Are slotting allowances legal?
According to Oct. 20, 1999, testimony by Willard K. Tom, deputy director of the FTCs Bureau of Competition, before the House Judiciary Committee, the legality of slotting practices can be determined only in light of all the surrounding facts and circumstances. Even in cases where a small supplier cannot afford a high slotting fee, the practice can be deemed legal, he said, as long as the market remains competitive and consumers receive the benefits of low prices and wide product selection.
