Snyder, Frank P

Text (OCR of the scan at left; may contain errors)

IN THE 1\:IA TTER OF FRANK P. SNYDER, TRADING UNDER THE NAME AND STYLE OF ALWAYS READY PRODUCTS COMPANY COMPLAINT (SYNOPSIS), FINDIKGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 DocTret 1411. Complaint, July !7, 1927-Deoi.!tion, Oct. 15, 1921 Where an individual engaged in producing a solution for use in electric soorage batteries, and ln the sale thereof to wholesala and retail dealers, purchasers, and members of the consuming public; in advertising the same, (a) llepresented and stated that It (1) would Instantly charge batteries, would do so in from 20 to 40 minutes, and without the induction of current from any other source, and when the batteries were "de<~d "; (2) would not injure, overheat or overcharge the battery or freeze; (3) would not rot or harm the separators thereof, but would keep the plates free from sulphation; ( 4) contained less sulphuric acid than other solutions on the market and in commt;m use and cnuscd less deterioration; and (5) in the foregoing and in other respects was superior to other solutions, the fact being that the solution in question would not charge batteries instantly, or at all without the induction of current from some other~ source, would freeze at temperatures frequently prevailing In various parts of the United States during the winter months, contained substantially the same amount and proportion of sulphuric acid as other solutions on the market and In common use, and in other respects produced results not substantially different from those of the other solutions;

(b) Made such statementd In circulars, leaflets, and printed matter describing said solution and distributed by him to wholesale and retail dealers and members of the consuming public as "Always-Ready battery solution soll'es the problem because 1t Is easy to use and comes ready for instant service. No longrr is it necessary to charge a buttery for two to four duys oil a line. • • • The modem battery Fluid. New life for your battery. Charges batteries quickly. No more long charging Oil the line", "Always Ready amazes automotive America. Charges batteries while you walt", "Remove battery from car, turn It upside down so as to empty all the liquid it contains. It is not necessary, but we advise washing the battery out with distilled wnter. Refill with 'Always Rl'ady • so that the platf>s are completely covered, let stand for ten minutes and if the plates are In even fair condition, the battery wlll be fully charged", "Frequently Always Ready wlll completely charge a l:lattery before you actually get it back Into the car and wired up " ;

With the capacity and tendency to mislead and deceive purchasers and dealers and cause the same and members ot the consuming public to purchase the solution In question In reliance upon the truth of the foregoing statements and representations, nnd with the effect of diverting business from and otherwise Injuring competitors who do not misrepresent the nature, effect, or ingredients of their solutions:

&00 ALWAYS READY PRODUCTS CO. 391 300 Complaint Held, That such false and misleading advertising, under the clrcnmstances set forth, constituted unfair methods of competition. lllr. E. J. Hornibrook for the Commission.

SYNOPSIS oF Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individuals, engaged in production of a battery solution for use on electric storage batteries, and in the sale thereof to wholesale and retail dealers, purchasers and members of the consuming public among the several States, and with principal place of business at 'Villiamsport, Pa., with advertising falsely or misleadingly in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce. Respondent, as charged, made the following statements, representations and advertisements, among others, concerning his said solution, namely, that it would instantly charge batteries, would charge them in from 20 to 40 minutes time, without the induction therein of electric current from any other source, would charge them when they were " dead," would not injure, overheat or overcharge the batteries, would not freeze, would not rot or harm the separators, would keep the plates free from sulphation, contained less sulphuric acid than other solutions on the market and in common use, caused less deterioration than caused by others, and in the foregoing and in other respects was superior to such other solutions; and in circulars and other matter distributed among whol~sale and retail dealers and the consuming public made statements of a similar tenor, such as" Refill with 'Always Ready' so that the plates are completely covered. Let stand for 10 minutes and if the plates are in even fair condition the battery will be fully ·charged," "Always Ready amazes automotive America. Charges batteries while you wait"; the fact being that the solution in question did not instantly charge batteries, would not charge them with electricity without induction of current from any other source, would freeze at temperatures frequently prevailing in various parts of the United States during the winter, contained substantially the same amount in proportion of sulphuric acid as other commonly used solutions, and produced results not substantially different from those produced by such other solution. Such false, deceptive and misleading statements and assertions, as charged, had the capacity and tendency to mislead and deceive purchasers and dealers, and to cause them and members of the consuming public to purchase respondent's solution in reliance upon the Finding!!! 11 F.T.C. truth of such statements, assertions and representations, and also had the tendency and the effect of diverting business from and otherwise injuring competitors who do not misrepresent the nature, effect and ingredients of their solution.

