Farber Bros

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

IN THE MATTER OF LOUIS FARBER, TRADING AS FARBER BROS.

COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGF..D VIOLATION OF SEC. ri OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1914 Docket 2024. Complaint, Apr. 1, 199.'!-Dccision, Oet. 10, 19'92 Where an individual engaged in the manuf.acture of silver-plated hollow ware, chromium-plated hollow ware, pewter hollow ware, and other hollow .ware and clocks and other novelty jewelry, and in the sale and distribution thereof to wholesale and retail dealers, adopted and used the trade name " Sllvercraft" for his said products and featured the same in his advertisements and in catalogs, circulars, etc., and stamped and branded dials and backs of clocks and other products which neither contained silver nor were silver plated, but resembled silver in appearance, " Silvercraft"; with capacity and tendency to mislead and deceive purchasing public into believing said articles to contain some silver or to be silver plated, and induce the purchase thereof in reliance on such erroneous belief and divert trade from and otherwise injure competitors: Held, That such practices, under the circumstances set forth, were to the prejudice of the public and competitors and constituted unfair methods of 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 respondent individual, engaged in the manufacture of silver-plated hollow ware, chromium-plated hollow ware, pewter hollow ware, and other hollow ware and clocks and novelty jewelry, and in the sale of said products to wholesale and retail dealers, and with factory and principal place of business in New York City, with using misleading trade name, advertising falsely or misleadingly, and misbranding or mislabeling, 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, employs and features as a trade name for his products, the word "Silvercraft ", displaying said word promi· nently in advertising, advertising matter, catalogs, circulars, folders, letterheads, and business cards (many of which are used by retailers as an aid in selling the products to the consuming public), and causes said products to be stamped and branded with the aforesaid word, notwithstanding fact that many of the products so FARBER BROS. 69 68 Findings advertised, sold, distributed, stamped and branded contain no silver nnd are not silver plated.1 "The false, misleading, and deceptive statements and representations and stamping hereinbefore referred to," as alleged, " have the capacity and tendency to deceive and to mislead the consuming public into the belie£ that the products advertised for sale and sold with the word' Silvercraft' stamped thereon are composed of silver or are silver plated," and "use by respondent of the false, misleading, and deceptive statements and representations and stamping as heretofore set forth constitutes practices or methods of competition which tend to and do prejudice and injure the public and unfairly divert trade from and otherwise prejudice and injure respondent's competitors "; all to the prejudice of the public and competitors. 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 (38 Stat. 717) the Federal Trade Commis.sion issued and served a complaint upon the respondent, Louis Farber, trading as Farber Bros., charging him with the use o.£ unfair methods of competition in interstate commerce in violation of the provisions of said act. Respondent having entered its appearance and filed its answer to the complaint herein, a stipulation as to the facts in lieu of testimony wa,s entered into by the respondent and by counsel for the Federal Trade Commission and approved and accepted by the Federal Trade Commission as a stipulation of facts in lieu of testimony. Thereupon, this proceeding came on for final hearing on the brief of counsel for the Commission, counsel for respondent having 1 The complaint alleges use of said word by respondent In catalogs, circulars, etc., as follows:

(a) "SILVERCRAFT Dependability-Durability Sterling Quality (b) " • • • Today the House of Sllvercraft Is nationally known as being the lending manufacturer of quality 'Silver Plated Hollow Ware.' (c) "Each piece of Sl!vercraft Hollow Ware bears our Imprint, and can be sold with a positive assurance that quality bas been the first consideration In Its manufacture. (d) "• • • In the manufacture of articles having the Sllvercraft quality trade mark nickel sliver Is the base metal used. (e) "Futuro. The Hollow Ware of Tomorrow It Will Not Tarnish By the Makers of Sllvercraft "At Last! FUTURA The Hollow Ware of Tomorrow A sllverllke tarnish-proof • butler' finish hollow ware that fits perfectly into eny silver table service "

65419"-34-6 Findings 17l~.T.C. waived the filing of brief and the presentation of oral argument to the Commission. And the Commission having duly con,sidered the record and being fully advised in the premises makes this its findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Louis Farber is an individual trading under the name and style of Farber Bros., with his factory and principal place of bu,c:;iness located in the city o.f New York, in the State of New York. He is now and for more than one year last past hns been engaged in the manufacture of silver.-plated hollow ware, chromiumplated hollow ware, pewter hollow ware and other hollow ware, and clocks and novelty jewelry, and in the sale and distribution thereof in commerce between and among the various States of the United States, causing his said products when sold to be shipped from his place of busines.s in the State of New York to purchasers thereof located in a State or States of the United States other than the State of New York.

In the course and conduct of his business, Louis Farber was at all times herein referred to in competition with other individuals, and with firms, partnerships, and corporations engaged in the manufacture and in the sale and distribution in interstate commerce of similar products. Respondent confines the sale of his said products to wholesale dealers and to retail dealers and does not sell direct to the consuming public.

