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- From: john.navas@uttsbbs.uucp (John Navas)
- Newsgroups: comp.dcom.modems
- Subject: RE: GATEWAY TELEPATH @ $1
- Message-ID: <6939.48.uupcb@uttsbbs.uucp>
- Date: 15 Dec 92 09:31:00 GMT
- Reply-To: john.navas@uttsbbs.uucp (John Navas)
- Organization: The Transfer Station BBS, Danville, CA - 510-837-4610/837-5591
- Lines: 48
-
- mrosen@nyx.cs.du.edu (Michael Rosen) writes:
-
- JN> If you will carefully check the ads you will see that the
- JN> TelePath is indeed advertised as a separate product that will
- JN> only be sold to those that purchase or have previously purchased
- JN> a *separate* Gateway computer system (*any* Gateway system).
- JN> That is clearly a per se unlawful tie-in sales practice.
-
- > How is that an unlawful sales practice? I certainly think it's
- > limiting themselves to the potential customers they could get if
- > they opened up sales to anyone (which they seem to have done,
- > according to your experience). But I don't see how only selling to
- > existing Gateway owners is unlawful. I really don't think Zeos or
- > any of these other mail order companies that advertise in Computer
- > Shopper are going to sell me a hard drive or whatever as a separate
- > item.
-
- There is usually nothing wrong with "bundling" (the exception being a
- company with "market power" as defined by the anti-trust laws),
- particularly where bundled products are also available separately
- (albeit at a higher total price). But product tie-in sales (which
- *coerce* additional unwanted sales) are per se unlawful.
-
- A tie-in sale is one in which the sale of a desirable product (in this
- case the TelePath) is conditioned on the sale of a less desirable
- and/or more expensive product (in this case a Gateway computer).
-
- It would probably be OK for Gateway to only sell the TelePath
- *installed* in a computer (i.e., as a component), but not to sell it
- as a separate product only to those that also buy a computer. The key
- point is that Gateway will also sell a modem to those that have
- *previously* bought any Gateway computer, even if the purchases are
- completely unrelated.
-
- Gateway compounds the problem by running ads from time to time that
- promote the TelePath without disclosing any sales condition.
-
- Gateway probably could have achieved its objective lawfully by selling
- the TelePath at different prices depending on whether a computer was
- part of the sale ( assuming that the difference was justified and
- therefore not unlawful price discrimination :).
-
- Best regards,
- John
-
- CAVEAT: I am not a lawyer and this is not legal advice. The above is
- only my understanding as a layman. Consult your own attorney.
-
-