.
B. Fastline is engaged in the business of publishing and publishes, among other things,
picture buying guides for new and used farm equipment under the name "Fastline."
Farm equipment advertised in Fastline ranges from lawn mowers to heavy duty farm equipment
such as tractors, plows, planters, cotton pickers, and combines. Fastline currently
publishes 20 monthly editions of its farm equipment buying guides, serving 41 states.
Thirteen editions are state-specific editions (e.g., Fastline Kentucky Farm Edition); and
seven are regional editions (e.g., Fastline Southeast Farm Edition (covering Georgia,
Florida, and Alabama)). Approximately 20,000 copies of each edition are distributed free
of charge each month. Farm equipment dealers view the Fastline Kentucky Farm Edition as a
key vehicle for advertising to farmers in Kentucky. Fastline’s principal source of
revenue is its advertisers who pay from a few hundred dollars per month per edition for a
half page, black and white advertisement, to more than a thousand dollars per month per
edition for a two-page, full color advertisement.
PARAGRAPH THREE:
A. Mid-America is a not-for-profit corporation organized, existing, and doing business
under and by virtue of the laws of the State of Indiana. Its principal office and place of
business are located at 9800 Association Court, Indianapolis, Indiana 46280. Mid-America
was formed in 1992 through the merger of the Indiana Implement Dealers Association, Inc.,
and the Kentucky Retailers Association. At the time of the merger, the members of the
Indiana Implement Dealers Association and the Kentucky Retailers Association became
members of Mid-America.
B. Mid-America is a trade association organized in substantial part to represent the
interests of its members. Mid-America has approximately 500 members, constituting
approximately 90% of the farm equipment dealers in Indiana and Kentucky. Mid-America
engages in substantial activities that further its members’ pecuniary interests. By
virtue of its purposes and activities, Mid-America is a corporation within the meaning of
Section 4 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 44.
C. Most of Mid-America’s members are farm equipment dealers engaged in the
advertising, offering for sale, and sale of agri-business, outdoor power, farm, industrial
and construction equipment and products or services in Indiana and Kentucky. Except to the
extent that competition has been restrained as alleged herein, Mid-America’s members
have been and are now in competition among themselves and with other farm equipment
dealers.
PARAGRAPH FOUR: The acts and practices of the respondents, including the acts
and practices alleged herein, are in or affect commerce, as "commerce" is
defined in the Federal Trade Commission Act, as amended, 15 U.S.C. § 45.
PARAGRAPH FIVE:
A. The Kentucky Retailers Association and members of the Kentucky Retailers Association
have combined or conspired between and among themselves to restrain trade in the
advertising, offering for sale, and sale of new farm equipment, by agreeing to cancel or
agreeing to threaten to cancel advertising in the Fastline Kentucky Farm Edition in
retaliation for Fastline publishing prices for new farm equipment.
B. The Kentucky Retailers Association, Fastline, and members of the Kentucky Retailers
Association have combined or conspired between and among themselves to restrain trade in
the advertising, offering for sale, and sale of new farm equipment, by agreeing not to
advertise prices for new farm equipment in the Fastline Kentucky Farm Edition.
C. Mid-America, Fastline, and members of Mid-America have combined or conspired between
and among themselves to restrain trade in the advertising, offering for sale, and sale of
new farm equipment, by agreeing not to advertise prices for new farm equipment in the
Fastline Kentucky Farm Edition.
PARAGRAPH SIX: The Kentucky Retailers Association, members of the Kentucky
Retailers Association, Mid-America, members of Mid-America, and Fastline have engaged in
various acts and practices in furtherance of this combination or conspiracy, including,
among other things:
A. In or about February 1991, the Kentucky Retailers Association and at least some of
the Kentucky Retailers Association’s members withdrew or otherwise canceled, or urged
other members to withdraw or otherwise cancel, advertisements in the Fastline Kentucky
Farm Edition in retaliation for Fastline publishing advertisements that included prices
for new equipment;
B. In or about February 1992: (1) the Kentucky Retailers Association and at least some
member of the Kentucky Retailers Association threatened to withdraw or otherwise cancel
advertisements in the Fastline Kentucky Farm Edition if Fastline continued to publish
advertisements that included prices for new equipment; and (2) as a result, Fastline, the
Kentucky Retailers Association, and the members of the Kentucky Retailers Association
agreed not to advertise prices for new farm equipment in the Fastline Kentucky Farm
Edition; and
C. In or about June 1993: (1) Mid-America and members of Mid-America urged Fastline to
abstain from publishing prices for new equipment and parts in all Fastline farm equipment
buying guides; and (2) as a result, Fastline, Mid-America, and the members of Mid- America
agreed not to advertise prices for new farm equipment in the Fastline Kentucky Farm
Edition.
PARAGRAPH SEVEN: The acts and practices of the respondents, as described in
Paragraphs Five and Six, have had the purpose or effect, or the tendency and capacity, to
restrain competition unreasonably and to deprive consumers of the benefits of competition
in one or more of the following ways, among others:
A. by reducing and restraining price competition among farm equipment dealers for new
farm equipment;
B. by depriving consumers of truthful and nondeceptive price information concerning
farm equipment dealers’ products; and
C. by depriving consumers of the benefits of competition among farm equipment dealers
in the advertising, offering for sale, and sale of new farm equipment.
PARAGRAPH EIGHT: The aforesaid acts and practices of the respondents are to the
prejudice and injury of the public and constitute unfair methods of competition in or
affecting commerce in violation of Section 5 of the Federal Trade Commission Act, as
amended, 15 U.S.C. § 45. The acts and practices of the respondents, as herein alleged,
are continuing and will continue or recur in the absence of the relief requested.
WHEREFORE, THE PREMISES CONSIDERED, the Federal Trade Commission on this
twenty-eighth day of July, 1998, issues its complaint against said respondents.
By the Commission.
Donald S. Clark
Secretary
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