Skip to main content
Log in

The Ethics of Slotting: Is this Bribery, Facilitation Marketing or Just Plain Competition?

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The practice of manufacturers' payments of fees to retailers for the display and sale of their products has become a common practice. In the grocery retail business, the fees paid by manufacturers are called slotting fees, or a payment made for a slot on the shelf. The same practice is used now in the retail book industry. Large book chains command high fees from publishers for the prominent display of books. Entrepreneur's products are often precluded from stores and markets because slotting fees are prohibitive. The fees are non-uniform and often paid in cash, creating an atmosphere that has already spawned illegal activity on the part of retail executives. This article examines the ethics of slotting fees.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aalberts, R. J. and L. Lynn Judd: 1991, ‘Slotting in the Retail Grocery Business: Does It Violate the Public Policy Goal of Protecting Business Against Price Discrimination?’ DePaul Law Review 40, 397–416.

    Google Scholar 

  • Deloitte Touche: 1997, Questions at Stockholders' Meeting.

  • Fiser, J.: 1996, ‘Do Businesses Have Moral Obligations Beyond What the Law Requires?’ Journal of Business Ethics, April, 457–468.

  • Foreign Corrupt Practices Act: 1997, 15 U.S.C. § 78m(b).

  • Friedman, M.: 1970, ‘The Social Responsibility of Business is to Increase its Profits’, The New York Times Magazine, Sept. 13, 32–33, 122- 126.

  • Gibson, R.: 1988, ‘Supermarkets Demand Food Firms’ Payments Just to Get on the Shelf’, Wall Street Journal, Nov. 1, A1 and A14.

  • Grand Union v. FTC, 300 F 2d 92 (2d Cir. 1962).

  • Greenstein, J.: 1995, ‘Battle for Shelf Space Puts Publishers in Financial Bind’, Video Business 15(26), 42.

    Google Scholar 

  • Greenwald, J.: 1996, ‘Frito-Lay Under Snack Attack’, Time, June 30, 62–63.

  • Hetrick, Ross: 1995, ‘Ice Cream Firm Frozen’, Baltimore Sun, Sept. 25, 13C.

  • Interviews with manufacturers and retailers conducted from 1995- 1997. The authors pledged anonymity to these sources.

  • Laczniak, G.: 1983, ‘Business Ethics: A Managers' Primer’, Business, Jan. 23–29.

  • 'Policy Hearings Shift Focus to FTC Impact on Small Business': 1995, BNA Antitrust and Trade Regulation Report 69 (1738), 581.

  • Ross, B.: 1995, ‘Money Talks 20/20’, Nov. 10, Transcript #1545.

  • Somervill, Sean: 1996, ‘High Price of Shelf Space’, Baltimore Sun, 10, 4D.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Aalberts, R.J., Jennings, M.M. The Ethics of Slotting: Is this Bribery, Facilitation Marketing or Just Plain Competition?. Journal of Business Ethics 20, 207–215 (1999). https://doi.org/10.1023/A:1006081311334

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1006081311334

Keywords

Navigation