DISCOUNT AUTO MART INC ET AL Complaint IN THE

DISCOUNT AUTO MART , INC. , ET AL. 1485 Complaint IN THE MATTER OF DISCOUNT A UTO ~1ART , INC. , TRADING AS DON ALLEN MOTORS, ET AL. CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO~D:1ISSION ACT Docket 7909. Complaint , Ju.n,e 1960-Deci.sion, Dec. 1960 Consent order requiring Wash. , D. C., used car dealers to cease advertising falsely that they sold used cars " For $1 Down , for " No Money Down when purchasers were frequently required to contract for small loans to the balance; that meet down payment requirements in addition to installment financing of the~' offered bank rate flnancing; that low financing plans were offered to military personnel and government workers; that terms as low as $12. 95 per month were available; that cars were guaranteed 100% as to parts and labor , when in fact they were mostly sold as is , with no guarantee; and that they financed their used car sales including small loan companies , when they actually relied on others , financing. for COMPLAINT Pursuant to the provisions of the Federal Trade. Commission Act and by virtue of the authority vested in it by said Act , the Federal Trade Commission , having reason to believe that Discount Auto :Mart , Inc. , a corporation trading as Don Allen :Motors , and Sylvan fIerman , individually and as Joseph Zola , an officer of said corporation , and individually, hereinafter referred to as respondents have violated the provisions of said Act , and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest , hereby issues its compJaint , stating its charges in that respect as follm\' Discount Auto :Mart , Inc. , is a corporation organized and existing under and by virtue of the la,,' s of the District of Columbia.. Its oflice and principal plaee of business is located at 1200 K Street , N. ,V. , \Vashington , D. C. Said corporation trades under the name of Don Allen ~fotors. Respondent Sylnm Herman is an otricer of the respondent corporation. fIe formulates , directs and controls the acts and pracPARAGRAPH 1. Respondent tiees of the corporate business address is the. Respondent lloseph Ilis respondent , as hereinafter same as that of the corporate respondent. set forth. Zob is the credit manager of the corporate respondent and he participates in the acts and prnc.tic.es of said respondent , as hereinafter set. forth. 1-11s buslness address is the same as that of the corporate respondent. 1486 FEDERAL TRADE COMMISSION DECISIONS Cqmplaint 5i F. PAR. 2. Respondents are nmv , and for some time been , engaged in the advertising, offering for sale , last past have sale and dis- tribution of used automobiles volume of PAR. 3. In the in the DjstI'lct of Columbia. Theil' business is substantial. course and c.onduct of their business , and for the purpose of inducing the sale of their used n utomobiles , respondents have mnde certain stntements in nelYspapel's published in the District of Columbin. Typical , but not all inclusive , of snid statements are the follO\ving: These Five Hepossessions ~o :;\Ione~' DowlI on Approved Credit Will Go Fol' ~1 Down Today! Low Bank Hates Special Low Financing for Military & Gov t ' Workers Take Over With Payments 1~. !)5 Per ~lonth Guaranteed 100% Parts- Labor For One Full Year At No Extra Cost to You PAlL 4. Through the, use of the aforesaid statements ents represent that: the respond- (a) They se1l1l~ed cars on credit Iyith (b) They oiTel' bank rnte finnncing. little or no dO\yn payments. (c) Special hH'I financing plnn~ :11'(:' otl'pl'p(l to and government workers. military lwrsO1111el to pur- (d) Terms as chnsers. (e) Cars lmv ns S12. D5 per months are :n- nilahle as to parts :111(1 labor fire guaranteed 100)(1 extra. cost. for one full yea rat no \l:. 5. Saiel statements and representations are false , misleading fin(l deceptin' , In truth and in fact: sel1 cars without a c1myn payment. 'Vhen a min1mum sum , such as one donar , is acceptE:;d by the respondents in connection ,,- jth a CHI' order or bill of 8:11e, 1t is not , 111 fact. (a) Hesponc1ents do not (10,,- n payment but is received for the purpose of providing a con- sidera 110n for a contract of purchHst'. Fn~quent ly, pure-basel's of respondents ~ used Cfil. S fire l'eqnired to contrnct :for smnll loans outside the District of Columbia , in order to meet, respondents : c1myn payment requirements , ,,'hieh are described as " pick-up payments ~. and in nddition to insta1lment finaneing of the. ba lance. The represented 10"\y month ly payment~ do 110t includE:' mostl~. with 8011n' 2S snid small lonn charges. (b) Bnnk rate flnnncing is not. offered by the respondent~ ",it1l respect 1 0 sH, les of used cnrs, (c) Hespnndents haTe no special low rate finnncing plans for the benri-it of lllili tn l':v personnel and government. workers. (c1) f' sed c:lrs have seldom , if ever , been sold on terms as lmv $12. !1;) per month. , ,,- '- . DISCOUNT AUTO MART , 1485 INC. , ET AL. 1487 Decision (e) Respondents , in most instances , sell their used cars " as is and no guarantee or warranty is given. In fact a provision is incorporated in each car order and bill of sale to such effect. In those cases where a purported guarantee or warranty is made , it is limited in nature , which limitations are not fully disclosed and , an additional c.harge is made for its inclusion PAn. 6. In connec.tion with spondents represent , and spondent , Discount Auto ?\1art , Inc. , finances such transactions whereas , in fact , it relies on others , including smnll loan c.ompnnies for such financing. used car. , the rehave represented , that the corporate rein the sale of n the sale of their used ears PAR. 7. In the conduct. of their business , at a11 times mentioned of used herein , respondents have autolllouiles. been in substantial competition , in com- merce, ,vith corporations firms nnd individuals in the sale PAR. 8. The, use by respondents of the aforesaid false , mislending , representations and practices hns had , and and deceptive statements no'" has , the capacity nnd tendency to mislead members of the pur- chnsing public into the erroneous and 1111staken renson of beLef that said statements and representations "'ere and are true chase of a substantial number of respondents ' used automobiles by and into the pur- therC'of, substnntin l said erroneous and mistaken belief. ...-\.s a consequence trnde in commerce has beell. and is being' . 1111- fnirJy (Everted to respondents :from their competitors nnd substan- tial injury has c.ommerce. thereby been , and is being, done to competition in PAn. 9. The nforesnid nets and prac.tiees of respondents , ns herein alleged ere , and are , all to the prejudice and injury of the public and of respondents ' competit, ors and constituted , and now constitute unfnir and deceptive acts and practices and unfair methods and .1h' of ""\Ynshington. of com- petition , in eommerce , within the intent find menning: of the Federal Trade Commission Act. ill/'. Am.es ll" lVi17/ams Jliclwcl P. 111(f/hcs for the Com- mISSIOn. JI-i'. .1/'/(1'((.:1/ l(i/'itz. for respondents. INITL\L DECISION BY .J. EARL Cox , HE:\HING EXAMINER ,,'ho are engnged in the adverti~illg. ojIerjng for sale , sale and clistTibntion of used automo- . The. complaint chnrges respondents , biles in the District 0'1' and tion with the ndvertising and sale Columbia. with the use of fnlse , misleading de.eeptin~ statements , representations find praehces in connecof their l1~ed ('ill'S , in violation of the Fe(lernl Trade Commission Act. 1488 FEDERAL TRADE COMMISSION DECISIONS Decision 57 F. After the issuance of the complaint , a deposition was taken which indicates that the deponent , individual respondent Joseph Zola , was not. responsible for and did not participate in the formation and direction of corporation policy respecting the acts and practices set forth in the eomplaint. Thereafter the remaining respondents , their counsel , and eounsel supporting the complaint entered into an agreement containing consent order to cease and desist , the deposition of respondent Joseph Zola being attached to and incorporated in said agreement , which ",ns subsequently approved by the Director , Assoelate Director find Assistant Director of the Commission s Bureau of Litigation , and transmitted to the Hearing Examiner for con- sideration. man is n.n respondent. All parties to the agreement assent to the dismissal of the charges as to II oseph Zola , individually. The agreement states that respondent Discount Auto :~\1art. , Inc. trading as Don Allen :Motors , is a corporation existing and doing husine, ss undt~r and by virtue of the laws of the District of Columbia , with its ofI1ce and principal place of business located at 1200 Street , N. \V. , \Vashington , D. , and that. respondent Sylvan I-lerofficer of the respondent eorporation and formulates of the corporate respond- directs and controls the acts and practic.es ent. , his business address being the same as that of the corporate The agreement provides among other things , that respondents ndmit all the jurisdictionnl facts allege, c1 in the complaint , and agree that the record may be taken as if finclings of jurisdictional fncts had been duly made in accordance with such allegations; that the record on which the initial decision and the. deeision of the Commission shnll be based shal1 consist solely of the complaint. and this ngreement; that the agreement shnll not become oflicinl record unless and until it becomes mny the Commis:sion; that the complaint a pnrt of the a part of the deeision of be. used in construing the nltere, terms of the order ngreed upon hieh may bE' cL modified or set. aside in the manner provided for other orders; that the agreement. is for settlement purposes only and does not constitute an admission by respondents that they have in the c.ompln.int; violnted the In.w as alleged nnd that. the order set forth in the a full hearing. agreement and hereinafter included in this decision shnl1 have the same forc.e and effect ns if entered after R.espondents waive nny further procedural steps before the Henr- ing Examiner and the Commission , the making of findings of fact or c.onclusions of law , and an of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordanc.e with the agreement. DI&COUNT AUTO MART , J485 INC. , ET AL. 1489 Decision that the aforesaid agree- The Hearing Examiner has determined ment containing the consent and desist provides for an appropriate disposition of this proceeding in the public interest order to cease and such agreement is hereby accepted. Therefore It is ordered That respondents Discount Auto l\lart , Inc. , a corporation , trading as Don Allen l\10tors or under any other nam and its officers , and Sylvan Herman , individually and as an officer of said corporation , and respondents ' agents , representatives and employees , directly or through any corporate or other de-vice , in connection with the offering for sale , sale or distribution of used automobiles in commerce , as " commerce " is defined in the Federal Trade Commission Act , do forthwith cease and desist from representing, directly or by implication , that: 1. Used automobiles can be purchased with no money down or for a down payment in any amount not in aecordnnce with the fnct; 2. They offer or make available ba.nk rate finnncing or misrepresenting in any manner the financing rates under which used auto- mobjles are sold; 3. They offer special low financing for military or Government workers , or misrepresenting in any manner the nature of the financing offered to such persons; 4. Terms as low ::IS $12. D:") or any other amount per month or for any other period are available to purchasers , unless such is the fact; 5. Used automobiles are guaranteed , unless the nature and extent of the guarantee and the mnnner in which the guaTantor will perform thereunder are clearly disclosed and if a charge is made for the guarantee , such fact and the amount of the service charge is c1early disclosed; 6. Used automobiles are guaranteed when , in fact , no guarantee is given to the purchaser; 7. Respondents finance the retail sales of used automobiles. It ~~8 frurther order,ed That the complaint be , and it hereby is , dis- missed as to respondent Joseph Zola. DEC18ION OF THE COMMISSION AND ORDER TO FILE REPORT OF CO)IPLIANCE Pursuant to Section 3. 21 of the Commission s Rules of Practice the initial c1ec.ision of the henring exnminer shall , on the 22nd day of Dee-ember , 1960 become the decision of the Commission; and aec.ordingly: Auto :Mart , Inc. , trading and Sylvan lIerman , individually and a::: an ithin sixty (60) days after service officer of said corporation , shall upon them of this order , file ,yith the Commission a report. in writC? It i,- o' rdend That respondents Discount as Don Allen :Motors , ing, setting forth in detnil the c.omplied ",ith manner and form in which the. order to cease and desist. they have (j40!)/)8-6~-- 1490 FEDERAL TRADE' COMMISSION DECISIONS Complaint IN THE MATTER OF 57 F. SPAULDING INDUSTRIES, INC. , ET AL. CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO1tUnSSION ACT Docket 7966. Complaint , June 1960-Decision , Dec. 28, 1960 Consent order requiring Chicago manufacturers of plastic dinnerware to cease representing falsely that their sets were made solely of melamine when most of the pieces were made of other material , through use of the words !\lelamine Copolymer " that were " Advertised in Life ; melamine is a copolymer, and that their sets to cease using the word " Guaranteed" in ad- vertising when any guarantee was limited both as to time and extent and a service charge was made for adjustments; and to cease attaching or furnishing preticketing streamers and other printed material representing fktitious amounts as the usual retail prices, COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act , the Federal Trade Commission , having reason to believe that Spaulding Industries , Inc. , a corporation , and fIarry ""\Vohl , Gilbert B. Fern and Dorothy Pollenz , individually and as officers of said corporation hereinafter referred to as respondents , have violated the provisions of said Act , and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest , hereby issues its complaint , stating its charges in that respect as follo"ws: PARAGRAPH 1. Respondent Spaulding Industries , Inc. , is a corporation organized , existing and doing business under and by virtue of the laws of the State of Illinois , with its principal office and place of business located at 3520 North Spaulding Avenue , in the City of Chicago , State of Illinois. Respondents fIarry ""\Vohl , Gilbert B. Fern and Dorothy Pollenz are of-heel's of the corporate respondent. ' I'hey formulate , direct and control the acts and prnc.tices of the corporate respondent , including the acts and practices hereinafter set forth. Their address is the PAR. 2. Respondents are now , and for some time last past have been , engaged in the nclvertising, o:!Iel'ing for sale , sale and distriLmtion of plastic dinner'\\are to retailers for resale to the public. same as that of the corporate respondent. PAR. 3. In the course and conduct. of their business , respondents now cause , and for some time last past have caused , their said product , when sold , to be shipped from their pJace of business in the State of Illinois to purchasers thereof located in yal'ious other States SPAULDING INDUSTRIES , 1490 INC. , ET AL. 1491 Complaint of the United States , and maintain , and at all times mentioned herein have maintained , a substantial course of trade in said product in commerce , as " commerce " is defined in the Federal Trade Commission Act. PAR. 4. Respondents , for the purpose of inducing the purchase of their product , have engaged in the practice of misrepresenting the, material of which their product is made or composed , and using: fictitious prices in connection therewith , by the following methods: and means: (1) Representing, or causing to be represented , directly or by implication: (a) Through the use of the descriptive word " !\1elamine " that the plastic dinnerware sets sold by them are made solely of melamine. In truth and in fact , while said sets contain some pieces made of melamine , most of the pieces are made of material other than mela- mIne. (b) Through the use of the descriptive terms " ~1elamine Copoly- mer :' and " :Melamine- Copolymer , that melamine is a copolymer. In truth and in fact , melnmine is not a copolymer. (2) By attaching or furnishing, or causing to be a.t.taehed or furnished , pre- ticketing streamers , letters , printed mailers , price sheets advertising mats and other printed material to or with the plastic dinnerware sets upon ' which a certain amount is printed , that said amount is the usual and customary retail pric.e of said plastic dinner- truth and in fact , said amount is fictitious and in excess of the usual and regular retail price of said plnstic dinnerwarp, ware sets. In sets. PAR. 5. By the aforesaid practices , respondents place in the hands of retailers means and instrumentalities by and through which they may mislead the public as to the quality and usual and customary retail price of said plastic dinnerware sets. PAR. 6. In the course and conduct of their business , and for the purpose of inducing the sale of their plastic dinnerware sets , re- dinnerware sets ~- ere "Admade in streamers , cartons mailers and advertising mats which were distributed to retailers throughout the United States. spondents have stated that their plastic vertised in Life " said statement being truth and in fact , PAR. '7. Said statement was false , misleading and deceptive. In respondents ' said plastic dinnerware sets were never advertised in 'Life. PAR. 8. Respondents used the word " Guaranteed" in the advertisthe expression ing of their said product , thereby representing that said product was guaranteed by them in every respect and likewise used 1492 FEDERAL TRADE' COMMISSION DECISIONS Decision 57 F. Guaranteed against Breaking, Cracking, Chipping and Boil Proof thereby representing that their said product was fully guaranteed in the stated respects. limited both as to time and extent. ~1oreover , a service charge was made for adjustments , which fact was not disclosed in respondents advertisements. :herein , respondents have been in substantial competition , in C0111:merce , with corporations , firms and individuals in the sale of plastic PAR. 10. In the conduct of their business , and deceptive. In truth and in fact, the guarantee PAR. 9. Said statements and representations were false , misleading provided was at all times mentioned dinnerware sets of the same general kind and nature as that sold by respondents. PAR. 11. The use by respondents of the aforesaid false , misleading and deceptive statements , representations and practices hns had , and now has , the capncity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of respondents ' product by reason of said errone. OllS and mistnken belief. As a c.onsequence thereof , substantial trade in commerce has been and is being, unfairly diverted to respondents from their competitors and substantial injury has thereby been , and is being, done to competition in commerce. PAR. 12. The aforesaid nets and prnctices of respondents , as herein and of respondents ' alleged , were and are all to the prejudice nnd injury of the public competitors and constituted , and now constitute unfair and deceptive petition , in commerce , within the inte,nt Rappoport R,appaport , Clorfene Chicago , Ill. , for respondents. acts and practic.es and unfair methods of comand meaning of the Federal Ii rrm.ilton Trade Commission Act. ;lfT. Lars E. l an~c;on supporting the c.omplaint. by ill1'. Clm'fc1/.c INITIAL DECISION BY JOlIN B. POINDF.XTER ~ BEAnING EXAMINER 1960 the Federal Trade Commission issued a eomplaint charging that the above-named respondents had violated the provisions of the Federal Trade Commission Act. The complaint alleged that respondents for the purpose of inducing the purchase On June 22 , of their product had engaged in the praetice of misrepresenting thE', material of whic.h their product is made or eomposed , nnd nsl11g fictitious priees in conneetion therewith. SPAULDING INDUSTRIES , 1490 INC. , ET AL. 1493 Order After issuance and service of the complaint the respondents , their attorney, and counsel supporting the complaint entered into an agree-:ment for a consent order. The agreement has been approved by the Director , Associate Director and the Assistant Director of the Bureau of Litigation. The agreement disposes of the matters complained about. The pertinent provisions of said agreement are as follows: Respondents admit all jurisdictionnl facts; the c.omplaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein sha1l consist solely of the agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of law; respondents "'Hive further proc.edurnl steps before the hearing ex- complaint and the aminer and the Commission , or set aside in the orders; any right to cha1lenge or contest the validity of the order entered in accordanc.e 'lith the agreement and the signing manner provided by statute for other and the order may be altered , modified respondents ,,' aive of said agreement is for settlement purpose only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint. The undersigned hearing examiner having considered the agreement and proposed order , hereby accepts such agreement , makes the following jurisdictional findings , and issues the following order: JVHISDICTIONAL FINDINGS 1. Corporate respondent Spaulding Industries , portation existing and doing business Inc. , is a cor- under and by virtue of the laws of the State of Illinois with its principal office and place of business located at 3520 North Spaulding Avenue , Chicago , Illinois. 2. Individual respondents I-Iarry ,Vohl , Gilbert B. Fern and Dorothy Pollenz are offic.ers of said corporation. They formulate direct and c.ontrol the practic.es of the c.orporate respondent. The address of an indi,- ic1ual corporate respondent. respondents is the same as that of the The Federal Trade Commission has jl1risdjction of the subject matter of this proceeding and of the respondents hereinabove named and the proceeding is in the public interest. ORDER t is orde?' That respondents Spaulding Industries , and Harry 1Vobl , Inc. , a corporation , and its officers , Gilbert B. Fern and 1494 FEDERAL TRADE COl\ll.1ISSION DECISIONS Decision 57 F. Dorothy Pollenz , individually and as officers of said corporation and respondents ' agents , representatives , and employees , directly or through any corporate or other device , in connection with the offering for sale , sale , and distribution in commerce , as " commerce " is defined by the Federal Trade Commission Act , of plastic dinnerware sets or any other merchandise , do forthwith cease and desist from: 1. Representing in any manner that certain amounts are the customary and usual retail prices of merchandise when such amounts are in excess of the prices at which such merchandise is usually and customarily sold at retail in tion is made. the trade area in which the representa- 2. Putting any plan into operation whereby retailers or others may misrepresent the customary and usual retail prices of merchandise in the trade area in which the representation is made. 3. Representing in any manner that the plastic dinnerware sets sold by them are made solely of melamine; or are made solely of ny other material , unless such is the fact. 4. Failing to clearly disclose in connection with plastic dinnerware sets eontaining pieces made of melamine and pieces made of materials other than melamine , the particular pieces and number thereof made of the respective materials. 5. Representing through the use of the word copolymer in eonjunction with the word melamine , or in any other manner , that melamine is a copolymer. 6. Representing that the products so)(l by them are guaranteed unless the nature and extent of the guarantee and the manner in which the guarantor will perform , are clearly disclosed. 7. Representing that the products sold by them are guaranteed when a service charge is imposed , unless the amount thereof is 8. Hepresenting in any manner that the plastic dinnen\are sets manufactured and sold by them are advertised in any specific magazine , unless such is the case. clearly and conspicuously diselosed. DECISION OF TI-IE COMl\fISSION AND ORDER TO FILE REPORT OF COMPLIANCE Section 3. 21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall on the 28th day Pursuant to of December , 1960 become the decision of the Commission; and accordingly: (60) days after service upon them of this order , file with the Commission It is oTdeTed That the respondents herein shall within sixty a report in writing setting forth in detail the which they have complied with the order manner and form in to cease and desist. GLADSTONE TEXTILE CORP. , ET AL. 1495 Complaint IN THE l\lATTER OF GLADSTONE TEXTILE CORP. , ET AL. CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COM1\fISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 8049. Complaint, July 18, 1960-Decision., Dec. 28, 1960 Consent order requiring distributors of wool products in cease violating the as " 30% Reprocessed woolen fibers , New York City to Wool Products Labeling Act by selling pieces labeled Wool" that contained substantiaHy less than 30% and by failing to label wool products as required. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the \Y 001 Products Labeling Act of 1939 , and by virtue of the authority vested in it by said Acts , the Federal Trade Commission having reason to believe that Gladstone Textile Corp. , a corporation Sanford 1\1. Gladstone , individually and as an officer of said corporation , and Phillip Gladstone , individually and as an agent and buyer of said corporation , hereinafter referred to as respondents have violated the provisions of sa.id Acts and the Rules and Regulations promulgated under the ,;V 001 Products Labeling Act , and it appearing to the Commission that a proceeding by it in respect stating its charges in that respect as follows: PARAGRAPH 1. Respondent Gladstone Textile Corp. is a tion organized , thereof would be in the public interest , hereby issues its complaint corpora- existing and doing business under and by virtue of the laws of the State of New York. Individual respondent Sanford 1\1. Gladstone is president and treasurer of the c.orporate respondent and individual respondent Phillip Gladstone is agent and buyer the corporate respondent. Said individual respondents cooperate in formulating, directing and controlling the acts , practices and policies of the corporate respondent , including the acts and practices hereinafter referred to. All respondents place of business at 1225 PAR. 2. Subsequent Labeling Act of 1939 and more especiany since July 10 , 1959 , respondents have introduced into commerce , sold , transported, disas " commerce " have their office and principal Bronc1way, New York, New Yor1\:. to the effective date of the Wool Products tributed , delivered for shipment , and offered for sale in commerce is defined in said Act , wool products as " wool prodare defined therein. ucts " PAR. 3. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4 (a) (1) 1496 FEDERAL TRADE COMMISSION DECISIONS Decision 57 F. the Wool Products Labeling Act and the Rules and Regulations promulgated thereunder , in that they were falsely and deceptively labeled or tagged with respect to the character and amount of the constituent fibers eontainecl therein. Among such misbranded wool products were pieces labeled or tagged by respondents tained substantially less similar import. , whereas as " 30% Reprocessed ,y 001 " or words of and in fact said produets con- , in truth ,yoole.n fibers than that represented. PAR. 4. Certain of said wool produets were further misbranded by respondents in that they were not stamped , required under the provisions of Section 4 tagged or labeled as ( a) (2) of the ,y 001 Products Labeling Act and the manner nnd form as preseri bed by the Rules and Regulations promulgated under said Act. PAR. 5. The respondents in the. course and conduct of their business as aforesaid were and are in substantial competition in eommeree and individuals lih:e\yis~~ eng::\ged , ineluding piece goods 01' fabrics, the sale of wool products PAR. 6. The acts and practices of the respondents as set forth above were , and are , in violation of the ,Y 001 Products Labeling Act of 1939 and the R.nles and Regulations promulgated thermmder , and constituted , and now constitute , unfair and deceptive acts and pracsupporting the complaint. by with other c.orporations ~ firms tices and unfair methods of competition in commerce. , within the intent and meaning of the Federal Trade Commission Act. AfT. Charles S. OOiC l(leebe1'g G1' eenrwald illr. Be1't1'a.?n S. Be1'71Utr of New York , for respondents. INITIAL DECISION BY ,VALTER IC BENXETT , IlEA-RING EXAMINER matte-r dated J lIly 18 , 1960 charges respondents with misbranding and failing to label wool products sold by them in commerce in vio1ation of the ""\Vool Prodnc.ts Labeling Act of 1939 and the Federal Trade Commission Act. An agreement has now been entered into by respondents and counsel supporting the complaint which provides , among other things , that respondents admit. all of the jurisc1ictiQnnl allegations in the complaint; that the record on ,,- hiGh the initial decision and the. decision of the Commission shall be based shall consist solely o:f the complaint ~1llc1 agreement; that the inclusion of findings of fact and conclusions of The complaint in this law in the. decision disposing of this matter is waiyCtL together ~ith any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be. entered in disposition of the proceeding, sl1eh order to have the and eiTect as if entered after a in1l hearing, same force respondents specificnlly GLADSTONE TEXTILE CORP. , ET AL. 1495 1497 Order or contest the validity of waiving any and all rights to challenge such order; that the order may be altered , modified , or set aside in the manner provided for other orders of the Commission; that the complaint may be llse, d in construing the terms of the order; the agreement is for settlement purposes only; does not constitute an admission by respondents that they have violated the law as alleged in the complaint and shall not become part of the official record of the proceeding unless and until becomes a part and that it of the decision of the Commission. The heraing examiner having considered the agreement and pro- posed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted , the following jurisdictional findings made , and the following order issued: 1. Respondent Gladstone Textile Corp. , is a corporation existing and doing business under and by virtue of the Jaws of the State of New York , with its oflic.e and principal place of business located at 1225 Broadway, New York , New York. said corporation , Gladstone is an officer of Philip Gladstone (erroneously designated in the complaint as Phillip Gladstone), is an 2. Individual respondent Sanford M:. and individual respondent agent and buyer of said corporation. The address of the individual respondents is the same ns that of the corporate respondent. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents , and the proceeding is in the public interest. ORDER 1 t is ordered and as an otrieer of snid corporation , and Philip Gladstone , individually and as agent and buyer of said corporation , and respondents ' representatives , ngents and employees , c1irec.tly or through any c.orporate or other c1eyice poration , and its officers That respondents Gladstone Textile Corp. , a cor, and Sanford :M. Gladstone , individually , in connection for sale , sale with the introduction into commerce , or the offering , transportation or disFederal tribution in c.ommerce , as " commerce is defined in the Trade Commlssion Act and 1939 , of piece goods or fabrics the "\V 001 Products Labeling Act of containing woolen fibers or other ns such products are defined in and subject to the Products Labeling Act of 1939 , which products contain any way are represented as containing purport to contain wool products " Wool wool , or in reprocessed wool " or " reused wool " do forthwith cease and desist from misbranding such proclncts by: 1498 FEDERAL TRADE CO~SffiON DECrffiONS Complaint 57 F. 1. Falsely or deceptively stamping, tagging, labeling or otherwise identifying such products as to the character or amount of the constituent fibers included therein; 2. Failing to affix labels to such products showing each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939. DECISION OF THE COl\Il\fISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3. 21 the initial decision of of December , 1960 of the Commission s Rules of Practice day become the decision of the Commission; and the hearing examiner shall on the 28th accordingly: It is ordered That the respondents herein shall within sixty (60) days after service upon them of this order , file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist. IN THE ~IA'ITER OF SLUiliBEHLAND PHODUCTS CO. , ET AI... CONSENT ORDER , ETC. , IN lU~(;.-\RD TO THE ALLEGED YIOLATIOX OF THE FEDERAL TRADE COMMISSION ACT 1960- DeGi.sion , Dec. 28, 1960 Consent order requiring Waltham , Mass., manufacturers of beds and bedding to cease misrepresenting- in television broadcasts and cooperative adverDocket 8051. Complaint , July tising material furnished to dealers and otherwise-the price, grade, quality, composition , workmanship, orthopedic qualities, and other characteristics of their mattresses. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act , the Federal Trade Commission , having reason to believe that Products Co. , a corporation , Slumberland and Arthur :M. ,iT arshaver Sumner Tapper , :Milton H. ,Varshaver and Leonard ,Varshaver , individually and as officers of said corporation , hereinafter referred to as respondents , have violated the provisions of said Act , and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest , hereby issues its complaint stating its charges in that respect as follows: '" '" '" '" '" '" '" '" . SLUMBERLAND PRODUCTS CO. , ET AL. 1498 1499 Complaint PARAGRAPH 1. Respondent Slumberland Products Co. is a corporation organized , existing and doing business under and by virtue of the laws of the State of 1.1assachusetts. Respondents Arthur M. 1Varshaver , Sm11ner Tapper , :Milton H. 1Varshaver and Leonard Warshaver are individuals and are officers of corporate respondent. Said individuals formulate , direct and control the acts and practices of the corporate respondent. Respondents ' Street , vValtham PAR. 2. Respondents are now been , engaged in manufacturing, advertising, address is 144 , Massachusetts. , and for some time last past offering for sale , ~10ody have sell- ing and distributing beds and beddings to retailers for resale to the public. PAR. 3. In the course and conduct of their business , respondents now cause , and for some time last past have caused , their said products , when sold , to be shipped from their place of business in the state of l\lassachusetts to pnrc.hasers thereof located in the various other states of the United States , and maintain , and at all times mentioned herein have maintained , a substantial course of trade in said products in commerce , as " commerce " is defined in the Federal Trade Commission Act. PAR. 4. In the course and conduct of their business as aforesaid respondents cause advertisements of their said products to be broad- cast over various television stations in the New England area. Said broadcasts are heard and seen by listeners in states other than the states from which the broadcasts emanate. Respondents also prepare and furnish to the retailers and dealers handling their products various advertising material for publication in newspapers and other periodicals. Respondents enter into various cooperative advertising and promotional plans with said retailers and dealers under which respondents pay varying proportions of the expense incurred by said retailers and dealers in disseminating newspaper and other kinds of advertising, and respondents grant to participating retailers and dealers other allowances and rebates. All of the aforesaid advertising, as well as other kinds of adver- tising done by respondents~ specting the price , PAR. 5. Typical are the following: contain numerous representations reworkmanship and grade , quality, composition other characteristics of said products. and iIlnstrative of certain of the representations contained in the aforesaid advertising mat~rial , but not all inclusive, Slumberland' $59. 