Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock...

24
TABLE OF COMMODITIES DECISIONS AND ORDERS Page Aircraft engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 382 Arc welding apparatus . . . . . . . . . . . . . . . . . . . . . . .. 167 Automobiles , used. . . . . . . . . . . . . . . . . . . . . . . . . . .. 885 Automotive parts . . . . . . . . . . . . . . . . . . . . . . . .. 595 . . . . . . . .. 583 Beachwear .................... . . . . . . . . . . . . . . . .. 615 Blankets , wool. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 477 Broadcast time , sale of television, . . . . . . . . . . . . . . . . . . . .. 324 Caps, IY. s and boys '" 940 Chinchilas. . . . . . . . . . . . . . . . . . . . . . .. 57, 647, 703 837, 1016 Concrete, ready- mixed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 361 Cookware, waterless . . . . . . . . . . . . . . . . . . . . . . . .. 394 Correspondence school courses . . . . . . . .. 181 257, 335 587 Dairy products. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 719 Data processing courses . . . . . . . . . . . . . . . . . . . . . . . . . . .. 181 Debt collection service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 448 Dehumidifiers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 319 Detective school. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 464 Drug preparation - " Preparation H" . . . . . . . . . . . . . . .. Electroplating kits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 387 Employment placement program. . . . . . . . . . . . . . . . . . . . . . . . .. 962 Engines , aircraft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 382 Fabrics, wool . . . . . . . . . . . . . . . . , 5 Floor coverings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 286 562 673 Fruit spreads . . . . . . . . . . . . . . .. 392 Fur products . . . . . . . . . . . . .. 10, 20, 76, 87, 101 304 344 348 352 357, 486, 502 511 514 517, 528 538, 542, 546 , 551 554, 556, 558 570 602 622 635, 715, 892, 897 906 910 917, 921 , 926 931 , 936, 950, 954 , 958 Furniture. . . . . . . . . .. . . . . . . . . .. . . .. 402 835, 835 836, 847, 868 Garages , custom- built. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 174 Hair care products and services . . . . . . . . . . . . . . . . . . . . . . . . .. 205 HatJ, fur. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 538 Hotel and motel management . . . . . . . . . . . . . . . . .. 335 Houses, custom. built . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 174 Household furnishings. . . . . . . . . . . . . . . . . . . . . . .. 394 1042 Jackets, fur and textile. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 486 Juice, vegetable and fruit , extractors . . . . . . . . . . . . . . . . . . .. 264 Ladies ' ready- to- wear apparel . . . . . . . . . . . . . . . . . . . . .. 944 lCommodities involved in dimig or vacatig orders arc indicated by italized page reference. 1126

Transcript of Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock...

Page 1: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

TABLE OF COMMODITIES

DECISIONS AND ORDERS

PageAircraft engines

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

382Arc welding apparatus

. . . . . . . . . . . . . . . . . . . . . . ..

167Automobiles , used.

. . . . . . . . . . . . . . . . . . . . . . . . . ..

885Automotive parts

. . . . . . . . . . . . . . . . . . . . . . . ..

595Batting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . ..

583Beachwear

.................... . . . . . . . . . . . . . . . ..

615Blankets , wool.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

477Broadcast time, sale of television,

. . . . . . . . . . . . . . . . . . . ..

324Caps, IY. s and boys

'"

940Chinchilas. . . . . . . . . . . . . . . . . . . . . . .. 57, 647, 703 837, 1016Concrete, ready-mixed.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

361Cookware, waterless

. . . . . . . . . . . . . . . . . . . . . . . ..

394Correspondence school courses

. . . . . . . ..

181 257, 335 587Dairy products.

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

719Data processing courses

. . . . . . . . . . . . . . . . . . . . . . . . . . ..

181Debt collection service.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

448Dehumidifiers.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

319Detective school.

. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

464Drug preparation - " Preparation H"

. . . . . . . . . . . . . . ..

Electroplating kits.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "

387Employment placement program.

. . . . . . . . . . . . . . . . . . . . . . . ..

962Engines , aircraft.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

382Fabrics, wool

. . . . . . . . . . . . . . . .

, 5

Floor coverings.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

286 562 673Fruit spreads

. . . . . . . . . . . . . . ..

392Fur products

. . . . . . . . . . . . ..

10, 20, 76, 87, 101304 344 348 352 357, 486, 502 511 514 517, 528 538, 542, 546 , 551554, 556, 558 570 602 622 635, 715, 892, 897 906 910 917, 921 , 926

931 , 936, 950, 954 , 958Furniture.

. . . . . . . . .. . . . . . . . . .. . . ..

402 835, 835 836, 847, 868Garages , custom- built.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

174Hair care products and services

. . . . . . . . . . . . . . . . . . . . . . . . ..

205HatJ, fur. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

538Hotel and motel management

. . . . . . . . . . . . . . . . ..

335Houses, custom.built

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

174Household furnishings.

. . . . . . . . . . . . . . . . . . . . . ..

394 1042Jackets, fur and textile.

. . . . . . . . . . . . . . . . . . . . . . . . . . ..

486Juice, vegetable and fruit , extractors

. . . . . . . . . . . . . . . . . . ..

264Ladies ' ready-to-wear apparel

. . . . . . . . . . . . . . . . . . . . ..

944

lCommodities involved in dimig or vacatig orders arc indicated by italized pagereference.

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FEDERAL TRADE COMMISSION DECISIONS 1127

DECISIONS AND ORDERSPage

Mail order merchandise

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

391Meat and meat products. . . . . . . . . . . . . . . . . . . . . . . . . . .. 692 , 861Meat packing correspondence course. .

. . . . . . . . . . . . . . . ..

257Men s and boys ' apparel. . . . . . . . . . . . . . . . . . . . . .. 639 , 711Merchandise , miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . .. 830 , 851Novelties & gift items. .

. . . . . . .

643Orthopedic mattresses. . . . .

. . . . . . . . . . . . . .

274Parts, automotive

. . . . . . . . . . . . . . . . . . . . . .

595Pest control. . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . .

698Phonograph , televisions and radio combinations. . . . . . . . . . 268Piece goods , synthetic

. . . . . . . . . . . . . . . . . . . . . . , . . . . . .

611Paint, water repellent. .

. . . . . . . . . . . . . . . . . . . . .

107Radio, television and phonograph combinations

. . . . . . . . . . . . . . ..

268Radio & television repair

. . . . . . . . . . . . .

160Salt

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

878Scarves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 627 631 643Sewing machines . . . . . . . . . . . . . . . . . . . . . . . 191 , 207Shoes. . . . . . . . .

. . . . . . . . . . . . . . . . . ,

591Sportswear. . . . . . . . . . . . . . .

. . . . . . . . . . ..

615Staplers, industrial. .

. . . . . . . . . . . . . . . . . . . . . . . . .

407T-shirts. . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

643Tableware , stainless steel

. . . . . . .

252levision and radios , used and rebuil

. . . . . . . . , . . . . . . . . . . . ..

160Television, radio and phonograph combinations 268Television broadcasting time , sale of

.. . . . . . .

324Textile products . . . . . . , . . . " 20 , 298 , 528 , 577Carpeting. . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . .. 67 493Fabrics, quilted.

. . . . . . . . . . . . . . .

473Fibers. . . . . . . .

. . . . . . .

. . . . . . . . . . . .. 286 , 431Fiber outerwear. . . . . . . . . .

. . . . . . . . . . . . . . . . . . . ..

310Floor coverings. . . . . . . . .

. . . . . . . . . . . , ..

67, 517

Ladies apparel. .

. . . . . . . . . . ..

......,.. ........ 444 498TIres. . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . .

