
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, October 12, 1993                   TAG: 9310120040
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

FTC SEEKS DATA ON CD PRICE FIXING

The Federal Trade Commission has asked major music companies to provide information by Oct. 18 about compact-disc sales for an investigation into alleged price fixing, industry officials acknowledged Monday.

The FTC has requested information from Sony, MCA Music Entertainment Group, Time Warner and other music companies, said Trish Heimers, vice president of corporate communication for Bertelsmann AG, parent of Bertelsmann Music Group. Heimers declined to comment on the investigation.

Spokeswoman Paula Batson acknowledged that MCA had been asked to furnish information for the investigation.

The FTC in June began an investigation to determine if CD manufacturers were illegally retaliating against record stores for selling used disks, industry officials acknowledged.

Several retail chains, including Record Exchange, said record producers had withheld cooperative advertising and promotional material because the retailer was selling used CDs, Heimers said. Such an action would be a violation of the anti-boycott provisions of the Robinson-Patman Act.

Record Exchange, based in Charlotte, N.C., operates 15 stores, including several in the Roanoke and New River valleys.

Heimers said BMG did not withhold cooperative advertising money, but other companies that did have since ceased the practice.

by CNB