50 springs, Sensational '" mattress '" '" '" Regularly Priced '" Centa- Firm '" '" '" Now! '" '" '" $39. 95 each '" New ' 59 Centa- Firm interspring mattresses and box Slumberland Introductory Sale Price $39. 95 each after this '" '" '" '" ... '" '" ......,. 1500 FEDERAL TRADE COMMISSION DECISIONS Complaint 57 F. This is a Limited Time Introductory introductor~T sale the price will be $59. 50 Sale on this Now- Save $$. First Time Ever-A GENUINE Slumberland Pedic INNERSPRING Mattress with BACKBRACING Support That Helps STOP BACKACHE Due To Sleeping On Too Soft A Mattress '" '" '" First time ever at this special low sale price $39. 90 '" '" '" Buy now and save $$$ New Centa- Firm so Buy '" '" '" Never Before Perhaps Never Again An Offer Like This! '" '" '" Here s the secret of the Pec1ic s backbracing support (cross section cut of body on mattress) This Genuine Slumberland PEDIO has not one but TWO Resilient Miracle pads built right into it. They refuse to sag and actually help the coils react instantly to your weight. '" '" '" Would you believe it? Genuine PEDIO Mattress priced so low! You ve seen other brands for much, much more, but now Slumberland brings you one of the finest of all at an amazingly low price. Slumberland' s exclusive BACKBRAOING SUPPORT, firm for sleep of health you need , comes from crush-proof, DODBLE- ODSIHONED Rubberized Miracle Pads tl1at just can t sag Ii' '" the Slumberland Has (cut away cross section view of mattress) Exclusive New Spring- Matic Controlled Triple Action Side Springs Automatically Adjust Your Weight and Body To Keep Mattress in Perfect Shape '" plus flEA VY DUTY Electronically- Tempered steel coils. '" '" '" Doctors say that too soft or hard a mattress can result in back-ache problems too The happy medium is the " just right firmness " of the Pedic. New ' 59 Oenta- Firm innerspring mattresses '" '" '" Slumberland and Only It Typical and illustrative , but not restricted thereto , are the following representations made in respondents ' television advertisements : '" '" '" a PEDIO mattress is SOIENTIFICALT. Y the best for heAlthful sleep. So act NOW '" '" * during this sale of '" '" '" nationally- famous Slumberland PEDIO MATTRESS '" NOT at the usunl HIGH Price of others but, ONLY $39, 90 '" '" '" save on a genuine SLUMBERLAND Pedic Mattress'" now on LIMITED SALE '" '" '" only $39, 90 PAR. 6. Through the use of the aforesaid statements and similar thereto but not specifically set out herein the respondents represent , directly or indirectly: 1. That their centa- firm mattresses had a regular retail selJing price of $59. , that said centa- firm mattresses were being offered at the reduced price of $39. 95 and that savings in the amount of the difference bet-ween the aforesaid higher and lower prices were afforded the purchaser. others 2. That respondents ' centa- firm ity, design and workmanship equal to mattresses retail for $59. 50 in the same trade area in which mattresses were being offered for sale. 3. That respondents ' Pedic mattresses at a reduced price with consequent savings to the mattresses weTe of a grade , qual- then selling at said centa.- firm "'ere being offered for sale purchaser. SLUMBERLAND PRODUCTS CO. , ET AL. 1498 1501 Complaint 4. That the side clip spring device used in respondents ' centa- firm mattresses constituted a different method of construction and was used only by respondents. 5. That the side clip spring device substantially adjusted and controlled the reaction of the other springs contained in the mat- tress to body weight. 6. That the pads contained in respondents ' Pedic mattresses con-stitute a different method of construction , are crush- proof and sag- proof and impart to the springs a unique and instantaneous response to body weight. 7. Through the use of the word "Pedic " and the a.ccompanying written and pictorial representations , that respondents ' Pedic mattresses are specially built and scientifically and unusually designed and constructed to meet the specifications of orthopedic surgeons or physicians and are constructe, d and tions for " firm- type designed to meet the specifica- mattresses recommended or prescribed by orthopedic surgeons or physicians to relieve backache or other bodily infirmities. 8. That respondents ' Pedic mattresses are of a like , grade , quality, design and workmanship as genuine higher priced orthopedic or firm- type " mattresses and that purchasers thereof save the difI'er- ence in the purchase price. 9. That respondents ' Pedic mattresses are nationally sold. 10. That respondents ' centa- firm mattresses and Pedic mattresses were being oiIered for sale at reduced prices for a limited time only. PAR. 7. The aforesaid statements and representations hereinabove specifically set out herein are false misleading and deceptive. In truth and in fact: 1. Hespondents ' centa- firm mnttresses did not have a regular retail set forth as well as those not selling price of $59. 50. Said centa- firm mattresses offered for sale \yel'e not ofJ'e-reel for sale and sold at a rec1nc.e.cl price and savings were not afl'orded purchasers in an amount equal to the difl' erence lJebyeen said higher and lower amounts. The regular retail selling prices of respondents ' centa- firm mattresses were and had been for a period of years S39. D5. Respondents ' 1959 c.entaand sold at $39. 95 firm mattresses \yere not oit'ered to purchasers as an introductory ofl' er \"ith su bsta, ntial savings from the regula \yhich r retail selling price' of the said mattress. Respondents ' 1959 centa- firm had been mnttresses were' subsU111tially the same mattl'esse~; 2. Ilesponclents ' ofl'ered in pl'e\' iou~ years to the public at retail for $39. 95. centa- J1rm mattresses \Tere not of a grade , quality" design and workmanship equal to that of mattresses selling at $59. 50' in the S:l, me tialle area. ~lat.tresses traditiowdly sell at about ~~39. 1502 FEDERAL TRADE COM:MISSION DECISIONS Complaint 57 F. $59. 50 and $79. 50. Respondents ' said centa- firm mattresses do not meet the usually accepted standards and specifications for the higher priced mattresses. 3. Respondents ' Pedic mattresses were not being offered for sale the usually accepted standards and specifications for higher priced mattresses. 4. The side-clip spring device used in respondents ' centa- firm mattresses was not a different method of construction and has been at a reduced price. Said Pedic mattresses were not equal to used over a period of years by many other mattress manufacturers. 5. Said side clip spring device has very little effect on the manner in which the other springs in the mattress react to body weight. 6. The pads contained in respondents ' Pedic mattresses do not constitute a different method of construction , are not crush- proof and sag- proof and do not impart to the springs a unique and instantaneous response to body weight. The pads used in respondents ' said Pedic mattresses are ordinary latexed , sisal pads used by many mattress through the 7. Respondents ' Pedic mattresses are not specially built and are not scientifically and unusually designed and constructed to meet the specifications of orthopedic surgeons or physicians and are not. constructed and designed to meet the specifications for " firm- type mattresses recommended or prescribed by orthopedic surgeons or physicians to relieve backache or other bodily infirmities. In quality, design and construction , respondents ' Pedic mattresses are about around $39. 95. manufacturers to keep the springs from working ticking or the coverings placed over the springs. the same as mattresses manufactured by others and retailing at 8. Respondents ' Pedic mattresses are not of a like grade , quality, design and workmanship as genuine higher priced orthopedic or "firm- type " mattresses and purchasers do not save the difference in the purchase price thereof. Pedic mattresses are not nationally sold. The sale of respondents ' mattresses is Emited almost e, ntirely to the 9. Respondents ' tresses were not offered for a Emited time or for a special introductory sale. Respondents ' 1959 centa- firm and its Pedic mattress New England states. 10. Respondents ' 1959 centa- firm mattresses and its Pedic mat- tially the same mattresses and had substantially the same specifications and construction as its earlier mattresses which were built to sell at retail for about $39. 95. Respondents actually promoted a build-up sale under the guise of a which it. sold beginning in late 1959 and early 1960 were substan- special introductory offer for its SLUMBERLAND PRODUCTS 1498 CO. ET AL. 1503 Decision 1959 centa- firm mattress and then' changed the name from " centafirm " to " Pedic " while maintaining substantially the same specifications and construction. PAR. 8. In the conduct of their business , at all times mentioned herein , respondents have been in substantial competition , in commerce , with corporations , firms and individuals in the sale of beds and bedding of the same general respondents. kind and nature as that sold by PAR. 9. The use by respondents of the aforesaid false , misleading and deceptive statements , representations and practices has had and now has , the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of respondents ' product by reason being, unfairly of said erroneous and mistaken jury has thereby been , belief. As a consequence thereof substantial trade in commerce has been , and is diverted to respondents from their competitors and substantial inPAR. 10. The aforesaid and is being, done to competition in commerce. acts and practices of respondents , as herein and injury of the public alleged , were and are all to the prejudice and of respondents ' competitors and eonstituted and now constitute unfair and deceptive acts and practices and unfair methods of competition , in commerce , within the intent and meaning of the Federal Trade Commission Act. Mr. Terral A. Jordan for the Commission. by fliT. 111 ac Asbill Su, therland , AsbiZZ& Brennan L. 8aun.den of ""\Vashington , find 1111.. (/ harles D. , for respondents. INITIAL DECISION BY ""\VALTER R. J011N80N , I-TEARING EXAMINER In the complaint dated July 19 , 1960 , the respondents are charged with violating the provisions of the Federal Trade Commission Act. On October 20 , 1960 , the respondents and their attorney entered into an agreement consent order. with counsel in support of the complaint for Under the foregoing agreement. , dictional facts alleged in the the respondents admit the juriscomplaint. The parties agree , among may be other things , that the cease and desist order there set forth entered without further as if entered after a full hparing and the document inc1udes a waiver by the respondents of all rights to challenge or contest the notic.e and have the same force and effect validity of the order issuing in acc.ordance therewith. The agreement further recites that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint. 1504 FEDERAL TRADE COMMISSION DECISIONS Order 57 F" The hearing examiner Commission. meets all of the requirements of finds that the content of the agreement section 3. 25 (b ) of the Rules of the The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding as to all of the parties agreement is hereby accepted and it is ordered that the agreement shall not become part of the official record of the proceeding unless and until it be- , the of 1\lassnc.husetts. R, espondents respondent. Respondents ' ofIice located at 144 ~100dy Street the decision of the Commission. The following jurisdictional findings are made and the following order issued. 1. Respondent Slllmbcrland Products Co. is a corporation existing and doing business under and by virtue of the laws of the State comes a part of Arthur ~1. ""\Yarshaver , Sumner are individ- Tapper , :Milton 1-1. ,Yarshaver and Leonard ""\Varshaver uals and are officers of sa.id corporate respondent. Said individuals formulate , direct and control the acts and practices of the corporate and principal p1ace of business , in the City of ""\Valtham , State of ~fassachusetts. , 2. The Federal Trade Commission has jurisdiction of the subject. matter of this proceeding and of the respondents , and the proceeding is in the public interest. ORDER It is Sumner Tapper , :Milton 11. \Varshaver and Leonard ,Yarshaver , individually and as officers of said corpora lion , find respondents ' representntiycs, agents and employees , directly or through any corporate or other device , in connection \yith the ofrering for sale , snle or distribution meree , as " commerce " eorpora.t.ion , ordered That re.sponde, nts Slumberland Products Co. , a and its ofl1cers , and Arthur 1\1. 1,Varshaver other articles of merchandise in comFederal Tl'ncle Commission Ad" do forthwith cease and desist from: 1. Representing, directly or indirectly: of beds and bedding or any is defined in the (a) That any amounts are the regular retail selling prices of said products in a given trade area when such amounts are in exc.ess of the prices at which said products are , or in the recent regular course of business have been , c.nstomarily or usually sold in snid trnde area by a substantial number of those retailers offering said products (b) That any nmounts at for sale, whic.h said produets are offered for sa, and sold at retail are reduced prices or nfl'orcl savings to purehasers at retail from the usual and cllstomnry selling prices of said products SLUMBERLAND PRODUCTS CO. , ET AL. 1498 1505 Order unless said amounts are in fact a reduction from the prices at which said merchandise is or has been usually and customarily offered for sale and sold at retnil in the recent regular course of business by a substantial number of those retailers offering said products for sale in the trade area in whic.h the representations are made. (c) That respondents ' said products are of a like grade , quality, higher prieecl merchandise offered for , firms or corporations in the same trade sale or sold by other persons area in which the representations are made or that purchasers save the differenee in cost bet,veen respondents ' said products a,nd said design and workmanship as higher priced products unless respondents ' said products are in fact of a like grade , quality, design and workmanship in all material respects as said higher priced merchandise find said higher pl'iced merchandise is generally available for purchase at the stated comparative price in the trade area or areas ,,- here the representation is made and if not so available that fact is clearly disclosed. Centa(d) That the side-elip spring deyices used in respondents Firm " mattress or substantialJy similnl' devices used in any of the respondents : products constitute a. different method of eonstruction from that previously actuaJ rea.ction. used in the mattress industry or are used exclusively by respondents or c::m;e. the other springs in the mattresses to respond to body weight in a manner difi' erent from their (e) That the pads used in respondents ' "Pedic " mattress or sub- stantially similar materials used in any or respondents ' said products constitute a different method of construction from that previously used in the mattress industry or are erush- prooJ or sag- proof or eause the springs in the mattresses to respond to body weight in a manner dit1'erp, nt from their act-un 1 reaction. (f) That said products are specially built or scientifically or unusually designed and constructed to meet the specifications of orthopedic surgeons or physicians or are " firm type " mattresses recom- mended or preseribecl by orthopedic surgeons or physicians to relieve baekache or other bodily infirmities unless such is the fact. (g) That their other of their (h) That "P('(l1c ~: mnttress is nntionn)ly sold; or that any products is nationally soJd , for said products are offered a Jimited time , unless suc.h is the fnc.t. unless sueh is the fact. sale at reduced prices for 2. Furnishing or otherwise placing in the hands of retailers or dea.le:rs in said products the means and instnunentalities by n, nc1 through which they may mislead or deceive the public in the manner or as to the things hereinabove inhibited. G-I (I~I(;:,:,, 1506 FEDERAL TRADE COMMISSION DECISIONS Complain t 5i F. DECISION OF THE COl\Il\IISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to section 3. 21 the initial decision of of the Commission s Rules of Practice the hearing examiner shall , on the 28th day of December 1060 , become the decision of the Commission; and accordingly: It is oTde1' That respondents herein shall , within sixty (60) days after service upon them of this order , file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist. IN THE MATTER OF FIRTfI CARPET COMPANY CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\OnSSION ACT Docket 794'1. Compla, int , Jlune 1960-D ecis ion , Dec. 1960 representing Consent order requiring a New York City manufacturer to cease falsely in advertising and on labels that its rugs , domestically made of domestic materials, were imported from Scotland or Ireland or Algiers, were woven by a special " Tuft-woven process -actually its' own registered trademark-and were sheared by hand. CO:MPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act , the Federal Trade Commission , having reason to believe t, hat Firth Carpet Company, a corporation , hereinafter referred to as respondent , has violated the provisions of said Act , and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest , hereby issues its complaint stating its charges in that respect as follows: Firth Carpet Company, is a corporaexisting and doing business under and by virtue of the laws of the Stnte of New York , ,,-ith its principal office and tion organized , PARAGRAPH 1. Respondent , place of business located at 295 Fifth York , State of New York. A venue in the City of New PAR. 2. Respondent is now , and for some time last past has been engaged in the manufacture , offering for sale , sale , and distribution of rugs and carpets. Respondent manufactures said rugs and carpets at plants loeated in Auburn New York , Firthcliffe New York ... FIRTH CARPET COMPANY 1506 1507 Complaint Newburg, N ew Y ork , Burnsville , North Carolina , Laurens South Carolina , and l\1:ayaguez , Puerto Rico. PAR. 3. In the course and conduct of its business , respondent now and in the causes , and for some time last past has located in various other caused , its products , when places of business to purchasers thereof sold , to be shipped from its states of the United States District of Columbia. Respondent maintains , and at all times mensubstantial course of trade in said tioned herein has maintained products in commerce , as " commerce is defined in the Federal ,a Trade Commission Ac.t. national circulation , in other publications , and on its labels , concerning, among other things , the method or methods used in producing its products the origin of the material used therein the PAR. 4. In the course and conduct of its business and carpets , respondent purpose of inducing the sale of its rugs has made certain statements in advertisements in magazines , and for , and the point of origin of those products or , of which the following are typical: (a) Made on the fabulous Firth Tuftwoven~ principle (b) TuftwovenQ'!) with 100% Prime Virgin Wool Pile (c) A luxurious looped pile texture Tuftwoven~ (d) All Wool " Hand Sheared Textures of prime Quality yarns. (e) " Hand Sheared textures " shears) (f) Highland Shepherd Conoma ra Tweed by Firth. (picturization of a hand grasping Homespun ( h) Algiers. PAR. 5. R, espondent , through the use of the aforesaid statements appearing in the advertisements and labels set out and quoted under the lettered subparagraphs above , represented that: (a), (b), (c) " Tuftwoven " is a speeial proeess used by respondent in the manufacture of rugs and carpets. (d), (e) Said rugs ftncl carpets are sheared by hand. used therein , (f) The rug or carpet having such a designation , or the material originated in Scotland. (g) The rug or earpet having such a designation , or the material , Ireland. used therein originated in the County Conomara (h) The rug or carpet having such a designation , or the material used therein , originated in Algiers. PAR. 6. The aforesaid statements are false , misleading and de- ceptive. In truth and in fact: (a), (b), (c) " Tuftwoven '~ is a trademark registered by the respondent to designate the eompany of manufacture. It designate a spec.ial proce, ss does not of manufacture. 1508 FEDERAL TRADE COMMISSION DECISIONS Decision 57 F. sheared texture " are not hand sheared but are machine made. (d), (e) The rugs and carpets ,yhich bear the legend " hand and cnrpets designated " I-lighland Shepherd Home- (f) Rugs spun " were not imported from or made from material imported from Scotland. Said rugs and carpets were domestically made , using domestic materials. (g) Rugs and carpets designated " Conomara T"eed" were not imported from or made from material imported from County Conomara , Ireland. Said rugs and carpets were domestically made using domestic materials. (h) Rugs and carpets designated " Algiers " were not imported Said rugs or from or made from materials imported from Algiers. carpets "' ere domestically made , using domestic materials. PAR. 7. In the eonduct of its business , respondent was , and is , in substantial competition , in commerce ~ with col'porntions , firms and individuals in the sale of rugs and carpets of the same general kind and nature as those sold by respondent. PAR. 8. The use by respondent of the aforesaid false , misleading and deceptive stnteme.nts and representations has had , and now has the capacity and tendenc.y to mislead members of the purchasing public into the erroneans and mistaken belief that said statements and representations were , and are , true and into the purchase of substantial quantities of respondenCs products by renson of saiel commerce has consequence thereof erroneous belief. been unfairly diverted to respondent from its competitors and injury As a , trade in has thereby been done to eompetition in commerce. PAR. D. The aforesaid ads and prnc.tic.es of respondent , as herein alleged , were , and are , all to the prejudice and injury of the public and of respondenfs competitors and unfair and deceptive constitl1tecL and now c.onstitute acts and prac.tices and unfair methods of competition , in eommerc.e , within the intent and menning of the Federal Trade Commission ili?, . Robert G. Cutler Act. supporting the c.omplaint. ill')' . A. Jial"vin B')'a' cCi"JiUrn of ,Yashingtoll , D, , for respomlellt. INITIAL DECISION BY JOHN B. POINDEXTER , I-TEARING EXAMINER On June 15 , 1960 the Federal Trade Commission issued a complaint eharging that the above-named respondent hnd violated the provisions of the Federal Trade Commission Act. The complaint alleged thnt respondent. hnd in the COlll' Se and conduct of its business, and for the purpose of inducing the sale of its rugs and carpets:, made certain stntements concerning, among other things , the. method FIRTH CARPET COMPANY 1506 1509 Order or methods used in producing its products and the point of origin of those products or the origin of the material used therein. its After issuance and service attorney, and counsel of the complaint the respondent , supporting the complaint entered into an agreement for a consent order. The agreement has been approved by the Director , and the Assistant Director of the Bureau of Litigation. The agreement disposes of the matters complained about. The pertinent provisions of said agreement are as follows: Re- spondent admits all jurisdictional facts; the complaint may be used shall have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the official rec.ord of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaint and the agreement; respondent waives the requirement that the decision must in construing the terms of the order; the order contain a statement of findings of fact and conclusions of law; respondent waives further procedural steps before the hearing examiner and the Commission , and the order may be altered modified , or set aside in the manner provided by statute for other orders; respondent waives any right to challenge or contest the validity of the order entered in accordance with the agreement and does not constitute an admission the signing of said agreement is for settlement purposes only and by respondent that it has violated the law as alleged in the complaint. The undersigned hearing ment and proposed order , examiner , having considered the agreehereby accepts such agreement makes the following jurisdictional findings , and issues the following order: JURISDICTIONAL FINDINGS 1. R, espondent Firth Carpet Com any is a corporation existing and doing business under and by virtue of the laws of the State of New York , with its office and principal place of business located at 295 Fifth Avenue , New York , New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinnbove named and the proeeeding is in the public interest. ORDER 1 t is ordered That respondent Firth Carpet Company, a cor- poration , its officers , agents , representatives and employees , directly or through n,ny eorporate or other device , in connection with the 0 enTIg - or sa e , sa e or 1stn JutlOTI 1n commerc.e , as c.ommerce " " 1510 FEDERAL TRADE COMMISSION DECISIONS Syllabus is defined in the 57 F. Federal Trade Commission Act , of rugs, carpets , do forthwith cease and desist from: or other products 1. Using the word " Tuft woven " in connection with the word process , method , or any other such word , term or expression to demanufacture. of method 2. Using any other word , term or expression in connection with the word process , method , or any other such word , term or expresmanufacture , when such word of sion to denote a process or method term or expression is not , in fact , a process or method of manufacture. 3. Representing, directly or by implication , that any of its rugs note a process or or carpets made by machine are hand made , in whole or in part. Conomara 4. Using the words " Highland Shepherd Homespun Tweed" or " Algiers :' or any other distinctively foreign name in products which are not in fact made in a foreign advertising or in labeling to designate or describe the aforesaid country or using any other word or term in advertising or in labeling as descriptive of the aforesaid products which represents , directly or indirectly, that said products are made in a country other than the one in which they in fact are made , without c.learly and conspicuously revealing the actual country of origin of such products. DECISION OF TIlE COMMISSION AND ORDEn TO FILE REPORT OF COMPLIANCE Pursuant to the initial decision Section 3. 21 of the Commission s Rules of of the hearing examiner shall on the Practice 29th day of December 1960 , become the decision of the Commission; and accordingly: ordered It is days after service That the respondent herein shall within sixty (60) upon it of this order , file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to eease and desist. IN THE ~1ATTER OF UNITED STATES RETAIL CREDIT ASSOCIATION INCORPORATED , ET AL. ORDER , ETC. , IN REGARD Complaint , May TO THE ALLl~GED YIOLATIOX OF TI-IE FEDERAL TRADE COMl\IISSION ACT Docket 7488. 14, 1959-Decisi.on , Dec, 30 , 1960 Order requiring Mentor , Ohio, operators of a collection service for business and professional men , to cease representing falsely that their business was an association or a credit reporting agency, by use of the words " assocla- UNITED STATES RETAIL CREDIT ASSN. , 1510 INC. , ET AL. 1511 Findings tion " or " credit association " in their corporate name or otherwise; that their Mentor , Ohio , office was a " National Headquarters " and that they had branch offices; that they had been in business for 30 years; that they had their own professional collectors throughout the United States ; that they made investigations through banks, emplo~' ers , and others; and that they issued credit reports to their clients. Afr. Oha'J'les Before 1Jl1' John B. Poi,ndexter hearing examiner. S. Cox for the Commission. of Painesville , il1-t. lVayne R. jJfi7bu1' Ohio , for respondents. FINDINGS AS TO THE FACTS , CONCLUSIONS AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on :May 14 , 1959 , issued and subsequently served its complaint in this proceeding upon the respondents, charging them with engaging in unfair and deceptive acts and prac- tices and unfair methods of competition in commerce in violation of said Act. Hearings were held before a hearing examiner of the Commission and testimony and other evidence opposition to the a.Ilegations of the in support of and in complaint were received into the record. In the initial cleeision filed on June 30 , 1960 , the hearing examiner found that certain of the c.omplaint' s allegations ,,- ere sustained by the evidence and that others were not so supported. The Commission having considered the appeal filed by counsel supporting the complaint from the initial decision and having determined that said appeal should be granted and that the initial decision should be vacated and set aside , the Commission further finds that this proceeding is in the public interest and now ma.kes this its findings as to the facts , conclusions drawn therefrom , and order , the same to be in lieu of those contained in the initial decision. FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent United States Retail Credit Asso- ciation , Incorporated , is a corporation organized and doing business under the laws of the State of Ohio with its office and principal :Mentor , Ohio. PAR. 2. The officers of the corporate respondent include respondents George 1\1. Hyde , President , and vVilliam C. Childs , Secretaryplace of business located at 1423 Mentor A venue , Treasurer , the latter being erroneously designated in the complaint as William C. Chiles. Respondents Edward "\V. Elliot and ~1argaret W. Anthony, although officers of the corporate respondent at one time , are no longer officers thereof and were not so serving at the time of issuance of the complaint. Respondent George 1\1. Hyde has exercised prime responsibility in formulating and directing the acts , policies and practices of the corporate respondent. Respondent 1512 FEDERAL TRADE COl\il\lISSION DECISIONS Findings 57 F. William C. Childs , as a general officer of the corporation and as its Director of Sales , participated and cooperated in performing the acts and practices hereinafter found. As used hereafter , the term respondents accordingly refers to respondents United States Retail Credit Association , Incorporated , George M. Hyde and ,Villiam C. Childs. PAR. 3. The respondents are engaged in the of a service to business advertising and sale and professional men "hereby respondents furnish various printed forms and notices to be used by such subscribing pnrchnsers for collec.ting delinquent nc.connts owing to them and keeping outstanding Recounts from beeoming delinquent , and whereby respondents operate a collection agency for c.ollecting elaims and accounts forwarded by the subscribers as authorized by their agreements. R, espondents ' customers are secured through solieitors employed on a commission basis and who call on business and professional men in various parts of the Unite, d States. Those pur- chasing respondents ' service sign an " Official l\iembershi p A pplicatiOll and Agreement. " Upon aec.eptnnce , the eorpornte respondent then mails to the purchaser a portfolio of printed matter or forms This consists of a metal membership c.nlled a " credit sec.retary. emblem , a supply of stickers or shields , a booklet containing " Official Delinquency N of sheets for otic.es and Association Forwarding Data " a supply listing of accounts or claims subsequently of " Oflicial to respondents for eollection , and a booklet forwarded Good ,ViII Budget Plan Notes. PAR. 4. The metal membership emblem , the store or intended for display in office of the subscriber , states that the establishmenfs are forwarded to the United States RetRil Credit unpaid acc.ounts Pay Ac.counts Promptly \Vhen Assoc.iation and counsels patrons to " Protect Due. The top of the Your Credit R.atingemblem depicts what is apparently an Ameriean eagle with outspread wings above the legend " :31ember of United States Retail Credit Assoc.ia11j2 x 11,4" in tion. " The stickers are of red paper approximately size and in the shape of a shield , and are imprinted in ,,- hite lettering with the words " :Member- Past Due Accounts sent to the United States Retail Credit Assoc.intion for Collection. " They fire intended to be pasted on the face of monthly statements mailed by the subscriber to credit c.ustomers. If the debtor ignores such warnings and continues to default , the c.reditor mnils an " Official Delinquency Notice " which states that unless prompt payment is made, his account will be fonyarded to the Association forms are intended collections prior to for collection. In short , in effecting to assist the snbscribe.r its own the c.alling on the corporate respondent for help. UNITED STATES RETAIL CREDIT ASSN. , 1510 INC. , ET AL. 1513 Findings PAR. 5. Under the membership agreement , the creditor is entitled to forward a specified number of accounts to the corporate respondent for collection The term of enrollment is one year. The corporate respondent has had approximately eJeven different fees , rnnging from $40. 00 to $720. 00. Thus , a business concern paying an enrollment fee of $40. 