663Toothbrushes. . . . . . . . . . . . . . .

. . . . . . . . . . . . . . .

374Toy catalogs. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . .

Upholstery fabrics. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

431Upholstered furniture

. . . . . . . . . . . . . . . . . . . . . . ..

868Used automobiles. .

. . . . . . . . . . . . . . . . , . . . . . . . . . . . . .

885Vending machines. . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

374Watches. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .. 657 668Wearing apparel , children s wool

. . . . . . . . . . . . . . . . . . . . ..

506Women s and misses

. . . . . . . ..

498Wood fiber chips. . . . . . . . . . . . . . . . . . . . . 54 316 461 1039Women s custom-made and ready-to-wear garments . . . . .. 577 944

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1128 TABLE OF COMMODITIES

DECISIONS AND ORDERSPage

Wool produces . . . . . . . . . . . . . . . .. 282 298, 481 577, 607 639 711Blankets.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

477Fabrics

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Jackets , men s and boys

..............................

457Jumpers, women s.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

901Outerwear

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

310Quilted interlining fabric.

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

440

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TABLE OF COMMODITIES

ADVISORY OPINION DIGESTS.

Page

Accreditation Progrm, Concrete Industry (350) 1093Automobile Glass, Replacement (363) 1102Beef, Hamburger (Chuck and Plate) (398) 1125Blouses, Ladies (389) 1118Bottles, Plastic, Vinegar (368) 1105Brush, Hair Roller (386) 1116Building Materials (384) 1115Cards, Order (380) 1113Cashmere Sweaters (370) 1105Cigarette Creasing Device (377) 1110Clock Radios (375) 1109Code of Conduct, Trade Asociation (373) 1107Concrete and Concrete Products, Accreditation Program (350) 1093Cost Justification Freight Savings (393) 1121Credit Reporting Plan, Trade Association (361) 1100Dairy Company (365) 1103Data-Financial, Trade Association (359) 1099Device for Creasing Cigarettes (377) 1110Dresses (397) 1124Earrings, Use of Term " 12 Karat Gold Filed" (371) 1106Fork Lift Truck Components (349) 1093Foundation Garments (392) 1120Franchise Agreements (382) 1113Freight Savings, Cost Justification (393) 1121Furniture (353) 1096 , (360) 1100Gift Offer, No Cost (362) 1102Glas-Automobile Replacement (363) 1102Gloves, Leather (383) 1114Grocery Store Products (395) 1122Ground Leather (391) 1119Hair Roller , Brush (386) 1116Hamburger, Chuck and Plate Beef (398) 1125IgnitioJ\ Coil Parts (381) 1113Incentive Bonuses-Plumbing Supplies (390) 1119Leather Gloves (383) 1114Leather, Ground (391) 1119Locks, Imported (385) 1116Magnetic Recording Tape (366) 1103Meat Product, Hamburger (Chuck and Plate) (398) 1125Optical Lens, Labeling of (372) 1106Order Cards, Use of (380) 1113

*The numbers in parentheses indicate digest numbers.

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1130 FEDERAL TRADE COMMISSION DECISIONS

ADVISORY OPINION DIGESTS

Panty Hose

. . . . . . . . . . . . . . . . . . . . . . . . . .

(369)Peat Moss-Pifine and Sedge

'"

(396)Phonograph, Television, Radio

. . . . . . . . . . . . . ..

(378)Plastic Bottles , Vinegar

. . . . . . . . . . . . . . . . . ..

(368)Plumbing Supplies , Incentive Bonuses.

. . . . . . . . . . ..

(390)Price, Replacement Glass "

'"

(363)Price Reporting Plan.

. . . . . . . . . . . . . . . . . . . ..

(395)Promotional Assistance Plan , Tripartite

. . ..

(354) 1096, (356)(367) 1104 (374) 1109, (379) 1112 , (387)

Radio , Television, Phonograph

. . . . . . . . . . . . . ..

(378)Recording Tape , Magnetic.

. . . . . . . . . . . . . . . . . .

(366)Recreational Equipment, Franchise Agreement

. . . . . ..

(382)Slacks , Men s and Boys

' ....................

(355)Sportswear.

. . . . . . . . . . . . . . . . . . . . . . . . ..

(376)Stereo Tape Cartridge Club

. . . . . . . . . . . . . . . ..

(352)Supplier Services, Third Party

. . . . . . . . . . . . . . . .

(357)Sweaters , Cashmere

. . . . . . . . . . . . . . . . . . . ..

(370)Tape, Magnetic Recording.

. . . . . . . . . . . . ..

(366)Television , Radio, Phonograph

. . . . . . . . . . . . . ..

(378)Textile Products-Assembly in Foreign Country.

. . . . . ..

(355)(358) 1099 (376) 1110 , (389)

Textile Fiber Products.

. . . . . . . . . . . . . . . . . . ..

(351)Thread Guides, Imported

. . . . . . . . . . . . . . . . . .

(364)Trade Association-Code of Conduct

. . . . . . . ..

(373)Credit Reporting Plan

. . . . . . . . ..

(361)Tufting Machinery and Equipment Manufacturer

. . . . ..

(394)Typewriter, Portable.

. . . . . . . . . . . . . . . . . . . ..

(388)Vinegar Bottles , Plastic, Imported.

. . . . . . . . . . . . ..

(368)

Page1105112311111105111911021122109811161111110311131097111010951098110511031111109711181095110311071100112211171105

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INDEX*

DECISIONS AND ORDERSPage

Acquiring corporate stock or assets:Clayton Act , Sec. 7

......,.....

167, 361 407 878Federal Trade Commission Act. . . . . . . . . , .

. . . . . . . . ..

361Additional charges unmentioned

. . . . . .

. 174 268Advertising and promotional expenses, discriminating in price through.

See Discriminating in price.Advertising falsely or misleadingly:

Business status , advantages , or connections-Authorized distributor

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bait " offers. . . . . . , . ,.

............ ............

Connections or arrangements with others-

Collection agency

. . . . . . , . , . . . .

Du Pont Company

" ....,...............,........

Health program

. . . . . .. ...............,...

Holiday Inns of America

" ........... .............

International Business Machines Corp.

" ..........

International Sunday School Lessons

" ......

Dealer being-Manufacturer

" .......... ............

Producer

. . . . . . . . . , . . , . . . . . . . . . . . . . . . . . .

Individual or private business being-Associates

" ....... .................

........ 837Institute

. . . . , . , . . . . . . . . . .

257Nature

. . . . . ,. ...... ....................

191Personnel or staff. .

. . . . . . . . . . . . . . ..

464Plant and equipment

. . . . . . . . . . . . . .

. 464Composition of product. . . . . . . . . . .

. . . . .

. 20 , 46Fur Products Labeling Act. . . . . . 13 , 570, 602, 622 635Textile Fiber Products Identification Act . . . . . . . .. 286 , 310

473 562 615 673, 1042Dealer or seller assistance . . . . . .. 30 , 57, 647, 703 , 1016Earnings or profits - . , . . . . . . . . . . .. 30, 57, 464 647, 703 837, 1016Endorsements, approvals and testimonials . . . . .. 335, 668 1042Free goods or services. . . . . . . . . . . . . . . . . . . .. 268 394 673, 830

Guarantees. . . . . . . . . .. 30 57, 160, 207, 264 286, 394647, 703 851 861 868 885, 1016 1042

History of product. . . . . . . . . . . . .

. . . . . .

207

885191

207374274374181394

431374

Covering practices and matters involved in Commission orders. For index of commodi-ties see Table of Commodities. References to matters involved in vacating or dismissingorders are indicated by italics.

