Petitioner, Gold Strike Stamp Company, seeks a writ of mandamus from this court 1 staying an order issued by District Judge A. Sherman Christensen in the Central Division of the District of Utah in the case of Gardner v. Gold Strike Stamp Company. The order in question found that a class action was appropriate and called for a notice to be sent to all class members.
We have previously stated that “[wjrits of mandamus and prohibition are drastic and extraordinary remedies and should be used sparingly by appellate courts. When used against a trial court, there must be a clear showing of abuse of discretion by the trial court and the right to such relief must appear clear and undisputable.” Texas Gulf Sulphur Co. v. Ritter,
The instant suit involves allegations of various antitrust violations by Gold Strike Stamp Corporation in the initiation of and conduct of their trading stamp business in the State of Utah. 4 The plaintiffs, B. Delos, Vern, Lincoln, Darrel and Ken Gardner, and the class of injured parties they seek to represent are petroleum retailers, i. e., service station operators, within the State of Utah. They allege that the defendant corporation, Gold Strike Stamp, was set up and controlled by the retail food industry and has acted in concert with the retail food stores to monopolize the trading stamp business within the retail food industry in the State. Plaintiffs allege that since the retail food stores represent the majority of all retail sales, a large demand for defendant company’s trading stamps was created which forced the plaintiffs to take part in the trading stamp program and in particular with Gold Strike Stamp Company. It is further alleged that the retail food stores were sold a pad of 5,000 stamps from Gold Strike for approximately $8.00 whereas plaintiffs were charged $12.50 for the identical book of stamps.
There are four basic theories postulated by the plaintiffs as to Gold Strike’s violations of the antitrust laws.
5
Their first theory is that Gold Strike, by its practices and in conspiracy with its “favored” customers, the retail food industry, has restrained trade and has monopolized the trading stamp business
6
in violation of the provisions of § 1 and § 2 of the Sherman Act, 15 U.S.C. §§ 1, 2. See Northern P. R. Co. v. United States,
Plaintiffs’ second theory of violation is that they were required to enter into franchise agreements with Gold Strike, the provisions of which required the plaintiffs to deal with them to the exclusion of all other trading stamp companies, in violation of § 3 of the Clayton Act, 15 U.S.C. § 14. See Standard Oil Co. of California and Standard Stations v. United States,
Plaintiffs’ third theory of violation is that by selling the stamps to the retail food store industry at a lower price Gold Strike violated § 2 of the Robinson-
*795
Patman Act
7
in that the price difference given to the two different classes had the tendency to or enabled Gold Strike to create a monopoly in the trading stamp business. In particular it was alleged that the price discrimination enabled Gold Strike to saturate the market creating an artificial demand for its stamps and thus enabling it to achieve or tend to achieve a monopoly position in the trading stamp business. See Van Camp & Sons Co. v. American Can Co.,
In each of the above three theories of violation there is little question but that the case is superbly suited for class action. The various elements which plaintiffs must show to establish the requisite violations are common to all members of the alleged injured class, i. e., that the trading stamp business is a line of commerce, that Gold Strike acted in conspiracy or concert with the retail food industry, that Gold Strike discriminated in price between the retail food industry and service station operators, and that Gold Strike achieved a monopoly position in the trading stamp business in the relevant geographical area.
Plaintiffs’ fourth theory of antitrust violation also involves a price discrimination question under § 2 of the Robinson-Patman Act, 15 U.S.C. § 13. As to this theory, plaintiffs are alleging a lessening of competition between themselves and the favored customers, i. e., the retail food industry, on various specific items in which the two classes compete. It is this aspect of the case that petitioner contends unsuitable for the class action procedure.