00 has been entitled to forward a total of 35 accounts to the corporate respondent for collection during the year whereas the maximum fee permits the c.reditor to forward 700 accounts. The corporate respondent is not entitled to any fee for ment fee paid. , the number varying with the amount of the enroll- the collection of an neeonnt until it has c.ol1ectec1 n.nd remitted to the subscriber an amount equal to his subsc.ription payment. Thereafter , on any amounts collected by the corporate respondent in excess of such fee , the corporate respondent is entitled to retain 15% as a collection fee ,,- hich also is its maximum percentage.. PAR. 6. In the operation of its business , the corporate respondent transmits letters , contrnc.ts , forms , checks and various commercia,) documents through the United States mails from its place of business in the State of Ohio to solic.itors and customers in various parts of the United States. The corporate respondent also transmits through the United Stntes mn,ils letters , forms and vnrious c.ommercial documents to the debtors of its customers located in various states of the Uniteel States and re, eeives letters , checks , money orders and other documents from debtors of its subscribers located in various states of the United States. Aecordingly, the c.orporate respondent is engaged merce , as " commerce " in extensive commereial intercourse in com- Act. In is defined in the the con duet of its business , the corporate Federal Trade Commission respondent is of furnishing and has been in substantial competition with other corporations firms , and individuals engaged in the business services for co1Jecting claims and aceounts , including colJection ageneies. PAn. 7. In the course and conduct of their business , the respond- ents use and :fe, atu l'e, the corporate name United Stntes Retail Credit Association , Incorporated , as "ell as the name United States Retail Credit Assocint.ion. The respondents further refer to their subscribers as " l\lembers of United States R, etail Credit Association. Through use of the aforesnid names ancl stntemrnL the l'e~pondents represent , directly and by implication , thnt the corporate respondent is a reta, il credit association , that is , nn organizntion of retail eredit men banded together for educational or soeial purposes and for promoting the mntual benefit of members. Snch representation by respondents is false , misleading and deeeptive. The c.orporate respondent is not a retail credit association or in any manner engaged 1514 FEDERAL TRADE CO:NIMISSION DECISIONS Findings 57 F. in carrying on such an association for members. The respondents essentially engage in the sale of a service comprising forms for use by customers in collecting their credit accounts and in furnishing collection services to such subsc.ribers as forward their delinquent accounts for collection , respondents ' collection activities being limited to contacting debtors by mail. In the sales promotion literature and also in forms and stationery used in sales presentations and in dealing with debtors from whom respondents endeavor to collec.t accounts for their customers , the respondents identify their business as a " nationwide association of busi- ness and professional men dedicated to the preservation nnd maintenance of sound credit prac.tice.s. Through use of such statement the respondents repre, sent and imply that their business is an asso- ciation composed of business and professional men banded together for the compilation , maintenance and dissemination of retail credit information for and to their members , and that such organization is nationwide in scope , operation and coverage. The aforesaid statement and representations by respondents are false , misleading and deceptive. Respondents are not and do not operate an association nnd for the of business or professional men of any kind or PAn. 8. In the course and for any purpose. conduct of their business purpose of inducing individuals , firms and corporations to enter into contrac.ts with them , respondents have made many other statements respeeting the nature , extent , size of their business , the period of time in .which it hns been in operation , a,nd services afforded. Such statements have appeared in printed matter used in dea1ing with prospective customers or with debtors and include the following: National HeadquartersR.C, A, Building Mentor , Ohio. Backed by the po"er of 30 years progress. Professional collectors throughout the United States. made through banks , employers, etc. In\€stigations Our Service reaches into Every State, County, City, and Village in the en. tire United States of America, Free Credit Heports- There shall be no charge to Member for credit information extracted from Association files, nor any limit on number of such credit reports l\Jember may request. PAR. 9. Through use of the aforesnid statements , respondents have represented and now represent , dire, ctly and by implication , that they have brnnch offices in various sections of the United States; that corporate respondent has been in the collection business for thirty years; that respondents have their own professional collec.tors throughout the United States; that they make investigations through banks , employers and others; and that they issue credit reports to their clients. UNITED STATES RETAIL CREDIT ASSN. , 1510 PAR. 10. The aforesaid INC. , ET AL. 1515 Order statements and representations by the re- Mentor , Ohio. The corporate respondent was organized in 1956 and , therefore , has been in business for approximately four years. Nor does the respondent corporation have professional collectors throughout the United States. It does not use such collectors and all collection activities are conducted from its office in :Mentor Ohio , and limited to contacting debtors through the mails. Respondents do not make investigations through banks , employers or others , nor do they issue credit reports. PAR. 11. The use by the respondents of the spondents are false , misleading and deceptive. The respondents do not operate branch offices and their sole place of business is in aforesaid false and misleading statements and representations has had , and now has the capacity and tendency to mislead members of the public , in- -eluding business concerns and debtors , into the erroneous and mistaken beliefs that said statements and representations are true. a result thereof , substantial trnde has been diverted to respondents from their competitors. , and is being, unfairly CONCLUSIONS The aforesaid acts and practic.es Retail Credit Association , of respondents United States liam C. Childs are to the prejudice Inc.orporated , George :M. Hyde and Wiland injury of the public and to respondents ' c.ompetitors and constitute unfair and deceptive acts and practices find unfair methods of competition in commerce within the intent and meaning of the Fe.dernl Trade Commission Act. The Commission is of the opinion that the complaint' s charges of law violation insofar as they relate ORDER It is orde1' to respondents Edward W. Elliot and :Margaret ,V. Anthony are not sustained by the evideEce. That respondent United States Retail Credit Asso- ciation , Incorporated , a corporation , and its officers , respondents ,Villiam C. Childs , and George 1\1. I-Iyde , individually and as offi- cers of snid corporate respondent representatives and employees , or other device , in connection directly or through any corporate with the offering for sale and sale , and said respondents ' agents, of any or accounts , the solicitation of service or printed matter for use in the collection of claims accounts or contracts therefor , and the collection of accounts in commerce , as " commerce " is defined in the Federal Trade Commission Act , do forthwith cease and desist from: 1516 FEDERAL TRADE COl\1l\lISSION DECISIONS Opinion 57 F. 1. Using the words " association " or " credit association , or any of similar import or meaning in the corporate name or in any other manner refer to the respondto designate , describe or ents ' business , or otherwise representing, directly or by implication , that respondents ' business is an association or a credit re.portother term mg agency. 2. Representing, directly or by implicntion , that respondents have of of brnnch otrices. 3. Representing, directly or by implication , that any of business in excess the re- spondents luno e, been in any kind the actual time in which such respondent or responde.nts hnve been so engnge.d. 4. Hepresenting, directly or by implication , thnt. respondents have professional collectors throughout the United States or at any plac.e where they do not have such representatives. 5. Representing, directly or by implicntion , that respondents make investigations through banks , employers or others or that their efforts at investigating, when made , exceed thnt of routine inquirie~ by correspondence. 6. Representing, directly or by implication , that the service dered by respondents renches into states of ren- the. United Stntes 01' an:",' area not actually reached. 7. Represellting, directly 01' by implication , that respondents flll' nish credit reports 01' that their files contain nny c.redit:. informatiml other than that rehting to 1 t is debtors whose ncconnts hnve been subthe allegations of mitted to respondents for collec.tion. further ordered That the comphint be and the snme hereby are. , dismissed ns to respondents Ed,vard ,V. Elliot and :Mnrgnret ,V. Anthony. Thn t the respondents named in the order 1 t -78 fwdhe1' o7Yle1' ecl to cease and desist shall , ,vithin sixty (60) days after servic.e upon of this order , file with the Commission n report , in "riting, them settinrr forth in detail the manner and form in which they have complied with the, order to Cf~nse and desist. OPINION OF 'ITIE CO?lDIISSION By AKDERSO~ COlnm(ssionl:l The complnint in this proeeechng clung-pel that the respondents hnye e.ngnged in unfair and c1eceptiyc acts and practices of in commerce by misrepresenting the nature their busine~~; and the benefits In the initial de, ci- flfforc1ed bv their sustained by the collection and other seryice~~, 8ion ~ the heflring examiner found that certain of evidence. , but that others ":('Te Ow charges ":ere not so supported. eomplnilll: has filed appeal from Yl1rious the latter dismissal l' nlings. Counsel supporting the UNITED STATES RETAIL CREDIT ASSN. , 1310 INC. , ET AL. 1517 Opinion Retail Credit Association , Incor- The respondent , United States poratBd , is an Ohio corporation , the capital stock of which is held by respondent George 1\1. Hyde and his wife. The term respondents when used hereafter designates and refers to the respondent corporation and respondents George M. Hyde and vVilliam C. Childs , who are two of its officers. Respondents advertise and sell a business service to stores and offices consisting of a portfolio of prinred forms and notices to be used by the subscriber in helping to keep accounts owed to him on a current basis and for collecting those already delinquent. As part of respondent corporation also undertakes ents ' c.ollection activities being limited mail. its service agreement , the to assist the customers in purpose , collecting claims and accounts forwarded for that respond- to contracting the debtors by bership emblem identifying the store or The printed matter supplied to customers include a metal memoffice where displa.yed as a :Member of United States Retail Credit Association " and cautioning the clientele that unpaid accounts are forwarded for collection to the Association. Other material for use by the stores includes oilicial" delinquency notices to be sent to debtors ' which inform that the creditor is " obligated" to forward his account to the Association unless payment arrangements are immedia.tely made. Respondents ' schedule of fees for subscribers has ranged from $40. 00 up to $720. , depending on the number or value of the accounts which the customer is entitled to submit for collection , namely, 35 for the minimum priced enrollment and 700 for the highest. The complaint contains two categories of charges challenging respondents ' use of the word " association " as deceptive for describing their business. One alleges that , through use of the names United States R, etail Credit Association , Incorporated , and United States Retail Credit Association , and by designating their customers as members , respondents represent directly and by implieation that the corporate respondent is a retail credit association and engaged in carrying on thnt type of business for members , whereas it is not such an enterprise. In sales literature and also in forms and stationery used in dealing with sales representatives and with debtors when collecting customers ' accounts , respondents identify their busine.ss as a " nationwide associntion of business and professional men dedicated to the preservation and maintenance of sound credit prnc- red shields for display on billings with wnrnings to like effect and tices ; and the complnint alleges that such stntement deceptiyely represents the eorpornte respondent' s business to be an association of business nnd professional men bn.nded togethe.r for the compila- 1518 FEDERAL TRADE COMMISSION DECISIONS Opinion 57 F. tion and dissemination of retail credit information for m~mbers as national in scope and coverage. and The evidence received includes the testimony of the secretaries or managers of three credit agencies doing business in the Cleveland Ohio , area. They expressed views respecting the meanings engendered by certain terms used in designating credit associations and kindred agencies including that for " retail credit association. " The principal business of their collection of information relating to the credit responsibility of individuals and businesses and reporting such data to their subscribers or members and other agencies. Some also collect delinquent accounts. Those witnesses testified in essence that the words retail credit association signified an organization of retail credit men for educational and social purposes and promoting the mutual benefit respective organizations has been the of the members. is a non- According to the record , national field. several such nssociations :K ational exist in the One example , The Retail Credit Associa- tion , profit and member-owned organization composed of 000 credit executives and credit granters who are approximately 50 linked together for the mutual benefit of members and the improvement of consumer credit conditions. Another , the Associated Credit Bureaus of America , Inc. , is a non- profit , voluntary credit associntion of eredit reporting concerns and collecting services. The witness who was an oflicial of the Cleveland Association of Creidt :Management , stated that his non- profit orgnnizntion provided credit services over an area in northern Ohio and ,,- ns affiliated ,vith the National Association of Credit ~len which had headquarters in New York City. The emblem furnished by this organization to members reads " 1\Iember Nationnl Associntion of Credit ~Ien. " The similarity of the corporate respondenfs display emblem to that emblem is obvious and requires no further comment. The respondent corporation is essentially engaged in the sale of use in eol1ecting their accounts and in assisting subscribers in collecting those which they fail to collect.. Not forms for customers ' use of both the term United States Retail Credit Association and its corporate name reasonably represents and implies to customers and debtors that their enterprise is an association of credit men , but the record further supports conclusions that the sueh deceptive impressions of a only does the evidence establish that the respondents ' sales literature , forms and collection material used hnve been tnilorec1 to aceentua te and confirm cooperative membership organiza- tion national in scope. Thus , in the reporting forms furnished for use by solicitors in forwarding sales eontracts to the c.orporation respondents ' service is referred to as the " Associabon s ~Ie.mber- UNITED STATES RETAIL CREDIT ASSN. , 1510 INC. , ET AL. 1519 Opinion ship Credit and Collection Plan " and the salesman affirms that has presented the plan to each " Applicant strictly in accordance with the Association s Official Rules and Regulations. is in like vein and designated The contract signed by subscribers "Official ~lembership Application and Agreement" ; and the sales promotional literature prominently features a provision of such agreement whereby the member grants the Association the right discount and take title to notes forwarded for collection by paying the creditor 70% of face value. The enrollment agreements contain an express limitation respecting the aggregate value of notes to be so discounted "in anyone year , which maximum varies with cost of enrollement selected. The prospectus and printed sales pressalesmen further stress a theme of entation provided for use by mutality and cooperation respecting this feature , as follows: You will note that there is a limit, governed by type of Group Membership, on the money value of Notes which may be discounted. This is for Members Protection. It means that no fa,Ol' ed Member can monopolize the Fund. The Revolving Fund" concept is new. It is used prudently and usually in con- nection with accounts not more protection. than 90 days old. This , II' too, is for Member aU the Members, care must be taken '" '" * since the use of this Fund is for . This is obviously necessary, in the exercising of the Discount option * Mr. Jones , because , for example , you certainly wouldn t want the Association to discount a Budget Plan Note for another Member where the Note involved value and that as a result of not being able to collect this Note, the Fund would be depleted and not fully available for use Members. (Underscoring as in origina1. J was of very dubious The prospectus also includes a testimonalletter ber physician expressing a mem- s appreciation for prompt discounting of the " membership of an account and lauding this aspect Respondent Hyde testified that the doctor was his physician. I-Ie further conplan. ceded that accounts have been discounted for " very few " customers stated that those usually received for ble condition the business as less than 25. collection were in a deplora- , and placed the number discounted since inception of Another promotional item , namely, a mailer used by respondents and solicitors for initially establishing contact with prospective subscribers include, s the following statement: Free credit reports are furnished Member from Association as to frequency or files. No limit number that Member may require. by the corporation s " Credit The above-mentioned prospectus includes a " Confidential R, eport" Report and Service Division " containing information as to a purported subject' s family status and employment and reeommending him as a " fair " credit risk beca.use of 1520 FEDERAL TRADE COMMISSION DECISIONS Opinion 57 F. having met scheduled payments on accounts previously forwarded respondents for collection. :Mr. I-Iyde testified , however , that the company had never furnished a credit report to any subscriber. Hence , the respondents ' assumption in their advertising of this recognized vestment of cooperative or association credit endeavor similarly has no foundation in fact. The hearing examiner clearly erred in complainfs charges that the respondents failing to find that the have falsely represented their enterprise to be an association , a retail credit associntion and a membership credit reporting agency through use of the c.orporate nnme nnd otherwise in their advertising have sound support designations of their business as a retail are false in their entirety. ,Ye think too that an nbsoJute prohibition ngninst. respondents : future use of those terms to designate their business is required in the public interest. credit, association and as an association in the record. Hespondents ' The hearing examiner also erred in finding that the record did not support the. c.ol11plainfs additional charges that respondents : enrollment agreements falsely represent and imply that credit re.ports n 1'e, furnished their clients. The pnrticul:lr statement in the agreement against which this charge is directed reads as follows: Free Credit Reports- There shall be 110 charge to ::\Jel11ber for credit information extracted from A:'i80ciation tiles , nor any limit. on number of such credit reports Member may request. As noted previously, nn advertising folder used by respondents has unqualifiedly represented that snell reports arc furnished from their files , nnd the prospectus for display to prospcc,tive enrol lees hns featured a purported sample l'epol'L IYhereas respondents llayc never provided such reports. Respondents ~ use in sneh circumstances of the nbove- quoted spondents ' use in promotionnl National Ileadquarters- statement clearly has been attended by capacity and tendency to deceive. The remaining issue presented under the appeal relates to rematter and forms of the statement A. Building, ~lentor , Ohio " for connection identifying the corporate respondent. In this , the com- sections of the United States. The :Mentor ofl-ice is the only place of business operated by respondents. Thnt address is additionally referred to as the " home plaint charged that respondents thereby have falsely represe, nted find implied that their organization hns branch oflices in various office :' and as " exe, cutlye he, adquarters. :Moreover , similarly ness inhere in a deceptive suggestions of branch places of busi- companion false statement used advertising and collection forms which represents in respondents their service as UNITED STATES RETAIL CREDIT ASSN. ) 1510 INC. , ET AL. 1521 Opinion reaching into every city and village in the entire United States. The initial decision s dismissal of this charge ,,- , therefore , erroneous. the initial decision The appeal of counsel supporting the c.omp1aint is granted and is vacated and set aside. The Commission s acof the foregoing charges in conformity with the companying findings as to the facts , conclusions and order provide for disposition views expressed above. fi-!(I~lIjS-- G~\--- !J .. &, INTERLOCUTORY ORDERS, ETC. ERIE SAND AND GRAVEL COllPANY Docket 6670. , Order Order , July 8, 1960 denying, for lack of jurisdiction , respondent' s petition for rehearing after filing petition to review Commission order in the Court of Appeals. by petition filed June 8 , agreeable plan for Erie Sflnd and Gravel Company, respondent in this proceeding, compliance with the Commission s order of Octo- 1960 , having requested a hearing before the Commission for the stated purpose of working out a , mutually ber 26 , 1959 , wherein the respondent was ordered to divest itself of certain assets acquired from KeIJy Island Limestone and Transportation Company; and It appearing that the respondent' s ultimate objective is to obtain Commission of its order of October 2G , 1959 the contention being that this is necessary because the respondent a modification by the has found it impossible to comply with the originally drafted; and It further appearing that the respondent , terms of the order as on December 28 , 1959 filed in the United States Court of Appeals for tl1e Third Circuit a peti60n to review and set aside the aforesaid order of the Commis- court the record in the case; and risdiction to entertain the proceedings merits of the respondent' sion and that the Commission , on February 5 , 1960 , filed in said The Commission being of the opinion that it has no present ju- 1 t iR ordered Thnt the petitio n denied. s position: necessary to determine the for a hearing be , and it hereby is ADA~lS DAIRY CO~1PANY; ADAM:S DAIRY , INC. and THE KROG ER CO~IP ANY Docket 7596 ADA~1S DAIR, COi\1P ANY; ADA~MS DAIRY , INC. and SAFE,Y A Y STORES , IN C. Docket 7597' ADA~IS DAIRY COl\IPANY; ADA. l\lS TlIE GREAT ATLANTIC Docket D. IRY , INC. ; and PACIFIC TEA COi\IPANY , INC. /598 1523 1524 FEDERAL TRADE COMMISSION DECISIONS Order, J1tly 1960 Interlocutory order denying appeal spiracy case, from hearing examiner s denial of motions to quash subpoenas duces tecum as requiring irrelevant material in con- On ~Iay 2 , 1960 , the hearing examiner filed his order denying the motions filed by certain of the respondents in the above proceedings to quash the subpoenas duces tecum theretofore issued and served upon them. Respondents Adams Dairy Company and Adams Dairy, Inc. , have appealed from such rulings. The complaints in these proceedings allege that the respondents named have effectuated and maintained a conspiracy, combination agreement and understanding in the sale and distribution of dairy products in restraint of trade. The complaints further charge that the respondents for many years past have performed and pursued the policies , acts and practices there enumerated , including fixing of prices and price differentials and coercing of competitors such alleged conspiracy and understanding. tain such prices and differentials , pursuant to and in furtherance to mainof In their tecum appeal , respondents contend that the subpoenas duces require production of irrelevant material and that they are unreasonable in scope. Respondents ' contentions of irrelevaney are based on the premise that the complaints primarily charge a conspiracy to fix and maintain prices that any concerted pricing activities proved to have been engaged in unduly broad and burdensome and pursuant thereto would be deemed unlawful lows that information per Be and that it fol- relating to the practices on competitors is irrelevant and unnecessary to disposition of the proceedings. The charges of the complaints , however , include additional allegations of territorial price re, duct.ions and sales below cost in favor of the respondent food , ehains. The relevancy of evidence bearing on the competitive effects of practices in that respect ~ therefore , obvious and requires no further comment. Furthereffects of the respondents more , the circumstanc.e without an evidentiary that unlawful combinations may be proved showing of each step in their development or fruition does not dispense with the necessity for adequate development of facts relating to their formation and maintenanee. The with customers information reqnested in the subpoenas , inc.luding that relating the trade practiees of the appenling parties respondent in dealing dealing .with other than the. grocery chain respondents and in their suppliers , accordingly nppenrs fully releTant to that. _ \.dams the issues raised by the plendings. Counsel supporting the compln ints concede Dniry Company hns supplied the Commission ,,-ith photostatic number of documents ",- hieh copies of n are. \yithin the categories of materinl INTERLOCUTORY ORDEHS , ETC. 1525 requested, in the subpoenas; and they have further conceded that documents relating to the dairy industry, including commercial activities of the respondents , have been received from other sources. Respondents contend' that the subpoenas are unreacopies of other sonably broad because they do not expressly exclude those docu- fied as exactly as possible. ments from the purview of the information requested. As a corollary argument , they urge that failure to duly exclude those matters renders the subpoenas defective under ~ 3. 17 of the Commission s Rules which prescribes that material being requested be speci- Counsel supporting the complaints have disclaimed any desire that respondents ' returns duplicate those documents. In his order the hearing examiner in that considerations effect expressed like views but he also ruled of authenticity, and cluding due regard to the nature of the charges , other considerations injustified the speci- fications ' comprehensive form. fully informed as to The appealing respondents appear identity of the documents which they have of a furnished to counsel. Counsel supporting the complaints state that another of the respondents , not a party to this appeal , supplied a list of docume, nts theretofore furnished by it to representatives congressional investigational committee , and that counsel marked An ofi' er such list as to documents in their possession for its information. to join in a like orderely determination with the respondis implicit in the brief of counsel support- ents bringing this a,ppeal circumstances would be improper to conclude that the failure to exclude such material as is already in the Commission s possession renders the subpoenas unreasonable ing the complaints. In these , it or invalid under ~ 3. 17 of the Commission s Rules. The additional arguments advanced in support of respondents cont~ntions that the subpoenas are unreasonable and unduly burdensome also have been considered and are likewise rejected. 1Vhile the scope of the specifieations is comprehensive and the information relates to activities of the companies extending back in instances for substantial periods of time , such specifications are within the purview of the requested alleged acts and practices constituting the view that the the violations charged. The Commission is of evidentiarv material called for is relevant to the issues and that its production is necessary in the interest of c1eeisions in these proeeedings du1y based upon the facts. ORDER It is ordered That said interJoc.utory appeal be , and it hereby is denied. 1526 FEDERAL TRADE COMMISSION DEClS'IONS KENTON LEATHER PRODUCTS, INC. , ET AL. Docket 7812. Order and Opini. , Aug. 1960 Interlocutory order up holding disposition of case. hearing examiner s denial , as premature, of mo- tion for return of certain physical property required as evIdence, before By the COMMISSION: Respondents have taken an interlocutory appeal from the hearing examiner s order filed June 16 , 1960 , denying their motion for the return of certain physical property and data. The material facts as follows: sought is described in respondents ' statement of This property and data were in the form of a book prepared by respondents. The book demonstrates the c.omparability, in various respects , of Kenton s wallets and those of its competitors selling plnstic wings tabs , fasteners , lining and partition materials , together with letters from Kenton s suppliers attesting to the comparability of the component parts. Respondents allege that they submitted this material voluntarily and conditionally to the Bureau of Consultation with the understanding that it would be returned by that Bureau- It appears that It contains physical specimens of types , jet bars at higher prices. , leather of various the Bureau of the Bureau of Consultation subsequently forwarded the material Investigation and that thereafter it went to the Bureau of Litigation where it is held at the present time. Counsel supporting the complaint has filed a notice of an intention to use this material as evidence in this proceeding. Respondents assert that the. efl'ect of the alleged withholding of this material is to impede their trial preparations , and they claim that such withholding will affect the outcome of the case. It appears that the material here sought might be necessary relative to the perthereafter it was to be returned to the tinent inquiry and that respondents. There is still a need for the material. Counsel sup- was submitted to the Commission for such use as material is being retained under lawful and proper circumstances. :Moreover , counsel supporting the complaint stntes that respondents have been advised thnt the property and dnta they seek will be available to them for inspection and copying. Thus , they will not prior to tlw disposition of this ease will be denied. porting the complaint has indicated an intention to use it as evidence in the instant. proceeding. Accordingly, it is clear that the be at any disadvantage in their preparation for trial. In the eircumstances , their request for the return of the property and data is premature. The.ir appeal INTERLOCUTORY ORDERS , ORDER DENYING APPEAL ETC. 1527 The respondents having filed an interluctory appeal from the hearing examiner s order of June 16 , 1960 , denying their motion for the return of certain physical property and data; and The Commission , for the reasons set forth in the accompanying opinion , having determined It is ordered that the appeal should be denied: That the interlocutory appeal of the respondents , and it hereby is , denied. DIAl\10ND CRYSTAL SALT CO. Doclcet "l323. Order, Aug, 1960 of Feb, 4 , 1960. Order approving plan for compliance with divestiture order "\Vhereas , the Commission issued an order on February 4 , 1960 , to divest and to cease and desist against Diamond Crystal Salt Co. and in paragraph 1 ordered respondent to divest itself absolutely, in good faith of all right , title and interest , real and personal , in certain property located in the Seneca Lake region in the State of New York , which respondent ,acquired from the Jefferson Island Salt Company when it acquired the stock , business and assets of the Jefferson Island Salt Company; and "'\Vhereas , said order required Diamond Crystal Salt Co. to submit within sixty (60) days from FebruaTY 18 , 1960 , the date of service of the order , in writing, for the consideration and approval of the Commission ing the date within its plan for compliance with paragraph 1 of said order and its related provisions respecting divestiture , includwhich compliance can be effected , the time for filing of report of compliance with the order to divest to be thereafter fixed by order of the Commission , jurisdiction being retained for that purpose; and 1Vhereas , Diamond Crystal Salt Co. , by its statement dated April , 1DGO , as supplemented by its statement dated l\lay 23 , 19GO , has submitted a plan for complying with the divestiture provisions of said order , including the date within which it is believed that compliance can be Now , therefore , upon consideration therof effected; with paTagraph I t is ordered That the plan of compliance of respondent Diamond Crystal Salt Co. , 1 of the ,cease and desist issued on February 4 , 1960 , with related provisions respecting divestiture , contained in its statement dated April , 1960 , as supplemented by its statement dated l\1ny 23 , 1960 , be :and it is hereby approved. It further ordered That the respondent Diamond Crystal Salt shall within thirty (30) days from the date of service of this Co. order to divest and to '-.. " 1528 FEDERAL TRADE COMMISSION DECISIONS order submit a report in' writing, setting forth in detail the manner and form in which it has complied with said plan of compliance. P. LORILLARD CO:MPANY , INC. Docket 4922. Ot- del' , Au.g. 25, 1960 Order dismissing petition to modify desist order in view of voluntary agreement of all cigarette manufacturers to discontinue the type of advertising claims prohibited. The Commission , by order issued July 15 , 1959 , having reopened this proceeding and referred the case to a hearing examiner for the purpose of receiving such evidence as may be offered in support of to the respondent' s petition to modify the order to cease and desist theretofore entered herein; and The respondent having subsequently determined that further proceedings on its petition might be unwarranted in the light of the intervening voluntary agreement on the part of all cigarette manu- and in opposition facturing companies , including the respondent , to discontinue the type of advertising claims prohibited by the order to cease and dehaving now requested that further consideration of its sist petition be deferred until lJuly 1 , 1961 , or until such other reason- , and able time as mny be a.ppropriate; a.nd The Commission cluded that nothing having considered the matter and having conwould be aceomplished by a deferment of the proeeedings which would not be aceomplished by a dismissal of the petition without prejudice to the right of the respondent to renew it if and when future circumstances so warrant , find that the latter course is desira.ble in the interest of orderly procedure.; and , accordinglv: It i.s onle'Jo sideration of its Thnt the respondenCs motion to defer further eonpetition to modify the outstanding order to cease and desist herein be , and it hereby is , denied. 