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1132 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERSPage

Advertising falsely or misleadingly-ContinuedIndividual' s special selection

. . . . . . . . . . . . . . . . . . . . . . . . . ..

394Jobs and employment service. . . . . . . . . . . . . . . . . . . .. 92 181 , 257Limited offers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 335 868Nature. . . . . . . . . , . . . , . . .

. . . . . . .

207Old or used product as new......... ...... 160 885Opportunities. . . . . . . . . . . . . . . . . . . . .

. . . . . . .

335Premiums and prizes. .

. . . . . . . . . . . . . . . . . . .

207Prices

. . . , . . . . . . . . . . . . . . . . . . . . . .

160 174 181 191Bait" offers. . . . . . . . . . .. 191 673, 692 861 868

Comparative

. . . . . . .

. . . . . , . 663 , 851Exaggerated, fictitious as regular and customary 391 910Percentage savings

. , . . . . . ..

...........,... 160, 868, 910Sales below cost. . . . . . . . . . . . . . . 10 570 602

np ....,........

. . . . . . . . . . . . .

391Usual as reduced or special. . . . . . . . . . . . . . . . . . . . . .. 663 , 851

Prizes

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

207Quality of product or service

. . . . . . . .

. 30, 57,

647, 673, 96 1016

. . . . . . . . . ..

387

. . . . . . . . .. . . . . . . . . . . . . . ..

387268

191 207837703319861319

Durability. . . . . . . . , . ,

. . . . , , .

Medicinal , therapeutic , healthful , etc.Permanence. . , . ,

, . . . . . .

Quantity in stock. . ,

. . .. ,." ...

Repossession balances. .

, . .

Reproductive potentials of chinchilas. . , . . , , . , . , , , . . , ,Results of product. . , . , . . . . . . , , , . . . . , . . . . . . . . . .Scientific or other relevant facts, . . . . . . .

. . . . , , , . . . . . .

Size or weight. .

. . . . . , . . . . . . , . , , . , . , , . . , . . . , . . . . . . .

Specifications or standards conformanceStatutory requirements-

Fur Products Labeling Act. . . . . . . 486 517, 528, 602Textie Fiber Products Identification Act 517, 528

Success or standing

, . . . . . . . . . . . . , . . . . . . . . . . . ..

962Terms and conditions, .

. . , . . . . . . . , . , . . . . , . . . . . . ..

181Advertising matter, supplying false and misleading

. . . . , . , , ..

837Advertising for services and facilities , discriminating in price through.

See Discriminating in price.Assuming or using misleading trade or corporate name:

Associates

" .,. . . , . . . . . . . . . . , . . . . . "

837Credit Bureau

. . . . , . . . . . . . , . . ..

448Laboratories

" .,.......,.,." . . . . , . . ,

374Bait" offers . . , , , , , . , . . . .. 174 191 207, 268, 274 673Business status, advantages , or connections:

Advertising falsely or misleadingly

.,..." ,.,... .

207

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INDEX 1133

DECISIONS AND ORDERS

Page

Business status, advantages , or connections-ContinuedConnections or arrangements with others.

. . . . . . . . . . . . . .

Government registration.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Individual or private business being educational.

. . . . . . . . . . . . . .

Limited offers or supply.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Misrepresenting directly

. . . . . . . . . . . . . . . . . . . . . . . . .

Character, nOll'"tandard, misrepresenting,as to

. . . . . . .

Clayton Act: Sec. 2-Discriminating in price-

Sec. 2(a) Ilegal price differentials-

Arbitrary discounts.

. . . . . . . . . . . .

Customer classification

. . . . . . . . . . . . . . .

Localized price cutting.

. . . . . . . . . . . . . . .

Net prices.

. . . . . . . . . . . . . . . . . . . .

Sec. 2-Discriminating in price-

Sec. 2(d)-A1lowances for servces and facilities-Advertising expenses.

. . . . . . . . . . . . . . . . . . .

884Promotional Assistance Plan.

. . . . . . . . . . . .

205Sec. 3-Dealing on exclusive or tying basis-

....... . . . . ..

330Sec. 7-Acquiring corporate stock or assets. 167, 361 407, 878

Coercing and intimidating:Customers or prospective customers

. . . . . . . . . . . . . . . .

Distributors

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ......

Suppliers of competitors.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Collection agency, fictitious

. . . . . . . . . . . . . . .

Combining or conspiring:Boycotting, cutting off, and eliminating supplier-seller

Comparative prices, misrepresenting as to

.............

Composition of product, misrepresenting as to:Fur Product Labeling Act. . . .

. . . . ..

13, 20 46, 76, 96, 304344 , 348, 352, 357, 473, 517, 528, 538, 542 , 546, 558, 570, 602 , 622,

635, 917, 921 926 931 936Textie Fiber Products Identification Act.

. . . . . . . . . . . . . . ..

, 67286, 298, 310, 431 444, 473, 493, 517, 528, 562, 615, 673, 944 1042

Wool Products Labeling Act.

. . . . . . . . . . . . . . . . . ..

, 5, 298, 310457, 506, 583 607, 639, 711 901 , 940, 944

Connections or arrangemenUi with others, misrepresenting as to

..

181 , 274Aluminum Company of America, General Electric Company,

Union Carbide

...............................

Du Pont Company

...........................

International Sunday School Lessons

.....

Contracts restricting customers:Cutting off access to customers or market

181181587181107319

. . . . . ..

835835, 836, 847

. . . . ..

392

. . . . ..

884

382330595107

. . . . ..

595252 , 663 , 673

107374394

....... ..... .

330

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1134 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERS

Page

Coverage or extras, misrepresenting prices. . . . . . . . . . . . . . . . . . . .Customers or prospective customers, coercing and intimidating. . . . . .Cutting off access to customers or market:

Combining, Inducing, Threatening, Withholding

. . . . . . . . . . . . ..

595Contracts restricting customers. . .

. . . . . . . . . . . . . . . . . ..

330Interfering with ditributive outlets. .

. . . . . . . . . . . . . . . . . . . ..

382Dealer falsely representing self as - manufacturer. . . . . . . . . . . . . .. 431Dealer or seller assistance, misrepresenting as to ........... 30

57, 107, 647, 703, 1016

.......................

268382

Discriminating in price, "bait" offersDiscriminating in price in violation of:

Sec. 2 , Clayton Act-Sec. 2(a)-llegal price differentials-

Arbitrary discounts. . . . . . . . . . . . . . . . . . . . . . . . .. 719 , 835Customer classification . . . . . . . . . . . . . . . . . . .. 835 836 847Localized price cutting. .

. . . . . . . . . . . . . . . . . . . . . . . . ..

392Sec. 2(d)-Allowances for servces and facilties-

Advertising and promotional expensesSec. 2(f)-Inducing or receiving discriminations-

Knowingly inducing and receiving discriminations. . . . .. 698 , 719Sec. 3 , Clayton Act-

Dealing on exclusive and tying basis. .

. . . . . . . . . . . . . . .

Dismissal orders:Complaint charging a personnel guidance servce with making false

and deceptive statements in advertising and other promotionalmaterials , dismissed

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

962Complaint charging Beatrice Foods Co. , with price discriminations

dismissed

. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. 719Complaint charging distributor of aircraft engine parts with monopo.

lizing sales and attempting elimination of competition dismissed.. 382Orders to cease and desist aganist six toy catalog companies charged

with knowingly inducing discriminatory promotional allowancesdismissed

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Distributors , coercing and intimidating. . . . . . . . . . . . . . . . . . . . .. 330Documents , legal, simulation of ........................... 402Domestic products:

Misbranding or mislabeling as imported. . . . . . . . . . . . . . . . . . . .. Misrepresenting as foreign. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 936

Earnings and profits , misrepresenting

. . . . . . . . . . . . . . . ..