To be entitled to a recovery under the above theory, plaintiffs must first show that there was a price discrimination on goods of like grade and quality. Federal Trade Comm. v. Borden Co.,
If petitioner’s contentions are true as to what must be shown to establish the required effect upon competition, a definite problem as to the appropriateness of the class action would arise. A sound argument could be made that the suit would then break down into individual suits on the question of liability. In previous 23(b) (3) antitrust cases it appears that a dichotomy has arisen where the question of liability is established by common issues and where the question of liability depends upon the determination of individual issues. Eisen v. Carlisle
&
Jacquelin,
It has been established in this Circuit that the burden is on the plaintiff to show that the alleged price discrimination has an effect on competition. Elgin Corp. v. Atlas Building Products Co.,
In Antitrust Developments, 1955-1968, Supplement Report of the Attorney General’s National Committee to study the Antitrust Laws, 1955, pp. 124-128, it is noted that cases apparently divide along two lines, one showing a trend away from the inference technique and the other relying on the
Morton Salt
doctrine. The two cases relied upon by petitioner,
Minneapolis-Honey well,
supra, and
Quaker Oats,
supra, were both cited as cases illustrative of the trend away from the Morton Salt doctrine. The determination of whether these cases do indeed establish a different theory required for recovery or are the result of different factual situations is not necessary to the result in this case. The defense allowed in Minneapolis and Quaker Oats that the price differential was de minimus in relation to the overall cost and thus could have had no effect upon competition would be available to the petitioner in the instant case. It is important that the statute does not speak of actual effect on competition but rather the plaintiff has merely to establish that there is a reasonable possibility that the price differential in question would have an effect on competition, i. e., Federal Trade Commission v. Morton Salt,
*797
supra; Standard Motor Products, Inc. v. Federal Trade Comm.,
Although the price discrimination alleged is on trading stamps, to determine its effect upon competition between service stations and grocery stores an examination must be made of those purchasable items which are common to both service stations and grocery stores. 10 The stamps are not sold as such, but are rather given with the purchase; still their purchase price must be considered as a part of the cost of the item sold.
In establishing effect on competition the plaintiff must show the relevant market of competition which is traditionally composed of a geographical and a product market. Brown Shoe Co. v. United States,
Likewise on the question of the relevant product market, it is not necessary to examine the effect of competition on each individual item between grocery stores and service stations. It is sufficient that plaintiffs can show as a class that various items did exist upon which competition existed and that the difference in cost between these items resulting from the price differential of the trading stamps did affect competition. Plaintiffs can establish that a service station is a low profit-high turnover business in which the effect of small differences can be major. The fact that this is a small portion of the whole business done by both classes of competitors is irrelevant. See Federal Trade Comm. v. Morton Salt Co., supra,
On the question of damages, of course, each individual will have to show the products that it carried upon which competition existed and the effect of the price discrimination upon its profits and the injury to its business. The fact that there may have to be individual examinations on the issue of damages has never been held, however, a bar to class actions. E. g., Eisen v. Carlisle & Jaeque-lin, supra. In light of the above discussion it is clear that Judge Christensen was correct in his decision that common issues predominate so that a class action under 23(b) (3) is properly allowable.
The cases relied upon by petitioner, Chicken Delight, Inc. v. Harris,
The second element of finding that a particular case is suitable for class action under 23(b) (3) is that the class action be superior to other available methods for fair and efficient adjudication of the controversy. The findings of Judge Christensen that the representative parties are well suited for presenting the claims of the class and that the class action is superior to other available methods of adjudication because of the size of the class, the fact that the class is well known as a group and can be efficiently’managed, and because of the desirability of concentrating the litigation in the State of Utah which is the principal place of business of defendant are not seriously contradicted by petitioner.
Therefore, we find that this case is easily within the limits established by this court in
Hirschi
and by other Circuits applying newly amended Rule 23, e. g., Eisen v. Carlisle & Jacquelin,
The final question in this ease regards petitioner’s claim that the notice approved by Judge Christensen to be sent out to members of the class does not sufficiently describe the various causes of action alleged against petitioner so as to enable a prospective class member to choose between coming in on all of the action or only one or two portions of the action. In examining the comments made concerning the notice provisions of newly amended Rule 23, i. e., 23(c) (2) which requires mandatory notice in case of a (b) (3) class action, the primary concern is apparently to insure that the potential class member is aware of the suit being brought, the nature of the suit and the fact that unless he takes affirmative action he will be bound by the outcome of the suit. See Advisory Committee’s Note,
The writ is denied and petitioner’s action is dismissed.
Notes
. See McClellan v. Carland,
. Since the order allowing the class action does not have finality required for appeal under F.R.Civ.P. 54(a), a very serious question exists as to whether the merits of Gold Strike’s petition should be examined at all. Petitioner claims that irreparable injury will occur if that order is not reviewed at this time in that they will be forced to proceed with expensive discovery procedures and must sustain a heavy trial burden covering all members of the class; that the notice approved by Judge Christensen was incorrectly formulated; and that they fear the question of whether a proper class was constituted will be regarded as harmless error on appeal.