1 t is f1l1'the1' onle' l'ed That the aforesnid petition to modify the order to cense and desist be , and it hereby is ~ dismissed , without prejudice , however , to the l'espondent, s right to renew said petition if and when the respondent feels that future circumstances so warrant. FLUIDLESS CONTACT LENSES, INC. , ET AL. Docket "/026. Order and Opini, , Sept, 1960 Order denying motion for modification of desist order, statutory change in conditions of fact or of l:w; not ha~ing been made. showing of' INTERLOCUTORY ORDERS , ETC. 1529 By the This matter has come on for cease and desist ceeding on September 24 , CO~DIISSION: hearing upon respondents ' OPINION OF THE COMMISSION motion requesting the Commission to modify or construe paragraph (j) of the order , to entered in disposition of this pro- has filed an answer 1958. Counsel supporting the complaint in opposition thereto. similar motion was med by respondents on February 18 , 1960 , and ,,' as denied by Commission order issued :March 17 , 1960. The initial decision , which became the decision of the Commission wns based upon an agreement containing a eon sent order to cease and desist. Paragraph (j) of the order agreed to by respond- ents prohibits them from representing that their c.ontact lenses are revolutionary or are a new type of corneal lenses. Under Section 5 of the Federal Trade Commission Act , any order of the Commission which has become final may be reopened and altered , modified or set aside , in whole or in part , whenever in the opinion of the Commission c.onditions of fact or of In" have so changed as to require suc.h ' action , or if the pubJic interest shall present motion and their brief in support, thereof and , in our opinion the required stntutory showing has not. been made. Respondents ' brief acknowledges that the lenses they now sell known ns the, " Hornstein lens, ~' hn"c lwen sold to the public and used for a period of at least five years. The claim that such lenses are. a revolutionary or new type of eontact lenses would be subject to the snme objection now as when used by respondents to refer to require. ,Ye have given careful consideration to respondents ' the corneal contact lenses they previously sold. In this connec- tion , however , the Commission notes that pnrngraph (j) of the or- der to eease and desist does not prohibit a truthful representation that improvements have been made in any lenses now sold by respondents as c.ompared with any lenses previously sold , nor are rf'spondents bnrred from a. truthful description t he nature and extent of improvements therein. of their lenses or of espondents hnye, made a. request for ornl argument , but it appears thnt the briefs are entirely adequnte to fully ndvise the Commission as to the matters in issue and thnt no useful purpose would be served thereby. Respondents ' motion for modifiention finest for oral nrgument are denied. ORDER of the order and their re- This matter having c.ome on to be henrd by the Commission upon a. motion , filed by respondents on July 22 , 1960 , requesting modi fica- , ,,- 1530 FEDERAL TRADE COMMISSION DECISiONS and desist contained in the initial decision as adopted by the Commission on September 24 , 1958 , and requesting oral argument , and upon answer in opposition to the motion filed by counsel supporting the complaint; and tion of the order to cease It appearing that the allegations of said the same as the allegations in a similar motion filed by respondents on February 18 , 1960 , which motion was denied by the Commission by order issued :March 17 , 1960; and It further appearing that the allegations of the present motion provide no additional grounds to support a conclusion that conditions of fact or of law may have so changed since the issuance of the order to cease and desist as to require its modification or that the public interest may now require it: I t is o'rdered That the motion for modification of the order to cease and desist and the request for oral argument of respondents motion are essentiaIIy , and they hereby are , denied. H. P. I-lOOD & SONS , INC. Docket "/709. 01' de1' , Sept. 1960 Interlocutory order upholding hearing examiner s denial in part of motion to quash subpoena duces tecum as calling for information beyond scope of complaint, This matter having come on to be heard by the Commission upon respondent's interlocutory appeal poena from the hearing examiner s order denying in part respondent' s motion to quash or limit a subduces teC'lt1n theretofore served on respondent , and upon the answer of counsel supporting the complaint in opposition to the appeal; and It appearing that. the c.ontentions made by respondent in support of said appeal are that certain products , namely, frozen dairy products , coneerning which information is requested by said subpoena are not within the scope of the eomplaint since, the Commission did not intend to include such issue, s raised by the complaint : products in this proceeding nnd since the if the complaint is construed to in- onld be the snme as those litigated clude frozen dniry products in Docket No. 6c125 inyolving the same respondent , and that the subpoena was improperly issued under 9 3. 17 of the Commission R.llles of Practiee; and The Commission having determined that the sc.ope of this proeeeding is sutriciently broad to eoyer frozen dairy products and that the issues raised by the complaint in this proceeding with respect to frozen dairy pl'oc1uets fire not the snme ns those litigntec1 in Doeket No. 64:?5 even though the chal'g~es in both cnses may relate to the same transactions; and INTERLOCUTORY ORDERS , ETC. 1531 The Commission having further determined that the subpoena was properly issued in that it is reasonable in scope , the documents called for are relevant to the issues and compliance with the re- quests would not be unduly burdensome on respondent: That respondent's interlocutory appeal be , and it It is 01'de1' hereby is , denied. I t is fu1'the1' ordered Commissioner I(ern That this matter be , and it hereby IS , manded to the hearing examiner for further proceedings. not participating. re- J. ,VEINGARTEN , INC. Docket 7711,- Orde1' and Opfnio' , Sept. 9, 1960 Interlocutory order denying appeal from hearing examiner s denial of motion to quash and limit subpoena duces tecum. OPINION OF THE CO1tfl\IISSION By the CO:l\Il\II8SION: This is an interlocutory appea1 ing examiner duces tecum. s denial of its motion to quash or limit a subpoena the respondent. from the heaT- The complaint c.harges respondent with violating Section 5 of the Federal Trade Commission Act by knowingly inducing or receiving from sorne of its suppliers special advertising allowances which WP1'e not made nyaililble on proportional1y equal terms to respond- enfs competitors and the ach' ertising of suppliers an of such allowances in Respondent has appealed from the hearing examiner s order of :MRY 13 , 1960 denying its April 6 motion to quash or limit 9, subpoena served upon by failing to use ' products. it on 1D60. The contentions made on this appeal are that the scope. of the subpoena is broader than the issues raised by the. c.omplaint; that the subpoena lneks the clarity, definiteness nnd certainty required for vaJiclity; and that the Commission s R.ules of Practice do not provide for the use of a subpoena (l1. wes teCll,1n to require a corporation to produce 1Vith respect to the rec.ords after complaint. lUis been issued. first. contention , respondent asserts that the complaint relate solely to alleged practices enissues raised by the gaged in by respondent in connection with its anniversary and Texas and Lonisiann, Prochlc.ts snJes. It nrgues , therefore , that. the subpoena is ilyndid insofnr as it. requires the production of documents re1ating to responcle11t' s artiviti('s with respect l' () other snIps. The contesteel speciJicntioJls of the subpoena incJude requests for clatn conc.erning transnctions other than those eonnec.tec1 with respond- ent's anniyersnrv nnd Texas and Louisiana of this fact ::md since the scope of a Commission s inyestigation may Pl'odnc.ts sales. In view 1532 FEDERAL TRADE COMMISSION DECIS10NS be narrowed by the issuance of a complaint , the sole question presented on this part of the appeal whether the complaint limits is the issues to the We think it does not. aforementioned sales or promotions by respondent. the complaint , such sale is mentioned only as an example of the type of violation charged. The wording of this charge clea.rJy does not Emit the issues to trnnsactions in connection with any particular sales by respondent. Respondent' s argument that the complaint is Trot susceptible of such broad construction (although it inconsistently admits elsewhere in its brief that it may be so construed) is based primarily on the wording of the following allegation in the second charge (Para- That part of the complaint charging respondent with knowing inducement or receipt of discriminatory allowances does not mention the Texas and Louisiana Products sales; and although reference is made to one of respondent' s anniversary sales in Paragraph Six graph Ten) : The amounts of money solicited and received by the respondent from each of its suppliers were paid by such suppliers for advertising to be done by respondent in promoting each such supplier s products during respondent' anniversary sales and Texas Products and Louisiana Products sales in the year 1958 and the years prior thereto. The second sentenc.e of this paragraph reads as follows: However , it has been the regular and continuous practice of respondent not to use the entire amounts of money received from its suppliers to advertise such suppliers ' products during such of such payments to its own use. 1Ve do not proceeding to the particular sales but to divert substantial amounts that the clude practices in connection construe this language as limiting the scope of the sales mentioned , but are of the opinion second sentenc.e quoted above broadens the charge to in- with sales other than those specifi- cally nnmed. The appeal on this point is ~ therefore , denied. R.espondent~ s second argument is that the documents sought by the subpoena. are not ac1e,quately described. This same contention was rejected by the hearing examiner and we find nothing in re- spondent's brief to indicate that the ruling on this point should be reversed. It is our opinion from an examination of the subpoena that the documents requested thereby are specified with sufficient definiteness to be readily identified by respondent. R.espondenfs final contention that a corporation may not be cGa.'J' l'Y et al. v. 8ecu'J'ities sub- poenaed as a " witness " to produc.e records thority of 31 is rejected on the auExchange Col1l.n'dssion 147 F. 2d 389 (1945). An appropriate order will be. entered. INTER,LOCUTORY ORDERS , ETC. ORDER 1533 :a1J peal ITom the he3,a:-ing Respo:n.clent , J. ,V:eingarten , Inc. , having filed an interlocutory examine.r s order of l\lay 13 , 1960 , denying said respondenes m~otion to quash and limit a, subpoena du, ces tecum served rclpon ion , It it April 6 , 1960; and The Conlmission , for the rensons stated in the accompanying opinlli~v.ing i8 conelncled that the ruling '01~de1' Thnt respondent's nppealed from was correct; hereby is appenl be , and it d en iecL J. \VEINGAR, TEN , INC. Docket /714. Order and 01Jinion , Sept. 1960 Inter1~,cutory order den~'ing appeal from hearing examiner s refusal to dismh;s ,complaint , holding :l live poultry dealer not withdrawn from Com- mi'ssi:on authority to prohibit under Sec, 5 " knowingly inducing or receiwing froll1 suppliers special advertising allowances not made available ,on ))l'opol'tionally equal terms to respondent' s competitors, OPI:NION OF THE COl\BIISSION mission jurisdiction by Packers and Stockyards Act, and upholding Com- By the CO:Ul\IISSION : This is an interluctory appe, al by the respondent from the hearing e,xaminer s denial of its motions to c1ismjss the c.omplaint. The complaint charges respondent with violating Section 5 of the Federal Trade Commission Act by knowingly induc.ing or receiving competitors and by fn.i1ing to use all advertising of the suppliers not made available on proportionally equal terms from some of its suppliers speeial advertising allowances whieh were to respondent's of such allmvances in the the com- plaint for want of jurisdiction on the ground that it is a live poultry dealer and , therefore , subject to the exclusive jurisdiction of the Secretary of Agriculture under the Packers and Stockyards Act , as amended by Public Law 85- 909 , 85th Cong. , 1-I.R. 9020 , and on the ground that " the complaint is brought under nn improper statute Trade Commission Ac.t , whereas the complaint purports to allege n c.laimed violation of the RobinsonPatman Act." The hearing examiner denied these motions and respondent has now filed an appeal from this denial. namely, Section 5 of the Federal It is not neeessnl')' to determine for the purpo~e of thjs dence , respondent moved the hearing examiner to dismiss ' products. Prior to the taking of evi- whether respondent is a live poultry dealer as thnt. term is defined in 7 n. 1\.. ~ 218 (b). ,Ye win decide. only the question of whether the alleged llnfnir trnc1e practices of respondent , as a live poultry dealer , are subject to regulntion only under the Packers and Stockyards Ad and not under the Federal Trade Commission Act.. appeal 1534 FEDERAL TRADE CO),fMISSION DECISIONS argument that the Respondent' s Commission is ,yithout jurisdic- tion in this matter is based on the \\"ording of subsection (b) Section 406 of the Packers and Stockyards Act , as amended by PubThis subsection , however , pertains only to tllE', jurisdiction of the Commission over mntters invoh- ing meat , meat lic Law 85- 909. food products , livestock products in unmanufactured form and poultry products which are made subject to the power or jurisdic.tion of the Secretary of Agric.ulture by the Packers nnd Stockynrds Act. The complaint charges respondent with unfnir practices in transactions involving products other than those covered by the aforementioned subsection. Consequently, insofnr as such transactions are concern~, : the subsection relied upon by respOll(lent has no application. Section 5 (a) (6) of the Federal Trade Commission Act ,vas amended by Public Law 85- 909 to read as follows: (6) The Commission is hereby empowered and directed to prevent persons , partnerships , or corporations , except banks common carriers subject to the Act to regulnte commerc.e , air carriers , and foreign air carriers subject to the Civil Aeronautics Act of 1938 and persons , partnerships , or corporations insofar as they are sub- ject to the Packers practices in and Stockyards Act , 1921 , ns amended , exc.ept as provided in section ~10() (b) of said Act , from using unfair meth- ods of competition in commerce and unfair or deceptiye acts or commerce. R.espondent overlooks completely the signific.anc.e of the ,yords Pnckers find Stockyards Act , 1921 , as amended. The substantive provisions of the Packers and Stoc.kyards AcL as amended by Public Law 85- 909 , applicable to packers flndlive poultr,\' dealers or handlers regulate such persons '; ,yith respect to lin~ stock , meat , meat food products , livestock products in unmanufactured form , poultry, or poultry products. " Thus , a pncker or live except * * * insofar ns they are subject to the poultry dealer or handler is subject to the Packers and StoC'kya rrls Act only with respect to transactions involving such commodities. It is only this portion of the business of such persons that is ' with- drawn from the Commission s jurisdiction by the above- quoted elallse in Section 5 (a) (6) of the Federal Trade Commission ..A.. cL A s to transactions involving all other commodities , a packer or live poultry dealer or handler is subject to the jurisdiction of the Federal Rena-ire CO1'pO1Yf.Non (Pennsyz.vwnia) et al. Trade Commission. , February 12 , 1959. Respondent: s appeal on this point Docket 6555 is denied. The seeond point urged in respondent's appeal is that the prac.t.1ces alleged in the c.omplaint do not constitute violations of Section 5 of the Federal Trade COlnmission Act. The complaint alleges in e.fl'ect INTERLOCUTORY ORDE, that respondent violated Section , ETC. 1535 ing from its suppliers special payments of allowances which were not made available on proportionally equal terms to respondent' allowances and not 5 by knowingly inducing or receiv- competitors and by inducing and receiving such special payments or expending the entire amount thereof in actual advertising of the supplier s products but diverting to its own use substantial amounts of such money. Respondent' s argument seems to be that since the practices challenged in the complaint are analo- the Clayton Act section and not under Section 5 of the Federal Trade Commission Act. ,Ye ha.ve rec.ently rejected a similar argument in n. proceeding involving virtua.ny the same issue. The (i1Yt1Id Union Oo17~pany, Docket 6973 , August 12 , 1960. As we stated in thnt cnse , Congress gous to those specificany prosc.ribed by Section 2 of ns amended , they are actionable only under that has conferred upon the Commission the authority under Section 5 affecting competition in yiolation of the policy of the Federal Tra.cle Commission Act to prohibit prartices adversely the nntitrust laws including the nmended Clayton Act , nIt hollg' h the pl'i1ctiees may not be specifica1)y prohibited by the language of such l:H\- s or have been previously adjudged to be illegal by the eourts. that in the nbsence of ,Ye held , therefore exempt from proscription practices coming within the peri pher)' of Section 2 of the Clayton Act , as amended , although not ",ithin its letter~ such practices may be deemed to be unfair under Section 5 of the Federal nny evidence of Congl'essionn 1 intent to Tra.de Commission Act. The respondent' s appeal will be denied nnd an approprintp order win be entered. Commissioner Tait dissents for opinion filed in the rensons given in his dissenting The G1'wnd Union Oompa.ny, ORDER Docket 6973 , August , 1960. enfs appeal from the The Commission , t is This matter having been heard by the hearing examiner Commission upon responds ruling denying respond- ent' s motions to dismiss the complaint; and ion , having concluded O?'deTed for the rensons stated in the accompanying opinthat this nppenl should be denied: That respondent' s appeal be , and it hereby is denied. Commissioner Tait dissenting. CRA~E CO. Docket 7833. 01"der , Scpt. lDGO Interlocutory order nplwlcling motion for severance and separate of (lenial trinl of portion of eornplflint flJleging ilJegnl acquisition of stock in Driggs five acquisitions concerned J\Janufnctul'ing Company, one of , the Commis- sion holding that cumulative effect of all was at i~sue. 1536 FEDERAL TRADE COMMISSION DECISIONS ORDER This matter having been heard by the ent' s portion interlocutory appeal froni the hearing exaJl1iner Commission upon responds order cleny~ severance and separate trial of that the complaint which charges that. the acquisition of stock in the Briggs :JIanufacturing Company by respondent violates Secthe Clayton Act; and tion 7 of It appenring that respondenfs objective. is to try the legality of of stock in the Briggs ~1anufacturing Company beits acquisition fore the other issues raised by the, complaint in order to preserve ing respondenfs motion for of the assets and protect the eustomers respondenfs investment therein , of that company and protect. the contention of being that scvernnce ",ill not prejudice considerntion of the re.maining separate trial the complaint and thnt avoid certain pennlizing aspects the aforesaid issues rnised by ehnrge. ,,-ill of the acquisition not intended by been established; and It further appearing that the. complaint herein refers to fonr acquisitions by respondent in addition to thnt. of the stoc.k of Briggs ~Ianufacturing Company and nlleges that the elTect of said ncquisitions , collectively as ",ell ns individually, may be snbstantinlly to Section 7 beofre a violntionhas c.ommerce involved ,,- ithin the meaning of Section 7 ct; and lessen eompetition or to tend to erente n monopoly in the line of the Clayton The of Commission being of the. opinion that since of the complaint. places in issue the cnmulntive efl'ect of said complaint therein , severnnce all the aeqnisitions named one snch acquisition under Section 7 so as to permit separate trinl the Clayton Act should of not be permitted: Thnt the respondenfs It ';8 O1'(le?'ed interlocutory appeal be" and it hereby is , denied. 1. B. I1IRSCH CO. , INC. , ET AI.. Docket 852. Order , Sept, 9, 1960 rejection of consent Order (lenying joint appeal from hearing agJ'e~'mellt and examiner remanding ease 1'01' order. further proceedings concerning imlde- quate paragraphs of the joint appeal This matter having come on to be heard by the Commission upon respondents and counsel supporting the eOlllof plaint. from the hearing examiner s orde.r , filed June 9 , 1960 : rejecting an agreement containing a consent order to cense and desist; and The Commission the opinion that paragraph 2 having considered the ngreement and being of the proposed order is not adequate of INTERLOCUTORY ORDERS , ETC. 1537 in that it permits the use of Frenc.h words , terms and depictions in connection with lamps composed in part of figurines made in the United States from moulds originating in France without a clenr and conspicuous disclosure of this fact; and The Commission 1 (c) being of the further opinion that paragraph of said order probably does not c.orrectly reflect the intention of the parties in that it prohibits respondents a fact: that figurines are 1 t from representing moulded in moulds mnde in Frnnc.e when such is myleped That the joint appeal of respondents and counsel supporting the c.omplaint be , and it hereby is , denied. That this case be , and it hereby is , remanded 1 t is i'n",t he')' onlei' to the hearing examiner for further proceedings in regular course. JOSEPI-I A. KAPLAN & SONS , INC. Docket ;'813. Order and Opinion , Oct, 1960 Interlocutory order upholding hearing examiner s denial of respondent' s applielicit their cation to take oral depositions of its major competitors , to trade secrets in preparation for cross-examination. OPI1\"ION OF TJ-IE co~BnSSION B Y KER~ C o'Jn,1ni, sionel' The eomplaint c.harging of Section 2 of the violations of subsections (a), (d) and (e) amended Clayton Act issued :Mnrch 10 , 1960. On June 6 , 1960 , prior to the commencement of hearings , respond- with the hearing examiner to take the oral depositions of nine companies described in the application as mahearing jor competitors of respondent. On ..August 11 , 1960 examiner denie.d the application , holding that the ends of justice ent filed application , the would be best served thereby. This mntter is before the Commission on interluctory appeal by respondent from the hearing examiner s order. Respondenfs application to the hearing examiner requests only an order to take " oral depositions " whi)e its argument before the hearing examiner and brief on appeal to us trent extensively of the need to examine the deponents : records and documents. Thus , it appears that respondent has in mind a two-step disc.overy procedure consisting of , first , taking oral depositions pursuant. to subpoenas ad testifica'ndu.m" teC'll1n. followed by the issuanee of subpoenas d'ltces R.espondent does not say thnt it wants to take the dis- depositions for the usual reason of preserving testimony, but frankly states in its brief that the purpose is "* * covery * * *" and * in the nnture of we ha,ve so c.onsic1erec1 it. 640968- 68-- 1538 FEDERAL TRADE COMMISSION DECISIONS Section 12 of Respondent contends that cedure Act " commands " that discovery procedures it. The portion of Section 12 relied on reads: the Administrative Probe extended to Except as otherwise required by law , all requirements or pri~ileges relating to evidence or procel1ure shall apply equally to agencies and persons. Respondent then argues that the Commission has extensive investigative powers conferred by Section 9 of the Federal Trade Commission Act and that these powers must "* '!: * by legislative mandate apply equally ' to respondent." In compliance with the quoted portion of the Administrative Procedure Act , both respondent and counsel supporting the c.om- plaint are, production afl'orded identical treatment during the course of hearings before the hearing examiner and this Commission. Both have equal subpoena rights to procure the of sound discretion attendnnce of exercise of of ,,-itnesses or the the subpoena documents. The proper the hearing e, xaminer \"\ho power is left to the has "* :~ :/: the duty to conduct fair and impartinl hearings :1: 'i: * ~ 3. 15 abuse (c), of Rules of Practice. Thus , unless respondent cnn show an discretion or unfairness on the part of the hearing exam- iner , its appeal must fail. There can be no doubt that the Commission s broad subpoena ))(H,er includes the issuance of subpoenas reqlliring corporations not parties to individllals or a. proceeding to testify or produce their books and records even though trade secrets may be revenled thereby. Fede' pal Trade 00'ln1nission use of v. TuUle all 244 F. 2d 605 (2d Giro 1957). But certainly the Commission its power and avoid at be. most circumspect in the costs the unnecessary disc.losure of necessity of trade secrets. To this end , lacking a clear showing we have , with eourt approval , consistently denied respondents ' requests for unlimited access to the business secrets of their competishould tors. E. B. Jhdle1' 00. V. 'J. Fede'J' 511 , 520 (6th Cir. 1944); In the :Matter al T'J'Clde Oo' 7n1rdssi. 142 F. 2d of 8t(l.'ndanl illoto1' P'J' odbeyond question. ucts , Inc. 50 F. C. 624 (1954). That the information sought by respondent from its eompetitors is in t11e nature of trade secrets is Respondent pleads the information is "* :;: nec.essary to enn.ble it adequately to prepnre for c.ross-examination of and present afllrmative evidenee question ndverse ,,-itness:es nnd to obtnin by "- flY of defense. (Hesp. Br. total dollar p. 1.) Thus , it would necessnrily inc.lude of volume. sales prices bearing on the questlon of mer-ling. competition. This information is " sensitive :' in nntul'e. fll\(l ::-;honld he protec.ted insofar as consi:;;tent \lith the public int(,l'e~:j. figures bearing on the injury and customer lists and INTERLOCUTORY ORDERS , ETC. 1539 Obvi- ,Ye are not persuaded that preparation for cross-examination is in this instance , an adequate reason for permitting discovery. ously the scope of the cross-examination must be related to and lim- ited by the direct examination. At this posture of the proceeding, the subject matter of the direct testimony is at most a matter of (:onjecture. It is not now possible to determine what information is essential to a fair cross-exnmination. In conformity with this have recently upheld a hearing examiner s denial of a respondenfs request for subpoena duces teC'U'l71 to elicit information claimed needed to prepare for cross-examination. In the :Matter of JJ1.CTican News Company et al. Doeh:et 7396 , Interlocutor~1 Opinion , July 22 ~ 1959. point of view we information to prethis juncture. The record contains no evidence of discriminatory prices or services for respondent to " justify. Until the identity of respondent's " favored" customers and the. time nnd manner in which they were favored Likewise , respondent's professed need of the pare its atrirmative defense is equally llnc.Jear at have been establishe, d on the record , the permissible scope of re- spondenfs requested determined. probe into its competitors ' aHairs cannot be s method of procedure the respondent will not be prejudiced by the denial of its request. At the close of the case in c.hief , it may make application to the henring examiner for such subpoenas as it deems nec.essary to its defense. At that time the hearing examiner having he.nrd the evidence supporting the complaint will be better able to determine the permissible scope of the requeste(l subpoenas find will , of course , cause those to issue which in his judgment are reasonable. nnd proper. ,Ye believe thn.t. to grant respondent's request would only serve to 'Complicate the administrative process rnther than to achieve the Under the Commission desideratum of simplifying it. Therefore , we c.onclude that the hearing exnminer s denial of respondent's applicntion was not erroneous or unfnir in any respect and an appropriate order denying respondent' s. appenl "i11 issue. The Commission is of the further opinion onDER that oral argument on the nppealis llnnecessnry. This mntter having been considered by the Commission upon the hearing examiner s order denying reoral depositions; respondent' s appeal from the spondent' s applieation to take and The Commission for the reasons stated in the accompa.nying opin- ion , having concluded that sa.id appeal should be denied and being of the further opinion that respondent's request for oral argument on the appeal is unnecessary: 1540 t is FEDERAL TRADE COMMISSION DECISIONS ordered That the said appeal be and thnt the request hereby is , denied. for oral argument or said appeal be. , and it hereby is , denied , and it. NU ARC CO:MP ANY , INC. Docket 7848, Order and Opinion , Oct. 1960 Interlocutory order upholding hearing complaint chargi ng violation interest and abandonment. OPINION examiner s denial of motion to dismiss of Sec. 2 (d), Clayton Act , for lack of public OF THE CO::\BIISSION By KERN Co777, 1ni.ssione' tory appeal from the hearing answer of This matter is before the Commission upon respondent~ s interlocuexaminer s order of September 16 the 1960 , denying respondent's motion to dismiss the complaint , counsel supporting the complaint in opposition thereto and respondent' s reply. The complaint , which issued on :Ma.rch 28 , 1960 , charges respondent with violating Section 2 (d) the Clayton A. , as amended by of the Robinson- Patman Act. On September 2 , 1960 , prior to any hearings in this matter , respondent filed its motion requesting that the complaint be dismissed. Respondent forwarded this motion the Secretary by an aecompnnying letter ,,- herein it acknowledged thn t such motions are normally referred to the hearing examiner but requested , since the motion asked the Commission to reconsider its decision in c.ausing the complaint to issue , that snid motion bp presented to the Commission. At a hearilig held on September 6 its of 1960 , respondent requested a continuance until disposition motion , which request was denied by the hearing examineT. September 12 , 1960 , respondent filed a supplement to its motion to dismiss , again accompnnied by a letter to the, Secretary nsking that. the motion be submitted to the Commission. Thereafter , on Sep- respondent' s this n tember 16 ~ 1960 , the hearing examiner entered an order denying of the complaint , from which request for dismissal ppeal is taken. The hearing examiner ruled , in his order ~ that the reasons specified in respondent's motion are not an nppropriate bnsis upon whic.h he could dismiss the complaint. ,Ye. agree with this ruling, and respondenfs interlocutory appeal must , therefore , be denied. of the motion are lack Two of the grounds assigned in support public interest and abandonment. As we hnve stated , this comof plaint chnrges a violntion of one of the sections of the Clayton Act. In enacting thnt statute , Congress decided that there is public interest. in prohibiting the specific practices covered by the various INTERLOCUTORY ORDE, sections. , ETC. 1541 Trade 001nm-ission lVebb- Orm. v/ord 001npany v. FedeJ' al 109 F. 2d 268 (5th Cir. 1940). In view thereof , respondent' s argu- enfs statement that it ment in this respect is not persuasive. As to abandonment , responddiscontinued the payments cited in the complnint after the issuance thereof provides no assurance that the prac- tiee has been surely stopped with no Jikelihood of resumption so as to warrant dismissal of the complaint. R.espondent also contends , in effect , that it should not be put to the expense of the trial of this case since the pending action against the purchaser , 7698 , Foster Type and Equipment Company, Inc. , Docket charging it with knowingly inducing a discriminatory adverwill determine whether respondent can continue to tising allowance in violation of Section 5 of the Federal Trade Commission Act , place and pay for the advertisements in siderations involved in the question. There are con- proceeding against the buyer which are not present in this c.ase. Therefore , the final decision in that proc.eeding will not necessarily constitute a determination of the legality of respondent' s practices. "'\Vhether or not respondent. has violated the law and the nature of the order to cease and desist , if any, whieh should be entered against it can be determined only after development of all the facts in an appropriate record. Accordingly, respondent' s motion requesting that the complaint be dismissed must be denied. ORDER This matter having come on to be henrd upon the interlocutory appeal of respondent. from the hearing exnminer s order of September 16 , 1960 denying respondent's motion to dismiss the c.ompJ a.int; and basis for the hearing examiner s order was It appearing that the that the reasons specified in respondent' s motion are not an appropriate basis upon which he c.ould dismiss the complaint; and It further appearing that. the respondent hns made no showing that the hearing examiner wns in error in so ruling; and The Commission : however , having considered respondent' s motion to dismiss the complaint. and having determined for the reasons stated in the nccompnnying opinion that said motion should be denied: It i.'3 O1'dered That the. respondent' s appeal from the hearing examiner s order of September 16 , 1960 , be , and it hereby is , denied. It is l'LI. rther onlered That. the respondent's motion to dismiss the eomplaint. be , and it hereby is , also denied. 1542 FEDERAL TRADE COl\BlISSION DECISIONS PURE OIL COMPANY Docket 6640. to quash respondent' s Order , Nov. 1960 denial of appellants ' Interlocutory order vacating hearing examiner s subpoenas served upon them and remanding case. ORDER motions Sears Roebuck and Co. and Ingram Oil & Refining Company having filed separate appeals from rulings of the hearing examiner therewhich subpenas call for records showing information about enc.h company operations in the sale of gasoline in I efl'erson County, Alabamn similar information about its gasoline operations all over the counduces tecu1n denying their motions to quash certain subpenas tofore served upon them at the request of the respondent try, and other information about its business generally, to gasoline , all for the period 1954-1957 , inclusive; and tions , not limited It appearing that the motions to quash were based on contenapparently unanswered by counsel for the respondent , that compliance with the subpenas will impose upon these non- pnrty witnesses excessive burdens of expense and labor and will , ,"\ithout justification , expose their legitimate business seel'ets to competitors; and It further appearing that the hearing examiner denied the mo- tions to quash princIIJlllly, the subrenaec1 if not exclusively, on the gr0lll1l1 that afore8aid objections; and documents are generally relevant to the respondent's defense in this proceeding, with no inc1icntion as to what consideration , if any, "" ;IS given to the The Commission being of the opinion that in the circumstances the hearing examiner should reconsider the motions to quash and make new rulings thereon following an exercise of his sound discretion in an effort to balance the equities of the witnesses ' property rights and the respondent' s right to obtn.in all the evidence reason- ably proper for the presentation of a full defense; and , accord- ingly : 1 t 'l S onlereel Thnt the hearing tr- examinel' s rulings denying the appellants ' motions set nside. qunsh be , nnd they hereby are , vac.ated and 1 t is luTthe1' onlcreel That the matter be., nn it. hereby is , remanded ith illSlI'uctions to dptennilH'. \,:he-ther there. nre pl'ncticnble n ltPTl1atin' IlH' l11S ,lY;lilnb1e to the l'PSj. I()i\Jent to establish the ultimate facts it ,yi:::hes tn prOH' b~. the snbpenaec1 cloc.nments ~ and jf not , to take nppropriaJp steps ~ not. inconsistent io the hearing" exnmine1' ,,- bEe. interest , to minimize the burdens of expense and labm: al1egeclly reqnir('cl of the col'pcl'nte. ",itnesses \):'- the sllhpenas wjth the pu :,: * . ((j) INTERLOCUTORY ORDERS , ETC. 1543': to protect such witnesses against the unnecessary disclosure of pri-, vate business information and where such disclosure IS necessary, to impose suitable conditions of confidentiality. S. I(LEIN DEPART~lENT STORES , INC. Docket 7891. Order a,nd Opinion , Nov. 1960 Interlocutory order correcting hearing examiner s construction of charge of' complaint and upholding denial of motion for dismissal. OPINION OF THE COM~nSSION By KERN C o1n77u:ssione1' Prior to filing of answer to the complaint or any hearings for the rec~,ption of evidence , the respondent fiJed a motion requesting that. the complaint. join in c.ontending thnt the hearing examiner erred examiner denied such motion and respondent has filed interlocu-tory a ppeaJ. Aecorcling to the complaint , the respondent is a New York corpo-' ration having its main ofl-lc.e in New York City and operates four department stores for the sale of merchandise to the public in competition with others; and the complaint. charges that the respondent has engaged in charge of Iege facts false and der,eptive advertising in violation of the' Federal Tnt-de. Commission Act. Paragraph three , the part.ic.uJnr the, compJnint whic.h the respondent conte-neTs fails to n sufIicient to sustain the jurisdiction reads as follmvs: of the Commission In the course and conduct of its bl1Sillcss re~pondent has been and is engaged in clisseminating nnd in causing to be disseminated in newspapers of interstate circulation , and in radio and television broadcasts of interstate transmission , advertisements designed and intencled to induce sales of its merchandise and that of its concessionaires. The amount expended by respondent upon such advertising is approximately one million dollars per year, Sec.t.ion 5 (a) (1) of t, he. Federal Trade Commission Act deeInreg unlawful unfair metholls of competition in eommerce and llnfnir or cleeeptive acts or practices in commerce , find Section ;) (n) empowers and directs the Commission to prevent their use. Section 4 of the Act c1efjnes c.omrnerce as meaning " commerce nmong the sev:: Counsel for respondent, nnrl eolmse.l supporting end StatE's * the complaint be dis1Tlis8ed for lack oJ iurisc1iet.ion. The. hearing jn eoneJl1ding- thnt parngn1ph three implie.itly included a. chnrge that the challenged adyeJ'tising \yas clisseminatE'cl io induce intel'- J "' Cnmmerce ' mean!' commerce among the !'everal State~ or with foreign nations. or in a ny Territory of the United Sta teR or in the Di!'trict of Co) 11m bin. or between any such Territory and anot)wr. or bet,,"ecll an~- 811ch Territory I1nd an~' State or foreign nation. or between the DiE'trict of Columbia an(1 any State or Territory or foreigr. nation. ~' 1544 FEDERAL TRADE COl\1MISSION DECIS10NS sales. 