30, 57, 107374 464, 647, 703 837, 1016

. . . . . . . . . . . . .. 92335, 464 668 1042

'" .

205

330

Educational or research institution, non-profitEndorsements or approval , falsely claimingFederal Trade Commission Act:

Acquiring corporate stock or assets. . . .

. . . . . . . . . . . . . . . . . ..

361Furnishing false guarantees

. . . . . . . . . . . . . . . . . . . . . . ..

264, 286

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INDEX 1135

DECISIONS AND ORDERS

Federal Trade Commission Act-ContinuedFurnishing means and instrumentalities of misrepresentation ordeception.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Selling below cost

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Using patents, rights or privileges unlawfully.

. . . . . . . .

Fictitious guarantees.

. . . . . . . . . . . . . . . . . . . .

Fictitious pricing, preticketing

... . . . . . . . . . . . . . . . . . . . . .

Finance charge, failure to disclose

. . . . . . . . . . .

F1ammable Fabrics Act: Importing, sellng, or transportingflammable wear under

. . . . . . . ..

54, 316, 461 627, 631 643 1039Free, misrepresenting products or services as 92 , 252 , 268 , 394 , 673 , 830Fur Products Labeling Act:

Composition of product, misrepresenting as to

..........

13,71, 76, 304 , 538, 542 , 546, 558, 570 , 602, 622 , 635, 926

Failing to reveal information required by

...........

13, 76, 96,344, 348, 352, 357, 486 502, 511, 514 517, 528 542 554 556 , 558

892, 891 906False advertising under.

. . . . . . . . . . . . . . . . . . . . . . ..

517 528Guaranties, furnishing false.

. . . . . . . . . . . . . . . . ..

, 87, 304, 344348 352 357, 715, 892 897, 917, 921 954

Invoicing products falsely.

. . . . . . . . . . . ..

76, 87,101 , 304 344 , 348, 352 357, 502, 511 , 514, 517, 528" 538, 542 , 551

558 570 715, 910, 926, 931 936, 950, 954, 958Misbranding under.

. . . . . . . . . . . . . . . . . . . . . . . . ..

10, 344 348,352, 357. 486 502 511, 514, 892, 897, 906

Source of origin.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Statutory requirements.

. . . . . . . . . . . . . . . . . . . . . . . ..

13, 602Furnishing means and instrumentalities of misrepresentationor deception.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

252 , 657Government approval, accreditation of correspondence courses.

. . . ..

587Government registration, business status , advantages , or connections 181Guarantees, misleading.

. . . . . . . . . . . . . . . . . . . . . . . . ..

30, 57, 107,160, 207, 264 286 394 448 647, 851 861 1016, 1042

Guaranties , furnishing false:Fur Products Labeling Act.

. . . . . . . . . . . . . . . . . . . . . ..

87,348, 352, 357, 55 917, 921 , 954

Textie Fiber Products Identification Act.

. . . ..

67, 286 , 298 , 615, 627History of product, misrepresenting as to

. . . . . . . . . . . . . . . . . . . ..

207Importing, selling, or transporting flammable wear: F1ammableFabrics Act:

...............,..

316 461 627, 631 643 1039Individual or private business falsely represented as:

Associates

................... . . . . . . . . .

Corporation

....................................

Educational"

. . . . . . . . . . . . . . . . . . . . . .

First National Academy

. . . . . .

Institute

.......................................

Page

252382274

264 , 703657402

837252587

. 92257

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1136 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERS

Inducements , offering unfair, improper and deceptive:Cutting off supplies. . . . . . . . .

. . . . . . . . . . .

Job guarantee and employment

. . . . . . . . . . . . . . . . . . . . .

Opportunities in product ot' servce """"Results guarantee. . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inducing or receiving discriminations in violation ofthe Clayton Act, Sec. 2 (f) "

"""

'" 698 , 71 9Interlocutory orders: See also Interlocutory orders with opinions.

Admitting into the record a decision of the NLRB relative torespondent' s status as a labor union. . . . . . . . . . . . . . . . . . .. 1082

Cancellng hearings pending Court s decision on whether to grantCommission s motion to dismiss Court s order and pending Com-mission decision on interlocutory matters. . . . . . . . . . . . . . .. 1081

Denying-Requests-

For appeal to stay compliance with subpoena duces tecum.

. .

For "applicant" material

. . . . . . . . . . . . . . . . . . . . . . . . .

For continuance of hearing date

. . . . . . . . . . . . . . . . . . . .

For reconsideration of request for withdrawal of case fromadjudication for purpose of negotiating consent order

For issuance of special reports pursuant to 6(b) of the

Federal Trade CommLo;sion Act

. . . . . . . . . . . . . .

For withdrawal of case from adjudication to negotiateconsent order. .

. . . . . . . . . . . . . . . . . . . . . . . .

To dismiss complaint on grounds of discriminationTo fie appeal from hearing examiner s ruling against motionto dismiss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1059

Granting continuance of case to Jan. 5 , 1970, with two Commis-sioners dissenting. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . ..

1078Reopening proceeding for evidence on whether publication "Trade

Union News" implies affiiation with labor union. . . . . . . . . .. 1090Requiring parties to fie briefs on issues of fact and law raised

by previously fied papers

. . . . . . . . . . . . . . . . . . . . . . . . ..

1059To show cause why previous order should not be reopened and prior

order modified to require recordkeeping to substantiate price andsavings claims

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

1067Withdrawing case from adjudication contingent upon respondent

accepting in consent order customer s right to rescind contract.. 1063Withdrawing case from adjudication rather than resolving procedural

problems attendant of excising evidence or testimony ofHerbert Prosser

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

1060Interlocutory orders with opinions:

Adopting examiner s recommendation that proceeding to determinewhether the Hearst Corporation was to be considered thesuccessor to any of corporate respondents be dismissed.

. . . . ..

1053

Page

595962962962

106610741083

1058

1069

10911077

Page 12: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

INDEX 1137

DECISIONS AND ORDERS

PageInterlocutory orders with opinions-Continued

Denying-Motion for dismissal on grounds of alleged prejudgment and

remanding case to hearing examiner. . . . . . . . . . . . . . . . .. 1064Motion for dismissal of complaint on grounds of alleged prejudg-

ment and remanding case to hearing examiner

. . . . . . . . . . .

Motion for mistrial and remanding case for further hearingsRequest that respondent be permitted to use new titles for its

reprinted books

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

1070Request for reconsideration of earlier denial of pu blishing old books

with new titles if first published out.ide of the United States 1079Two requests by respondent for leave to fie interlocutory appeals

from adverse rulings pertaining to discovery requests. . . . . .. 1061Reopening and modifying order to allow respondent to acquire salt

company. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . ..

1085Invoicing products falsely:

Federal Trade Commission Act. . . . . . . . . . . . . . . . . .. 1, 440 583Fur Products Labeling Act. . . . . . . . . . . . .. 13 71, 76, 87,

, 101 304 486, 502 511 , 514 , 517, 528, 538 , 542 , 551 , 554 , 556558, 570, 607, 635, 715, 892 , 897, 910 917, 926 , 931 , 936 950 , 954

958Textie Fiber Products Identification Act. . . .. 298 473, 517, 528 615Wool Products Labeling Act

..........

......... 477, 481Jobs and employment, misrepresenting as to ....... 181 257, 335, 962Limited offers, misrepresenting as to . . . . . . . . . . . . . . . 181 335Localized price cutting, discrimination in price through. . . . . . . 392Loation, size and extent. . . . . . .

