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Antitrust Keyed to Areeda, 8th Ed.
Fashion Originators’ Guild of America v. Federal Trade Commission
Citation:
312 U.S. 457, 61 S.Ct. 703, 85 L.Ed. 949 (1941)Facts
The Fashion Originators’ Guild of America (FOGA) was an organization of women’s garment manufacturers and textile manufacturers who claimed to create original dress and fabric designs. These designs were neither copyrighted nor patented, but FOGA members sought to prevent “style piracy” – the copying of their designs by competitors who typically sold the copies at lower prices. To combat this practice, FOGA established an elaborate system including a Design Registration Bureau, a red card system identifying non-cooperating retailers, and a white card system for cooperating retailers. FOGA members agreed not to sell to retailers who sold copied designs. The Guild employed “shoppers” to inspect retailers’ merchandise and maintained tribunals to determine if designs were copied. Through threats and coercion, FOGA secured agreements from approximately 12,000 retailers. FOGA members controlled a significant portion of the women’s garment market, selling more than 38% of all women’s garments wholesaling at $6.75 and up, and more than 60% of those at $10.75 and above. The Guild also regulated many other aspects of members’ business practices, including advertising, discounts, and sales practices.
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