'Ve state agree with counsel. The correct. construction of and " acts or practices in c.ommerce ",ithin the that charge is that interstate disseminations of advmiisements for inducing purehases of meTchnndise constitute " methods of competi- tion in commerce ~: purview or coverage of Section 5 (a) (1) of the Federal Trade Commission Act. The jurisdiction alleged thus rests solely on the inter- state disseminations alleged. nnfa.ir Conclusions that the. statute s coverage so extends have sound basis in Ia,,' and public policy. The Act' s spe,c.ified targets are or dec.ept-ive activities which are in commerce. of such It is wen established that commerce among the states is not confined to trans- portation , but comprehends all commercial intercourse between dif- ferent states and all component pali,s 301 U. S. 103 , 128 (1937). The respondent' s contentions that interc.olll'se.. InterAssociated P1' ess state communications for commercial purposes constitute commerce within the meaning of the Constitution. See the charges of the complaint are not adequately related to interstate commerce are accordingly rejected. This n.spect appeal , of the appenl is denied; and inasmueh as the briefs by counsel suffice for the respondent's request for is denied. informed decision on the merits of the oral argument in support of ORDER its nppeal also This matter having come on to be. heard upon the its motion to dismiss the eomplaint; and The Commission having determined , for reasons companying opinion , interlocutory appeal of the respondent from the hearing examiner s order denying stated in the ac- that the complaint adequately charges that the respondent has engaged in unfair methods of competition and unfair or clec.eptive acts and practices in commerce within the intent and me, aning 1 t is ordered of the Federal Trade Commission Act: That the appenl of the respondent be , and it hereby , denied. STIPULA TIONS DIGEST OF STIPULATIONS EFFECTED AND HANDLED THR.OUGH TIlE COl\1l\1ISSION' S DIVISION OF STIPULATIONS 9306. Quilted Interlinings- Noncompliance with Wool co- partners of Labeling Act.- l\1artin Oltsik and Jack Goldfarb , Quilting Company with principal place trading as Marvel business in Brooklyn , N. agreed that in connection with the introduction , or manufacture for wool introduction , into commerce , tion in commerce meaning of or the sale , transportation , or distribu- quilted interlining, or any other of product within the each of the "\V 001 Products Labeling Act , they and or them will forthwith cease and desist from: (1) Stamping, tagging, JabeJing or amount affix labels to other,,'ise identifying such of produc.ts as to the character the constitue,nt fibers in- cluded therein in any manner not in accordance (2) Failing of to with the facts; of such products showing each element information required to be disclosed by Section 4( a) (2) of the ,Vool Products Labeling Act 9307. 1939. (5723785 , J\lly 13 , 1960. Braided Rugs-Wool and Rayon Conte.nt.- J. J. Corrado, Inc. of business in New York , and J. oseph J. Corrado and Elaine Corrado , its officers , agreed that in connection with the offer and sale in commerce of rugs or of any other textile product , they, and each of them , "ill forthwith cease and desist from: (1) Using the term " wool " or any other word or term indicative a New York corporation with principal place of wool , to designate or describe any product or portion thereof which is not composed wholly of wool the fiber from the fleec.e of the sheep or lamb , or hair of the Angora or Cashmere goat , or hnir of the eamel alpaca , llama or vicuna , which has never been reclaimed from any woven or felted produc.t; provided , that in the case of products or wool and in part portions thereof whic.h are composed in part of other fibers or materinls , the teI111 " wooF' may be used as descriptive of the wool eontent of the product or portion thereof if there are in letters material thereof in the order of used in immediate eonnection or eonjunetion therewith , at least. equal size and conspicuollsness, ,yorcls trllthfuJ)y each constituent, fiber 01' designating its predomiof nanee by ,,' eight. Nothing herein shall prohibit the use reprocessed ". ooF or " reused wooF' when the products tions thereof refeTred fire eomposed of such fibers. to the terms or those por- J 54;) 1546 FEDERAL TRADE COMMISSION DECISIONS offering for (2) Labeling, advertising or otherwise sale or selling products composed in whole: or in part of rayon or acetate without clearly disclosing such rayon and ac.etate content. It was understood that nothing therein shall be construed as relieving the parties of the necessity of complying with the requirements of the Textile Fiber Products Identification Act and the Rules and Regulations issued thereunder. (5923166 , July 13 , 1960. Braided Rugs- Wool and Rayon Content. Associated Rug 1\1i11s 9308. of Georgia , a Georgia corporation with princ.ipal place, of business in Athens , Ga. , and Herman B. Upchurch Yylene Chafin and Nicholas D. Jones , its officers , agreed that in connection with the offer and sale of in commerce of rug~ or of any other textile product , they, and each them , will forthwith cease and desist from: (1) Using the term of wool or any other word or term indicative wool , to designate or describe. any product or portion thereof which is not composed wholJy wool , the fiber from the fleeee of of the sheep or lamb , or hnir of the Angora or Cashmere goat , or hair of the c.nmel alpaca , llama or vieuna ,,'hich has never been r('c1ai111e(1 from any woven or felted product; provided , that in the case of products or portions thereof which are c.omposed in part of \yoal and in part other fibers or materials , the term " \yooF mny be used as descriptive of the \yool content of the product or portion thereof if there are llsed in immediate connection 01' conjunction thcrc\yith , ill letters of at least equal size nnd conspicuousness , words truthfully designating eac.h constituent fiber or materinl thereof in the orde.r its predomiof nance by \yeight. ~othing herein shnll prohibit the use of the term reprocessed \yooF cr " reused ,,- oar' ,,-hen the proc1uc.ts tions thereof referred to are composed of such fibers. or those por- (2) Labeling, advertising or otherwise, ofl'ering for sale or selling products composed in whole or in part of rayon or acetate without clearly disclosing such rayon and acetate content. It was understood that nothing therein shall be c.onstrued as relieving the parties of the necessity of c.omplying with the requirements of the Textile Fiber Products Identification Act and the Rules Regulations issued thereunder. (5923166 , July 13 , 1960. 9309. and Bicycles- Pricing' , Foreign Origin of Parts, Arnolc1 , Schwinn of business in Company, an Illinois corporation with principal place , Ill. , agreed that in connection with the offer and sale Chicago bicycles in commeTce : it will fortln\ith cease and desist from: of (1) Using n, price figure in conjunction 'with an illustration , whe.n the stnted price is certain model of bicycle or other product lower than the actual price of the illustrnted model , or otherwise Te.pl'E'senting, direet)y or by implication , that a product ean be hnd for a price )O\Y(,1' th~1n the .actual price; ,. STIPULATION'S 1547 (2) R, epresenting, directly or by implication , that a bicycle or other product containing a substantial part or parts of foreign origin Made in America " or is made or manufactured in the United States unless the product is in fact manufactured in the United States and the country of origin of the imported part or parts is clearly and conspicuously disclosed. (5293525 , July 13 , 1960. 9310. Real Estate Home Study Course- Corporate and Institute Status j)rices. I-Ienry Brandt , an individual trading as Gordon- Howard Institute \vith principal place of business in Kansas City, :Mo. , agreed that in connection with the offer and sale of a home study course in real estate or any other prv duct in commerce , he will forthwith cease (1) Using the word " Institute " as a part of any corporate or trade name or in any other manner , or using any word of similar import or meaning in connection with his business; (2) Representing, through use of such words as " enrolJment" and tuition':: or by any other means , that the business is an organization or institution of higher learning, or is other than ' a commercial enterprise operated for profit; (3) Representing, through 11se of the tit Ie " President" in correspondence and other advertising, thnt this enterprise is a corporation or chartered organization and not merely a trade name under which an inclivic1ua.I is trading; , (4) H, epresenting that an advertised price is a reduction or saving from the advertise.r s former pric.e. unless the represented reduction or saving is from the advertiser s usual and customary pl'ic.e of the article in the recent. , reguJar c.ourse of business , or otherwise representing priee, s or savings in any manner not in ac.corclance with the, facts; (5) R, epresenting that an ofl' er is special or for a limited time only when it is customarily and regularly made in the regular course of and desist from: business. (5923687 July 13 1960. 9311. Rose Bushes- Prices , Supply, Guarantees. ames L. Dyess and eo- partners tra.ding as Dnvie Rose Company with prinrcipal place of business in Tyler , Tex. , agreed that in connection with the ofl'er and sale of rose bushes or any other nursery product in comRalph Dye.ss , merce , they and ench of them will fortJnrith c.ease and desist from representing, directly or by implication tha.t: (1) Nursery produc.ts are guaranteed unless the nature and extent of the guarantee and the manner in which the Qua.ra.ntor will perform thereunder aie eJea.rly and conspicuously disclosed; (2) Rose bushes or other nursery products are spec.ially selected for purchasers; (3) An advertised price is a reduction or saving from the a.dvertiser s former price unless the represented reduction or saying is from the advertiser s usual and customary price of the article in the recent 1548 FEDERAL TRADE COMMISSJON DE'CISTONS , or otherwise representing prIces or' savings in any manner not in accordance with the facts; (4) The supply of a nursery product is limited , when such is not., regular course of his business (6023283 July 13 , 1960. 9312. Lumber Products- Mahogany. V\Theaton Lumber Company" Inc. , a :Mary land corporation with principal offices in ,Yheaton , Md. and Vernon R. King, an officer thereof , agreed that in connection with the fact. with prineipal place of business in Cle.veland , Ohio , agreed that in connection with the sale , advertising, offering for sale , transportation , or distribution of any fur product made. in whole or in part of fur which has been shipped and rec.eived in commerce or the introduction into commerce., or the sale , advertising or ofl'ering for sale in commerce , or the transport.ntion or distribut, ion in commerce of fur or any fur product , as the tenDS " fur fur producC ancl " commerce are defined in the Fur Products Labeling Act , he "",ill forthwith CBase and desist from: (1) Fniling to furnish to pure-hagel's of furs or fur products an the offer and sale of lumber products in commerce , they and each of them will forthwith cease and desist from: (1) Using the 'word " l\lahogany " as the name or designation of woods othe.r than genuine mahogany (the genus Swietenia of the ~1eliaceae family of trees) : provided , however , that nothing herein shall be eonstrued as preventing the use of the name " Philippine l\fahogany " as the name or designation of the Philippine "Woods Tanguile Hed Lauan , ,Yhite Lauan , Tiaong, Almon , l\1ayapis and Bagtikan , or the use of the name " Africanl\lahogany ': as the name or designation of the African wood of the genus Khaya; (2) Hepresenting in any manner the, kind or nature of woods not in accordance with the. facts. (6023711 , lTuly 13 , 1960. 9313. Fur Products- Noncompliance with Labeling Act.-Don Osborn an individual doing business as Osborn of London Fur Company invoice showing all the inf0l111ation required to of the subsections of Section 5 be dise1ose.d by eac.h (b) (1) of the. Fur Produc.ts Labeling information in abbre.vinted item number or mnrk a~i~ll'nti1ication. (6023760 Act.. (2) Setting forth on invoices required form. (3) Failing to set forth on invoiees the signed to the fur product for purpose of J uly 13 , 1960. '9314. Dog' Food- Meat" , etc. , Content. General 1\1i11s , Inc. , a. Delaware eorporation with princ.i pa 1 offices in l\linnea polis , 1\1inn. , ngreed to forthwith cease and desist from disseminating or causing to be disseminated any advmiisement for the. product. now desi~' nated " 8u1'(,champ Dog Food " or nn)' other product. of substantia))y the same " " ,' " " " " " " STIPULATIONS 1549 composition or possessing substantially the same properties , whether sold under that name or any other name , which: meat fish" or " liver " or any other (1) Uses the terms " meaty, terms of similar import or meaning, to designate or describe meat meal , fish me, a.l or liver meal; or (2) Represents in any manner that such when such produet contains meat fish , liver or Aug. 2 1960. other ingredients , is not a fact. (5421255 9315. Combs- Rubber " Composition. J. Tanenbaum & Sons , Inc. , a New York eorporation with prineipal place of business in New York , and .Jacob Tanenbaum , Irwin Tanenbnum , and .Julius Tanenbaum , its otricers agreed that in connection with the offer and sale of combs in c.ommerce , they, and each of them , will forth,,'it.h and desist from representing, clire.ctly or by implic.ation : c.ease By any advertisement , pac.kaging, labeling, branding, stamping, or other marking or indic.ntion that such c.ombs n.re " rubber hard rubber resin rubber " or " rubber resin " or representing in any manner or by any means that suc.h eombs are made of rubber or hard rubber unless they are in fa.ct made of vulcanized hard rubber. (6023718 , Aug. 2 , 1960. forthwith cease and desist. from representing, implic.ation : 9316. Water Softening Equipment- Operational Effectiveness , Savings Softy, Inc. , an Illinois corporation with principal place of business in Franklin Park , 111. , agreed that in connection wit 11 the offer and sale of its water softening equipment in commerce , it. will, Guarantees. directly or (1) That there is no work eonnected with the operation or ma inte.nance of the applicance; (2) That the applianee, requires no maintennnee; (3) That no c.hemicals are used in the operation of the appli:lIlce: (4) That no regenerntion is involved in the operation of the ap- plianc.e , or representing the operation or process involved in any way not in ac.c.orc1anc.e with the facts; (5) That there are no expenses in the operation of the appliance 01' otherwise representing the expenses involved in operation of the ap- plianee not in necordanee ,,-it h the facts; (6) That use of the applialle~, will result in savings of $150 a, -yenr .0J' othen~'ise representing savings in any manner not in aecordnJlc, ,yit, h the facts: (7) Tlwt the nppJianre is guaranteed unless the. nature and extent of the guarantee and the manner in ",hich the guar:U1tor will perfornl thereunder are. clearly and conspicuously diselose(1. (Mi23697 , Aug. 4. 1 gGO. ) 9317. Model Auto Kits- Foreig' n Origin of Parts, Stl'ombeek- Becker ~:fanllfactllring Company, an Illinois corporation ",ith principal plaC'P 1550 its officers FEDERAL TRADE COMMISSION DECISIONS Ill. of business in :Moline , , and Fred Strombeck and David Toi' sel1;, , agreed that in connection with the offer and sale of model auto kits or other products in commerce , they, and each of them , will forthwith cease and desist from: (1) Offering for sale or selling model auto kits or other products containing motors made in Japan without clearly disclosing the conntry of origin of i he motors used in the product; (2) Offering for sale or selling any product , any substantinl part of which was made in Japan , or in any other foreign country, without clearly disclosing the foreign origin of such part. (602-3358 , Aug. 11 1960. ) 9318. Aluminum Storm Doors , etc. Dealer as Manufacturer. Illmo' Builders Supply Company, formerly doing business as Yonngstown :Manufacturing Corporation , a :Missouri corporntion place of business in St. Louis 1\10. and Sam L. Y ourtee with principnl officers thereof , agreed that in aluminum doors , windows , awnings and other merchandise in com-' merce , they, and each of them , will forthwith cease and desist from representing, directly or by implication: Through the use of the word " 1\fnnufnctm'ing , or any other 'yon) of similar import 01' menning, nB a part of a tra()e 01' corporate name 01' by any other means , that the company manufac.tures any merchandise sold by it , lmless and until it owns , operates or absolutely controls the manufacturing plant wlwrein sueh me.rchanclise 1S manufactured. (5923372 , Aug. 11 , 1960. 9319. Electric Storag' e Batteries- Guarantees. pany, an Ohio corporation with principal plac.e of and Lee Brock connection wi t h the offer and sal e. of The Pure Oil Com-. business in Chicago Ill. , agreed that in connection with the o:fl'er and sale of its batteries in commerce , it will forthwith cense and desist. from representing, directly or by implicntion , that a battery is guarnnteed unless the na turf' and extent of the guarantee and the mnnner in which the gunrantol' will perform thereunder are clearly and conspicuously disclosed. (6023781 , Aug. 18 1960. Carbona Products ersey Corporation ,yith principal place of business in Long Islnnd City, N. , agreed that. in connection with the otl'el' 9320. Cleaning Fluid-Fire-resistant Properties, Company, a New and sale of Carbona. c1eaning fluid , or any other product of sub- stantially the. same. eomposition or posses:::ing substantially the snme properties , it will forthwith cease and desist. from: Using the word " fireproof" as descriptlye of such product or from making any representations as to the lire-resistant properties of said product whic.h are not in acc.ordanc.e with the facts. (GO2335;\ Aug, , lDfiO. ~)W21. " Pi Peer Slim- R Health Belt" Health- inducing' Qualities , Guarantees, Piper Brace Sales Corporation , a ~Iissouri corporation with STIPULATIONS 1551 principal place of business in JCansas City, :1\10. ; Henry G. Nelkin N elkin , officers thereof; and Eugene Goldstein , a stockholder, agreed to forthwith cease and desist from disseminating or causing to be disseminnted nny advertisement for the product now designated Pi Peer SlimHealth Belt or any other product of substantially the same construction , whether sold under that name or any other name , whic.h represents directly or by implication: (1) Thnt the product is not a girdle or corset; n.nd N edwyn R. (2) That the product will remedy back strain or any other symptom , ailment or condition; or cure backache , back pam unless or pains of (3) That the product will relieve baclmche or back pain expressly limited to the temporary relief of minor aches the back due to strain; (4) That the product provides a massaging fiction , stimulates cir7 cula.tion , reduces tension or eases strain on the heart or system; (5) That the product gi"es correct support , holds internal organs in proper position or relieves cramping of internal organs; (6) That the than to cnuse (7) Thnt product. hns any slimming effect on the wearer other a slimmer appearance while being worn; the wearing of the product ,,-ill reduce the weight of the thereof body or any of its parts; (8) Through use of "Health" as a part of the designation or in any other manne-r or have n, mitignting efl'ect on diseases , disorders or almormnlities of , that the product 'Till prevent , cure , correct the body, ",ill keep a person healthy or wil1 have any significnnt beneficial effec.t. on the !teneral health of the "' carer (f)) That the product is gunranteec1 , 1960. unless the nnture and extent of the guarantee and the manner in which the guarantor win perform thereunder are clearly and conspicuously disclosed. (5923732 , Aug. 9322; Wallets- Composition. Terry Leather Goods , Inc. , a New York corporation with principal place of business in New Yor1\: City, and Charles l\Ieyers , l\lurrny l\leyers and Stanley Q,ucller , officers thereof agreed that in connection with the offer and sale of wallets or other merc.handise in commerce , they, and each of them , will forthwith cease and desist from representing, directly of by implication , thnt wallets or other merchandise made in whole or in pnrt of substance other than lenther , are mnde of lenther. (6023014 , Aug. 18 , 1960. 9323. " Rinse Away Dandruff Treatment-Disparagement.- Lobco Inc. , an Illinois corporation with principal offices in Chic.ngo , Ill. , and Leonnrc1 H. Lavin , agreed to forthwith Bernice E. LnTin and Robert L. I-Iaag, cease and desist from disseminating its otricers or causing to he clisseminnted any nclvertisement for the product now desigl1ated Hinse .1-\":1Y, " or any other product. of substantially the same com- " " 1552 FEDERAL TRADE COMMISSION DECISIONS position or possessing substantially the same properties , whether sold under that name or any other name , which: Represents directly or by implication that there is no shampoo preparation which will effectively treat the condition of dandruff , or makes any representation concerning competitive products which not in accordanc.e with the facts. (6023327 , Aug. 24 , 1960. :Mendel Scott 9324. Fur Products- Noncompliance with Labeling Act. an individual trading as Scott Furs with principal place of business in Cleveland , Ohio , agreed that in connection with the sale , advertising, offering for sale , transportation or distribution of any fur product made in ,,"hole or in part of fur whic.h has been shipped and received in commerce , or the introduction into commerce , or the sale advertising or offering for snle in commerce , or the transportation or distribution in commerce of fur or any fur product , as the terms fur fur produc.f~ and " commerce " are defined in the Fur Products Labeling Act , he will forthwith cease and desist from: (1) Failing to affix labels to fur products showing in ,yards and figures plainly legible nIl of the information required to be diselosed by each of the, subsections of Section 4(2) or the I~ ur Products Label- ing Act; (2) l\fingling, illformation. on labels , non-required information with required (3) Setting forth on labels required information in abbreviated form or in handwriting. (4) Failing to set forth separately on labels attached to fur prod- different animal furs the information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Hegulntions promulgated thereunder with respect to the fur comprising each section. ncts eomposed of two 01' more sections contnining (5) Failing to fnrnishing to purc.hasers of fur products an inyoice showing all the information required to be. disclosed by each of tlw. subsections of Section 5(b) (1) of the Fur Produets Lnbeling (6) Using on Act. inyoiees the name of all animal other thnn that, pro- ducing the fur. (7) Setting forth on invoices required information in abbreviated (R) Failing to set forth on il1yoiees the item 11111l1ber 01' mark assigned to the. fur product for purposes of )(lentificn110l1. ((i():2gS0:1 ~ept. 7 , form. 1960. Composition, 9325. Combs- Rubber " Col'ona Hail' Ket Corporation of bnsinpss a, New York corporation 'Y1th principal plae, e in ~ew York , K. Y., a~!Teed that 111 connection ,yith the. oife.r nlHl sale of combs i l\ commerce, 1t "" 111 forth\"it II cease and desist hom represel1til\~. directly OJ' by implicat10n: " " " " "" STIPULATIONS , That such 1553 combs are a "Special I-Iard Rubber Compound rubber rubber resin " or representing in any resin rubber manner or by any means that such combs are made of rubber or hard rubber , unless they are in fact made of vulcanized hard rubber "hard rubber (6024089 , Sept. 7 , 1960. 9326. Photographic Equipment- Guarantees , Advertising Medium. Victor Israel and Albert Tomin , co- partners trading as Herbert George Company ,vith principal place of business in Chicago , Ill. , agreed that in connection with the offer and sale of cameras or other products in commerce , they and each of them will forthwith cense and desist from representing, directly or by implication that: (1) A camera or other article is guaranteed unless the nature and extent of the guarantee and the manner in which the guarantor will perform thereunder are clearly and conspicuously disclosed; (2) An article has been advertised in " Life " magazine or any other medium , when such is not a fact. (5923423 , Sept. 8 , 1960. 9327. Collection Questionnaires- Obtaining Information by Subterfuge. Louis L. Rakita and Pearl Rakita , copartners trading as Rait Asso- in connection ciates with principnl place of business in K e.w Y 01'1;: , N. , agreed that delinquent debtors and collecting past due accounts in commerce , they, and each of them , will forthwith cease and desist from: with obtaining information concerning (1) Hepresenting, through use of deceptive. trade names or in any other manner , that their business is other thnn that of a. pri\'ate collection agency engaged in collecting past due, ac.e-ounts; (2) Using, or placing in the hnnds of others for use , any forms letters , questionnaires or other mnterial ,,-hich does not clearly reyenl that the purpose for which information is requested is that of obtaining information concerning delinquent debtors. (6023179 , Sept. 15 1960. ) 9328. Rebuilt Automotive Parts-Nondisclosure of Used Nature. Parts Exc.hange Company of San Francisco , n California eorporation with principal offices in Snn Frnneisco , Calif.; Parts Exchnnge Company of Los Angeles , a California corporation with principal offices in Los Company of Portland , an Oregon corporation wit 11 principal offiees in Portland , Oreg. , and Robert F. Campbell and ~lnrtil1s D. J\jng, officers of ench of the sajd eorporations , agreed that in connection ,yith Angeles , Calif. ; Parts Exchange. Compnny of Seattle ~ a ,V flshington corporation with principal offices in Seattle , ,Yash.; Pn-rts Exchnnge the offer and sale of l'ebnilt .automotive parts in commeree , they, and each of them , will fortlnyith cease and desist from: Offering for sale , selling or delivering to others for sale or res:t1e to the public any prochlct containing parts which hrtve been previously used without a. dear and conspic.lIollS cliselosure of such prior llse mnck on the product wjt, sufficient permanency to remain thereon niter 640968- 63- 1554 FEDE' RAL TRADE COl\1MISSION DECISIONS installation , as well as in advertising and on the container in which the product is packed. (6023676 , Sept.. 22 , H)60. 9329. Rebuilt Automotive Parts- Nondisclosure of Used Nature. Inc. , an Oregon corporation with principal offices in Portlnnc1 , Oreg. , and D. I-l. Logan , J. A. Gay and A. F. 3IcGarr , its officers , agreed that in connection with the offer and sale of rebuilt automotive parts in commerce , they, and each of them , will fortlnvith cease and desist from: 01i'ering for sale , selling or delivering to others for sale or resale to the public any product containing parts which have been previously used ,,- ithout a clear and conspic.uous disc,Josure of such prior use made on the product. with sufficient pel'llw, nency to remain thereon after installation , as 'yell as in aclye.rtising and on the container in which United Automotive Products , the product is packed. (602:3677 , Sept. 22 , 19GO. fl3i30. Rebuilt Automotive Parts- Nondisclosure of Used Nature. J\laremont. AutolllOtive Products , lnc. ~ an Illinois corporation with principal ul"11ces in Chiengo , Ill" agreed t hat .in cOJmection with the of1'er and sale 01' l" ebl1ilt Of -Fe automotive parts ill ('omn1\:'1'C8 , it ",ill forth,yith cease and desist , directly or thr011gh ring for sale , any corporate or other device , ch'livcring from: selling 01' to others for sale 01' resale previously to the Pllblit. any pnHlllct, ('cmtnining pal"l~ ",hich haye been used without a. ('jeal' on the product ,,-itl! and coIlspiclIOU:=; disclosure of such prior use made Sl1J-1iciellt. penJ)lIl1cncy to remain thereon after as ill H(h"el'tising lnstnllation , as \," ell and on the container in ,vhich Unit. oflices the produe(-. is packed" ((i(I~;-W/8 , ~epr. 2:2 , J D6U. u;rn. Helmilt Automotive Parts- Nondisclosure of Used Nature, Parts Company, Inc. , an OklHhoma corporation "'1th principal Lutishn Boulton , its oilicel's in Oklahoma City, Okla. , and Irene Bonlt())) John 'V. Boulton and , agreed t hat, in ('o1111eetion ,yith the ofi'cr and sale. of rebuilt automot.iye parts in commerce , they, and ench of to the, public. any product containing parts ,,' h1('h have been pl'C"ioll81y 11secl tJH'l'eon after without. them , will forth with ccase and c1e:-:;ist from: Oli'ering fot' sale , ::;eJling or delivering to others for sale or resale prior use 1l1,u1e, on tainer in ",hich m3~)~, . Rebuilt of such the product ,,- ith sllt11cient permanency to remain inHallation , as well as in ncJvertising and 011 the con- a clear and eonspicuons cliscloslln~ tht, prmhet is packed . (GO23680 , Sept. 22 , 1960. Automotive Parts- Nondisclosure of Used Natul'e, ~licro Products , Inc.. , a Texas corporation with principn.l place of business in Dallas , Tex. , (111(11-1. D. ,Yh itley, ,Joseph :M. T~eals nnd George R. Bprger , its officers , agreed th:lt in eonnection with the ofi'er and sale of rebuilt automotive parts in commerce , they, and eac.h of them will forthwith c.ease n, ncl. desist. from: Offering for sale , selling or delivering to others for sale. or resale to the public any prodnet containing parts ,,'hich have been previously STIPULATIONS used without a 1555 clear and conspicuous disclosure of such prior use made on the product with sufficient permanency to remain thereon after installation , as well as in advertising and on the container in ,,'hich the product is packed. (6023681 , Sept. 22 , 1960. 9333. Rebuilt Automotive Parts- Nondisclosure of Used Nature. Amer- ican Clutch Products , Inc. , a Texas corporation with principal offices in Dallas , Tex. , and ",Yilliam T. Dungan , Arthur L. Nickerson and Jesse L. LaFon , its officers , agreed that in connection with the offer and sale of rebuilt automotive parts in c.ommerce. , they, , and each of them , will forthwith cease and desist from: Offering for sale , selling or delivering to others for sale or resale to the public any product cont.nining parts which have been previously used without a clear and c.onspicuous disclosure of such prior use made on the product with sufficient permanency to remain thereon after installation , as well as in advertising and on the container ill which the product is packed. Auto Parts Exchange Company, Inc. , a California corporation with principnI place of business in Industry, Calif. , and Edward Kipling, Lois nection with the (60:23682 Sept. 22 , 1960. 9334. Rebuilt Automotive Parts- Nondisclosure of Used Natul'e. Ada Kipling and Bernard J. Hulshof , its offic.ers , agreed that in conoll'er and sale of rebuilt automotive parts in commerce , they, and each of them , will forth,vith cease and desist from: Offering for sale , selling or delivering to others for sale or resale previously to the public any product containing parts which have been used ,vithout a clear and conspicuous disclosure of such prior use made on the product ,vith sufficient permanency to remain thereon after installation , as well as in advertising and on the container in which the product is packed. (6023686 , Sept. 22 , 1960. 9335. Rebuilt Automotive Parts- Nondisclosure of Used Nature. ABCD l\fanufacturing Company, a Georgia corporation trading as Automotive Brake &, Clutch with prillcipal placl'of business in A tlanta , Ga. , and Frank Lawton , Lena L. Lane and I-Iugh R. Smith its oflicers , agreed that in connection with the ofi'er and sale of rebuilt automotive parts in commerce , they, and each of them , will fort1nvith cease and desist from: Offering for sale , seIling or delivering to others for sale or resale to the public any product c.ontaining paris which have been previously used without a clear and conspicuous disclosure of such prior use made on the product with sufficient permanency to remain thereon after installation , as well as in advertising and on the container in , Sept.. 22 , I!WO. which the product is packed. (GO:236!. 93;)6. Rebuilt Automotive Parts- Nondisclosure of Used Nature, NeiJ Parts Re-builders , Inc. , a South Carolina corporation with principn1 oflices in Columbia : S. , find GeTa.lc1 L. Palmer ~1llc1 David ,Yhitworth , its oflicers , agreed that in connection with the oft'er and , ~ 1556 FEDERAL TRADE COMMISSION DECISIONS sale of rebuilt automotive parts in commerce , they, and each of them will forthwith cease and desist from: Offering for sale , selling or delivering to others for sale or resale to the public any product containing pnl'ts which hn ye been previously used without a cleaT and conspicuous c1isc.Josure of such prior use made on the product with sufficient permanency to rema.in theTeon after installation , as well as in advertising and on the container in (6023692 Se.pt.. 22 , 1960. of Used Nature. Automotive ",Varehousing Co. , Inc. , a Georgia c.orporation doing business as Friction l\1aterials &. Parts Co. and ns Friction l\Iaterinls Co. with principal offices in Atlanta , Ga. , and Alfred ~J. Sims , Chn.rles D. Heidler , Ric.hard G. l\1nnn Tames 1\1. PhilJjps and Isaac (T. Phillips its officers , agreed that in connection with the oft'er and sale of rewhich the product is packed. 9337. Rebuilt Automotive Parts-Nondisclosure built automotive parts in comn1.e.rce. , forthwith cease they, and each of them , will and desist from: Offering for sale , selling or delivering to others for snle or resa1e to the public any product c.ont, aining parts ",hich have been previously used without a dear and conspicuous disclosure of such prior use made on the product with after installation sufficient permanency to remain thereon which the prod net is pa, ckecl. 1\101.01' , as well as in advertising and on the eontainer in Nature. Forc1 (6023G93 , Sept. 22 , 1960, 9338. Rebuilt Automotive Parts-Nondisclosure of Used Company, a. Dehwal'e corporation with princ.ipnl pJncc of business in Dearborn , :Mich. , agreed that in COJl11PCI10l! with the olTer and sale of rebuilt automotive. parts in ('ommeree. , it ,yi11 fortJnyith to others for sale or resnle cease and desist from: Offering :for sale , selling or c1elivel'in~' to the public any prodl1c.t. eont, aining parts which have been previously used ",ithout a dea r and eol1spi('nol1~ disclosure of such prior USe made on the product "it h sufllcie.nt permanency to rem:'lin thereon afte.r instal1ation , ns ,v811 as in advertising and on the, container in which the product is pncl~et1. (6023G08 , Sept. 22 , 1 DGn '9339. Rebuilt Automotive Parts- Nondisclosure of Used Nature, ,Vholesn.)er s Cluteh Serviec Co. , Inc. , a i\Iissouri corporation with principal offices in 81'. Louis : 1\10. , and (' nr1 E, Klein , Albert. . )(reutzer and Hobert C. Kreutzer , its offi('.