. . . . . . . . . . . . . . . . . . ..

448Manufacturer, dealer falsely representing self as . . . . .. 286, 431Market, cutting off access to

.....................

382Medicinal , therapeutic or healthful qualities of productmirepresenting as to

.......... . . . . . . . . . . . . . .

Mils , dealer falsely representing self as

.................

Misbranding or mislabeling:Composition of product-

Federal Trade Commission Act. . . . . . . . . . . . . . . . . . . . .. 5 , 591Fur Products Labeling Act. . . . . . .

. . . . . ..

13, 20

304 344 348 352 , 357, 486 , 517, 528, 538, 542, 556, 558, 570635 892, 897, 906, 917, 921 926 931 954

Textile Fiber Products Identification Act. . . . . . . . . . . . . . . .. 2067, 286, 298, 431 , 444 , 473, 486 , 493, 498 517, 528, 562 577, 615,

673, 994 1042Wool Products Labeling Act. . . . . . . . . . . . . . .. 1 , 282, 298, 310

440, 457, 477, 481. 506 577, 583. 607, 639, 711 901 940 944Domestic product as imported.

. . . . . . . . . . . . . . . . . . ..

Statutory requirements-Fur Products La beling Act

. . . .

Textile Fiber Products Identification Act

10761072

431

344, 348, 352, 357, 486. . . . . . . . . . . . . . .. 431444 486, 493 498 611 1042

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1138 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERS

PageMisbranding or mislabeling-Continued

Statutory requirements-ContinuedWool Products Labeling Act. . . . . . . . . . . . . . . .. 1 457 901

Misrepresenting business status, advantages or connections:Connections or arrangements with others:

Du Pont Company

. . . . . . . . . . . . . . . . . . . . . . . . . .

Educational"

..................

Holiday Inns of America

" ...............,.....

International Sunday School Lessons

" ......

Orthopedic AuthoritiesDealer being-

Manufacturer. . . . . . . . . . . . . . . . .

. . . . . .

Mills

. ... ...... .......... .......

Producer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

Educational or religious operations. . . . . . . . . . . . . . . . . . . . . . .Factory distributor

. . . . . . . . . . . . . . . . . . . . . . . . . . .

Individual or private business being-Credit Bureau

" . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . ..

448Nature , sewing machines. . . . . . . . . . . . . . . . . . . . . . .. 191 , 207Personnel or staff. .

. . . . . . . . . . . . . . . . . . . . . . . . . ..

448Private research institution. .

. . . . . . . . . . . .,

257

Professional Audit System

" ....... , . . . . . . ..

448Misrepresenting directly or orally by self or representativ€s:

Business status , advantages or connections-Connections or an-angements with others-

Collection agency. . .

. . . . . . . . . . . . . . . . . ..

107Financing. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . ..

868Professional Audit System

" . . . . . . . . . . . . . . . . .,

448Composition of product. . . . . . . . . . . .

. . . . . . . . . . . . . . . . ..

591

Dealer or seDer assistance 57, 107, 647, 703 1016Earnings and profits. .

. . . .

. . . . . . . . . . . . . . . . . . .. 30 107335, 464 647, 703, 837, 1016

...........

,....... M5252, 268 , 673

. . . . . . . . . . . . . ..

402

. . . . ..

30, 57, 107, 160207, 286 448, 647 673, 837, 885 1016

Jobsandemployment ... ........,..... 181, 257, 335, 464

Limited offers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 335Old or used product being new-Automobiles

. . . . . .

885Prices-

Additional costs unmentioned

. . . . . . . . . . . . . . . .

Bait" offers. . . . . . . . . . . . . . . . . . . . . . . . . . . .Below cost

. . . . . . . . . . . . . . . . . .

Comparative

. . . . . . . . . . . . . . . . . . ...,... .

374181374394274

...... ....... .

431431374394885

Endorsements. . . . . . . . . . . . .Free goods or servces

. . . . . . . . .

Goods

. . . . . . . . . . . . . . . . .

Guarantees. . . . . . . . . . . . . . .

174673, 868

. . . . ..

252, 851

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INDEX

DECISIONS AND ORDERS 1139

Page

Source or origin of productSurveys ...,..........Terms and conditions. .

. . . . . . .

Tests. . . . . . . . . . . .Misrepresenting prices:

Bait" offers. . . . .

Prices-ContinuedCoverage or extras

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

268Deceptive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30, 57Ficitious pre ticketing ...............,.............. 657Refunds. . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . ..

868Prize contests, misrepresenting as to .................. 191 , 207Promotional sales plans. . . . . . . . . . . . . . . . . . . . . . . 252, 324Qualities or results of product

.......

........ 57, 107, 647,673 703 837 1016

, 207 374, 868....................... 1

160, 181 402

. . . . . ..

319

....... ....,... ..... ...........

174 191 207,268, 274 394 673 861 868

Exaggerated, fictitious as regular and customary

. . . . . . . . . . . ..

207,252, 274 , 391 , 622 , 657, 910

Fictitious marking. . . . . . . . . . . . .

. . . . . . . .

394Percentage savings. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

868Usual as reduced or special . . . . . . . .. 191 851

Modified orders:Order against a cement manufacturing company, modified by prohibiting

the selling of over 35 percent of annual requirement to WestchesterConcrete, Inc. , so long as respondent holds security interest in saidcompany; requiring prompt divestiture of a Yonkers , N. Y. , plant;redivestiture of any assets acquired in Cooney Bros. , Inc. ; andprohibiting any further acquisitions in the industry for 10 years

Order modifying an earlier order inhibiting certain misrepresentationsregarding "Preparation H" and restricting earlier order to non-prescription drug preparations

. . . . . . . . . . . . . . . . . . . . . . . .

Order modifying an earlier order which prohibited catalog retailerfrom making fictitious pricing and savings claims. . . . . . . . . . .. 391

Order modified by enlarging paragraph 2 of the Commission s final

order by inserting " including customers who do not purchasedirectly from respondent

" ...........................

884Order modifying previous order to permit respondent to acquire stock

in a Panamanian corporation with holdings in Chile

. . . . . . . . ..

878Order prohibiting manufacturer of beauty preparations from paying dis.

criminatory promotional allowances, modified by deleting two sub-paragraphs pertaining to wholesalers, and adding to each of the tworemaining provisions pertaining to retail stores and beauty salons

Order prohibiting price discrimination by a major food products distri-butor, modified by limiting it to Kraft Foods Division s jams, jellesand preserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .. 392

361

205

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1140 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERS

Nature of product , sewing machines.

. . . . . . . . . . . . . . . . . . .

Neglecting, unfairly or deceptively, to make material disclosure:Composition of product.

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

591Fur Product- Labeling Act. . . . . .

. . . ..

304 344 348 352357, 486 538, 570 602, 622 635, 892 897, 906 926 936

Textiles Fiber Products Identification Act.

. . . . . . . . . . ..

431 444473, 486 493 498, 562 577, 1042

Wool Products Labeling Act.

. . . . . . . . . . . . . . . ..

440 477,481 506, 577, 901

Guarantees.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . "

448 , 885Non-standard character.

. . . . . . . . . . . . . . . . . . . .

319Old or used product being new-utomobiles

............

885Prices, misrepresenting.

. . . . . . . . . . . . . . . . . . . . . . . . ..

174 657Quality, grade or type.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

692Sales contract , right-to-cancel provision.

. . . . . . . . . . . . . ..

207, 673Source or origin of product , misrepresenting as to

.........

Foreign product as domestic

. . . . . . . .

936Statutory requirements-

Fur Products Labeling Act.

. . . . . . . . . . . . ..

