UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
- Robert Pitofsky, Chairman
- Mary L. Azcuenaga
- Sheila F. Anthony
- Mozelle W. Thompson
- Orson Swindle
In the Matter of
Sensormatic Electronics Corporation, a corporation.
DOCKET NO. C-3795
DECISION AND ORDER
The Federal Trade Commission ("Commission"), having initiated an
investigation of certain acts and practices of the respondent named in the caption hereof,
and the respondent having been furnished thereafter with a copy of a draft of complaint
which the Bureau of Competition proposed to present to the Commission for its
consideration and which, if issued by the Commission, would charge the respondent with
violation of the Federal Trade Commission Act; and
The respondent and counsel for the Commission having thereafter executed an agreement
containing a consent order, an admission by respondent of all the jurisdictional facts set
forth in the aforesaid draft of complaint, a statement that the signing of said 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, and waivers and other provisions
as required by the Commission's Rules; and
The Commission having thereafter considered the matter and having determined that it
had reason to believe that the respondent has violated the said Act, and that a complaint
should issue stating its charges in that respect, and having thereupon accepted the
executed consent agreement and placed such agreement on the public record for a period of
sixty (60) days, now in further conformity with the procedure described in § 2.34 of its
Rules, the Commission hereby issues its complaint, makes the following jurisdictional
findings and enters the following order:
- Respondent Sensormatic Electronics Corporation is a corporation organized, existing, and
doing business under and by virtue of the laws of the State of Delaware with its office
and principal place of business located at 951 Yamato Road, Boca Raton, Florida 33431.
- The Federal Trade Commission has jurisdiction of the subject matter of this proceeding
and of the respondent, and the proceeding is in the public interest.
IT IS ORDERED that, as used in this order, the following definitions shall
A. Respondent means Sensormatic Electronics Corporation.
B. Sensormatic Electronics Corporation means Sensormatic Electronics
Corporation, its directors, officers, employees, agents and representatives, predecessors,
successors, and assigns; its subsidiaries, divisions, groups and affiliates controlled by
Sensormatic Electronics Corporation, and the respective directors, officers, employees,
agents, and representatives, successors, and assigns of each.
C. Checkpoint Systems, Inc. means Checkpoint Systems, Inc., its directors,
officers, employees, agents and representatives, predecessors, successors, and assigns;
its subsidiaries, divisions, groups and affiliates controlled by Checkpoint Systems, Inc.,
and the respective directors, officers, employees, agents, and representatives,
successors, and assigns of each.
D. EAS system means electronic article surveillance equipment, including,
but not limited to, sensors, deactivation equipment, labels or tags, source tags or
labels, and any other component parts or related products.
IT IS FURTHER ORDERED that within three (3) days after the date this order
becomes final, respondent shall declare null and void Section 4, the Negative
Advertising provision, of the June 27, 1993 agreement between Checkpoint Systems,
Inc. and respondent.
IT IS FURTHER ORDERED that respondent, directly or indirectly, or through any
person, corporation, subsidiary, division or other device, in connection with the
manufacture, advertising, offering for sale, sale or distribution of any EAS system, in or
affecting commerce, as commerce is defined in the Federal Trade Commission
Act, forthwith cease and desist from:
A. Entering into, attempting to enter into, organizing, continuing, carrying out, or
acting in furtherance of any agreement or combination, either express or implied, that
prohibits, restricts, impedes, interferes with, restrains, places limitations on, or
advises against engaging in truthful, non-deceptive advertising, comparative advertising,
and promotional and sales activities; and
B. Encouraging, advising, pressuring, assisting, inducing, or attempting to induce any
non-governmental person or organization to engage in any action prohibited by this order.
IT IS FURTHER ORDERED that respondent shall:
A. Within thirty (30) days of the date on which this order becomes final, provide a
copy of this order to all of its directors and officers;
B. For a period of three (3) years from the date on which this order becomes final, and
within ten (10) days after the date on which any person becomes a director or officer of
respondent, provide a copy of this order to such person; and
C. Require each person to whom a copy of this order is furnished pursuant to
subparagraphs IV.A and B of this order to sign and submit to its respective employer named
as a respondent within thirty (30) days of the receipt thereof a statement that: (1)
acknowledges receipt of the order; (2) represents that the undersigned has read and
understands the order; and (3) acknowledges that the undersigned has been advised and
understands that non-compliance with the order may subject the respondent to civil
penalties for violation of the order.
IT IS FURTHER ORDERED that respondent shall:
A. Within sixty (60) days from the date on which this order becomes final, and annually
thereafter for five (5) years on the anniversary of the date this order becomes final, and
at such other times as the Commission may by written notice to the respondent require,
file with the Commission a verified written report setting forth in detail the manner and
form in which respondent has complied and is complying with this order;
B. For a period of five (5) years after the order becomes final, maintain and make
available to the staff of the Federal Trade Commission for inspection and copying, upon
reasonable notice, all records of communications with EAS competitors relating to any
aspect of advertising, and records pertaining to any action taken in connection with any
activity covered by parts II, III, IV, and V of this order; and
C. Notify the Commission at least thirty (30) days prior to any proposed change in
corporate respondent such as dissolution, assignment, sale resulting in the emergence of a
successor corporation, or the creation or dissolution of subsidiaries or any other change
in the corporation that may affect compliance obligations arising out of this order.
IT IS FURTHER ORDERED that this order shall terminate on April 6, 2018.
By the Commission, Commissioner Thompson and Commissioner Swindle not participating.
Benjamin I. Berman
-ISSUED: April 6, 1998