('l'~; , np:l'eed thnt in C'O1meetiol1 with the ofl'er and sa1e of rebuilt Rutomotive paTes in ('ommen' e, 1.Jw)', and each of them , will fOli..hwith cease, nnd desist from: Offering" for sale , se.J1 ing or (leliverillg- to ot hel's for sa Ie or re:'3n Ie to the public any proc1llC't contninin !:!" pt1rts whid, havp been p1' viously use, d without. a dear and C'onspjCll011S disclosure of such prior use mn.cle on after the product \\'itll sllflicicnt permnJwncy to remain thereon installation , as we1l as in adVE'Ttising and on the rontniner i1\ (nO2BG00 , whic.h the product is pnc.ke.cl. Sept. 22 , InC)() STIPULATIONS 1557 9340. Woolen Fabrics-Fiber Content.- Oscar Zinn International Textiles , Ltd. , aNew York corporation with principal place of business in New York , N. , and Oscar Zim1 , an officer thereof , agreed that in cOlmection with the introduction , or manufacture for intro- duction , into col11Jnerc.e , or the sale, transportation or distribution in commerce of woolen fabrics , or any other wool product within the meaning of the ,Vool Products Labeling Act , they and each of them will forthwith cease and desist from: (1) Stamping, tagging, labeling or otherwise ide11tifying such products as to the character or amount of the constituent fibers included therein in any mam1er not in accordance with the facts; affix labels to wool products showing each element of information required to be disclosed by Section 4 (a) (2) of the (2) Failing to ,V 001 Products Labeling Act of 1939; and further agreed that in connection with the offer and sale of woolen fabrics , or any other product in commerce, as " commerce " is defined in the Federal Trade Commission Act , they and eaeh of them will forthwith cease and desist from misrepresenting the percentages or amounts of the constitute, nt fibers of which their products are composed , in memoranda or in any other manner. (6023033 , Sept , 27 , 1060. 9341. Auto Muffiers- Guarantees. l\1ufflers by R.ayco , Inc. , a New Jersey corporation with principal place of business in Paterson , N. sales invoices , shipping agreed that. in connectlon with the offer and sale of auto mufflers or other products in commerce , it will forthwith cease and desist from representing, directly or by implication , that a !,roduct is guaranteed unless the nature and extent of the guarantee and the manner in which the guarantor will perform thereunder are clearly and eonspicuously disclosed. (6023270 , Sept. 27 , 1960. 9342. Corvair Automobiles- Gasoline Mileage, General l\1otors Corporation , a Delaware corporation with genernl office nnd, principal place of business in Detroit , l\1ich. , agreed that in connection with the offer and sale of the Corvair or any other automobile of similar construction in commerce , it will forthwith cease and desist from representing that: (1) Such automobile averaged 27. 03 miles per gallon of regular gasoline in the l\.10bilgas Economy Run , or that the results of the Pure Oil Economy Trials proved that such automobile will deliver 25% to 40% more miles per gallon tha.n a conventionn.l a.utomobile , or otheTwise representing the results of tests in any manner not in a.ccorc1ance with the fRets; (2) Such automobile win deliver 33 miles per gallon of gasoline under normal driving conditions , or representing the gasoline mileage of such automobile in nny facts. (6023813 , Sept. 29 , 1960. manner not in nccordnnce with the 1558 FEDE' RAL TRADE COl'vIMISSION DECISIONS 9343. Paint and Varnish Removers- Comparative Merits , Effectiveness. Jasco Chemical Corp. , a California corporation with principal place ,of business in Mountain View , Calif. , and Jay S. Conley, an officer thereof , agreed that in cotll1ection with the offer and sale in commerce of paint and varnish removers , designated J asc.o Paint Remover , or any other products of substantially the snme composition or pos- sessing substantially the same properties , they, and each of them , wi11 forthwith cease and desist from representing that such products: (1) Have " triple strength" or otherwise representing that such products are stronger or more efficient than competitive products when such is not the fact; (2) Remove paint , varnish or lacquer without limitation in seconds , or otherwise representing the speed of action of such products in any mallller not in accordance with the facts. (5923410 , Oct. 18 1960. ) 9344. " Alaska Life " Booklet- Business and Homestead Opportunities and Conditions. Edwin A. Kraft , an individual doing business as Edwin Agency and Alaska Life Publishing Company with principal place of business in Los Angeles , Calif. , agreed that in connection with the offer and sale in commerce of the booklet designated "Alaska Life " or any similar publication , he will forthwith cease and desist from representing: A. Kraft Advertising (1) That the booklet provides information about business oppor- tunities and possible job openings in Alaska which cannot be obtained from any other souree , or from otherwise representing the information therein contained exc.ept in aecordanee with the facts; (2) Through use of the ,yorc1 " free " or by any other means , that. opportunities are available to procure homeste, ads in Alaska without the payment of money, or from otherwise representing the opportunities and conditions existing in Alaska except in accordance with the fads. (6123031 , Oct. 18 , 1960. 93c15. Men s Clothing-Fictitious Pricing' - R.aleigh Haberdasher , Inc. a :MaryJa.nd corporation with principal plaee of business in ,Yashing- ton , D. , agreed that in connection \"ith the ofl'er and sale of men clothing in commerce , it ",in forthwith cease and desist from representing, directly or by implication: reduction or saving from its former price unless the represented reduction or snving is from its usunl and customary pric.e of the artiele in the recent , reg-ulnr cour~e of its business , or otherwise representing prices or savings in any manner not in That an adve.rtis~cl price is a ac.cordance with the facts. (6023771 , Nov. 8 , 1960. :M:ills , 9346. Woolen Fabrics- Mispresenting' Fiber Content. Colonial ,Yoolen Inc. , an Ohio corporntion with principal plnce of business in Cleveland , Ohio , and Norman S. Glauber , Sr. , Normn,n S, Glnuber Tr. and Leonard ,Yolfbe.rg, its oflic.ers , agreed that in connection with STIPULATIONS the introduction , the 1559 or manufacture for introduction , into commerce , or sale , transportation or distribution in commerce of woolen fabrics Labeling Act , they and ench (1) Stamping, tagging, or any other wool product within the meaning of the ",V 001 Products of them will forthwith eease and desist from: labeling or otherwise identifying such prodamount of the constituent fibers ineluded therein in any manner not in ac.cordance with the facts; (2) Failing to affix labels to wool products sho\ying ench eleme,nt of information required to be discJosed by Section 4 (a) (2) of the ",V 001 Products Labeling Act of 1939 and further agreed that in connection with the offer and sale of woolen fabrics , or any other product in commerc.e , as " c.ommeree " is defined in the Federal Trade Commission Act , they find each of them win forthwith cense and desist from misrepresenting the percentages or amounts of the constitue.nt fibers of "hich their products are composed , in sales invoices , shipping memoranda or in any other manner. (6023023 ucts as to the charncte-r or Oct. 18 1960. 9347. Toys- Dealeras Manufacturer , Foreign Branch and Origin. Albin Enterprises , Inc. , a California corporation with principal plnc.e of business in Burbank , Ca1if. , doing business as Jack Built. Toy :Manufa, cturing Co. , agreed t, hnt in c.onnection with the offer and sale of toys it will fortlnvith cease and desist from: 1. Representing, through use of the trade name .T neI\: Built Toy :Mnnufacturing Co. , or by any other means or in any other manner that it mnnufactures any product which is not manufactured in a factory owned , operated or controlled by it; provided , howe\'er , that j' his shall not precJude the use of such trade nnme in eonneetion "ith n or other products in comn1Prc.e , product not mnnufactured by it when thnt, fact is elenrly disclosed and it does , in fact , mnnufncture other toy products; 2. Representing, through use of the phrnse Overseas Division , that the company has a, foreign branch or subsidiary which it o\\ns , operates or controls , or representing in nny manner or by any means , the size. 01' extent of the business not in ac.cordnnce with the facts; 3. Offering for sale or selling toys or other products made in Japan or in nny other foreign country, without clearly disclosing the coun, Oct. 11 1960. Reproductions - Earnillgs. InteTnational Home 9348. Photograph Products , Inc. , a California corporation \vit h princ.ipal place of business in Beverly Hills , Calif. , and Peter C. Goldsmith , an officer thereof try of origin thereof. (59237, agreed that in connection with the offer and snle of photograph reproductions designated Foto ~1 urals , or any similar product , in commerce they, and each of them , will forthwith cease and desist from: Representing that the earnings or profits which may be derived from the sale of such products are any amount in excess of that customarily 1560 FEDE'RAL TRADE COMMISSION DECISIONS earned by sellers thereof , or otherwise representing the earnings which may be realized from selling such products in any manner not in accordance with the facts. (6023197 , an individual trading as Payton Jersey Farm with principal place of business in Stephenville , Tex. , agreed to forthwith cease and desist from disseminating or causing to be disseminated any advertisement for the product now designated " Immune :Milk " or any other product of substantially the same composition or possessing substantially the same properties ' or produced by the same or a substantially similar method , which represents directly or by implication that said product has any beneficial efJect either in the prevention , 9349. " Immune Milk" Oct. 27 1960. Effectiveness. - vVilliam L. Payton , treatment or relief of rhemuatoid arthritis or any other rheumatic or arthritic condition , or on the symptoms thereof , or that it confers immunity against such conditions. (6023833 , Nov. 8 , 1960. 9350. Scales--,Guarantees. The Borg- Erickson linois corporation with principal place of business in Chicago , Ill., agreed that in connection with the offer and sale of scales or other products in commerce it will forthwith cease and desist from: (1) Representing, directly or by implication , that such products are guaranteed unless the nature and extent of the guarantee and the manner in which the guarantor will perform thereunder are clearly Corporation , an Il- and conspicuously disclosed; (2) Using the words " Life " or " Lifetime " to show the duration of a guarantee when the life referred to is other than that of the purchaser or original user and such fact is not clearly and conspicuously disclosed. (6023225 , Nov. 15 , 1960. 9351. Paint and Varnish Removers- Comparative Merits , Effectiveness. Universal Technical Products Co. , a California corporation with principal place of business in Los Angeles , Calif. , and John 1\1. Phil- lips , J\larjorie Phillips , Lowell vY. Phillips and 1\1arie Phillips , its officers , agreed that in connection with the offer and sale in commerce of paint and varnish removers designated Universal Remover , or any other products of substantially the same composition or possessing substantially the snme properties , they and each of them , will forthwith cense and desist from representing that such products: (1) I-Iave " triple strength" or otherwise products are stronger or representing that such products more efficient than competitive when sueh is not the fact; (2) Remove paint , varnish or lacquer without limitation in seconds or othenvise representing the speed of action of such products in any manner not in nc.cordance with the facts. (6023917 , Nov. 15 1960. 9352. Woolen Fabrics- Noncompliance with Wool Labeling Act.-A. G. Dewey Company, Inc. , a Vermont eorporation with principal place of business in Enfield , N. I-!. , and ,Yilliam T. Dewey and Leon N. STIPULATIONS 1561 oberts , its officers , agreed that in connection with the introduction or manufacture for introduction , into commerce , or the sale , transportation or distribution in commerce of woolen fabrics , or any other ",\\T ool Products Labeling Act wool product within the meaning of the they and each of them will forthwith cease and desist from: (1) Stamping, tagging, labeling or otherwise identifying such products as to the c.haracter or amount of the constituent fibers included therein in any manner not in accordance with the facts; (2) Fniling to affix labels to wool products showing each element of information required to be disclosed by Section 4(a) (2) of the ,Yool Products Labe1ing Act of 1939. (5823379 , Nov. 22 , 1960. miral Corporation , 9353. TV , Radio and PhonogTaph Cabinets- Wooc1" Composition. Ada, Delaware corporation with principal office and plaee of business in Chieago , Ill. , agreed that in connection with the offer find snle in commerce of television or radio sets , phonographs or other products , it win forthwith cease find desist from: blond oak grained finish grained fmish" or any other term or expression suggestive of wood or of a particuJar kind of wood , ns descriptive of any such products (a) D sing sueh terms ns " mahogany having non-wood cabinets , unless in immediate conjunction therewith there appear other words or descriptions which clearly disclose the materia.l of which snid eabinets are made; (b) Failing to attach to any such products having cabinets made of hardboard or other similnr material finished with a surface which simulates or has the appearance of wood , in such a manner that it cannot readily be removed or of such a nature as to remain on the product until it reaches the ultimate purchaser , a tng, label or other notice c.learly informing the consumer- purchaser as to the material of which such 9354. TV , Radio , and PhonogTaph Cabinets- c.abinets are made. (5923262 , Nov. 10 , 1960. Wood" Composition. General Electric Company, a New York corporation with principal , agreed that in connection with the offer office in Schenectady, N. and sale in commerce of television or radio sets , phonographs or other products , it will forthwith cease and desist from: (a) Using such terms as " mahogany grain finish white oak grain " or any other term or expression suggestive of wood or of a particular kind of wood , as de, scriptive of any such products having non-wood cabinets , unless in immediate conjunction therewith there finish appear words or descriptions which clearly disclose the material which said cabinets are made; (b) Failing to attach to any such products having cabinets made of hardboard or other similar material finished with a surface which simulates or has the appearance of wood , in such a manner that it cannot readily be removed or of such a nature as to remain on the. product until it reaches the ultimate purchaser , a tag, label or other 1562 FEDERAL TRADE COMMISSION DECISIONS notice clearly informing the consumer- purchaser as to the material which such cabinets are made. (5923298 , Nov. 10 , 1960. Radio , and Phonograph Cabillets- Wood" Composition. 9355. Radio Corporation America , a Delaware corporation with principal of office in New York , N. , agreed that in connection with the offer and commerce of sale in television or radio sets , phonographs or other limed-oak wood or products , it will forthwith cease and desist from: (a) Using such terms as " mahogany- grained finish grained finish " or any other term or expression suggestive of a particular kind of of wood , as descriptiye of of any such products having non-wood cabinets , unless in immedinte conjunction therewith there appear other words material of descriptions which clearly disclose the which said cabinets are made: wood , (b) Failing to attach to any such products having cabinets made of hardboard or other similar material finished with a surface which appearance of simulates or has the in such a manner that cannot readily be removed or such a nature as to remain on the of product until it reaches the ultimate purchaser , a tag, label or other notice clearly informing the consumer- purchaser as to the material which such cabinets are made. (5823447 , Nov. 10 1960. 9356. TV , Radio , and PhollogTaph Cabinets- Wood" Composition. of lice and place JHotorola , Inc. , an Illinois corporation ,,'ith principal of of business in Chicago , Ill. , agreed thnt in connection with the offer of television or radio sets , phonographs or other and sale in commerce products , it will forthwith cease and desist from: 1. Using such terms as " grained mahognny finish mahogany finor any other term or expression suggestive of wood or of a particuJnr kind ish" and " walnut finish wood , as desc.riptive of any sl1eh prodimmediate conjunction ucts having non-wood cabinets , unless in therewith there appear other ,yords or descriptions which dearly disclose the material of which said cabinets are made; hardbonTd or other 2. Failing to attach to any such products having cabinets made similar material finished with a surface which simulates or has the appearance of wood , in such a manner that it such a nnture as to remain on the of cannot readily be removed or reaches the ultimate. consumer , a tag, 1n he, ) prodllc.t until it or other notice clearly informing the consumer- purchaser of as to the material which such cabinets are mnde. (5923566 : Nov. 10 1960. 9357. TV , Radio , and Phonograph Cabillets- Wood" Composition, principal oflice and place ,Vestinghouse Electric Corporation , a Pennsylvania. corporation with of business in Pittsburgh , Pn. , fig-reed thnt of teleyision or rndio in connection with the ofJer and snle in eommerce sets , phonographs or other products , it. will forthwith cease and desist from: "" " STIPULATIONS 1563 limed oak grain, (a) Using such terms as " mahogany grain finish finish " or any other term or expression suggestive of wood or of a particular kind of wood , as deseriptive of nllY sueh products having non-wood cabinets , unless in immediate conjunction therewith there appenr other ,"ords or descriptions whieh c.learly disc.lose the material of which said eabinets are made; (b) Failing to attaeh to any suc.h products having cabinets made of hnrdboard or other similar material finished with a surface which simulates or hns the appe, arance of wood , in sueh a manner that it. cannot readily be removed or of such a nature as to remain on the product until it reaches the ultimate purchaser , a tag, label or other notice c.JearJy informing the consumer- purchaser as to the material of which such cabinets are made. (5923380 , Nov. 10 1960. 9358. TV , Radio , and Phonograph Cabinets- Wood" Composition. Emerson Radio & Phonogrnph Corporation , a New York corporation N'l , agreed sale in eommerce of television or that. in connection ,.-ith the ofl'er find radio sets , phonographs or other products , it will forthwith cense and desist from: limed oak grain (a) Using such terms as " mahogany, grain finish finish " or any other term or expression suggestive of wood or of a pn.rticubr kind of wood , ns descriptive of nny such products having non- wood cabinets , unless in immediate conjunction therewith there appear other words or descriptions which clearly disclose the mnterial of \\'hich said enbinets are mnde.; (b) Failing to attaeh to any suc.h products hnving cabinets made of with principal office and plac.e of business in Jersey City, hardboard or other similar material finished with a surface whieh simulates or has the appearance of wood , in such mnnner that. it cannot readily be removed or of such a nature as to remain on the product until it reaches the ultimate purchaser , a tag, label or other notice clearly informing the consumer- purchnser as to the material of which such eabinets are made. (5923465 , Nov. 10 , 1960. 9359. TV , Radio , and Phonograph Cabinets- Wood" Composition. Phi!co Corporntion , a Pennsylvania corporation with principal office in Phihdelphin , Pa. , agreed that. in connection with the ofl'er and sale in commerce of television or radio sets , phonogrnphs or othe.r products it. will forthwith cense. nnd desist from: 1. Using such terms as " grained mnhogany finish finish " and " ,Yalnut mahogany finish " or any other term or expression sugges- sueh products having non-wood cabinets , unless in imme, diate conjunction therewith there arrenT other 'lords or descriptions which dearly diselose the material of which said cabinets are made; 2. Failing to attach to any such products having c.abinets mncle of tive of wood or of a pnrticnlnr kind of wood , ns descriptive of any hnrdboard or other similar material finished with a surfaee which 1564 FEDE' HAL TRADE COMMISSION DECISIONS :simulates or has the appearance of wood , in such a manner that it can- not readily be removed or of such a nature as to remain on the product a tag, label or other notice dearly informing the consumer- purchaser as to the material of which said such cabinets are made. (5923564 , Noy. , 1960. 9360. TV , Radio, and Phonograph Cabinets- Wood" Composition. until it reaches the ultimate purchaser , Zenith Radio Corporation , a Delaware corporatjon with principal oflice and place of business in Chicago , Ill. , agreed that in connection with the offer and sale in commerce of television or radio sets , phono- it will forthwith cease and desist from: Failing to attach to any such products haying c.nbinets made of hnrdboard or other similar mnterial finished with a surfnce which simulates or has the appearance of \vood , in such mnnner that it cannot rendily be removed or of such a nature as to remain on the product until it reaches the ultimate purchaser , a tag, labe.I or other notice dearly informing the consumer- purchaser graphs or other products , as to the material of whic.h such cabinets are made. (5923565 , Nov. 10 1960. 9361. TV , Radio , and PhonogTaph Cabinets- Wood" Composition. Sylvania Electric Products , Inc. , a Delaware corporation with principal ofiice in New York , N. Y. , agreed that in connection with the offer and sale in commerce of television or radio sets , phonographs or other products , it will forthwith cease and desist from: (a) Using such terms as " grain finished in blonde Oak Fruitwood grained finish Grained finishes in mahogany or blonde Oak and " wood- tone finish grained in mahogani' or any other term or ex- pression suggestive of wood or of a particular kind of wood , as descriptive of any suc.h products having non- wood cabinets , unless in immediate conjunction therewith there appenr other words or descriptions which clearly disclose the material of which said cabinets are made; (b) Failing to attach to any such products having cabinets made of hardboard or other similar material finished with a surfacB which simulates or has the appearance of wood , in such a manner that it cannot readily be removed or of such a nature as to remain on the product until it reaches the ultimate purchaser , a tag, label or other notice clearly informing the consumer- purchaser ns to the material of which such cabinets are made. (6023093 , Nov. 10 1960. 9362. Adhesives and Fillers- Composition , Effectiveness. ,Voodhill Chemical Company and ,Yoodhill Chemical Sales Corporation , Ohio corporations with principal oflices in Cleveland , Ohio , and Norman J. Freeman , James 1\1. Freeman , Philip E. Freeman and Victor Gelb officers thereof , agreed that in connection with the ofl'er and sale of Plastic Liquid Steel the products now designated " Chemsteel Rubber Plastic Aluminum " and " Plastic Porcelain Hepair " or any similar products whether sold under said names or any other names in STIPULATIONS 1565 commerce , they and each of them will forthwith cease and desist from: (1) Representing through use of the brand names " Chemsteel Liquid Steel " or by any other means , that the products so designated are composed in whole or in substantinl part of steel; provided , however , that this shall not be construed as an agreement not to use said trade names to designate products composed in substantial part of steel in some form , when accompanied by a clear and conspicuous disclosure of the true composition of such products; (2) Representing that the product designated " Chemsteel" hardens into steel; (3) R, epresenting that the product designated " Liquid Steel" will repair metnl unless it is clearly and conspicuously disclosed that the efl'ectiveness of the product is limited to minor repn-irs; (4) Using the brand name " Plastic. Rubber :' or " Plastic Alumition of the produc.t.s so num " without clearly and conspicuously disclosing the true composidesignated; (5) Representing that " Plastic Rubber " is composed wholly of rubber , forms into rubber or is as etrieient or tenac.ious as any vulennize,d rubber. (6) Representing that " Plastic Aluminum ': is composed wholly of metal , that it hardeJls into metal , or thn t it is not a eement; of the brand names " Plastic PorcePlnstic Porc.elain Repair " or by any other menns , that the product so designated is composed in ,",'hole or in sllbstnntia.l part of porcelain; (7) Representing through use lain (8) Representing that the product designated " Plastic Porcelain or " Plastic Porc.elain Repair " reons or kiln is chip- proof or that it provides a vitits finish in hardened finish , or otherwise representing the nature accordance with the facts. (5923686 , hardness or chip-resistant properties of the product or any manner not in 9363. Rebuilt Automotive Dec. 1 , 1960. Nondisclosure of Used Nature. 1Vhite Parts- Industries , Inc. , and its subsidiary, Automotive Service Industries Inc. , ~linnesota corporations with principal offices located in ~1inneapolis , ~1inn. , and Norman A. White , an officer thereof , agreed that in coJ1l1ection with the offer and sale of rebuilt automotive parts in commerce , they will forthwith cease and desist , directly or through any corporate or other device , from: Offering for sale , selling or delivering to others for sale or resale to the public any product containing parts which have been previously used without a clear and conspicuous disclosure of such prior use made on the product with sufficient permnnency to remain thereon after installation , as well as in advertising and on the container in which the product is packed. (G02368!\ De.c. 1 1960. Misleading' Dimensions. I-I. ,Yenzel Tent. & 1)364. Sleeping Bag' Duck Company, a :l\1issouri corporation with principal place of busi- " " , ,,- " " " " " " , ,,- 1566 FEDERAL TRADE COMMISSION DECISIONS ne, ss in St. Louis , ,Villial11 ",Venzel , 1\10. , and Hermann 'Venzel , Fred 'Venzel and officers thereof , ngreed that in connection with the offer and sale in commerce of sleeping bags or other products , they and each of them , will forthwith c.ease and desist from: Advertising, labeling or otherwise representing the " cut size " or dimensions of materials used in their construction , unless such representation is accompanied by an at least equally conspicuous description of the finished or actual size; or otherwise representing the size or dimensions of such products in any with the facts. (6023267 , Dee. 1 , 1960. manner not in a, c.cordance 9365. Combs- Rubber " Composition. I-Iyman and Ilyman Beauty Products , Inc. , a corporation with principal plac.e. of business in New York , N. , agreed that in connection with the offer nnd sale, of eombs in commeree , it yrill forthwith cease and desist from representing, directly or by implication that snch combs are " Genuine Ilard Rubber rubber resin rubber hnnl rubber rubber resin " or representing in any manner or by any menns that such combs are made of rubber or hard rubber unless they are in fnet made of ,"ulDec. 1 , 1960. 9366. " Alfa- Eze " Arthritis Treatment- Effectiveness , Therapeutic Properties. N ational :J\1edical Products Corporation , a Louisiana corporation with principal office and p1ace of business in N e"\Y Orleans , La. eanized hard rubber. (6024087 , and Jules J. Paglin , Stnnley 'V. Hay, Jr. , and Cnd Brndford , its officers , agreed to forthwith tense find de:::ist from disseminating or c:lusing to be disseminnted any advertisement for the product no'" designated " Alfa- Eze (Liquid):: or the product now designn teel " AHaEze (Tablets)" or nny other product. of substantially the snme composition or possessing sl.1bstantin1ly the snme properties hich represents directly or by implicntion that: (1) Such product is an adeflunte , ejJective or relin ble. treatment or remedy for ill nrrest the progress of , or correct. the underlying c.nuses of , arthritis , rheumatism , Jumb;lgo , neuralgia , bursitis , neuritis or any other arthritic or rheumntic c.ondition; (2) Such produc.t is an adequate , ej-l'ective or reliable treatment for the symptoms or manifestations of arthritis , rheumntism , lumbago neuralgia , bursitis , neuritis or any otl1Pr nrthritie or rheumatic condition , will afroI'd c.omplete or long lasting relief of the nches or pains of any such eon clition or have any therapeutic efl'ect upon any of the 8ymptoms or manifestations thereof in excess of afl' ording temporary relief of minor nehes or pains; (3) Snch product is a new or mngic formn la , a proven or a. potent analgesic medicine , or a wonder drug or "\yonder-working drng; (-:I:) The alfnHa content of the product is of any thera peutie. value. (HO24138 , Dec. 6 , 1960. STIPULATIONS 1567 Cabin Crafts 9367. Bedspreads- Domestically Fabricated as Imported. Incorporated , a Georgia corporation with principal place of business in Dalton , Ga. , agreed that in connection with the offer and sale of bedspreads or other products in commerce , it wi)) forthwith cense and desist from designating such products made of domestic fabrics as " Petti- Swiss " or any variation thereof employing the word S,,'iss " without clearly diselosing that the products are made in the Dec. 6 , 1960. 9368. Shoes- Halld-sewn. United States. (6023989 , G. I-1. Bnss & Co. , a :Maine corporation with principal office and place of business in ,Vilton , l\1aine , and John and Robert N. Bnss , officers thereof R. Bass , George I-1. Bass agreed that in connection with the offer and sale of shoes in commerce they, and each of them , will forthwith cease and desist from represent- ing direct)y or by implication: That their shoe products are hand- sewn except as to such part parts as may be sewn by hand or that such products embody hand operations in their mnnufacture except in accordance with the fncts. (6023002 , Dec. 8 , 1960. 9369. Reclaimed Motor Oil- Nondisclosure of Used Nature , Fictitious Top Oil Company, Inc. , a Texas corporation with principal place of business in Lubbock , Tex. , and Haymond G. Billingsley, an otric.er thereof , agreed that in connection with the offer and sale of previously used motor oil in commerce , they will forthwith cease and desist from: (1) Representing, directly or by implication , that such lubricating oil is processed from other than previously used oil; (2) Advertising, offering for snle or selling nny lubrieating oil '\yhich is composed in whole or in pfLrt of oil whieh has been previously used , without. disclosing such prior use in ndvertising, in snles promotional mnteria) , and by a clear and eonspicllollS stntement to that Pricil1g', effect on the container; (3) Representing, directly or by implication , or supplying to or cau sing to be plnc.ed in the hands of others the means of representing, that the. regulnr and usual retail price of any product is any amount grentel' than the price at whic.h the product. is regularly and usua))y sold nt retnil , or otherwise representing pric.es or savings in any manner not in aceorclance TIith the facts. (6024118 , Dec. 13 1960. 9:170. Song' Poems and Lyrics- Publication Opportunities , Royalties Gual'antees. A 1ex Salomon , nn individual trading as Hollywood Tllne~miths with princ.ipal place of business in I-Iolly\yood , Cnlif. ~ af.~reed that in c.onnection with the solic.itation of song poems and IYl'ies to be set to music , in commeree , he will forthwith cease and desist from: (1) Hepresenting directly or by implication that at least one song a month based on lyrics submitted by persons subscribing to his serviee wil1 he published by an independent, music publisher without cost 1568 FEDE'RAL TRADE COMMISSION DECISIONS perform thereunder are clearly and conspicuously disclosed. (60:23589 , Dec. 20 , 1960. l)371. Furniture- Domestic as Imported Walllut." Curtis Brothers Inc.. , a Delaware corporation doing business as Curtis Brothers Furniand George T. , Iran)' I-1. otherwise representing the publication of songs in any manner not in accordance with the facts; (2) Representing directly or by implication that an advance royalty or other payment will be made to a person whose song has been selected for publication unless such is the fact; (3) Using any guarantee representation unless the nature and extent of the guarantee and the manner in which the guarantor will to the subscriber for such publication or opportunity for ture Company ,yith principal plnce of business in ,Yashington , D. oliieers , agreed that in eonnection with the ofrer and sale of furniture , Arthur B. and Charles 'V. Curtis , its from: in commerce , they, and eneh of them , will forthwith cease and desist (1) Using the 'YOI'd ;; Danish': or nny other word or words in such imported from Denmark or is made. of wood imported from Denmark when sHell is not the fact; (:2) L~ Sjll~" I he 'YOI'd " \Yalllllt;: either alone or in conjunction with any other 'YOI'd 01' ,yorch-: , to c1esig" nate or describe any wood other than that of the genus lTug-Ians of tlle walnut tree family, or otherwise mannel" as to represent , directly or by implication , that furniture is representing in any manner the kind or nnture oJ ,yoods not in aca :Massa- corchmce ,yith the faets. (GO:?3:277 , oflice and place of business in X ew Yor1\: , N. , agreed that in connection with the offer and sale in commerce , of golf shoes and other foot,yenr , it will forthwith cease and desist from representing, directly or by implication: That its shoe products are hand se\yn exeept as to such part or parts as may be sewn by hand or that such products embody hand operations in their mnnufncture exc.ept in ac.cordanee with the facts. (592:3733 , Dec. 27 , 1960. 