Shure Co., N

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IN THE MATTER OF N. SHURE COMPANY COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. IS OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914. Docket 1827. Complaint, May 8, 1930-Deci.<Jion, July 7, 1930 Where a corporation engaged in the sale of various articles of merchandise, advertised as "Beacon Casco Indian Blankets", "Casco Indian Shawls" and "Oneida Indian Blankets", articles not made by American Indians but woven or knit by machinery in mills or factories, with the capacity and tendency to mislead, deceive, and confuse the purchasing public into believing the same to have been made by hand by Indians: Held, That such practices, under the circumstances set forth, were to the pt'ejudice of the public and competitors and constituted unfair methods ot competition.

Mr. Robert H. Winn 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 re- ~>pondent, an Illinois corporation, engaged in the sale of sundry articles of merchandise to purchasers in the various States, and with office and place of business in Chicago, with advertising falsely or misleadingly as to nature of manufacture of products dealt in, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce, in that in its advertising in its catalogues it falsely described the blankets and/or shawls, dealt in by it and woven or knit by machinery in mills or factories, as "Beacon Casco Indian Blankets", "Casco Indian Shawls", and "Oneida Indian Blankets", with the capacity and tendency to mislead and deceive the purchasing public into the belief that said articles had been woven or knit by American Indians, to the prejudice of the public and its competitors and in violation of the provision of section 51 as above set forth. Upon the foregoing complaint, the Commission made the following REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an net of Congress approved Sep· tember 26, 11?-14, ontitled "An act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes", t.he Federal Trade Commission issued and served its complaint 65042"--81-vol 14-12 . 178 FEDERAL TRADE COMMISSION DECISIONS Findings 14F.T.C.

upon the respondent, N. Shure Co., a corporation, charging it with the use of unfair methods of competition in interstate commerce, in violation of the provisions of said act. Respondent having entered its appearance and filed its written return and answer to the complaint herein, admitted therein substantially all allegations of such complaint, and alleged the cessation of the methods of competition charged in said complaint. In such answer respondent consented that the Commission should proceed upon such complaint and respondent's said written return and answer to make its findings as to the facts and such order as it may deem proper to enter therein, without the introduction of testimony or the presentation of argument in support of same. A.nu the Federal Trade Commission being now fully advised in the premises makes this its findings of the facts stated in the complaint and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS P .ARAGRAPH 1. Respondent is a corporation organized, existing, 1tnd doing business under and by virtue of the laws of the State of Illinois, with its principal office and place of business in the city of Chicago, in said State. It is now and for more than one year last past has been engaged in selling various articles of merchandise to purchasers thereof located in various States of the United States. It causes its said merchandise, when sold, to be transported from its place of business in the State of Illinois into and through other States of the United States to the purchasers thereof located in a State or States of the United States other than the State of Illinois. In the course and conduct of its business respondent is in competition with other corporations, partnerships, and individuals engaged in the sale and distribution of similar articles of merchandise in commerce between and among various States of the United States. PAn. 2. In the course and conduct of its business as described in paragraph 1 hereof, the respondent has been and is. now soliciting the sale of and selling and transporting in commerce, certain blankets and/or shawls described and advertised in catalogues published and issued by it and distributed to its customers and prospective customers located in variou~ States of the United States. The descriptive matter in such catalogues advertising the said blankets and/or said shawls, contain the representations that the said blankets ami/or ~:>hawls are:

n!'aron Ca!;CO Indian nlankets Casco .Indian Shawls Oneida Indian Blanket• N. SHURE CO. 179 177 Order when in truth and in fact, the said blankets and/or said shawls are. not manufactured by American Indians, but are made, woven, or knit by machinery in mills or factorie.".

PAR. 3. The use by the respondent of the phrases Beacon Casco Indian Blankets, Casco Indian Shawls, and Oneida Indian Blankets. to represent, designate, or describe and refer to its said products in the manner hereinbefore set out, has the capacity and tendency to mislead and deceive and to confuse the purchasing public into the belief that its said products so represented, designated, described, and referred to, are manufactured by hand by American Indians. CONCLUSION The practices of the said respondent, under the conditions and circumstances described in the foregoing findings, are to the prejudice of the public and of respondent's competitors, and constitute a 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 and considered by the Federal Trade Commission upon complaint of the Commission and the record, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions 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 ", It is is now ordered, That the respondent, N. Shure Co., a corporation, its officers, agents, and employees, in connection with the advertising. offering for sale, and selling in interstate commerce among the several States of the United States of blankets and shawls, do cease and desist from the use of the phrases, Deacon Casco Indian Blankets, Casco Indian Shawls, Oneida Indian Blankets, or any other phrase or word which would convey to the purchasing public the representation that the blanket~ andjor shawls are made by hand by American Indians, unless the said blankets and/or shawls are manufactured by hand by American Indians.

It is further ordered, That the respondent shall, within 60 days after the service upon it of a copy of this order, file with the Commission a report setting forth in detail the manner and form in which it has complied with the order to cease and desist hereinbefore set forth.

Complaint 14F.T. C.