Morris Heller

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

IN THE MATTER OF MORRIS HELLER, INDIVIDUALLY, AND TRADING AS VENICE IMPORTING CO.

COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. I! OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2014. Complaint, Oct. 25, 1932-Decision, Jan. 25, 1933 Where olive oil from Italy had come to be known among a substantial number of users and consumers and merchants and dealers as superior in quality and flavor to all other, and that from the world olive oil center, Lucca, had similarly become known for its fine quality and delicate flavor; and thereafter an individual engaged in sale and distribution of said product to retall grocers, advertised same as " Imported from Lucca, Italy ", "Im· portato de Lucca Italia ", "Reginella Brand Choice Pure Olive Oil", notwithstanding fact it had no Italian origin; with capacity and tendency to mislead and deceive substantial numbers of dealers and consuming public into purchasing said oil as and for one imported from Italy: Held, That such practices, under the conditions and circumstances set forth, were all to the prejudice of the public and competitors, and constituted unfair methods of competition.

Mr. Henry 0. Lanlc for the Commission.

Mr. Charles F. Jhtrpny, of New York City, for respondent. 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 as Venice Importing Co., in the sale and distribution of olive oil to retail grocers in States other than New York, and with principal office and place of business in Brooklyn, with advertising falsely or misleadingly as to source or origin of product, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce; in that respondent sells olive oil having no Italian origin, under the designations "Imported from Lucca, Italy", "Importato de Lucca !tali a", "Reginella llrand Choice Pure Olive Oil"; with the capacity and tendency to mislead and deceive substantial numbers of retail grocer dealers and the consuming public into buying such oil as and for olive oil imported from Italy, preferred for its superior quality and flavor and especially in the case of that from the great olive oil center-Lucca-to other oils, and with the further tendency to and effect of prejudicing and injuring the public, unfairly diverting trade from and otherwise prejudicing and injuring competitors, and operating as a restraint upon and a detriment to 65410°-34-15 214 FEDEP..AL TRADE COMMISSION DECISIONS Findings 17F.T.C.

the freedom of legitimate and fair competition in the business of marketing olive oil.

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, 1D14, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", the Federal Trade Commission on October 25, 1932, issued its complaint against Morris Heller, individually, and trading as Venice Importing Co., hereinafter referred to as respondent, and on October 26, 1932, caused the said complaint to be served upon respondent as required by law, in which complaint it was charged that respondent was using unfair methods of competition in interstate commerce in violation of the provisions of said act. Dy notice contained in said complaint respondent was notified and required to file with the Commission an answer to said complaint on or before the second day of December, A.D. Hl32 (the same being more than 30 days after the service of said complaint) unless said time be extended by order of the Commission and in said notice respondent was further notified of the provisions of the Commission's rules of practice with respect to answer and failure to answer, said provision being set forth in haec verba in said notice and providing in part as follows (Rule III, sub. div. 3):

Failure of the respondent to appear or to file answer within the time above provided for shall be deemed to be an admission of all allegations of the complaint and to authorize the Commission to find them to be true and to waive hearing on the charges set forth ln the complaint. Respondent has not at any time caused his appearance to be entered in this proceeding nor has he at any time made or filed answer to said complaint. He has at no time requested that the time within which he might file answer be extended nor has the Commission granted any such extension of time.

Thereupon this proceeding came on for final hearing and the Federal Trade Commission acting pursuant to said act of Congress and its aforesaid rules of practice having duly considered the record and being fully advised in the premises makes this its report in writing stating its findings as to the facts and conclusion drawn therefrom:

FINDINGS AS TO Tile FACTS PARAGRAPH 1. Respondent, Morris Heller, is an individual and trades under the name Venice Importing Co. Respondent maintains his principal office and place of business in the city of Brooklyn, VENICE ll\1PORTING CO. 215 213 Findings State of New York. He is and for more than two years last past has been engaged as hereinafter described in the business of selling and distributing olive oil to retail grocery dealers located in States other than the State of New York. In consummating such sales and in distributing said merchandise, respondent causes the olive oil so sold to be transported and delivered from his place of business in the city of Brooklyn, State of New York, through and into various other States of the United States to the respective purchasers thereof at their several points of location. At all times herein mentioned, there have been and are many individuals, partnerships and corporations engaged in the sale and distribution of olive oil to retail grocery dealers in commerce in, between and among the several States of the Unitel States. Respondent has been and still is conducting his said business of selling and distributing in interstate commerce olive oil in direct, active competition with said individuals, partnerships, and corporations.

PAn. 2. In the sale and distribution of his olive oil to retail grocery dealers as hereinabove described, respondent has caused and still causes large and substantial quantities of his said olive oil to be advertised, offered for sale, sold and distributed under the designations, de<;criptions, and representations as follows: "Imported from Lucca, Italy", '· Importato de Lucca Italia ", "Reginella Brand Choice Pure Olive Oil."

The designations, descriptions, or representations imported from Lucca, Italy, importato de Lucca Italia, mean to the retail grocery dealers and the consuming public that the olive oil so designatedt described, and represented was imported from Lucca, Italy. The Word " Reginella " being of Italian origin means to the retail grocery dealers and to the consuming public that the olive oil so designated, described, and represented is from Italy.

PAn. 3. The said olive oil designated, described, and represented' and marketed by respondent as imported from Lucca, Italy, importato de Lucca Italia, Reginella brand choice pure olive oil, was: not imported from Lucca, Italy, and had no Italian origin. PAn. 4. Olive oil imported from Italy has come to be known among a substantial number of the users and consumers o£ olive oil and among merchants and dealers in olive oil as being of a superior quality and flavor to all other olive oil. Lucca, Italy, is one of the largest olive oil centers in the world and the olive oil produced there and imported from there has become known among a substantial number of the users and consumers of olive oil and among merchants and dealers in olive oil for its fine quality and delicate flavor.

Order 17 F.T.C.

PAR. 5. Respondent's tlse of the words and phrases " Imported from Lucca, Italy"," Importato de Lucca Italia "," Reginella brand choice pure olive oil", in designating, describing and representing and offering for sale and selling his said olive oil as described in paragraph 2 hereof is false, misleading, and deceptive and has the capacity and tendency to mislead and deceive substantial numbers of retail grocery dealers and of the consuming public into purchasing said olive oil in the erroneous belief that said olive oil was imported from Italy.

CONCLUSION The above alleged acts and practices of respondent are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in interstate commerce within the intent and meaning of section 5 of an act of Congress 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 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 now ordered, That the respondent :Morris Heller, individually and trading as Venice Importing Co., his agents, representatives, and employees in connection with the sale or offering for sale of olive oil in interstate commerce do cease and desist from using the following words, phrases, statements, or representations or any of them or any words, phrases, statements, or representations of like effect: (a) Imported from Lucca, Italy;

(b) Importato de Lucca !tali a;

unless or until respondent's olive oil is in fact imported :from Lucca, Italy.

It is further ordered, That the respondent Morris Heller, individually and trading as Venice Importing Co. shall, within 60 days after the service upon him of a copy of this order file with the Commis- :sion 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.

THE ARMAND CO., INC., ET AL. 217 Syllabus