9372. Shoes- Hand Sewll, chusetts c.orporation ,yith principal Dec. 27 , IDGO. J-layrnaker Shoe Corporation , --lC lC lC - - ---- - - - - "------- --- -- -- ---------_-- --------------------------------------------------------- --- -- - _-- -- - - - --- -------------- --- -----_--____------------------------------- ------------ ------- - - ------------ -- ------- ---------------- -- -------- --------------- ---------- --- - --___--------------------------------- --- -__-_--------------------------------- ----------------- -- -"----- ---------------------------- ----- ------- ------- - - -------- ~--- ------------- -- - -- ---------- ---- ---------- -- - --- -- --- ------- -- ------------ -------------- ------ -- ---- - --- -------------- --------- ---- - - -------- -- ------ ------- ---------------------------------------------------------------- -- TABLE OF COMMODITIES DECISIONS AND ORDERS Page 1259 120:2 277, 99"1 ABC" automotive bearings u-- Adhesives , clay tile - - Advertising, real estate--__--__----------------------------------- AD- X2" battery additive 552 757 Aerators , Japanese fauceL--_____--------- -------------------------- 704 Air Comfort" contact lenses -- - - - - - - - Albums , photograph- -- - -- -- -564 Algiers " rugs and carpets___-1505 Alpaca fabrics___ 1127 Arthritis and Common Sense " diet book 145 Arthritis-rheumatism drug preparations_____----444 Automobile mufflers - - - - - - - - - - -- - - - - - - - 92 , 96 Automobile seat covers , etc____----------------------------------Automobiles , used_--____----------------------------- 816 , 1050 , 1213 , 1485 Automotive products and supplies Bag8 , sleeping.._ Bakery produc~___--------------- -- - - -- - - - 429 , 590 , 611 , IOO7 - - - - 361 , 1138 ---------------------------- 540 1025 Baking mixes Ball bearillgs____ u-- - - - - - 127, 1259 552 Bearings , baJJ and roller - - - 125n Beds , Hollywood - - 600 Berside- X'" arthritis-rheumatism drug preparatioll______------------- 444 Bible correspondence courses-1241 1455 Billfolds , leather - 986 Biologicals , human and veterinary_____ 540 Biscui~- 497 Blackstrap molasses1477 Boo k 1'0 Y al Battery additive: " AD- X2" ti Books: Arthritis and Common Sense Folk ::\1 edicinc , 13 , 18 145 1192 Paper back- --------u 1 Bottled gas Boxes , corrugated fibreboarcL______--------- Bradford" hat,,-- Braided" rugsu - Brassieres - - - - - - - - - Bronze, French" , figurine lamps____ Calf , Copy " ladies ' plastic handbags__-_------ 267 464 794 1036 1442 51.5 5:32 Canned food prod ucts- Caps , men s and boys ' '\\'ooL__-_ 576 I Commodities involved in dismissing or vacating orders are indicated hy italicized page reference.. For table of commodities in stipulations in this volume. see. p. 157' 1569 640D6S-- 63---- 100 -- -- 1570 Cards , greeting- - - Clams__-- - - Cleaning products - - - , " - - ----------------------------------------- ---------------------------------------- ------------------ - -- ------ ----------------- ---------- ------ ------------- --------------------------- - --------- ---- -- ---- - ---------- ------------------------------------------------------------ - -------- - ------- ___-------------------------- ------------------- - -- ---____------ ------ - ---- ------- ------------------ ---- -- --- -- ---- - - ----- - ---------- -- ------------------- --- --- - ---~--- - --- - ---- - -,--------- --- -___ ---------------------. --- - -------------------- ----- -- - - --- - ----- - - ---------------------- FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Page 1255 609 1119 1219 , 1506 Carpets and carpeting_--___--------------------------816, 1060 , 1213, 1485 Cars, used-- - -- -- - -- - - -1265 Carving fork heads , Japanese - - 922 Cashmere yarrL- - - 918 Cast iron soil pipe and fittings- - -- - - -369 " Cavanagh" hats- 475 Cel- Ate Tablets " antacid drug preparation____--_----------294 Certificates , photograph- - 369 Champ " hats- -- - Chicken food products- - ------------------------------------------- 1470 464 Churchill" ha1s- 628 Circle- Aire " contact lenses_-1 If/5 , 1233 Citrus fruit - -- 281 1228 Closures for glass containers- - -------- -------------------------- 1251 1474 584 Coats , women s wooL__ - - - - - 237 , 452 , 533, 656 Collection forms- 1510 Collection sen' ice- - - - - - -- - - - - - - -Comic books-- --__-------- I , 7 13. 18, 23, 28, ~:n , 38, 4:3, 47 , 52. 56, ()I, 65. 60 , 75 ------------ 559 628 757 86:2 , 867 , ~)08 , gl~i , 95!! , 1133 Contact lenses_---- Containers: Corrugated fibreboard- - Con'- ertible tops , 267 Glass - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1251 , 1474 Contests, decepti"e-- __----_----------------------------- 306 8:32 948 974 automobile--_----------- Copy Calf" ladies ' plastic handbags____----------Correspondence courses: Bible, theology, philosophy - Jet engine mechanics___ 515 1241 ------ 298, Radio , television , and electronics----u_ Courses , correspondence. See Corruga~d fib~board boxes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Correspondence courses. Crackers - - - - - - - 253 476 1081 267 540 Cut, lery, Japanese- - - --- -- u-- - 12G5 14GO Dairy prod uctsDelinquent debt colleetion forms-___---------Dia!Tlonds - - - - - - Diet book Dance instruction- - - ---- :306 ------ 232 452 53:3 666 Arthritis and Common Sense -------_u_- 145 14!)0 111 Dinnerware , plastic -- - - -- - - Dispensers , soap and cleaning producL--_ Dobbs " hats- -- Dresses , ladies ' wooL Drills , steel- - - - Drug and medicinal preparations: Berside- X' " arthritis-rheumatism treatment.- Cci- Ate Tablets " -_u_- 1228 :369 1003 - - - - - - - - - - - - - 290 1':164 -_u_--antacid preparatioIL-_---Human and nterinary biologicals and phanuaccuticals--__ Electrical supplies- - Electric mixer:-::-___-- ----u 444 475 986 70.1 353 -------------------- 476 , 1081 Electronics training courses-_---- --Ever- Flo Fabrics: Process " , ------- --, -"------ - --"---- ----- - -,--_--___--------------_-_-------------------------------------------------------- -, " - - - --- --- -- - -- -- -- -- - ---------- ----------_ -------------- --------------- ~___---- --__------- ------ ------------ -------- ----- ---------- ---------------------- -- ------ - -------- ------ --- --- -------------- ------- ---- -- - ------ -------- -- -- ------ ------------------ -- - -- ----- ----------------------------- -- ------- - --- - ------ ------ ------------------------------------------------- --- TABLE OF COMMODITIES DECISIONS AND 1571 Page ORDERS contact lenses- 862 Alpaca - - - - - - - - 1127 WooL___--__------------------------ 482 597 789 90:3 1104 1130 , 1495 70'1 Faucet aerators , Japanese- - - - - - -- - Fibreboard boxes , corrugated - - - - -- -- - - - Figurine lamps :French" - - - Flammable Japanese silk scarves_--___-------------------____--_h_- 937 Floor coverings- 339 Flour - Folk l'vledicine 267 1442 , booL--__h_--------------- 1274- 1192 Food products_---_-__--_h______-------- 382 632 964 960 1025 1196 1470 Food Supplement , Nutrilite 717 French Bronze " figurine lamps__--_---h__h_ 1442 Fruit: Bars - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Canned - - - - - - - - - - --------h--h----------_h_- 1025 96D Cihus- - Fresh - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1196 ) 233 1248 - - - - - - - - - - - - - - - - - - 376 , 1110 II) Furniture- Upholstered - Fur products_- 140 37-1 Gas , bottled liquefied petroletInL___----_h_----_h_----------------Go- J 0 " hand cleaneL 600 437 524 584 , fj4l, 600 , 766 , 806 , 822 , 849 , 872 , 88) , 1070 1075 1093 , 1ll5, ll76 , ))82 , 1162 , ))86 , 1448 8.1 s Hardware - - - - Hats- - - - German watch bands , 'YesL____-------------__--_h--__--__---_h_- 637 G!ass containers____--_____h______-_h_------ 1251. 1474 1228 ) 255 Greeting cards - Grocery prod uct Handbags Copy Calf" ladies ' plastic--_h__-Hand eleaner: " GoHeael warmers , Japanese___--__ Hearing aid device , eyeglass_- - - -_---___h H cl Iywoocl beds - - - band:::_ ---_h__h_------- 515 382 Heating and plumbing supplies-High-speed steel drills 1228 704 - - - - - - - - - - - - - - - - - - - - - 360 , 464 145) 885 ____h______---- 704 2DO Hong l\ong ,,- ateh -_h__h - - ---_h_------- 637 70,1 600 Hose nozzles and connections Japanesc____ :l\Jen s wool solecL 'V omen s - - - - - - -- Hosiery: _h- - 681 h-S5D - h - h -- - - - - -- -- - 382 , 5:30 ------ 131 1204 Household prod ucts- - Interlinings. wooL-- Irish" rugs and earpets-- -Cutlery - - - - Head warmers - - - - - - J a pam' se prod ucts: Chromeplated brass shower heacls___ 150n ) ::W tawn sprinklers , hose nozzles and connections, and faucet aerators- - -Rugs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1265 145J 704 794 --- -----------1572 FEDERAL TRADE ," -- ___- - - - - ---_- - - - -- -- --------------------------------------------------------------------------------------------------------- - ___- --- - -- - --------- -- - ----------------- -- ------ ---- - -----------------_.,------------------------- -- ---- - ---- --- --__--__----------- ---------,-------- -- ------- - - ------- - - - - -- - - ---------- ------ --- - ----- ---- - - -------- --- --- ----------------- ------ -- - -- -- COMMISSION DECISIONS DECISIO:NS .AND OUDERS Japanese products- Continued Sewing machines - - - - - Sil k scarves, flammable- - -- - - VV a Jet engine mechanics , correspondence course in--____------------------ tch bands - Page 948 937 637 25;) Kevin l\IcAndre,,' " hats- - ha ts- - - K n i v es - - - - - I-(nox " French" figurine - Lawn mowe~- - - Lamps Lawn sprinklers, Japanese- " Leather " prod ucts : Ladies ' handbags-- - WaJlets and billfolds - u--- 464 353 369 1442 836 704 Lenses , contact_---- 515 1455 ---- 559 628 757 862 867 908 913 959 1133 556 345 704 353 464 964 1152 u-56, , GO , 75 4:3 u- - U - - - _h - - 600 , 1498 Liq Hefted petroleum gas , bottled-- - Litho-offset utility tables Loan services - - Locks- - - - - - Lottery de~ees- Lux ureze " hats-- -- ~1 aearoni - - - - - - - - - - ~'Iagazine advertising space - -- -- - 28, 3:3 PopulaL_ -_---------- I , 7 , 13 , 18 u-l\Iattresses--_ Drug and medicinal preparations, See ::\ledicinal preparations. ?didas " mufflers, automobile______----- ----------_u_---------- 1Iilk l\lixes , baking_ l\lolasses, blackstrap- -- - - u - 1\1 ower::: 1460 -- u u-u-- 127'1 497 836 M tImers , autol11obiJe- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 92 , 96 116 Neckties, men s " Swiss " silk______---_u_----- --------_u_--_u--704 ---- -_u_ - --- u - -- -- -- Nozzles , Japanese hose__u- u 717 u-U-N utrili te Food Supplement" - - 556 Offset printing and photoengraving utility line-up and register tables-- u - - - u - - - - u U U - - - - - - - - - - - - - - - -- - - - - 559 Optical products--_~)27 u-u--- u--u-UUOrlan sweatcr~L u-361 u U - - -- Outdoor supply eq uipmenL 632 u-u U - - - -- - -- - u - Packaged food products - - ---------------1 Paper back books, G9 , 75 , 13 , 18 1415 Paper prod ucts- - - u - 80 u-Payola " for playing records- - u - - 119 , 127 , 248, 262 , 316 , 329 , 334 ~:W5 458, 469 , 51H, 571 , 580 , 604 623 647 656 661 747 752 , 7t11 , 801 , 812 , 827 , 887 , 892 , 954 , 981 998 , 1065, 1 ODD , 110D , 1142 , 1147. , lawn- - - - u - - - Pharmaceutical:" human and veterinary - - --_u_------_u- 1241 Philosophy, correspondence course in In! Phonograph record vending racks_ Photoengraving and printing equipmen L - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 55G 83:2 Photographic services and products- - Photographs , albums , and certificates - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 294 , 564 !18G Razors and blades Study courses. - - - - , - - - ---- --- --------- ----- -------------- ------ ------------------------------------------------------ " - - - -, -"- ----- - - --- --- ------- --- ------- -------- ----- ------------------------------ --- --- --- ---__--_----------------------- -- --------- ------------ --- ----- ---- --- -- ------- -- -- -- - --- ------ ------ - ------- ---- -- ---- ---- - -- -- ----- -------- - --- -- -- - --------------------------- ---- _____--------------------------------- - - --~--- TABLE OF COMMODITIES DECISIONS AND ORDERS 1573 Page Picture tubes , rebuilt television- u-u - u u 652 , 877 , 990 , 1199 1495 Piece goods , wooL__u- - _u_--- - --- _u_--- - ----- -_u_uu Dinnerware- - - Ladies ' handbags- - - - - Pipe and fittings , cast iron__ __u__u_------_u_-----_u_-------_uu 918 Plastic: u-- Plumbing and heating supplies_u__u_-_u_------------- Precious metals and cJiamonds--____------------------_u------------ 111 556 Printing and photoengraving equipmenk___- -- --- - --- - -- -Prize contests___--------------------uuu_----_u_----- 306 832 948 9i4 1196 Produce- - - - u-353 uuPush cards- - -- - - - Rach:s , phonograph record vending__--u_-_u__u---------_u_------- 119 - -- 298 , 1081 Hadio and television training courses_--- -353 adios - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---------_u 1490 515 704 Schick" safety__--_-------------_u_------------ 841 469 , 519 , 571 , Real estate advertising_____--------_u_-------------------------- 277 994 - - - - - - -- - - - - 80 Records , musicaL - - 119 , 127 , 248 , 262 , 316 , 329 , 334 , 365 , 458 , 604 , 623 , 647 , 656 , 661 , 747 , 752 , 761 , 801 , , 981 , 998 , 1065 , 1099 , 1109 , 1142 , 1147, 580 812 , 827 , 887 , 892 464 1259 u - -- u -- -- Holler bearings- - - -- 1477 -- u Hoyalties , booL - Hugs_-- _-------------------_u----------------------- 339 544 1219 1506 Japanese - - - - - - - - - - - - - - - - - - - - - - - - Record vending racks , Resistol" ha ts-- phonograph______--------------------_u_----- 119 794 841 Safety razors and blades Schick" 107 S~mon , canned - - - - - - - - Scarves , flammable Japanese silk__--___----------------------------- 937 841 Schick" safety razors and blades -- Sea food products- - - - Seat covers , automobile - - - - -- - -- - - -- -- - - Sewing machines - - - - - Japanese - - - - - - - - - - - - - - - - - - - - - - - - - Shower heads , Japanese - - - - - - - - - - - - - - Silk" neckties , men s__-- - -- - - - - Skip tracer " forms--- - Scotch" rugs and carpets_--__----------_u_----------------------- 150() u - 107 281 u - -- - - u - 974 948 136 116 u -- -- -- - - - - - - -- 232 , 452 , 533 , 666 Sleeping bags- - ---------------u_---_u------------------------ 361 , 1138 1228 Soap products - u81 Socks , men s wool soled - - - - -- -376 918 Soil pipe and fittings , cast iron--u__---------- --_u_-704 Sprinklers , Japanese lawn , etc__------------------------ - - - - - - - - - - - - - - - - - - -- - - 290 , 1464 Steel drills- - - - Correspondence courses. See u-Suits , ladies ' wooL - - -- -- -u - -- - - u - u u -- - -Sweaters , orlon- - - Swiss " ties , men s " silk" Sympathy cards- Tables , printing and photoengraving line-up and register Television and radio training courses- u - - -- 1003 927 116 1255 556 298 , 1081 -1574 Top Grain Cowhide " Toys- - - - - - - - - - - - - -- -- ------ --------------------------------------------------------------------------- '---------- ---- ---- --- -- --- --- -- -------- ---------------------- ----- - ------ ---- -- -- -- ------ ---------- --- --- ---------- --- - - - -- -- - -- -- -- - - -- ----- -- - - - -- -- ------------------------------------------ --------------- ------------------------------------------------------ -- - - - -- -- - --~--------------- ----------------------------- FEDERAL TRADE COl\UlISSION DECISIONS STIPULATIONS Page -- - - - - - - - 652 , 877 , 990 , 1199 936 Theology, correspondence course ilL_--__--_------------------------- 1241 Ties , men s " all silk" _n_------__-----116 Tile adhesives_-- - 1202 Tobacco products__--- -896 Television picture tubes, rebuilL - Testing devices, electron tube- - -- - -- -- - - wallets and billfolds-____---------------------- 1455 - - - - - - - - - - - - - - - - - - 486 , 771 936 ~ - -- - 652 , 877 , 990 , 11 99 936 1470 600 Upholstered furniture--_--_-- --Used cars____----------------------- 816 1060 1213 1485 Vacuuln clean ern - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 974 Tu bes , electronn - -- - - Tubes , rebuilt television picture Tube- testing devices , electron- -- - Turkey food products- - Vegetables: Canned - - - - - - - - Fresh - - - - - - - - - - - - - - Vending machines and vending machine supplies Vending racks , phonograph recorcl- Veterinary biologicals and pharrnaeeuticals- - - - WaJJets , leatheL - - - -- -- Warmers, Japanese heacL - 969 1248 320 119 !~;8G 1455 1451 6:37 Watch bands: Japanese , West German , Bong J\:ong__----_-----------est Watches__- - - -- -- - -- - - - -- - -- - - - -- - -- - - 222 35:) 637 1115 57G German watch band:3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Wool products - - - - -- - -- - -- - Cap::; , men s and boys Cashme~ yarn - Coats , womcn :3- - - - - -- - - -- - 922 584 Fabrics_n_-------------- ------------ 482 597 789 903 1104 1130 1495 1127 Alpaca - - - - - - ---- -- - ---- - --- -- 1:)1 1204 Interlinings__--_- -- - -- -- --- - --- - Ladies ' dresses and suits-- - -- - -- -- -- Men s hosiery - - - - - - -Piece goods - - - - 100;) 681 Wool s tocks- - Wool wastc- -- -- -- - Yarn , wool- - - - Zinc produc~ - - 1495 349 1237 922 1474 STIPULA TIONS Adhesives and fi11ers-- - -- - - -- - - - - -African :\lahogany " wood prod ucts- Page 15G4 W:362) 1548 (D312) Alaska Life " bookleL--_- Alfa- Eze " arthritis trea 1558 (9:Hcl) 15(j() (~)36(j) 1550 tmen L - - - - - - Aluminum storm doors , etc_ Arthritis treatment: Alf a- Eze (9318) If)(H) (9366) 15GO (D349) Imm tine 1\1 ilk" - - - - -Cameras - - - - - - - - - - - -" --- ---- ----- -- --- -" " - -- - - " -- --- ----- -- -- -- -- -- -- --- ------- ----- -- --- ..: , " , ,- - - -- - --"--,-- -- -- --------------- "-------------------------------------------- ------------------------------- -- TABLE OF STIPULATIONS STIPULATIONS 1575 Page Auto kits , Japanese modeL__--u__u_-----------_u__u_------ 1549 (9317) u--1557 (9341) 1557 (9342) -- - - _n U - -- - - Automotive products, rebuilL- 1553 (9328), 1554 (9329, 9330 , 9331 , 9332), 1555 (9333 , 9334 , 9335 , 9336), 1556 (9337 , 9338, 9339), 1565 (9:~63) Automobile ill ufflers - -- - u - - - u - -- - Automobiles , Corvair - - u U - -- - - u U U - - u_----- ------ --- -- 1550 (9319) Batteries- -- - uu ----- uu -1567 (9367) uuuu- u-U--Bedspreads Swiss Belt , Pi Peer Slim- R Health" _--____u_-_u__u_----uu_--_u 1550 (9321) u-1546 (9309) u-Bicycles- - -- - - u--1558 (9344) uuu---u Booklet: " Alaska Life Cabinets: " wood" tv , radio, and phonograph- - u u - u - - 1561 (9353 , 9354), 1562 (9355 9356 9357), 1563 (9358 9359), 1564 (9360 9361) Carbona cleaning fluid_u_ u_u_-----_u_----------_uu---_u 1550 (9320) Chemsteel" adhesives and fillers_n--__---_u_--_u_--_u_u_-- 15M (9362) Cleaning fluid , 1553 (9326) Carbona--u--___---------------------_u------ 1550 (9320) 1558 (93,15) u-Clothing, men s - - - - - - - - - - - u U - - 1553 (9327) Collection q uestionnaires- - Combs rubber ____u_--------------- 1549 (9315), 1552 (9325), 1566 (9365) Correspondence course: Heal estate______--_u__u_------------- 1547 (9310) 1557 (9342) Con. air automobilesn - - u u U - U - - - - - -- - - - - - - u -- u -- - u - -u - - - 1551 (9323) u u - -Dandruff treatment: " Rinse Away ---_u_----- 1568 (9371) 1548 (9314) u - -- - - Fabrics , wooLu_____u_u__u_uu_-- 1557 (9340), 1558 (93-16), 1560 (9352) FootweaLu_nuu_---_u__u__uu_------_uu- 1567 (9368), 1568 (9372) Furniture Danish" _u__-_uu_-------_u_---- -------------- 1568 (9371) Danish" furniture_____------------_u----------- Dog food - - u--- Fur productsu_ ----_u_---------_uuu_u_uu _Golf shoes- - - 1548 (9313), 1552 (9324) 1568 (9372) Health Belt , Pi Peer Slim- R" - u - - u - - u - u - - - u - - u U - - - - u u 1550 (9321) 1560 (9349) 1549 (9317) Interlinings , wooL___u- _u_u_--_u_----_uuu_u_u_------- 1545 (9:306) Immune l\lilk" arthritis treatment- --u_-----_uuu_---u__ Jasco Paint H.emover Japanese model auto kits___uu_-_u__u_uu_-_u_--- -------- _____----------n_---------_u_u--uu 1558 (934:~) Liquid Steel" , etc. , adhesives and filJersu____-_uu__uuuuu 1564 (9302) Lumber products__-----_u_----_u_u__u_--_u__uuuuu_- 1548 (9312) J\lodel auto kits , Japanese_____--u_-_u_---------------------- 1549 (9317) Motor oil , reclaimed_u_-_-----_u_-------- ~-----_u_----_u_- 1507 (9369) Mufflers , automobilc___u_----_u__n_uu_----_u_------_uu 1557 (9341) - - - 1547 (9311) Nursery products__---- - -- - u - - u - - 1558 (9343), 1560 (9351) Paint and varnish removers - u - - u - - Lyrics and song poems____u_----_u_---u_u_u_--------_u-- 1567 (9370) l\lahogany " wood products--_---_u_-------_u_-_u_ _uu_u- 1548 (9312) 1548 (~J312) Philippine Mahogany " wood products--u_-_u_u__u_ uu_ 1561 (9353 , 935'1), u-wood" - - -- - - u - - - u - Phonograph cabinets u-u - U - - -- -- - - u- 1562 (9355 , 9356 , 9357), 1563 (9358 , 9350), 1564 (9360 , 9361) Photographic equipmenL - Photograph reproductions - Pi Peer Slim- R R.adio cabinets, " wood" u--u-- Health Belt" ----__---_uuuu_--- _u_ -_u__ u -- - u U - - Plastic Aluminum , etc. , adhesives and fillers_ u__ 1561 (9353 9354), - _u_---_u_-----u_--_u_u_ 1562 (9355 , 9356 , 9357), 1563 (9358 , 9359), 1564 (9360 , 9361) _u_-_u_- u_- 1553 (9326) 1559 (9348) 1550 (9321) 15G4 (9362) - - - - - - - - - - - -- -- -- - - - - - - - - - - - - - - - - --- - - - - - --- -- - -- - - - 1576 FEDERAL TRADE COMMISSION DECISIONS STIPULATIONS Page Real estate correspondence course-_--- ------------------------- 1547 (9310) 1567 (9369) Reclaimed motor oil- - 1559 (9348) Reproductions , photograph- - - - -Rinse Away " dandruff treatment_____------- ------------------ 1551 (9323) 1547 (9311) Rose bushes - - - - - - - - -Rubber " combs___ -_----------------- 1549 (9315), 1552 (9325), 1566 (9365) ---------------- 1545 (9307), 1546 (9308) 1560 (9350) Scales- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1567 (9368) Shoes , hand-sewn - - - - - - - -- 1568 (0:372) Golf - - - -- - - - - - - - Rugs---------------------------- Sleeping bags- - - - -- - -- - - - -- - - -- - - - -- - - - 1565 W364) Song pocms and lyrics_-Storm doors , 'etc. , aiuminulll___--__---------WISS e sprea 8------------------------Television cabinets -- 1567 (9370) -- 1550 (9318) -- 0. -------- 1561 (0353 (1" woocl"-- 9354), Textile fiber Toys-_ 1562 (9355 , 9350 , 9357), 1563 (9358 , 9359), 1564 (9360, 9361) -- 1545 (9307), 1546 (9308) products: Rugs_n__--_-_ 1559 (9347) Varnish and paint removers_----_-Wallets - - - - - - ------- 1558 (9343), 1560 (9351) 1551 (9322) ---- 1549 (9316) Water softening equipmenL_---\Vood" cabinets: Tv , radio, and phonograph__-_h-------- 1561 (9353 9354), 1562 (9355 9356 9357), 1563 (9358, 9359), 15M (9360 9361) Wool products: Fabrics____----------------------- 1557 (9340), 1558 (9346), 1560 (9352) - 1545 (930G) Interlinings--__- - -- --- - - - - - - - - - - - _--- --- ----- -- INDEX DECISIONS AND ORDERS Abandonment of practice after issuance of Page Denial of motion to dismiss for -- u - - -- u - - - u - - u u - - - - - u u u 1540 No warrant for dismissaLu__uu_h_---_u_-_u_-----_u_--_u 1540 Academy: Falsely representing private business as--_u h h - - u--1241 Accreditation: Falsely claiming, by correspondence schooL_______u_--- 1241 Acquiring competitor in violation of Sec. 7 , Clayton AcL--____h_u 1274 1415 Advertising allowances , discriminating in price through___ u - - u u - - - - - - 530 Advertising and promotional services , misrepresenting as to_---_uu_--- 1490 Advertising falsely or misleadingly: Business status , advantages , or connectionsAd vertising and promotional servicesuuuu--1490 Connections or arrangements withBrokers - - - - - - - - complaint: 540 556 859 918 964 , 1036 , 1470 , 1474 Large retail chains and merchandisersNationally known manufacturer -- Organization of retailers- u - Contracts and obligations_____- - - u-u-u--- u--u Dealer beingCollection agency ----- 994 119 320 666 1477 564 437 Manufacturer -- - ---u -- 609 704 , 1265 , 1455 Degrees and diplomas__u - _u - - u - u u u - -- - u - h - -- - 1241 Financing activities______u_u_-----_u_------------ 277 345 1485 Government approval or connection- Armed Forces_____-_u_- 816 History - - - 1241 Identity --- - 320 Furrier - - Individual or private business _u u - u-- ---u - being- Academy, institute - - - - u - - u u u u-uu1241 Accredited educational institution - - 1241 Association- - _u - u u - - u -- - -- - u - u - u- - --u- - 1510 Divinity school , seminary - u - -- - - - u - - - -_u-u 1241 Non- profit organization- - - - - --- - - u 1241 Refiner or smelter - - - 111 Indorsement- -- - 119 Manufacturer being inventoL--_ --_h_--_u__u_-------- 885 Nature_ __--u_--- ----_u__u_------------_uuuu- 452 666 704 Offices in principal cities--__--_---_uh_--_u_--_uu_u_--- 994 Personnel or staff___u__---_ u_- u--_u_u_--u_u 111 666 1510 Publication services-u--u-1477 u--u-Services_u_- u_- ----_uu_---_uu__uuu 277 320 345 994 1510 _u u -- 345 , 1510 Size and extent_--u u---u--u-- u-Time in business u--u1510 uu--u--uuUnique nature- - - - - 111 1 Covering practices and matters involved ties, see Table of Commodities. References italics. in Commission orders. For index of commodito matters involved in vacating or dismissing orders are indica ted by 1577 ---- __------- ---- -- --------- --- ----------------------- -- - --___- --------_- --------- -------------------------------------------------------------------------------------------------------- ---- __-_------------- --------------------------- --- ----------- ---- --- ----- -- ------------ ---- ------ ------- ------------------------------------------- -- -- ------- - - - --------- --- --------------- --- -- ----- ---- ----- - ---- -- - --- -- ---- 1578 FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Page Advertising falsely or misleadinglyComparative merits of producL_n-------_n---- 559 628 841 1241 1498 Competitors ' products- Danger in use_--n---------------------- 841 290 339 515 609 794 1265 1442 1464 1490 Composition of productFur Products Labeling AcL--_--n-_nnn_- 641 690 806 822 1176 Continued Dealer or seller assistance--__n - -- nu - u- - n U - _u_u u- - - u 936 , 1081 _uu__u_-- _n_- _n-_-- _u_---- 1081 Demand for product- - -- Earnings and profits____--_n_-------_u_--- 119, 253 320 476 936 1081 1213 u - -- - - -u--Financing acbvities- - Government indorsement , connection , or standards816 Arnled Forces- - 552 Federal Trade Commission 717 u--nFood and Drug Admillistratioll-- States - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1213 , 1241 1081 Veterans Administration____- 222 524 609 816 948, 974 1060 1213 1464 1485 1490 Guarantees--Individual' s special selectioll- - u - - u - n -- -- - - -- - n - - - 253, 320 , 476 , 1213 Indorsement or approval of productFederal Trade Commission-Hepl1table distributor - - n--U - - - - - - - - - - - - - 5. 986 717 444 1081 Food and Drug Administration____n------------------------ 717 S. District Court- -- - n- - -- n- -- _n- - - -- _n - -- n - -- - --u - - - n - -- - - u - - -- - S. Government- - n-n-U-- Veterans Administration__-- n-- --------_n_--------------_n_- --_n__n 476 , JA98 Limited offers_ Manufacture or preparation of producL__----nnn_- 794 885 , 1255 , 1506 Old or used product being new---------n_-----------n__n_---- 974 n - - n -- n - - - - - 253 , 345 , 476, 1081 Opportunities in product - 117G Prices_ Additional unmentioned eharges___-------------------------Bait" offers__ Jobs and employment____n_--_n_--_n---------u_-- 119, 253, 320 , 47G n - - _n- Comparativc__ Exaggerated being usual retail- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119 136 290 376 437 766 822 836, 881 , 1219 , 1464 , 149() 119 290 437 609 974 1119, 1219, 1265 1490 Fictitious marking_ ----n 822 n--n-- n-Percentage sa vings- -- n ---- 376 n- Retail being wholesalc_--_ -- - -- - - - 14. Terms and eonditions - - n - n - - n Usual as reduced or speciaL_u -------n_---------n----- 948 1498 ------_n-------- ----- 306 832 948 974 Prize contestsn-306 n-Promotional sales plan - --n_--_n_-------------------- 1060 609 948 974 - - -- - 766 822 Qualities or results of productAdhe~vc - - - - - 1202 ----- 628 757 862 867 908, 913, 959 , 1J3~i Correcti\'c- 757 908 , 913, 959 Dmability_ - 145 444 475, 1192 ~ledicinal , therapeutic , etc--___------- 757 Preventive or protectivc____ 908 , 913, 959 1192 794 1464 Quality of producL__------------------------------- 290, 339 - - - - - - - - - - - - - - 119 , 277 Rcfunds- - - - Results of produck_ ------_n__--__n__ - -- - __nSafety of product-- 628, 862 867 908 913, 959 1133 841 -Special or limited , 13 , 18 , 23 , - --- - - - -- --------------------------------------------------- -- ------------ ------------------------- - - -- -- - -- - ---- - - ------ -- ----- -- ----- --------------- -------------- --------- - - --- -- -- ------ -- --- - --- --- -- -- -- - ------ INDEX 1579 DECISIONS AND ORDERS , Advertising falsely or misleadingly- -- - - - - - - - - - -- - - - - 320 55~ 75~ 908 , 913, ~5~ 1133, 1213, 1485 , 1490 Security of investment- - - -- 119 , 320 Services- - - - - - - - - - - - - 119 , 345 , 904 Size of producL_--__----------------------------------- 361 794 1138 Scientific or other relevant facts--- -- - -- -- - Continued Page Source or origin of productDoctor s design , supervision , manufacture , etc____------------- 1498 Domestic as imported__--_----------------------------- 1442 1506 offers___------------------------------------- 1081 Success , use , or standing of product___- -------------------------- 1498 Surveys- - - - 1152 Terms and conditions- -- -- - -- -- - - - -- 298 , 816 , 1060 , 1081 , 1213, 1477 , 1485 Tests , scientific 1192 Unique nature of product--__----------------------- 717 862 1498 1506 Value of product___------------- ---------------------- 794 1182 1182 Advertising matter , supplying false and misleading- - - - - - - - - - - - - - - - - - - - 92 13~ 145 , 444 , 515 , 881 , 1490 Allowances for services and facilities , discriminating in price through-- - -- 1 28, 33 , 38 , 43 , 47 , 52 , 56 , 61 , 65 , 69 , 75 , 530 , 540, , 1470 , 1474. Amended complaint: As , in effect , commencement of nevI' action by Com1251 556 , 859 , 918 , 964 , 1036 , 1228 , mission- - - - - 690 Amending of complaint: As responsibility of Commission______--------- 690 Approval or indorsement of product , falsely elaiming__- 444 552 717 , 1081 1241 Armed Forces: Falsely representing connection ,,' ith- - - Association: Misrepresenting private business as- Assuming or using misleading trade or corporate name: 816 1510 Dealer beingCollection agency Manufacturer - Government conn ection- Armed Forces -- - -- - -- - -Individual or 564 -- -- - 704 , 1455 816 1241 1241 private business being- Academy, institute- - - Accredited educational institution- - - Association - - - - - - - Divinity school Hefiner , seminary_____------------------------------ 1241 12.11 1510 Non- profit organization- -- - - -- -- or smelter- - - - - - -- -- -Nature of business____------------------------------- 111 452 533, 666, 704 Bait offers: Using to obtain leads to prospects- - - - - - - - - - - - - - - - - - 832 , 948 , 974 497 Basing- point pricing systems , fixing prices through use of 281 Boycotting dealers to fix pricesBribing customers ' employees: "Payola" -- - - - - - - - - - - - - - - - - - - - - - - - - - - - 80 119 , 127 , 248 , 262 , 316 , 329 , 334 , 365 , 458 , 469 , 519 , 571 , 580 604 , 623 , 647 , 656 , 661 , 747 , 752 , 761 , 801 , 812 , 827 , 887 , 892 954 , 981 , 998 , 1065 , 1099 , 1109 , 1142 , 1147. Brokerage payments and acceptances , illegal: Discriminating in price through- - - -- - -- -- -- - -- -- 107 , 632 , 969 , 1196 , 1233 994 Brokers , falsely representing connections witJL - - Business status. advantages , or connections: IV1isrepresenting. vertising falsely, etc, ; Assuming, etc, ; Misrepresenting IV1 See Ad- business , etc. isrepresenting directly, etc, -~ 1580 Sec. 2(a)- Illegal - - --- - -- -- - ---- - " - -- --- - - ----- ----- ------- -- -- ---- - -- ----- --- --- --- -------------------------------------------- ------------------------ --- -- --------------------------- ---- -------- ------------------------- --- - -" - - - - --- --- ----- ------ --- ----- - ---------- ------- ----- ---- - - - ____---------- ---------- ------------ ------ , __------------- - ---------- - ---- - - - - - ----- --------------- ---------_--__--------- FEDERAL TRADE COMMISSION DECISIONS DECISIONS .AND OUDERS Page Buyers ' agents: Receipt of illegal brokerage payments bY__n_---------- 632 Buyers , direct: Illegal brokerage payments to_ ------- 632 969, 1025 1196 1233 Buying groups: Discriminating in price in favor oL_--- 369 429 464 , 1228, 1259 964 Cash discounts , discriminating in price through__-- Certification to Commission , to amend complaint: As not an appeal from hearing examiner s action- - - - - - 690 552 717 986 717 444 1081 Claiming or using indorsements or testimonials falsely or misleadingly: Federal Trade Commission - - - - - - - - - Food and Drug Administration Reputable distributor - S. District Court- - -- - -S. Governmentn - - -- Veterans Administration Clayton Act: Decision by Congress of public interest in prohibiting specific. practices by - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1540 ----- 85 969 1248 Sec. 2- Discriminating in priceprice difIerentials___ Arbitrary discounts Cash discounts - -- - - -- - - - Cumulative quantity discountsCustomer classification - -- -Discounts and rebates_n- - -- - -- - Free goods - Group buyers , chain stores , etc_ -------- ~arket areas- - - - - - - - - Sec. 2(c)- Illegal 986 -- - - -- - -- - - 7'71 , 9(;4 369. 464 -- -- - Df,6 , 1259 1259. 1460 904 36\), 429 464 1228 , 125D 1460 12:28 l:;;)2 Quantity discounts and rebates_--__ brokerage payments and acceptances107 ------ 632 969 1025 , 119() , 123:) Buyers ' agents- - - - - -- - Decreased brokerage - - - See, 2(d)- Direct, buyers-- Allowances for advertising and promotion - - , 13 , 18 , 23 , 28 , 33 , 38, 4~) , 47 , 52 , 56 , 61 , 65 , 69 , 75 , 530, 540 1036 556 , 859 , 91S, 964 , 1036 , 1228, 1251 , 1470 , 1474. 2(b) defen~e not available in violation proceeding undeL_ Sec. 2(e)- Fllrnishing services or facilities- 964 1036 1228 ~ issionary personneL Sec. 2(f)- Indllcing and receiving discriminatiol1S_ _- 486 590 611 , 1007 ------ 96 717 See, 3- Dealing on exclusive aJld tying basis_ -- 1274 , 14Hj Sec. 7- AcC1l1iring competitoL__-------------------- Demonstrator sef\'ices___ Demonstra tors- " Sty lists Coercing and intimidating: Competitors- - - -- -- -Customers or prospective customers.__By use of deceptive notice falsely represented as court order Helay salesmanshi p Distri bu tors - - - - - - - -- - -Collection agen cy, dealer falsely representing self as 4!)7 -- 96 4\J7 564 :30(; 717 564 --- --- - - -- -- - - - -- ----------------- ----------------------------------------- --- - - - - - -- - -- - - - - - -------- -- _------------ INDEX DECISIONS AND ORDERS Combining or conspiring to: 1581 Control marketing practices through HmWng Enforee resale price maintenance- - -- - - - Page new warehouse facilitjes 896 Eliminate or restrain competition__- -- -- -- - Fix prices and hinder competition throughBasing-poing pricing systems Boycotting dealers___- -- -- Cutting off' competitors ' supplies- - - - - Enhancing prices uniformly - - - - - -- - 96 429 -h uu--u--u----u---u 497 281 497 Establishing and maintaining uniform prices tind terms Maintaining fixed prices through jointly operating " l\1jd,yestern ermjnals Restrain or monopolize trade through- -- 281 497 Limiting ne," warehouse facilities -------------------- 896 Threats of reprisals , intimidation , physical violence- 281 Comparative merits of product , misrepresenting as to- - 559 , 628 , 841 , 1241 , 1498 Comparative prices , misrepresenting as to - - - - - - - - - - - - - - - - - - - - - - - - - - 766 , 822 Competitors , coercing and intimidating___ 497 Competitors ' products: Cutting otI accei"S to_---- I;isparaging or misrepresenting__u___u_-- -------_u_841 Composition of prodll ct , misrepresenting - - - - - - -- - u - - - u - U - - - - 116 290 339 , 515 , 544 , 794 , 1265 , 1442 , 1455 , 1464 , 1490 Fur Products Labeling AcL- ---- -----_u_---------------_u_ -_u_ _u_u_--- 717 Wool Concealing, obliterating, or removing law-required or informative marking: Foreign origin of producL__ ___u_u_----- -_uu_-_u_ Tags , labels , or iclentif.cationFur Prodl1cts labeling AcL_____---------------------- ---_uU_---_u_------- 140 437 524 , 641 , 690 , 766 , 806 , 822 849 872 , 1075 , 1093, 1115 , 1176 , 1182 Products Labeling AcL------ 131 482 576 584 597 , 681 , 789 , 903 922 1104 1115 1127 1130 1204 1237 1405 _u_uu_----- 1265 lVool Products Labeling AcL__u__u_---------Connections or arrangements ,,-ith others , misrepresenting as to. See 1075 1104 Ad- vertising falsely, etc. ; Assuming, etc. ; Misrepresenting business , etc. Consignment invoices held to be advertising under Fur Products Labeling 881 uu_----_u__u_--------- 306 832 948 974 Contracts and obligations , misrepresenting !'IS to_------_u------ H77 1!lJfairly__ Contests , prize: l.