Upon the foregoing complaint the Commission made the following REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an act of Congress approved September 26, 1914, the Federal Trade Commission issued and served a complaint upon the respondent, Frank P. Snyder, trading under the name and style of Always Ready Products Co., on July 27, 1927, charging him with the use of unfair methods of competition in commerce in violation of the provisions of said act, together with notice that answer should be filed within 30 days after service of the complaint unless extended by the Commission, and with a copy of the rules of practice of the Commission as to answers (Rule III). Thereupon, this proceeding came on for decision, and respondent, having failed to answer within the time required by the rules (which has not been extended), or at all, and the Federal Trade Commission having duly considered the record and being now fully advised in the premises, pursuant to Rule of Practice III, subdivision 3, makes this its report, stating its findings as to the facts and conclusion: FINDINGS AS TO THE FACTS PARAGRAPH 1. Frank P. Snyder, the respondent herein, is an individual trading under the name and style of Always Ready Products Co., with his principal plaoe of business at \Villiamsport, in the State of Pennsylvania. He is engaged in producing a battery solution for use in electric storage batteries, and in the sale of such solution to wholesale and retail dealers, purchasers and members of the consuming public among the several States. Respondent causes such ~olution to be transported from his said place of business to purchasers, vendees and others at their respective places of business among the several States of the United States. PAT. 2. For the purpose of selling the solution so produced, the respondent devised and preparrd and now uses certain statements, representations, and advertisements concerning said solution, and caused and causes the same to be printed, published, distributed, and circulated among the several States of the United States. PAR. 3. Among the statements, representations, and advertisements so made and distributed by rel::pondent concerning said solution and its nature and effect, are the following:

ALWAYS READY PRODUCTS CO. 393 390 Findings That said solution will instantly charge electrical storage batteries with electric current; that it will charge such batteries in from 20 to 40 minutes time; that it will so charge such batteries without the induction therein of electric current from any other source or in any other manner; that it will charge such batteries when the same are ''dead," that is, when they will no longer produce electric energy; that said solution will not injure, overheat, or overcharge said batteries; that such solution will not freeze, and that it will not rot or harm the separators of such batteries and will keep the plates of such batteries free from sulphation; that said solution contains less sulphuric acid than other storage battery solutions on the market and in common use; that respondent's solution causes less deterioration in batteries than is caused by the use of other solutions for use in electric storage batteries; that in the foregoing and in other respects, respondent's solution is superior to other battery solutions upon the market and in common use.

PAR. 4. In the course of his business, as above described, respondent prepared certain circulars, leaflets, and other printed productions · describing said solution and the nature and ingredients thereof, together with assertions regarding the results to be obtained from its use. The respondent distributes such circulars, leaflets, and printed matter to wholesale and retail dealers and to members of the consuming public among the several States. In such circulars, leaflets, and printed matter, the respondent makes false, deceptive and misleading statements regarding such solution and its nature, effect and ingredients, and among such statements are the following: Always Ready uattery solution solves the pr<•blem because it is easy to use and comes ready for instant serrice. No longer Is it nece:ssary to charge a battery for two to four <lays on a line. • • • The modern battery fiuld. New life for your uuttery. Charges batteries quickly. No more long charging on the line.

Always Ready amazes automotive America. Charges batteries while you walt.

