, Volume 20, Issue 3, pp 207-215

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

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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.