96,486 , 511, 514 , 542 , 551 , 554 , 556, 558, 715 910 917, 921 931 950

954 958Textile Fiber Products Identification Act.

. . . . . . . . . . . ..

67, 286298 431 444 486 493 498, 502, 611 615 1042

Truth in Lending Act

. . . . . . . . . . . . . . . . . . . ..

861Wool Products Labeling Act.

. . . . . . . . . . . . . . . . . ..

, 282 , 298310, 506, 583, 607, 639 711 940

Termsandconditions

...................

107, 181 207,268, 274 402 464 673

Page191 207

Non-profit organjzation:Educational or research institution

. . . . . . . . . . . . . . . . . ..

Professional or scientific status.

. . . . . . . . . . . . . . . . . . . . . . . ..

587Old or used product as new.

. . . . . . . . . . . . . . . . . . . . . . . ..

160 926Opportunities in product or service, inducements , offeringunfair, improper and deceptive.

. . . . . . . . . . . . . . . . . . . . . . . . ..

962Orthopedic , qualities or results of product.

. . . . . . . . . . . . . . .

274Percentage savings.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

160Personnel or staff, misrepresenting as to

.................

448 , 464Place, misbranding or mislabeling.

. . . . . . . . . . . . . . . . . . . ..

Premiums and prizes as deceptive.

. . . . . . . . . . . . . . . . . . . . . . . ..

207Preticketing merchandise misleadingly.

. . . . . . . . . . . . .

657Price discrimination, " Bait" offers.

. . . . . . . . . . . . . . . . . . . . . . ..

692Prices, misrepresenting. See Misrepresenting prices.Prize contest, misrepresenting as to

. . . . . . . . . . . . . . . . . . . ..

191, 207Professional or scientific status

. . . . . . . . . . . . . . . . . . . . ..

587Promotional sales plans, television

. . . . . . . . . . . . . . . . . ..

324

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INDEX

DECISIONS AND ORDERS 1141

Quantity in stock

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualities or results of product:Advertising falsely or misleadingly . . . . . . . . . . . . . . . . .. 30 , 57, 647Corrective, orthopedic, etc. """

"""""

274Misrepresenting directly . . . . . . . . . . . . . . .. 57, 107. 647, 703 1016

Quality of product:Advertising. . .' . . . . . . . . . . . . 394 647, 673, 703, 962 1016Durability or permanence. . . . . .

. . . . . . . . . . . . . . . . ..

387Facilties or equipment. . . . . . . . . . . . . .

. . . . . . . . . . . ..

464Free goods or servces. . . . . . . . . . . . . . . . . . . . . . . . . . . . 268Medicinal, therapeutic or healthful

. . . . . . . . . . . ..

Neglecting, grade or type. . . . . . . . . . . . . . . . . . . . . . . . . . 692Staff or personnel

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

464Removing, obliterating, concealing law-required or informativemarking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . ..

944Repossession balances

. . . . . . . . . . . . . . . . . . . . . . . . . . . "

191 207Reproductive potentials of chinchilas, misrepresenting as to

""

30,57, 647, 703 837, 1016

Results guarantee, inducements, offering unfair, improper and deceptive 962Results of product, advertising falsely. . . . . . . . . . . . . . 703Sales below cost; prices, misrepresenting as to . . . . . . . .. 570 , 602Sales contract , right-to-cancel provision. . . . . . . . . . . . .. 207 673Sales contracts, misrepresenting as to:

Securing signatures wrongfully. . . . . . . . .

. . . . . . . .

402Terms and conditions. . . . . . . . . . . . . . . . . . . . . . . . . . " 402 , 464

Sales, forced or sacrifice. . .

. . . . . . . . . . . . . . . . . . .

1042Savings, misrepresenting prices through . . . . . . . . . . . . .. 868 910Scientific or other relevant facts, misrepresenting as to ""

'"

319Securing signatures wrongfully. . . . . . . . . . . . . . . . . . . . . . " 402 , 464Sellng below cost, violation of the Federal Trade Commission Act 382Service, employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464Servces, misrepresenting as to " 448Simulating another or product thereof, court documents

. . . . . . . . "

402Size , extent or equipment, misrepresenting as to " 464Size or weight, misrepresenting as to """

""

861Source of origin, misbranding or mislabeling. .

. . . . . . . . . . . . . . . ..

Source of product , misrepresenting goods

. . . . . . . . . . . . . . . . . . ..

207Source or origin of product, misrepresenting as to '" 374 , 830, 868Source or origin of product, neglecting. . . . . . . . . . . . . . . . . . . . .. 936Special or limited offers, misrepresenting goods

. . . . . . . . . . .

181Standards or specifications, misrepresenting as to ............... 319Statutory requirements , failing to comply with:

Fur Products Labeling Act. . . . . . . . . . . . .. 13, 20 , 41 , 46 , 71 , 76 , 96304 , 334 , 348, 352, 357, 502 511 , 514 , 538, 542, 551 , 554 , 558 570602 622, 635, 892, 897 906, 910 917, 921 , 926, 931 , 936 950, 954

958 1042

Page268

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1142 FEDERAL TRADE COMMISSION DECISIONS

DECISIONS AND ORDERS

PageStatutory requirements, failng to comply with-Continued

Textie Fiber Products Identification Act. . .

. . . . . . .

20, 67286 298 310 562, 577, 611 615, 673 861 901 944

Truth in Lending Act

. . . . . . . . . . . . . . . . . . . . . . . . ..

861Wool Products Labeling Act. . . . . . . . . . . . . .. 1 282 298 310

457, 577, 607, 639, 711 901 940 944Substituting inferior product. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 830Subterfuge , securing information by-form letters. .

. . . . . ..

448Success, use or standing of, advertising falsely. . .

. . . . . . . . . . . . . .,

962Suppliers of competitors, coercing and intimidating. . . . . . . . . 595Surveys, misrepresenting directly. .

. . . . . . . . . . . . . . . . . . .

107Television, promotional sales plans, misrepresenting directly. . . . . . ., 324Terms and conditions:

Additional charges unmentioned- Bait" offers. . . . . . . . . . . . . .. 268Advertising falsely. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

181

Misrepresenting services . . . . . . . . . . . . . . . . . . . . . . . . . .. 160 181Neglecting, unfairly or deceptively, to make material disclosure. 107, 274Sales contracts . . . . . . . . . . . . . . . . . . . . . . . . 402 , 464 , 673

Tests, purported, misrepresenting as to .................... 319Textile Fiber Products Identification Act:

Composition-Advertising falsely

. . . . . . . .

. . . . . . . . . . . . . .. 673, 1042Goods

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,

615Misbranding or mislabeling . . . . . .. 673, 944 1042Misrepresenting as to . . . . . 20 286 , 298 , 310, 562, 1042

Failing to reveal information required by ................ 67, 431444, 473, 486 493 498, 517, 528, 611 615 861

False invoicing under

. . . . . .

. . . . . . . . . . . . .. 298 615Furnishing false guaranties. . . . .

. . . . . . . . . ..

67, 298, 615 , 627 , 673Misbranding under. . . . . . . . . . . . . . . .. 431 444, 473, 486, 493 498Removing, obliterating, concealing law required or informative

marking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .,

944Therapeutic qualities of product, misrepresenting as to. See Medicinal or

therapeutic qualities of product.Threatening:

Cutting off supplies. . . . . . . . . . .

. . . . . . . . . . . . . . . . .

Suits , not in good faith. . . . . . . . . .

. . . . . . . . . . .

Unfair methods or practices, etc. , involved in this volume.Acquiring corporate stock or assets.Advertising falsely or misleadingly.Assuming or using misleading trade or corporate name.Coercing and intimidating.Cutting off access to customers or market.Discriminating in price.