Remove battery from car, turn it upside down so as to empty all the liquid It contains. It Is not necessary, but we advise washing the battery out with dlstllled water. Refill with Always Heady so that the plates are completely ~:ov­ ered, let stand for 10 minutes, and if the plates are ln even fair condition, the battery will be fully charged.

Frequently Always Ready will completely charge a battery before you nctnally get 1t back into the car and wired up. P .AR. 5. The statements, representations, and advertisements described in paragraphs 2, 3, and 4 hereof, are false, deceptive, and misleading in the following and other respects, viz: Order 11 F. T. C.

Said solution does not instantly charge electric storage batteries with electricity; it will not charge such batteries with electricity without the induction of current from any other source; f)torage batteries in which said solution is used can be charged with electricity only by the induction of a current of electricity from a source other than said solution; said solution will freeze at temperatures frequently prevailing in various parts of the United States during the winter months; said solution contains sub,stantially the same amount and proportion of sulphuric acid in relation to the other contents thereof as other electric storage-battery solutions on the market and in common use; and as regards other assertions hereinabove set out, said solution produce,s results not substantially different from the results produced by other solutions on the market and in common use in electric storage batteries. PAn. 6. The false, deceptive, and misleading statements, assertions and advertisements hereinabove described have the capacity and tendency to mi,slead and deceive purchasers and dealers and to cause dealers and members of the consuming public to purchase the solution produced by the respondent in the belief that such statements, assertions and representations are true. Among the competitors of respondent are many persons who do not misrepresent the nature, effect and ingredients of the solutions prepared and sold by such competitors, and the false, deceptive, and misleading statements so made by respondent tend to and do divert business from re,spondent's competitors, and otherwise injure them. CONCLUSION That the facts and things done by the respondent, Frank P. Snyder, as set out in the above findings as to the facts, constitute 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 This proceeding having been heard by the Federal Trade Commission, and the Commission having made its findings as to the facts and its conclusion that respondent has· violated the provisions of the 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", ALWAYS READY PRODUCTS 00. 395 390 Order Now, therefore, it is ordered, That the respondent, Frank P. Snyder, his agents, servants, and employees, cease and desist- 1. From making either in advertisements, circulars, leaflets, or other printed form and from representing in any other manner, in connection with the sale of the battery solution manufactured by him for use in electric storage batteries, any of the following false statements, to wit, that such solution will instantly charge electric storage batteries with electric current; or that it will charge such batteries in from 20 to 40 minutes time; or that it will so charge such batteries without the induction therein of electric current from any other source or in any other manner; or that it will charge such batteries when the same are" dead", that is, when they will no longer produce electric energy; or that said solution will not injure, overheat, or overcharge said batteries; or that such solution will not freeze and that it will not rot or harm the separators of such batteries, and will keep the plates of such battery free from sulphation; or that said solution contains less sulphuric acid than other battery solutions on the market and in common use; or that said solution causes less deterioration in batteries than is caused by the use of other battery solutions on the market and in common use. 2. From making or using in circulars, leaflets, or other printed matter in connection with the advertising or sale of said battery solution, the following misleading statements; or other statements of similar import.

No long2r is it necessary to charge a battery for 2 or 4 days on a line. The modern battery tl.uid. New life for your battery. Charges batteries quickly. No more long charging on a line. Always Ready amazes automotive America. Charges batteries while you walt. Remove battery from car, turn it upside down so as to empty all the liquid it contains. It is not necessary, but we advise washing the battery out with distllled water. Refill with Always Ready so that the plates are completely covered. Let stand for 10 minutes and if the plates are in even fair condltlon, the battery will be fully charged. Frequently Always Ready will completely charge a battery before you actually get it back into the car and wired up.

It is further ordered, That the respondent, Frank P. Snyder shall within 30 days after the date of the service upon it of this order, file with the Commission his report in writing setting forth in detail the manner and form in which this order has been complied with and conformed to.

396 ]federal TRADE COl\UUSSION DECISIONS Syllalms 11 F. T. C.