That an order may make the trial more expensive and inconvenient for a party is not in itself sufficient grounds for immediate review although it should be considered. See United States Alkali Export Ass’n v. United States,
In alleging the possibility that on appeal the class action will be regarded as “harmless error’' petitioner refers to change of venue cases, i. e., Whittier v. Emmet,
It is entirely conceivable that the facts presented in a particular case may justify the immediate review of an order allowing a case to proceed as a class action. Whether or not the instant case presents such facts will not be decided. Following a practice which" the Supreme Court has found admissible, we will find the order to be correct and deny the writ without a final decision as to its availability. See Ex Parte Collett,
. The following pertinent findings were made by Judge Christensen in his Order of July 21, 1970.
“(a) Plaintiffs are representative of a class of persons composed of all persons in the State of Utah who deal with Gold Strike Stamps and who are engaged in the retail sale of petroleum products, or who were engaged in the retail sale of petroleum products at any time after January 1, 1965.
“(b) The class of persons alleged is numerous, consisting of several hundred persons, thus making joinder of all members of the alleged class impracticable.
“(c) There are questions of law or fact common to the members of the alleged class, including in particular the policies of Gold Strike Stamp Company with respect to the distribution of its trading stamps and the application of the Federal Antitrust Laws, and the Utah State Unfair Trade Practice Laws, to the practices of defendant, as alleged in plaintiffs’ amended complaint.
“(d) The claims or defenses of the representative parties are typical of the claims or defenses of the members of the class by reason of the probability that market conditions affecting class members in the State of Utah will be substantially the same and by reason of the further fact that the market in which Gold Strike Stamps are distributed by petroleum retailers will, in probability, be the same as between all petroleum retailers in the State of Utah.
“(e) The representative parties will fairly and adequately protect the interests of the class.
“(f) The questions of law or fact common to the members of the class predominate over any questions affecting only individual class members, and the class action is superior to other available methods for the fair and efficient adjudication of the controversy. The factors indicating the desirability of a class action include the probability that a class composed of the petroleum retailers in the State of Utah could be efficiently managed and the desirability of the concentration of litigation concerning the rights of such petroleum retailers in this forum by reason of the presence of the members of the class in the State of-Utah and the presence and principle [sic] place of business of the defendant in the State of Utah.
“(g) The names and addresses of the members of the class are readily ascertainable from the records of defendant Gold Strike Stamp Company.”
. The original complaint included the entire operating area of Gold Strike Stamp Corporation, an alleged four state area; however, the scope of this action was reduced and now concerns solely the happenings within the confines of the State of Utah.
. In addition, plaintiffs set out that defendants violated the applicable sections of Utah State Unfair Practices Act § 13-5 Utah Code Annotated (1953). As the same violations are covered by the federal statutes, the particular state statutes will not be discussed.
. There is little question but that trading stamps are such an item of commerce as to constitute a relevant market for determining restraint of trade and monopoly position. They are a marketable commodity in which several brands exist across the nation. While not sold as such to the consumer, they are sold to retailers who then distribute them to consumers in proportion to the amount purchased as an incentive for shopping at their establishment. Certainly as to the various brands of stamps there is competition as to selling to retailers and also in getting customers to collect their stamps. In any respect the determination of this question is one for the trial court and is a common issue for the class.
. 15 U.S.C. § 13 states in part, “It shall be unlawful for any person * * ' * to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, ' * * * and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them. * * * ”
. The price discrimination alleged here refers to price difference paid for the trading stamps by service station operators and retail food stores. Whether such price discrimination existed without legal justification is, of course, a common question for each member of the service station class.
. These specific questions may well arise in establishing the amount of damages available to each individual member of the class.
. Plaintiffs allege the following items to be common purchasable items: Cleaning solvents or preparations, polishing or waxing compounds and related products employed in automobile or domestic cleaning; automotive parts, supplies and accessory items, ineluding radios, batteries, flashlights and hand tools; household tableware, appliances and related domestic items; sporting goods and supplies ; work gloves and various items of work clothing; and various petroleum products, including household and automotive lubricants.
. See Kaplan, Continuing Work of the Civil Committee 1966 Amendments of the Federal Rules of Civil Procedure, 81 Harvard L.Rev. 390-400 (1968).