595448

Page 18: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

INDEX

DECISIONS AND ORDERS

1143

Page

Unfair methods or practices, etc., involved in this volume-ConFurnishing means and instrumentalities of misrepresentation and deception.Guaranties, furnishing false.Importing, sellng, or transporting flammable wear.Invoicing producu; 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.Old or used product being new , misrepresenting.Securing signatures wrongfully.Using misleading product name or title.

Using misleading product name or title::Lboratories

" ....................................

374Vendor . . . . . . . . . . . . . . . . . . . . . . . . . 431 448, 587

Using patents, rights or privileges unlawfully . . . . . . . . . . . . . .. 274 382Usual prices, misrepresenting as reduced or special. 191 , 274 , 663, 673, 1042Wholesale cost, selling below, misrepresenting as to . . . . . . . . .. 10Withholding, cutting off access

. . . . . . . . . . . . . . . . . . . . . . . . . ..

595Wool Products Labeling Act:Composition of product

. ..

298, 310, 583 607, 639 711 944Failng to reveal information required by .............. 1 , 282, 440

457, 47 481 506 583 , 63 711False invoicing under. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1Removing, obliterating, concealing law-required or informative

marking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statutory requirements, failng to comply with. . . . . . .

. . . .

944607

Page 19: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

Advertising falsely or misleadingly:Composition of product-hamburger made of chuck and plate (398)

Qualities or results of product-medicinal, therapeutichealthful, etc. -device for creasing cigarettes.

. . . . . . ..

(377)Terms and conditions- bonus" offer

. . . . . . . . . . . . "

(388)Allowances for advertising and promotion, discriminating in price

See Clayton Act , Sec. 2.Clayton Act:

Sec. 2-Discriminating in price-

Sec. 2(a)-llegal price differentials-

Freight savings as cost justification.

. . . . . . . . . . . . .

Incentive bonus

. . . . . . . . . . . . . . . . . . . . . . . . .

Special discount package; one-time offer.

. . . . . . . . .

Sec. 2(d)-Promotional assistance-Promotional assistance plan-tripartite

. . . . . . . . ..

(354)(356) 1098 (367) 1104 , (374) 1109, (379) 1112, (387)

Sec. 2(e)-Furnishing servces or facilities-Advertising display signs.

. . . . . . . . . . ,

(367) 1104Advertising display using color & sound film cartridge.Display fixtures-placards.

. . . . . . . . . . . . . . . . . . .

In-store displays.

. . . . . . . . . . . . . . . . . . . . . . . . .

Mechanical device containing a moving messageMerchandising advice of general nature through a third

party.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sec. 7-Acquiringcorporate stock or assets.

. .

(365) 1103Code of conduct by trade association-no objection to

......

Composition of product, mjsrepresenting as to:Leather

" """ """ """ '"

(391)Peat Moss-Pifine and Sedge

.. . . . . . . .. . . . . . . . . . ..

(396)Consumer credit regulation applying to stereo tape

cartridge club.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(352)Credit reporting plan, trade asociation-no objection to

.. . ..

(361)Descriptive phrase, use of: combining machine manufacture and

hand finishing of furniture.

. . . . . . . . . . . . . . . . . . . . ..

(360)

TOPICAL SUBJECT INDEX

ADVISORY OPINION DIGESTS'

Accreditation program , administration of and access toAcquiring corporate stock or assets: Clayton Act, Sec. 7

The numbers in parentheses indicate digest numbers.

1144

(350)(365)(394)

(393)(390)(384)

(387)(374)(379)(354)(356)

(357)(394)(373)

Page109311031122

1125

11101117

112111191115

10961116

11161109111210961098

109811221107

11191123

10951100

1100

Page 20: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

FEDERAL TRADE COMMISSION DECISIONS

ADVISORY OPINION DIGESTS

Disclosure of facts necessary-in exhange of gifts for names ofprospective purchasers

. . . . . . . . . . . . . . . . . . . . . . . ..

(362)Discount package, discriminating in price through. . . . . . . .. (384)Discriminating in price. See Clayton Act , Sec. 2.Federal Trade Commission Act:

Sec. 5-Discriminating in price and facilties. . . . . . . . . .. (356)Sec. 12-Advertising of hamburgers made of chuck and plate (398)

Financial data, survey, compilation and publication of -noobjection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. (359)

Foreign :Assembled in U. A. of components of USA & importsobjection to use of "

""" -

. (349)

Assembly and sewing operation, disclosure not required. .. (355)(358)(397)Disclosure of foreign assembly of dresses not required

Disclosure of foreign operations on ladies ' blouses notrequired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of ignition coil parts not required. . . . . .Disclosure of origin of brushes for hair roller not requiredDisclosure of origin of container for domestic product not

required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. (368)Disclosure of origin of partly foreign-made foundation gar-

ments not required. .

. . . . . . . . . . . . . . . . . . . . . . ..

(392)Franchise agreement with fair trade price schedule-recreation

equipment industry-approved

....................

(382)Freight saving as cost justification; wholesaler-manufacturer

relationship-no objection to

.....................

Furnishing services or facilities. See Discriminating in price.Gifts-in exchange for names of prospective purchasers-full dis-

closure of facts necessary

. . . . . . . . . . . . . . . . . .

Hamburger made of chuck and plate; advertising of

........

Hand-carved, " furniture, using misleading term as to ""Imported products,- disclosure of origin required:

Clock-radio components. . . . . . . . . . . . . . . . . . . . . . .. (375)Locks

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(385)Magnetic recording tape

............ .......

(366)Mail order advertising of panty hose

. . . . . .

(369)Optical lens systems. .

. . . . . . . . . . . . . . . . . . . . . . . ..

(372)Thread guides. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(364)Incentive bonus, discriminating in price through (390)

Leather, " using misleading product title as

.............

(391)Medicinal, therapeutic , healthful , etc. , qualitites or results of"product, misrepresenting as to--igarette creasing device. .. (377)

Merger proceedings. See Acquiring corporate stock or assets.

(389)(381)

.. (386)

1145

Page

11021115

10981125

1099

1093109710991124

111811131116

1105

1120

1113

(393) 1121

(362) 1102(398) 1125(353) 1096

11091116110311051106110311191119

1110

Page 21: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

1146 INDEX

ADVISORY OPINION DIGESTS

Misbranding or mislabeling:Source or origin of product-

Disclosure of foreign assembly of dresses not required. (397)Disclosure of foreign assembly operations on ladies

blouses not required. . . . . . . . . . . . . . . . . . . .. (389)Disclosure of foreign lahor services on domestic

product not required

. . . . . . . . . . . . . , . . . . ..

(376)Disclosure of foreign origin of brushes for hair

rollers not required

. . , . . . . . . . . . . . . . . . ..

(386)Disclosure of foreign origin of thread guides required.. (364)Disclosure of origin of partly foreign-made

foundation garments not required. ,

. . . . . . . . ..

(392)Disclosure of foreign origin required-leather gloves. .. (383)Disclosure of ignition coil parts not required .. (381)Imported as domestic

. . . . . . . . . . . . . . . . .

(372)Imported products-

Disclosure of origin-

Not required-Cashmere Sweaters. .

. . . . . . . .

Container for domestic product. . . . .Required-

Clock-radio components

. . . . . . . . . . . . . ..

(375)Locks. . . . . . . . . . . . . . . . . . . . . . . . . . .. (385)Magnetic recording tape. .

. . . . . . .

. (366)

Mail order advertising of panty hose.

. . . . . ..

(369)Optical lens systems

. . . . . ..

