The Macey Company

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IN THE MATTER OF THE MACEY COMPANY COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPTEMBER 26. 1914 Docket !198. CompltJlnt, Dec. 19, 1999-order, lrlay 11, 199f Consent order requiring respondent corporation, in connection with the offer or sale of furniture in interstate commerce, to cease and desist from directly or indirectly advertising, describing, or designating furniture as walnut, the exposed parts of which, when placed in the generally accepted position for use, have for an outer ply or a face veneer, other wood or woods than walnut, or a combination of walnut with other wood or woods, or whose exposed solid parts consist of other wood or woods than walnut or walnut in combination with other wood or woods, unless such use of other wood or woods than walnut except in marquetries, inlays, or overlays is disclosed by apt and adequate words in Immediate connection with the word "walnut."

Mr. James M. Brinson for the Commission.

Complaint Acting in the public interest pursuant to 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", the Federal Trade Commission charges that The Macey Company, a corporation, hereinafter called respondent, has been and is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act, and states its charges in that respect as follows: PARAGRAPH 1. Respondent, The Macey Company, has been for several years last past and now is, a corporation organized, existing, and doing business under and by virtue of the laws of the State of Michigan, with its principal office and place of business at Grand Rapids in said State, engaged in the manufacture of sectional bookcases and office furniture, and its sale and transportation in commerce from its said place of business at Grand Rapids in the State of Michigan to purchasers in the various other States of the United States and in the District of Columbia. In the course and conduct of such business respondent has been and is in competition with individuals, partnerships, and corporations engaged in the sale and transportation of such class of furniture in like commerce. PAR. 2. It has been and is the practice of respondent, in the course and conduct of its business, to manufacture the broad parts, and 4772"--36--VOL19----4 Complaint 19F.T.C. the flat parts, of its furniture, such as tops of desks and tops, ends, and fronts of cabinet pieces, from panels of plywood which vary in thickness from 1 to 1% inches. These panels, or so-called plywood, consist of layers of gumwood, chestnut, or other wood of similar grade or adaptable to such use and purpose, attached with glue. Upon the outer layer, where exposed to view in the generally accepted position for use, there is glued a veneer of walnut 1/28th of an inch in thickness. There are in such panels either 3 or 5 layers, including the outer ply or veneer. Solid woods are used in the construction of legs, posts, stretchers, or those parts of the furniture usually known "'r described as solid parts. It has been and is the practice of respo.~dent to use, in the construction of many articles of such furniture, as the outer ply layer, or veneer, for surfaces exposed to view when the piece of furniture occupies the generally accepted position for use, a wood other than walnut, to wit, laurel, which resembles walnut in appearance.

PAR. 3. Such furniture has been and is offered for sale in the catalong of respondent distributed among dealers, sold, and invoiced by or under the description or designation of "walnut", whether the panels or broad or flat parts of such furniture consist of plywood veneered with walnut or plywood veneered partially with walnut and partially with laurel. Such furniture is so designated as " walnut " without any qualification, disclosure, or indication of any character by means of which dealers have been or are enabled to ascertain or learn that the furniture described or designated as "walnut " is actually furniture consisting of walnut and laurel veneered on other woods. Furniture so described as " walnut " by respondent to its dealers has been and is resold to the consuming public as and for " walnut ".

PAR. 4. There have been for many years last past and now are individuals, partnerships, and corporations, competitors of respondent, offering for sale and selling in interstate commerce sectional bookcases and office furniture described or designated as " walnut" which has in fact consisted and now consists of solid walnut, or of plywood whose various plies consist of walnut. There have been and are individuals, partnerships and corporations also offering for sale and selling in competition with respondent sectional bookcases and office furniture consisting of walnut veneered on other woods or on plywood truthfully described and designated as " walnut veneer". There have also been competitors of respondent and there are now competitors of respondent who offer for sale and sell as "walnut" sectional bookcases and office furniture consisting of MACEY CO. 33 31 Order walnut veneered upon plywood or other woods and whose outer or surface veneer contains no laurel, and is described as" walnut". PAR. 5. The above and foregoing practices of respondent have had and have and each of them has had and has the capacity and tendency to mislead and deceive the dealer customers of respondent into the belie£ that the articles of furniture offered for sale and sold by respondent described or designated as " walnut " are, or such parts of them as are exposed to view when the piece o£ furniture is in the generally accepted position for use, or their outer ply or surface veneer is, walnut, and to induce the purchase of such furniture in reliance on such erroneous belie£. The offering for sale o£ such furniture described and designated as stated in paragraph 3 has furnished and furnishes dealers among whom the catalog of respondent is distributed or who receive such description of said furniture from respondent or its agents and solicitors with the means to mislead and deceive the consuming public into the belief that the articles of furniture described by respondent as aforesaid, or such parts as are exposed for view when the piece is in the generally accepted position for use or their outer ply or veneer, consist of walnut.

The above and foregoing practices of respondent have had and have and each o£ them has and had the capacity and tendency to divert business to respondent from its competitors who offer furniture for sale in interstate commerce truthfully advertised and represented.

PAR. 6. The above and foregoing practices o£ respondent have been and are all to the prejudice of the public and to the respondent's competitors and have been and are unfair methods of competition in violation of the provisions of Section 5 of the Act approved September 26, 1914, entitled "An Act to create a Federal Trade Conunission, to define its powers and duties, and f·or other purposes." ORDER TO CEASE AND DESIST This proceeding having come. on to be heard upon the complaint and the amended answer of respondent wherein it waives hearing and right to contest the proceeding and consents in pursuance of the Rules of Practice (III. Answers, par. 2) that the Federal Trade Commission may make, enter, and serve upon respondent an order to cease and desist from the violations of the law alleged in the complaint and the Commission having considered the record and being :now fully advised in the premises, Order 19F.T.C.

It is orilereil, That respondent, the :Maoey Company, its officers, agents, and employees, in connection with offering for sale or selling furniture in interstate commerce, cease and desist, directly or indirectly:

From advertising, describing, or designating furniture as walnut, the exposed parts of which, when placed in the generally accepted position for use, have for an outer ply or a face veneer, other wood or woods than walnut, or a combination of walnut with other wood or woods, or whose exposed solid parts consist of other wood or woods than walnut or walnut in combination with other wood or woods, unless such use of other wood or woods than walnut except in marquetries, inlays, or overlays is disclosed by apt and adequate, words in immediate connection with the word" walnut"· CROXON, INC., ET AL. 35 Syllabus