Joseph L. Berk and Leon G. Berk, doing business under the Firm name and style of Berk Bros

Text (OCR of the scan; may contain errors)

COMPLAINT IN THE ALLEGED VIOLATION OF SECTION 5 OF AN ACT

OF CONGRESS APPROVED SEPTEMBER 26, 1914.

Docket 561---May 138, 1920.

SYLLABUS.

Where u firm engaged tn the sale of fountain pens printed upon the outside of the containers, “The Stuidard Self Filing Fountain Pen, $1.50," the fnet belng that such fountain pens were never sold for nore than 25 cents, and that the retafl price was not, nor wis intended to be, more than 25 cents; with the result that the trade and the purchasing publie were thereby misled; Held, That such false and mistending Iubeling, under the eireumnstunces set forth, constituted an unfair method of competition in Violation of sectlon 5 of the aet of September 26, O14. COMPLAINT, The Federal Trade Commission having reason to believe, from a preliminary investigation made by it, that Joseph L. Berk and Leon G. Berk, doing business under the firm name and style of Berk Bros., hereinafter referred to as the respondents, have been using unfair methods of competition in interstate commerce in violation of the provisions of section 5 of the act of Congress, approved September 26, 1014, entitled “An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes,” and it appearing that a proceeding by it in respect thereof would

Findings, 2F.7T.C, be to the interest of the public issues this complaint stating its charges in that respect on information and belief as follows:

Paracrari 1. That the respondents, Joseph L. Berk and Leon G. Berk, are copartners doing business under the firm name and style of Berk Bros., with their principal office and place of business located in the city and State of New York, now and at all times hereinafter mentioned engaged in the business of selling fountain pens throughout various States of the United States in direct competition with other persons, firms, and corporations similarly engaged.

Par. 2. That in the conduct of their business aforesaid, respondents sell and transport fountain pens to customers in different States of the United States, causing the same to pass through and into various States of the United States, and there is and has been at all times hereinafter mentioned a constant current of trade and commerce in such fountain pens between and among different States of the United States.

Pan. 3. That within the two years last past the respondents have sold in commerce aforesaid fountain pens in boxes or containers upon the outside of which was printed or stamped the words “ ‘Phe Standard Self-Filling Fountain Pen $1.50; that such fountain pens were never sold for more than 25 cents and the effect of such printing or stamping has been and is to mislead purchasers, the trade, and the general public into the behef that the retail price of such fountain pens is $1.50, when in truth and in fact it is never more than Zo cents.

REPORT, FINDINGS AS TO THE FACTS, AND

ORDER, The Federal Trade Commission having reason to believe that the above-named respondents, Joseph L. Berk and Leon G. Berk, doing business under the firm name and style of Berk Bros., have been and now are using unfair methods of competition in interstate commerce in violation of the provisions of section 5 of an act of Congress, approved Septem ber 26, 1914, entitled “An act to create a Federal Trade 877 Findings.

Commission, to define its powers and duties, and for other purposes,” and that a proceeding by it in that respect would be to the interest of the public, and fully stating its charges in that respect; and the respondents, Joseph L. Berk and Leon G. Berk, doing business under the firm name and style of Berk Bros., having filed their answer, admitting that all the allegations of said complaint and each count and paragraph thereof are true in the manner and form therein set forth, and consenting and agreeing that the Federal Trade Commission shall forthwith proceed to make and enter its report, stating its findings us to the facts and its conclusion, and its order disposing of this proceeding without the introduction of testimony or the presentation of argument: Therefore, the Federal Trade Commission now makes and enters this, its report, stating its findings as to the facts and its conclusion: ' FINDINGS AS TO THE FACTS, Paracrarn 1. That the respondents, Joseph L. Berk and Leon G. Berk are copartners, doing business under the firm Name and style of Berk Bros., with their principal office and Place of business located in the city and State of New York, Now, and at all times hereinafter mentioned, engaged in the business of selling fountain pens throughout the various States of the United States in direct competition with other Persons, firms, and corporations similarly engaged, Pan. 2. That in the conduct of their business aforesaid, respondents sell and transport fountain pens to customers ™ different States of the United States, causing the same to Pasy through and into various States of the United States, 8nd there is and has been at all times hereinafter mentioned § constant current of trade and commerce in such fountain Pens between and among the different States of the United States,

Par. 3. That for more than one year last past the respond- Sats have sold in commerce aforesaid fountain pens in boxes °Y containers upon the outside of which was printed or Stamped the words “The Standard Self-Filling Fountain ®h, $1.50". that such fountain pens were never sold for

Order. 2F.T.C. more than 25 cents, and the retail price of such fountain pens is not and is not intended to be more than 25 cents; that the effect of such printing or stamping on the boxes or containers in which the fountain pen is sold to the public has been and is to mislead purchasers, the trade, and the general public into the belief that the retail price of such fountain pen is $1.50, when in truth and in fact, it is never more than and is not intended to be more than 25 cents. ,

Par. 4. That the effect of the acts and practices in the manner and form above mentioned and set forth may be to hinder, harass, and embarrass competitors of the respondents in the conduct of their business, CONCLUSION, That the method of competition set forth in the foregoing findings of facts in paragraph 38 is under the circumstances therein set forth an unfair method of competition in interstate commerce in violation of an act of Congress approved September 26, 1914, entitled “An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes.”

ORDER TO CEASE AND DESIST, The Federal Trade Commission having issued and served its complaint herein, and the respondents, Joseph L. Berk and Leon G. Berk, doing business under the firm name and style of Berk Bros, having filed their answer, in) which they consented and agreed that the Federal Trade Commission shall proceed forthwith upon the same, and make and enter its report) stating its findings as to the facts, its cole clusions and its order, without the introduction of testimony and waiving ap and all right to require the introduction of testimony or the presentation of argument in support of the same. und the Federal Trade Commission having made and entered its report, stating its findings as to the facts and its conclusion, that the respondents have violated section 5 of an act of Congress, approved September 26, 1914, entitle “An act to create a Federal Trade Commission, to define 18