(372)Thread guides

. . . . . . . . . . . . . . . . . . . . ..

(364)Names of prospective purchasers, in exchange for gift-full dis-

closure of facts necessary. . . . . . .

. . . . . . . . .

Order cards , use of, in merchandise or direct mailingmaterial-approved

....................

.. (380)

Peat Moss-Pifine and Sedge " using misleading product name as (396)Pre-merger clearance granted for merger of privately owned

carpet tuftng machinery and equipment manufacturers .. (394)

Prices, misrepresenting. See Misrepresenting prices.Price competition, elimination of-possible with retail price

reporting plan. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

Price reporting plan, retail-possible price fixing !'nd eliminationof price competition. . . . . . . . .

. . . . . . . . . . . . . . . . .

Pricing system for replacement glass--pproved .........

Product standards-administration of and access to accreditationprogram. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Promotional allowances , discriminating in price through. See

Clayton Act , Sec. 2.

. ..

(370)(368)

. (362)

Page

1124

1118

1110

11161103

1120111411131106

11051105

110911161103110511061103

1102

11131123

1122

(395) 1122

(395) 1122(363) 1102

(350) 1093

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FEDERAL TRADE COMMISSION DECISIONS

ADVISORY OPINION DIGESTS

Promotional assistance plan, tripartite. See Clayton Act , Sec. 2,Qualities or results of product, misrepresenting as to:

Medicinal, therapeutic, healthful , etc. cigarette creasing

device. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. (377)Source or origin of product, mispresenting as to . (362) 1102 , (364)

(366) 1103 (368) 1105, (369) 1105, (370) 1105 (372)

(375) 1109 (376) 1110, (383) 1114 (385) 1116 , (389)(392) 1120 , (397)

Savings claims based on comparison with comparable merchan-dise-no opinion

. . . . . . . . . . . . . . . . . . . . . . .

Special discount package , one-time offer-no objection to

. . . .

Terms and conditions, misrepresenting as to- Bonus " offer.

Trade Association:Code of Conduct

,.. ...... ......,'.....

(373)Financial surveys.

. . . . , . . . . . . . . . . . . . . . ..

(359)12 Karat Gold Filed, " earrings , using misleading term as to

..

(371)Use of descriptive phrase combining machine manufacture and

hand finishing of furniture.

. . . . . . , . . , . . , . , . . . . ,.

(360)Using misleading product name or title:

Composition-Leather

.,.,....... ......,." .,..,.

Peat Moss-Pifine and Sedge

.'." ......

12 Karat Gold Filed"

.,....,....'." '.'.

Symbols and names having fur-bearing animal connotationsUsing term "hand-carved" to describe furniture

. , , . , . ,

Wholesaler-manufacturer relationship, freight saving as cost justi-fication-no objection.

, . . , . , . , . , . , . . , ..

(393)

(378)(384)(388)

(391 )(396)(371)(351)(353)

1147

Page

11101103110611181124

111111151117

110710991106

1100

11191123110610951096

1121

Page 23: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

Disclosure of origin of imported components used in fork lifttrucks. . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

Accreditation program for producers of concrete and concreteproducts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(350)Use of symbols and names having fur-bearing animal connotations

in labeling textie fiber products. . . . . . . . . . . . . . . . .. (351)Stereo tape cartridge club; consumer credit regulations will

apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .

Use of term "hand carved" to describe furniture. .

. . . . . . .

Tripartite promotional plan in the grocery field

. . . . . . . . .

Disclosure of origin of partly foreign-made textile products. .Tripartite promotional plan in the grocery industry. . .Supplier services furnished through third party. . . . . . . .

. .

Disclosure of foreign country where textile products areassembled. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trade association s proposed compilation and pu blication ofcertain financial data

. . . . . . . . . . . . . . . . . . . . . . . .,

(359)Use of descriptive phrase to describe furniture

. . . . . . . . .,

(360)Credit reporting plan by trade association

. . . . . . . . . . . ..

(361)Full disclosure of facts necessary when seller of one product makes

gift of another product to purchaser in exchange for names ofprospective purchasers

. . . . . . . . . . . . . . . . . . . . . . . .

Pricing of replacement glass for automobiles. . . . . . . . . . . .Origin disclosure of imported thread guides. . . . . . . . . . . .Request denied for approval to sell dairy company under

Commission order. .

. . . . . . . . . . . . . . . . . . . . . . . . .

Labeling of imported magnetic recording tape

. . . . . . . . . .

Tripartite promotional assistance plan. . . . . . . . . . . . . . . .Disclosure of origin of imported plastic vinegar bottles. . , , .Disclosure of foreign origin required in mail order

advertising. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Origin of cashmere sweaters

. . . . . . . . . . . . . . . . . . . . . .

Use of "12 karat gold filed" to describe earrings. . . . .

. . . .

Use of "Made in U. " label. . . . . . . . . . . . . . . . . . . . .Trade association code of conduct found unobjectionable. . .Trpartite promotional plan for larger supermarkets. . . . . . .

Made in U. A." label on clock-radios containing an importedcomponent. . . . . . . . . . . . . . . . . . . . . . . . . . . .

INDEX

ADVISORY OPINION DIGESTS'

*The numbers in parentheses indicate digest numbers.

1148

(349)

(352)(353)(354)(355)(356)(357)

(358)

(362)(363)(364)

(365)(366)(367)(368)

(369)(370)(371 )(372)(373)(374)

(375)

Page

1093

1093

1095

109510961096109710981098

1099

109911001100

110211021103

1103110311041105

110511051106110611071109

1109

Page 24: Federal Trade Commission Volume Decision 76 (July ......Cigarette Creasing Device (377) 1110 Clock Radios (375) 1109 Code of Conduct, Trade Asociation (373) 1107 Concrete and Concrete

FEDERAL TRADE COMMISSION DECISIONS

ADVISORY OPINION DIGESTS

Disclosure of foreign labor services performed on domesticallyproduced textile fiber products

. . . . . . . . . . . . .

Device for creasing cigarettes. .

. . . . . . . . . . . . . . . .

Savings claims based upon comparison with comparablemerchandise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. (378)

Refusal of alternatives in tripartite promotional assistance plan (379)Use of order cards in packages of merchanclse or in direct mailing

material. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., (380)Disclosure of origin of imported ignition coil parts

. . . . . ..

(381)Franchise agreement with fair trade price schedule

. . . . . ..

(382)Labeling ofleather gloves partly domestic and partly of foreign

origin

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(383)Special discount package price to new dealers. . . . . . . . . .. (384)Disclosure of origin of imported locks. . . . . . (385)Origin of imported brush for hair rollers (386)Tripartite promotional plan in the grocery field (387)

Bonus " portable typewrter offer. . . . . . . . .

. . . . . . . ..

(388)Disclosure of foreign assembly operations on ladies ' blouses (389)Offer of incentive bonus to customers. .

. . . . . . . . . . . . ..

(390)Labeling of products composed of ground leather and fabric. (391)Disclosure of origin of partly foreign-made foundation garments (392)Request for reconsideration of Advisory Opinion 333 ( 15. 333)

pertaining to wholesaler-manufacturer relationship; Freightsaving as cost justification. .

. . . . . . . . . . . . . . . . . . ..

(393)Approval for merger of privately owned carpet tufting machinery

and equipment manufacturers

. . . . . . . . . . . . . . . . . ..

(394)Retailer price reporting plan. . . . .

. . . . . . . . . . . . . . . ..

(395)Use of term "Peat Moss-Pifine and Sedge

" .............

(396)Origin of dresses partly made in United States aud Haiti (397)Advertising of hamburgers made of chuck and plate. . . . . .. (398)

1149

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