~sing Corrective qualities of product , misrepresenting as to_---_u_ ---------- 628 862 , 867 , 908 , 913 , 959 , 1133 564 Court , V. S. District: Fnlsely claiming indorsement by___ 717 Cumulative quantity discounts , discriminating in price through- - - - - - - :369 464 Customer classification , discriminating in price through_ -- 986 1259 Customers , coercing and in +imidating- - 497 Court order: Simulated , to intimidate delinqucnts --_u_---- Cutting off: Access to competitors ' products through t ra cts - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - restrictive customer con71 i Competitors ' supplies conecrtedly to hinder competitiOIL Danger in l:se of eompetitors ' pl'odu cis , falsely representing.. - 497 841 - - - -- " - - - ----- -- -- - - - - -- ------- -- -- - - - - - - - - - - - - -- - -- -------------- ---- 1582 FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Dealer falsely representing self as: Collection agency__-- --Furrier- - - Page 564 437 ---------- 704 908, 1265 1455 Manufacturer_---_------Clayton Act , 1081 Demand for product , misrepresenting as tOn ------, discriminating in price through allowances for - - 96-:1, 1036 Demonstrator services 1241 Diplomas , offering valueless__brokerage payments to- ------- 632 , 96H , 1025, 1196 , 1233 Direct buyers: Illegal - - -- - - - - - - - - 80 Disc jockeys ' acceptance of" payola ---------- 96 717 Sec. 3-_---------Federal Trade Commission Act , Sec. 5__------------------------- 96 1241 Degrees , offering valueless- 2\14 very - - -- - - - - - Delayi ng or v:ithholding deli Dealer or seller assistance , misrepresenting as to_- Dealing on exclu~ive and tying basis in violation of: 1081 119 , 604 , 954 , 127, 248, 262 , 316 , 329 , 334 , 365 , 458, 469 , 519 , 571 , 580 623 , 647 , 656, 661 , 747 , 752 , 761 , 801 , 812 , 827 , 887, 892 981 , 998, 1065 , 1099 , 1109 , 1142 , 1147. Discounts , discriminating in price through illegal- - 369. 464 964 986, 1228, 1259, 1460 Discriminating in price in violation of: Sec. 2 , Clayton ActSec. 2(a)- Illegal price differentials_ Arbitrary discounts- Cash discounts- -- - - ----- 85 969 1248 98G u - - - u - - -- - - - -- 77'1 , 964 Cumulative quantity discounts_-Customer classific.atioIL - - -- - - - -Disc.ounts and rebates____------- --------- 369 464 - -- - - - - - - - - 9S6 , 1250 ------------ 1259 1460 F~e goods- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Quantity disc.ounts and rebatesBuyers ' agents - -- - - - - 964 Group buyers , chain stores , etc_-- -- - - - - - 369 , 42H , 464 , 1228, 1250 1460 Market areas- - - -------------_u 122S See. 2(c)- lllegal 632 107 Decreased brokerage - - - ----------- 632 , 96D , 1025, 1196 , 1233 Direct buyers__-18, - I,7 Sec. 2(cl)- Allowances for advertising and promotiol1- - - -- brokerage payments and acceptances- 2;), 28, 33, 38 , 4;), 47 , 52 , 56 , 61 , 65, 69 , gG4 , 1036, 1228, 1251 , 1470 , 1474 Sec. 2(e)- Fllrnishing sen- ices or facilities- 75, 5;30. 5- 10, 556, 859 , 91S, Demonstrator services____- Demonstra tors- " Stylists Sec. 5, Federal Trade Commission Act.uM issionar~" personneL - -- - - - u - Sec. 2(f)- Inducing and recpiving discriminations- - 48G, --- - 9t.iI O:'Hi u - 1 ~28 5!)o 611 1007 Inducing and receiving payments for services and facilities - Dismissal of petition to modify desist, order following agreement of all cigarette manufacturers to dbeontinue type of :lchertising prohibited_Disparaging competitors ' producls: Safety Distrihutors: Coercing and intimidating_____-----Divestiture order , approval of plan for c.ompliance witlL - Divinity school: Falsely representing private business HS----- 38~ 15:2R 841 717 1527 1241 -- - -- -------- --- --- -- -- -- -- -- -- ------------------------ - -- -- -- -------------------- -------- ------------------------------- - -- --- -- --- - -- -- -- -- -- - -- -- - - -- ------- - - - - --- -- - - - -- - INDEX DECISIONS .AND ORDERS 1583 Page 1498 Doctors ' design: Falsely representing product as constructed Domestic products: 1.0- - u - - - Misrepresenting as imported_____--u__uuuu_-----_u 116 1442 1506 Misrepresenting foreign or imported as______u_-- 637 794 948 1265, 1451 for______------_u_-------_u 637 794 1265 1451 1464 Public understanding as, lacking clear disclosure of foreign originn 1451 , 1464 Durability of product, misrepresenting as to_--u_----_u--- 757 908 913 959 Earnings and profits , misrepresenting as to---------_u 119 253 320 476 1081 1255 uuuEngra ved" : Falsely representing product as u - U U - u 96 , 717 Exclusive dealing in violation of Clayton Act , 8ec. 3u - Facilities and services: Discriminating in price through allowances for - - - 1 , 7 Public preference 13, 18, 23, 28, 33, 38 , 43 , 47, 52 , 56 , 61 , 65 , 69, 75, 530 , 540 , 556 , 859 , 918, 96t! , 1036 , 1228 , 1251 , 1470 , 1474 False advertising: FTC jurisdiction over , rests solely on interstate dis- seminatiol1___- ---- Federal Trade Commission: Falsely claiming indorsement by --- u - - - 1543 u--- Jurisdiction over faIse tiol1___- advertising rests solely on interstate u - - u u - u -552 dissemina1543 Fictitious comparative prices on consignment invoices as false advertising under Fur Products Labeling Act____----------_uuuuu_-_u_--- 881 u - - - u - - - u - - - 119 222 290 --- u Fictitious pricing_--_u -- u_- 974 , 1119 , 1138 , 1219 , 1265, 1490 43~ 60~ 60~ Financing activities , misrepresenting as to_uu_--_u_u_- 277 345 1213 1485 Flammable wear: Importing, selling, or transporting in violation of Flammable Fa, brics AcL - - - Food and Drug Administration: Falsely claiming indorsement by _n_- - -Foreign products: 937 717 M isrepresen As domestic_____--------_u_u_---_u----- 637 794 948 1265 1451 ting- Domestic as-- - - - ----u- u -- u- - u - - - -- u - u - - - - - 116 , 1442, 1506 lacking clear disclosure of origin - 1265 Public understanding as domestic , Free gift: Falsely representing 1451 , 1464 564 964 1259 in price through- - u u u - 937 Furnishing false guaranties: Flammable Fabrics Act- u - - offer of - - - - Free goods , discriminating in price through- - Functional discounts , arbitrary: Discriminating Furnishing means and instrumentalities of misrepresentation and deception: Advertising matter - - - - - - - - - - - - - - - - - - 92 , 136 , 145 444 , 515 , 881 , 936, 1490 Labels__- ---- -- Non- disclosure ofForeign origin of productu - - u u - - u u u - - u - - u - - - - - - - 145 , 1464 Rebuilt or used conditionn u u - - - u - u u - u u - 652 , 877, 990 , 1199 - -- - - - - - - - 339 361 Preticketed merchandise______---- 222 290 361 600 1138 1265 1464 1490 836 uu--uu-u--u- u-Price lists - u-n - - - - U n - 131 u--Sales in voices , etc - - - - u - - u u - - - - u u u u u u - - u - - - u - - - u - - u - - - u u -- u u 452 , 666 Skip tracer formsn - Fur Products Labeling Act: Concealing, obliterating, or removing law-required or informative Consignment invoices held to be advertising under n_____------_u- marking under - - Exemptions nullified where representations made on labelsn - - - u - -- 1075 881 690 1584 FEDERAL TRADE CO:MMISSION DECISIONS DECISIONS AND ORDERS Fur Products Labeling Act- Failing to reveal information required by Continued Page -- - - - - 140 437 , 524 , 584 , 641 , 690 , 766 , 806 , 822 , 849 , 872, 1070 , 1075 , 1093 1115 , 1176 , 1182 , 1186 , 1448. False advertising under--- 437 , 524 , 641 , 690 , 766 , 806 , 822 , 881 , 1176 , 1182 False invoicing undeL___--_------------------------ 140 374 437 584 641 ~ 690 , 806 , 849 , 872 , 1070 , 1075 , 1093 , 1115 , 1176, 1186 , 1448 Justification of Rule 39 , re withdrawal of exemptions__----_-------- 690 Misbranding under -- -- - 140 , 437 524 , 641 , 690, 806, 849 , 872 , 1070 , 1075 , 1093 , 1115 , 1176 , 1186 Using misleading product name undeL___-- - -- - - - - - - - - - - - - - - -- - 641 , 872 Furrier: Dealer falsely representing self as-- - -- -- - 437 Government approval , connection , or indorsement: Falsely representing_- 552 717 , 816 , 1081 , 1213 , 1241 Group buying organization: Appellate cases sustaining FTC findings of illegality as device for receiving volume rebates- - - As device for inducing the granting of lower prices to 1007 members_____- 1007 Group purchasers , discriminating in price 1.0_---- - - - - - 369 , 429 , 464 , 1228 , 1259 Guarantees , misleading- - - - - - - - - - 92 , 294 , 524 , 816 , 948 , 974 , 1060 , 1213 , 1464 , 1485 , 1490 History of business , misrepresenting as 1.0--___--_--------------------- 1241 Identity of business , misrepresenting as 1.0- - - - - - - - - - - - - - - - - - - - - - - - - - - - 320 Imported products or parts: . 222 Misrepresentingfalsely represented as: As domestic_--_-------------------------- 637 794 948 1265 1451 Domestic as---- - - - - -- - - - - -- 116 , 1442 , 1506 Preference for domestic oveL - - -- - - - - - - - - - - - - - 637 , 794 , 1265 , 1451 , 1464 Public understanding as domestic , lacking clear disclosure of origin- - 1265 1451 , 1464 Importing, selling, or transporting flammable wear: Flammable Fabrics Act_- -- - -- -- - - -Individual or private business 937 1241 1241 1510 1241 1241 111 253 , Academy, institute- - - Accredited educational institution - - -- - -- Association - - - - - Di vinity school , seminary - - -- - Non- profit organization- - - -- -- -- Refiner or smelter - - Individual's special selection , misrepresenting as 1.0--__Indorsement of business , falsely representing- - - - 320 , 476 , 564 , 1213 119 Indorsement or approval of product , misrepresenting as 1.0- - - - - - - - - - - - - - 444 552 , 717 , 1081 , 1241 Inducing and receiving discriminations in violation of: Clayton Act , 2(f)___--_---------------------------- 486 590 611 1007 Federal Trade Commission Act , Sec, 5--_____-------------------- 382 Institute: Falsely representing private business Interlocutory orders: as--_--__-------------- 1241 Denial ofAppeal from hearing examiner s rulings denying motions to quash subpoena duces tecum as requiring irrelevant material in conspiracy case___- 1523 ing Act__- - - - --------------- INDEX DECISIONS AND ORDERS 1585 Interlocutory orders- Continued Denial of- Continued Page MotionFor severance of portion of complaint alleging illegal acquisition of stock in one of five acquired companies named_-- - 1535 To quash subpoena duces tecum as calling for information beyond scope of complaint_- - - - -- 1530 Vacating hearing examiner s denial of appellants ' Interlocutory orders with opinions: motions to quash 1542 respondent' s subpoenas served upon them and remanding case- Correcting hearing examiner s construction of charge of interstate 1543 and Denial of- dissemination of false advertising- - - -- - Appeal from hearing examiner Motion- limit subpoena duces tecum--_____------------------------ 1531 As premature , for return of certain physical property required as evidence , before disposition of case To dismiss- s denial of motion to quash 1526 1540 1543 For abandonment - - - - For lack of jurisdiction in false advertising proceeding_To modify order , showing of change in conditions not having been made__- -- - -- - -- - -Respondent' s application to take petitors - - - - - depositions of 1528 its major com1537 1531 Holding live poultry dealer not withdrawn from Commission jurisdiction- - Upholding Commission s authority to prohibit under Sec. 5 " knowingly inducing or receiving from suppliers special advertising allowances. . . Interstate Commerce Commission Uniform Freight Classification: Misbranding under Intimidating customers by: 1531 267 281 Threats of reprisals- - - Use of simulated court order 564 Investment , misrepresenting security of______---------------------- 119 320 Invoices , consignment: Held to be advertising under Fur Products Label- Invoicing products falsely: 881 Federal Trade Commission Act___ _------------------- 290, 339 794 1265 374 , 437 , 584 , 641 , 690 806 , 849 872 , 1070, 1075 , 1093, 1115 , 1176 , 1186, 1448 Wool Products Labeling AcL__--___---------------------- 131 349 922 Jobs and employment , misrepresenting as to- - - - - -- - - - -- - - - - 119 , 253, 320, 476 Fur Products Labeling Act- - - - -- 140 , Knowingly inducing from suppliers special advertising allowances: FTC authority to prohibit under Sec. 5-- - 1531 Labels, supplying false and misleading- - - - - - - - - - - - - - - - - - - - - - - - - - - - - 339 , 361 Life " magazine: Falsely claiming advertising in- - 1490 Limited: Falsely representing offers as-__--_------------- 476 564 1081 1498 Lottery devices: Supplying in commerce- - -- - - - -- -- -- - - 353 Maintaining fixed prices through jointly operated " Midwestern Terminals 640968-- 63---- 101 497 - - -- - - - - - -- -- - -- -- - -- 1586 FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Page Maintaining uniform resale prices concertedly - - -- - 281 429 Manufacture or preparation of 'product , misrepresenting as to- - - - - - - - - - - 794 927 , 1255 , 1506 Fur Products Labeling Act- - -- - -- - - -- - - 524 , 641 , 690, 766 , 806 , 1093, 1182 Manufacturer: Dealer falsely representing self asu - -- - -- - - 704 , 908, 1265 , 1455 Falsely representing connections with nationally known- 320 Market areas: Discriminating in price in certain______----------------- 1460 Medicinal or therapeutic qualities or results of product , misrepresenting as to_--------- ------ - - _u uu u u -- _u -- - - - - - - - - - - - - 145 444 475 , 1192 Mergers in violation of Clayton Act , Sec. 7___u__-------_u---_u 1274 1415 Midwestern Terminals : Jointly operating to maintain fixed prices- - - 497 Misbranding or mislabeling: 116, 339 , 515 , 544 , 794 , 1265, 1455 Composition of product-- - - - u u - -Fur Products Labeling Act_--__---_u_--uuu- 690, 872 1115 1176 Wool Products Labeling Act- - 131 , 482 , 576 , 584 , 597 , 681 , 789 , 903, 922 , 1104, 1127 , 1130 , 1204 , 123~ 1495 -- u u - 927 , 1506 Priceu_--___------_u_--_uuu_-----_u_---- 290, 437 600, 1138, 1490 1202 Qualities of product- Adhesive- - - - Size of product__---_u_-_u_u_--u--------u_--_uu_- 339 361 1138 Source of product- Domestic as imported- - - - -- -- - - u - -- - 116 , 1442 , 1506 Manufacture or preparation of product__- Statutory requirements- ---_u_u- - - ---,. 140 Fur Products Labeling Act- - -- 437 524 641 806, 849 , 1070, 1075, 1093, 1115 , 1176, 1186 Uniform Freight Classification267 Wool Products Labeling AcL_-__u_-_u_------------ 349, 482 1104 Misrepresenting business status , advanta,ges , or connections: 1490 Advertising and promotional services_____-- - -- -- - _u -- -- - - -- -- Connections or arrangements withBrokers- - - - - - Financing sourcesuu - - u - - - -- - - u - - - - Large chains or general merchandisers- Nationally known manufacturer -- Organization of retailers- - Contracts and obligations- - - 994 345 119 320 666 1477 Dealer being564 437 ManufactureL u u - -- u u -- -- u - - - - -- - - - - - - -- - 704 , 908 , 1265, 1455 u -- - - u - 1241 Degrees and diplomas- - - - u - -- u - 2it 345 1213, 1485 Financing activities___--_-----_u_----------------816 Government connection- Armed Forces- - 1241 History - - - - - 320 Identity --- - - -- Collection agency - Furrier - - - - Individual or private business being1241 1241 1510 1241 1241 111 119 Academy, institute- - - - Accredited educational institution- - - Association- Divinity school , seminary - - Non- profit organization- - - Refiner or smelter - Indorsernent- - - - - - - ------- - - - - - -- - - - - - - - - -- - - - - - - - - - - - - - ------ -- -- - - - - - - - INDEX DECISIONS AND ORDERS 1587 Misrepresenting business status, advantages, or connections- Continued Page Manufacturer as inventor 885 N ature- - - - - - - - u - - Offices u - - u - - - -- - - 452 , 533, 666, 704 in principal cities_____u_-----_u_-_u_-_uu_-----_u_u 994 994 Operations generally - - - Personnel or staff____uu_-_u_-_u_-----_u_-_u_------ 111, 666, 1510 Publication services-- u - - u--1477 Reputation , success , or standing__- - - h - - h - - u - - h - 294 Services_____--------_u_uu_-----_u_u_----- 277 320 345, 994 1510 Size and extent_--___----_u_----------_uu_--------_u_--- 345 1510 Time in business- - - u---u- u---u---u---hUu-1510 Misrepresenting directly or orally by self or representatives: Business status, advantages, or connections- Unique nature__-- ----------_U_--U_-_U_-_U_-U_---------u 111 564 533 Dealer or seller assistance_______uu_h__u__u_uu_-----_u 936 1081 Demand for producL______--------_u_------------_u__u_---- 1081 Earnings and profits____------_u__uu_u_---_u_-_uu 476 936 1081 Free goods_____- - - - 564 N a ture- - - - - - Dealer being collection agency - Government approval- Veterans Administration Guarantees- - - - - Individual's special selection 476 Indorsement of product- Veterans Administration____uu_-_u__u 1081 Jobs and employment_u -- - - u - U U - u - - --- u - - u -- - u 476 Opportunities in product or service--_u___----_u_uu_uu_- 476 1081 1081 294 uu Prices- Exaggerated being usual retaiL - - - - u_-- - -- u - -- u - - Fictitious marking_- Quality of product__- - -- - -- - - u -- - - Source or origin of productFur Products Labeling Act- - - Special or limited 600 600 294 1451 Foreign as domestic_un - --- _u_u_-u- u- h - --_u - - -- u -- - u _u- -- U - 1176 Statutory requirements- Uniform Freight Classification- u - u - - u 267 Terms and conditions- - -- - u - --u - u - - - u - - - - -- u - u 1081 Value of producL - - - -u h- -- u _u_-- - - u - --- - - u - - u 294 , 564 Misrepresenting prices: Additional unmentioned charges__.. - u - - -- _u - - u -- - -_u - _u- - 1060 offers_____------_uu_u_uu_-----_u 476 564 1081 Bait offers_____--_u_uu_uu_--_u_u---------h_- Comparative__- - - - -- -- -766 Exaggerated being usual retail- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119 136 290, 376 437 600 , 766 , 836 , 881 , 1138 , 1219, 1464, 1490 Factory- direct- to- you- - - -- - - 1176 Fictitious marking_____-- 609, 832 948, 974 Ficitious preticketing-- - - uu Percentage savings____u - - - - 119 290, 437 600 609 974 1119, 1219 1265 1490 - -- -- u -- -- - - - - -- 222 , 290, 1138, 1265 , 1490 u-- u - -- -- - - u- u - -- - -- 822 uU-u-u - -- u - 376 Terms and conditions. - - u - U - - u --h _u - u u -- - - - u U u 1485 Usual as reduced or speciaL -- -- - u u - -- --- u - - u - 948 , 1498 Missionary personnel services , discriminating in price through allowances for - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1228 Retail being wholesale__--- - - - - - - - - - ----- --- - ---- --- -- ------------------------ --------------------------------- - -- - - - - -- --- ----- ------ - ---- ------ ------- - -- -- --- -- ------ - - -- --,-- -- --- - -- - ----- - -- - ---- -- 1588 FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Page 281 Monopolizing trade concertedly Nature of business , misrepresenting as to_------------------ 452 533, 666, 704 Neglecting, unfairly or deceptively, to make material disclosure: Composition of product- - - u - - 544 Fur Products Labeling Act____----------------------------- 140 437 524 641 690 766 806 849, 872 1075 1093, 1182 1182 Wool Products Labeling Act____-----------_u_---------- 922 1115 Manufacture or preparation of product- Fur Quality of product- Products Labeling AcLu 524 641 , 690 , 766 , 806 , 1093, 1182, 1182 New-appearing product or parts being old or used__- - - - - - 652 , 877, 990 , 1199 Fur Products Labeling AcL______------------------ 690 1075 1093 Reconditioned or used_--____--_u_-------------Source or origin of productForeign - - - - - - - - - 652 877 990 1199 1464 524, 641 , As domestic_____---------------------- 637, 794 948, 1265, 1451 Fur Products Labeling Act- - - - 690 , 806 Statutory requirementsFur Products Labeling Act___- 140 437 , 524 , 584, 641, 690, 766 , 806 82~ 849, 87~ 1070 , 107~ 1093, 111~ 117~ 118~ 118~ 118~ 1448 Wool Products Labeling Act____---------------------- 349 482 576 New: Misrepresenting old or used products as---___--N on-disclosure , 584 597 789, 903, 1003, 1104 , 1127, 1130, 1204 , 1237 , 1495 652 877 974 990 1199 supplying means of deception through: 1241 Foreign origin of producL____--_--------- -----------------N on-profit 145J , 1464 Rebuilt or used condition of product or parts- - - ------- 652 877, 990 1199 organization: Falsely representing private business as - falsely claiming-- - - Offering deceptive inducements to purchase or deal: Terms and conditions- 1485 Offices in principal cities , 994 1199 994 Opportunities in product or service , misrepresenting as to- 119 253 345, 476 , 1081 Old or used product or parts , misrepresenting as new ___- 652 877, 974 990 Operations , business: Misrepresenting as to_-------- -----------------See Origin of product. Source or origin of product. Packers and Stockyards Act: Live poultry dealer held not withdrawn 1531 from FTC jurisdiction by ---- Payola " to disc jockeys_- 80, 119, 127, 248 , 262 , 316 , 329 , 334 , 365, 458, 469, 519, 571 , 580 , 604 , 623, 647, 656, 661, 747 , 752 , 761 , 801 , 812 , 827 88~ 89~ 95~ 981 , 99~ 1065 , 1099, 1109 , 114~ 1147 822 Percentage savings , misrepresenting prices through purported - Personnel or staff , misrepresenting as to- - - - - u - -.- -.- - - - - - - - - - - - 111, 666 , 1510 690 Pleadings before Commission: Not required to meet standards in a courL - Policing illegal agreements with dealers____--------------------------- 96 Poultry dealer not withdra "'11 from FTC jursidiction by Packers and Stockyards Act___- 1531 Preference , public , for domestic products- - - - - - - - - - - - 637 , 794, 1265 , 1451 , 1464 Preticketing merchandise misleadingly - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 222 290, 361 , 600, 1138 , 1265 , 1464, 1490 Preventive qualities of product , misrepresenting asto__- 757 908 913 959 1192 Price discrimination. See Discriminating in price. 836 - - -- - - - - - - - -- 306 , 832, 948 , 974 Profits and earnings , misrepresenting as to- - - - - - - - - - ~ - - - 119 , 253 , 320 , 476 , 1081 306 Promotional sales plan , using deceptively - Price lists , furnishing misleading- Prize contests: Using unfairly - - Publications services , Public preference. -- - - - ----- - - - INDEX DEOISIONS AND ORDERS 1589 Page Protective qualities of product , misrepresenting as to_--- 757 908 913 959 1192 misrepresenting as to____n______n______------- 1477 Public interest in prohibiting specific practices covered by Clayton Act: Decision by Congress oL_____nn____--_------------------------- 1540 See Preference , public. 1451, 1464 Public understanding of product as domestic , lacking clear disclosure of n----n----353 n - - n 145 Qualities or results of product, misrepresenting as to- - -- - n - - 444 475 628, 757, 862 867 908 913, 959 1133, 1192 Quality of product , misrepresenting as to- - - - - - - - - - - - - - - - - - - - - - - - - - - - - 290 294 339 652 , 690 794 877 , 990, 1075 , 1093, 1199 , 1464 foreign origin- - - - Push cards: Supplying in commerce- - - - -- - - _n n n - Quantity discounts and rebates , illegal: Discriminating in price through- - 369 464 , 1228, 1460 Rebates and discounts , illegal: Discriminating in price throughn - - - - - - -- 369 464 , 1228, 1460 Refiner or smelter: Individual or private business falsely represented as111 n - - - n n - -- -- n - Refunds , misrepresenting as to- n - - -- 119 , 277 Rehearing: Denial of petition for , after filing of petition to review in Court of Appeals- - - "Relay salesmanship : Using to coerce and intimidate prospective 1523 customers- ---- - - Remand of case re inadequate paragraphs of order 306 1536 Removing, obliterating, or concealing law-required or informative marking. See Concealing, etc. 294 Reputation , success , or standing of business , misrepresenting as to- - nnn - -- 429 Resale prices: Conspiring to fix_- -- 896 Restricting market facilities concertedly - - - Results of product , misrepresenting as to- - - - - 628 , 862, 867 , 908 , 913 , 959 , 1133 1477 Royalty : Misleading use of term by " vanity " publishing house- Safety of product: Disparaging competitors Savings: Misrepresenting prices through purported percentagen Scientifically tested: Falsely representing product as- n - n-n-Scientific or other relevant facts , misrepresenting as tOn - 559 757 , 908 , 913, 959 , 1133, 1213, 1485 , 1490 Securing information by subterfuge: Skip tracer collection forms- - - - - - - - 232 452, 533, 666 320 Securing orde~ by deception- - - 306 Securing signatures wrongfully - Security of investment , misrepresenting as to- - - - - - - - - - - - - - - - - - - - - - - - 119 , 320 Selling and quoting on systematic , price-matching basis: Basing point 497 system- - -- -- -- -1241 Seminary: Falsely representing private business as- - - - Services and facilities: Discriminating in price through allowances for - , 13, 18 , 23 , 28 , 33, 38 , 43, 47 , 52 , 56 , 61 , 65 , 69 , 75 , 530 , 540, 841 822 1192 320, n 1 Skip tracer schemes: Securing information by subterfuge through- - - -- - - - 232 Smelter or refiner: Individual or private business falsely 556 , 859 , 918, 964 , 1036 , 1228 , 1251 , 1470 , 1474. Services , misrepresenting as to- - - -- - n 119 , 277 , 320, 345 , 994 , 1477, 1490, 1510 345, 1510 Size and extent of business , misrepresenting as to n - - - - - - - - - - - - 339 , 361 , 794 , 1138 Size of product , misrepresenting as to- - 452 , 533, 666 represented as- -- - 111 1590 - - - - - -- - ----- -- - - - ----- -- ----- ---- - -- --- - - - - - - - - - - - - - - - - - - -- -- ------------------ -- -- -- ------------------------------ ---- FEDERAL TRADE COMMISSION DECISIONS DECISIONS AND ORDERS Page Source or origin of product , misrepresenting as to-- -- - - - - - - 116 , 524 , 637 , 641 690, 794 806, 948 1176 1265 1442, 1451 1464 1498, 1506 Special , falsely representing offers as--_------------------ 476 564 1081 1498 1213, 1241 State connections or approval , falsely representing- - - Statutory requirements , failing to comply with: -- - -- - - - -- - - 140 Fur Products Labeling Act- - - -- - -437 , 524, 584 , 641 , 690 , 766, 806 , 822 , 849 , 872 , 1070 , 1075 , 1093, 1115 1176 1182 , 1186 , 1448 Uniform Freight Classification____ _------------------------------ 267 Wool Products Labeling Act----------------------------- 349 482 , 576 584 , 597 , 789 , 903, 1003 , 1104 , 1127 , 1130 , 1204 , 1237 , 1495 Stylist" services under Sec. 2(d), Clayton Act: As alternative feature of 1036 promotional plan- - 1523 trade Subpoena duces tecum: Held not requiring irrelevant material in conspiracy case Respondent' s request for unlimited access to competitors ' secrets denied- - Success or reputation of business , Subpoena power: Proper exercise of , left to discretion of hearing examiner misrepresenting as to- -- - Success or use of product , misrepresenting as to- - - Terms and conditions , misrepresenting as to- - - - 1537 1537 294 1498 298, 816 , 1060, 1081 , 1213 , 1477, 1485 Tests, scientific , misrepresenting as to_------------------------------- 1192 Therapeutic or medicinal qualities of product , misrepresenting as to_----- 145, 444 475, 1192 281 Threats of reprisal , intimidation , etc. : Restraining trade through- - - - o Time in business , misrepresenting as to_-----------------------------Trade secrets: Commission should a void at all costs unnecessary disclosure 1510 1537 Unfair methods or practices , etc. , involved in cases in this volume: See-Acquiring competitor. Advertising falsel y or misleadingly. Assuming or using misleading trade or corporate name. Bribing customers ' employees. Claiming or using indorsements or testimonials falsely or mis- leadingly. Coercing and intimidating. Combining or conspiring, Concealing, obliterating, or removing law-required or informative marking. Cutting off. Dealing on exclusive and tying basis. Delaying or withholding deli very. Discriminating in price. Disparaging competitors ' products, Furnishing false guaranties. Furnishing means and instrumentalities of misrepresentation and deception. --- -- -- --- -- -- -- -- --- ---- --- -- - ------ -- - ----------------- ----------- -- - -------------------------------------- - - - - - --- - - -- -- - --- ------ - --- - --- --- ------ -- -- ---- -- -- - - - - ----------------- - -- - -- -- -- -- - - -- - -- - - - --- -- --- INDEX DECISIONS AND ORDERS 1591 Unfair methods or practices, etc, Continued See- Continued Importing, selling, or transporting flamma.b1e Intimidating customers. Page wear. Invoicing products falsely. Maintaining resale prices, Misbranding or mislabeling. Misrepresenting business status , advantages , or connections. Misrepresenting directly or orally by self or representatives. Misrepresenting prices. Neglecting, unfairly or deceptively, to make material disclosure. Offering deceptive inducements to purchase or deal. Securing information by subterfuge. Securing orders by deception. Securing signatures wrongfully. Selling and quoting on systematic , price-matching basis. Using contest schemes unfairly. Using misleading product name or title. Using, selling, or supplying lottery devices or schemes. Uniform Freight Classification of Interst3.te Commerce Commission , misbranding under Unique nature , misrepresenting as to: 267 111 Business- - - - - Product--_--------------------------------------- 717 862 1498, 1506 United States Government, falsely claiming indorsement by_____----- 444 1081 Using contest schemes unfairly - -- - Using misleading product name or title: Composition of product- - - - -- - - - -- -- - - 306 , 832 , 948, 974 1455 641 872 Fur Products Labeling Act_--__ -------------------------Manufacture or preparation of product- Engraved" - - - Source or origin of productDomestic as imported- - Foreign as domestic- - - 1255 1506 794 353 Using, selling, or supplying lottery devices or schemes- - - - - - Value of product , misreprp.senting as to_------------------- 294 564 794 1182 Vanity " publishing house: Misleading use of term " Royalty " by___---- 1477 1081 Veterans Administration , falsely claiming indorsement by -896 Warehouse facilities, limiting new Warehouse operation: As device for obtaining unjustified discounts and rebates_- - - - - 1007 Waste fur: Failure to label muff as made of , as Fur Act violation_--_---- 690 Wool Products Labeling Act: Failing to reveal information required by - -- - - -- - - - - -- - 349 , 482 , 576, 584 597 , 789 , 903 , 922 , 1003, 1104 , 1115 , 1127 , 1130 , 1204 , 1237 , 1495 False invoicing under__--___----------------------------- 131 349, 922 Misbranding under____ __---------------------------- 131 349, 482, 576 584 , 597 , 681 , 789, 903 , 922 , 1104 , 1127 , 1130, Removing law-required marking under Supplying means of deception and misrepresentation under 1204 , 1237 , 1495 1104 131 ~---- - ----- ------ --------- ------------------------------------------------------------------- -------------- --------------------- ----------- - -- -- -- ----- - - -- -- --- ------- -- --- - - -- -- - - - ----- --- --- 1592 FEDERAL TRADE COMMISSION DECISIONS STIPULA TIONS Advertising falsely or misleadingly: . Page Business status , advantages , or connectionsDealer being mazmfacturer- -- --n_nn- ------ --1559 (9347) Foreign branches- Overseas Division " -_--____n_---__- 1559 (9347) Individual or private business being- 1547 (931~ Corporation- - - - ---Institute- n________--___n______----___-n____n 1547 (9310) Comparative merits of producL__nnn_------- 1558 (9343), 1560 (9351) Competitive products~n - n - - n - Composition of productEarnings and profits- - - u----u---n---n _nn_n_- -u - n - n U 1551 (9323) 1548 (9314), 1549 (9315), 1551 (9322), 1566 (9365) u - - n n - u - n U U n - - 1559 (9348) Effectiveness of product___--u_----------_u_---_nu 1549 (9316), 1550 (9321), 1558 (9343), 1560 (9349 , 9351), 1564 (9362), 1566 (9366) Guarantees__u_------------------------ 1547 (9311), 1549 (9316), 1550 (9319, 9321), 1553 (9326), 1557 (9341), 1567 (9370), 1560 (9350) Manufacture or preparation of product- Hand-sewn__--____uu_-- 1567 (9368), 1568 (9372) u--1553 (9326) Nation-",ide advertising___- -- -- un Old , used , or reclaimed product being newnu_--_---n_n_-- 1567 (9369) Opportunities-- - - - u - n n n - n u - - - n -- - - 1558 (9344), 1567 (9370) Prices___- -- - - -- -1546 (9309) Exaggerated being usual retaiL__nu__---------------- 1567 (9369) Reduced or speciaL--_u___--_u_-------------------- 1558 (9345) u - - - 1549 (9316), 15.58 (9345) Savings_- - - - - - u - - -u - - _n - - - Qualities or results of product- Usual being reduced or speciaL_--____-----------uu-nu--- 1547 (9310 , 9311) u - - - Chip-resistant or chip- prooL_n- Fire-resistant- - u- - --- -- -Health-inducing__ 1564 (9362) 1550 (9320) 1550 (9321) Medicinal , therapeutic , etc_- - - - n - - - u u 1560 (9349), 1566 (9366) un1557 (9342) Results- Gasoline mileagen_- u - n n -- uuSize or dimensions of product- - - Special or limited nn- nu-- 1565 (9364) offers___un_------------_uu_---- 1547 (9310, 9311) u -- - Terms and conditions_- - 1558 (9344) Assuming or using misleading trade or corporate name: Dealer being manufactureL_____--------------- 1550 (9318), 1559 (9347) Forcign branch___- --------------------------------------- 1559 (9347) Individual or private business being Source or origin of product- Domestic as imported____u__n- 1567 (9367) institute_-__n_uu_---- 1547 (9310) u--u----u- Furnishing means and instrumentalities of misrepresentation and deception: u - - - - u - - -n - - n - u - 1553 (9327) Collection questionnaires- - Fictitious pricing. - u--Invoicing products falsely: Fur Products Labeling u-- n n 1567 (9369) Act_______n__________n 1548 (9313), 1552 (9324) 1549 (9315), 1552 (9325) Wool Products Labeling AcL_--_____n_u____- 1557 (9340), 1558 (9346) Misbranding or mislabeling: Composition of product___-_u_-_n_-------_uFur Products Labeling Actn_uun_n____u____--n_- 1552 (9324) - 1545 (9307), 1546 (9308) Textile Fiber Products Identification Act___- - -- -- - - - - - - - - - --------- -- -- - - - ----- -- -- - -- ---- ------ -- ------ -- - --- -- - - -- - - - - - - - - INDEX STIPULATIONS Misbranding or mislabeling- Continued Composi tion of products- Con tin ued 1593 Wool Products Labeling Act__u__u_----------------------- 1545 (9306), 1557 (9340), 1558 (9346), 1560 (9352) Size or dimensions of product- - - -- - u - u - u - 1565 (9364) 1559 (9347) 1559 (9347) 1547 (9310) 1547 (9310) Statutory requirements- Fur Products Labeling Act____------ 1552 (9324) Misrepresenting business status , advantages , or connections: Dealer being manufacturer - - - -- u - - u - - n - - -- n - - - u- - Foreign branches- Overseas Division - - - Individual or private business being- Corporation- - - Institute - - - Misrepresenting directly or orally by self or representatives: Results- Gasoline mileage___- u - - n UU n - n U - 1557 (9342) Source or origin of product- Foreign as domestic__n__------- 1546 (9309) Misrepresenting prices: Exaggerated being usual retaiL - - u-U-n - - n - 1567 (9369) Savings__n - u - - - - n n U - - n-U- Usual being reduced or speciaL______-_u_- 1547 1549 (9316), 1558 (9345) (9310 , 9311), 1558 (9345) Neglecting, unfairly or d~ceptively, to make material disclosure: Composition of product_--_---_nn--n_------------ 1561 1562 (9355 , 9356 , 9357), 1563 (9358, 9359), 1564 1565 (9363), 1567 (9369). (9353 9354), (9360 , 9361) New-appearing product being old or used~ - - u - - 1553 (9328), 1554 (9329, 9330 , 9331 , 933~, 1555 (9333 , 933~ 9335 , 933~, 1556 (933~ 933~ 933~, Source or origin of productForeign_ :-_un_---_nn_uu_u_--______ 1549 (9317), 1559 (9347) As domestic_____- -- --- Un - -- n __n- -n- n- - 1546 (9309) (9313), 1552 (9324) Statutory requirementsFur Products Labeling AcL____-__nnu__- 1548 Wool Products Labeling Act___nn________nnn__n______- 1545 (9306), 1557 (9340), 1558 (9346), 1560 (9351) Securing information by subterfuge: Collection questionnaires__u_- 1553 (9327) Unfair methods or practices , etc. , involved in stipulations in this volume: See- Advertising falsely or misleadingly. Assuming or using misleading trade or corporate name. Furnishing means and instrumentalities of misrepresentation and deception. Invoicing products falsely. Misbranding or mislabeling. Misrepresenting business status , advantages , or connections. Misrepresenting directly or orally by self or representatives. Misrepresenting prices. Neglecting, unfairly or deceptively, to make material disclosure. Securing information by subterfuge. Using misleading product name or title. " - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----- - - _--- -- 1594 FEDERAL TRADE COMMISSION DECISIONS STIPULATION S Using misleading product name or Composition of product- - uu II Porcelain 1/ Rubber (9353, 9354), 1562 (9355, 9356, 9357), 1563 (9358, 9359), 1564 (9361) /I Aluminum n---n--nn-_n - nn n 1564 (9362) 1564 (9362) 1564 (9362) title: n- - U - n -- n n n -u - _u - - - - n - - Page 1561 Steel" _un --- - 1564 (9362) "Walnut" u--_u____u--nu__u__-------_____n___- 1568 (9371) Nature of product--__n_- - - n - - -- n - - - - n - - -- - - _n - - - Source or origin of product- Domestic as imported- 1567 , (9367), 1568 (9371) Qualities or results of product- Health-inducingu- - -- - -- n - 1548 (9312) n - 1550 (9321) 11!'