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Response to Promotion Marketing Association's Request for Business ...

Source: www.usdoj.gov
Topic: Promotion

Sort Desciption: This letter responds to your request for the issuance of a business ... promotion agencies and other concerns active in the promotion marketing industry. ...

Content Inside: DEPARTMENT OF JUSTICE Antitrust Division JOHN M. NANNES Acting Assistant Attorney General Main Justice Building 950 Pennsylvania Avenue N.W. Washington D.C. 20530-0001 (202) 514-2401 / (202) 514-6543 (f) antitrust@justice.usdoj.gov (internet) http://www.usdoj.gov (World Wide Web) Claire Rosenzweig CAE Executive Director Promotion Marketing Association Inc. 257 Park Avenue South # 1102 New York New York 10010-7304 Dear Ms. Rosenzweig: This letter responds to your request for the issuance of a business review letter pursuant to the Department of Justices Business Review Procedure 28 C.F.R. 50.6. You have requested a statement of the Antitrust Divisions current enforcement intentions with respect to a proposal under which the Promotion Marketing Association (PMA) would receive aggregate and distribute information relating to mail-order fraud in order to facilitate effective law enforcement against such conduct. PMA is an association of consumer product and services manufacturers and providers promotion agencies and other concerns active in the promotion marketing industry. In 1995 some of its members initiated an information exchange to facilitate effective law enforcement efforts against rebate fraud. See Business Review letter dated July 18 1995. At this time PMA proposes to expand its existing information exchange program in order to reduce mail-order fraud conduct whose cost to mail-order manufacturers has been estimated to be some $500 million a year. Although the methods used vary the essence of mail-order fraud is that the perpetrators fail to pay for merchandise actually received through the mail; they falsely claim that the merchandise was not received. In some cases the perpetrators use aliases and multiple addresses. PMA asserts that it is difficult for individual manufacturers to convince law enforcement officials to pursue mail-order fraud because of the large number of such cases some of which involve relatively small losses. Of ...

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