PAR. 2. In the course and conduct of his business as described in paragragh 1 hereof, respondent adopted as and for the trade name of his products the word "silvercraft ", and caused said word to appear prominently displayed in his advertisements and advertising matter distributed in interstate commerce, including catalogs, circulars, folders, letterheads, and business cards, many of which are to be used and are used by retail dealers as an aid in selling respondent's products to the consuming public. PAR. 3. In the course and conduct of his business, as described in paragraph 1 hereof, the respondent has caused catalogs, circulars, folders, letterheads, and business cards to be published and has distributed and caused to be distributed such catalogs, circulars, folders, letterheads, and business cards to retail dealers and to the consuming public. Such catalogs, circulars, folders, letterheads, and business cards are to be used and are used by retail dealers and by respondent as an aid in selling respondent's products to the consuming public.

FARBER BROS, 71 68 Findings PAR. 4. In the course and conduct of his business, as described in paragraph 1 hereof, respondent has caused his products to be stamped and branded with the word "silvercraft ", and so stamped and branded respondent offered for sale and sold and distributed said products to purchasers thereof located in various States of the United States other than the State of New York. The said products, so stamped and branded "silvercraft ", are subsequently offered for sale and sold by retail dealers who have purchased them from respondent or wholesale dealers, to the consuming public. PAR. 5. Many of the said products so advertised, sold, and distributed and stamped and branded with the word" silvercraft" contain no silver and are not silver plated, but resemble silver in appearance. PAR. 6. The use of the unqualified word "silvercraft" by respondent as a stamp or label on hollow ware containing no silver and not being silver plated but resembling silver in appearance has the capacity and tendency to deceive and mislead the purchasing public into the belief that the said hollow ware so stamped or labeled is silver or is silver plated.

PAR. 7. Respondent has labeled certain of his clocks with the word "Silvercraft" or the unqualified words "Silvercraft Alarm", such words being etched on the dial thereof. On the back of such clocks is stamped the word "Silvercraft." The frame, stand and back of such clocks are composed of a metal other than silver and not being silver plated, but resembling silver in appearance. The said clocks contain no silver and are not silver plated. PAn. 8. The use of the unqualified word "Silvercraft" or of the unqualified phrase " Silvercraft Alarm" by respondent as a stamp or label on clocks containing no silver, and not being silver plated, but having frames, stands or backs which resemble silver in appearance, has the capacity and tendency to deceive and mislead the purchasing public into the belief that certain portions of said clocks so stamped or labeled contain silver or are silver plated. PAR. 9. Respondent has stamped and branded certain of his toilet ware, candy boxes and sandwich trays with the word "Silvercraft." The said toilet ware, candy boxes and sandwich trays are gold plated and contain no silver and are not silver plated. PAR. 10. Respondent has labeled certain of his pewter hollow ware and pewter novelties with the word "Silvercraft" accompanied by the word "pewter" in letters equally as large and conspicuous. The said pewter holiow ware and pewter novelties contain no silver and are not silver plated.

PAR. 11. Respondent has not since prior to April 1, 1932, ths date of issuance of the complaint herein, stamped or labeled any Order 17 F.T.C.

of his chromium-plated hollow ware with the word "Silvercraft ". The chromium-plated hollow ware he is now manufacturing is l:itamped and labeled "Krome-Kraft."

PAR. 12. The acts and things done by respondent in representing, designating, and describing his merchandise composed of a metal resembling silver in appearance but containing no silver, and not being silver plated, as "Silvercraft ", unqualified by any word or words to designate the metal or metals of which such merchandise is composed as hereinabove set forth, have the capacity and tendcmcy to mislead and deceive the purchasing public into the erroneous belief that such merchandise resembling silver in appearance, but containing no silver and not being silver plated and stamped or labeled with the unqualified word" Silvercraft ",contains some silver or is silver plated, and tends to induce the purchase of respondent's products in reliance on such erroneous belief and to divert trade from and otherwise injure competitors of respondent. CONCLUSION The said practices of respondent as described in paragraph 12 of the foregoing findings and under the conditions and circumstances described in the foregoing findings are to the prejudice of the public and of respondent's competitors and are unfair methods of competition in interstate commerce and constitute a violation of an act of Congress approved September 26, 1914, entitled "An act to create n Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST This proceeding having been considered by the Federal Trade Commission on the complaint of the Commission, the answer of the respondent thereto, the stipulation entered into in lien of testimony and the brief of counsel for the Commission, the filing of brief and the presentation of oral argument having been waived by counsel for the respondent, and the Commission having made its findings as to the facts and its conclusion that respondent has been using unfair methods of competition in interstate commerce in violation of the provisions of section 5 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 now ordered, That the respondent, Louis Farber, his officers, agents, representatives, and employees in connection with the adver- FARBER BROS. 73 Order tising and offering for sale and sale in commerce between and among the various States of the United States of hollow ware, clocks, and novelty jewelry offered for sale and sold by respondent do cease and desist from directly or indirectly :

(1) Labeling, stamping, or advertising hollow ware resembling silver in appearance or clocks having frames, stands, or backs resembling silver in appearance but containing no silver and not being silver plated, as "Silvercraft ", unless the word "Silvercraft" is accompanied by a word or words equally conspicuous in type and position, stating the metal or material of which the said hollow ware or clock frames, stands or backs are composed. It is further ordered, That the respondent Louis Farber shall within 60 days after service upon him of a copy of this order file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with the order to cease and desist hereinabove set forth.

Complaint 17 F.T.C.