Drew Corporation

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

IN THE MATTER OF DREvV CORPORATION COMPLAIN'!' AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docl,;et 2180. Complaint, May 10, 1934-0rdm·, June 5, 1934 Consent order requiring respondent corporation, its officers, etc., in connection with the sale, offer for sale, or distribution in interstate commerce and the District of Columbia of flavoring extracts or other products, to cease and desist from the use of any word or words, statement, picture, or other means of representation, which represents or implies that such flavoring extracts or other products are imported or are prepared, compounded, and packaged abroad and imported into this country when such are not the facts.

Mr. Harry D. Michael for the Commission.

Mr. Joseph lV. Landes, of New York City, for respondent. Complaint 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, having reason to believe that Drew Corporation has been and is using unfair methods of competition in commerce, as " commerce " is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof, would be to the public interest, hereby issues its complaint, stating its charges in that respect as follows :

PARAGRAPH 1. That said respondent, Drew Corporation, is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York and has its office and principal place of business in the City of New York in said State. PAR. 2. That said respondent, Drew Corporation, is now and has been engaged for more than five years last past in the business of <'Ompounding flavoring extracts and other products, and in the sale thereof to retail dealers located in various States of the United States other than New York for ultimate resale to members of the purchasing public. That said respondent, in the course and conduct of its said business, causes its said products to be transported in interstate commerce from its said place of business in New York to, into, and through States of the United States other than New York, to the buyers thereof to whom or to which they are, or have been sold. PAR. 3. That during the time above mentioned, other individuals, firms, and corporations in various States of the United States are, and have been engaged in the manufacture, sale, and distribution in DREW CORPORATION 51 :10 Complaint interstate commerce of flavoring extracts of the same general kind as those compounded and sold by respondent as aforesaid, and such other individuals, firms, and corporations have caused and do now cause their said products, when sold by them, to be transported from various States of the United States to, into and through States other than the State of origin of the shipment thereof. Said respondent has been, during the aforesaid time, in competition in intrrstate commerce in the sale of its said flavoring extracts with Slll'h other individuals, firms, and corporations. PAR. 4. That respondent furnishes counter display cartons to purchasers of its said flavoring extracts for use in displaying the same to the purchasing public. That upon said display cartons the following expression appears in large and conspicuous lettering: Imported Flavors That upon the bottles in which said extracts are displayed and sold, respondent causes labels to be affixed upon which is the following wording:

Imported for Drew Corporation 5,16 Pearl Street New York That said bottles further bear labels upon which is imprinted a reproduction of what appears to be a .coat of arms with the following wording thereunder :

Milano Exporto Chemico That all of said representations indicate and imply to members of the public that said extracts are prepared, compounded, and packaged abroad and imported into this country. PAn. 5. That in truth and in fact, said products are not imported and are not prepared, compounded, and packaged abroad, but are prepared, compounded, and packaged by respondent in this country at its place of business in New York. That said representations and implications are untrue and are not founded on the true facts. PAR. G. That the representations of respondent, as aforesaid, have the tendency and capacity to confuse, mislead, and deceive members of the public into the belief that respondent's said preparations are imported and are prepared, compounded, and packaged abroad when in truth and in fact such is not the case. That many members of the purchasing public prefer to buy imported merchandise and labor under the belief that goods produced abroad are superior to those p~oduced in this country, said belief prevailing especially in regard to extracts and the like. That said representations of respondent ·have the tendency and capacity to induce members of the public to Order 19F.T. C.

buy and use its said products because of the erroneous belief engendered as above set forth, and to divert trade to respondent from competitors engaged in the ::.ale in interstate commerce of flavoring extracts of the same general kind and of those intended and used for the same purposes as those of respondent. PAR. 7. The above acts and things done by respondent are all to the injury and prejudice of the public and the competitors of respondent 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", approved September 2G, 1914.

ORDER TO CEASE AND DESIST Pursuant to the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", the Federal Trade Commission, on the tenth day of ~lay, 1934, issued its complaint against Drew Corporation, respondent herein, and caused the same to be served upon respondent as required by law, in which complaint it is charged that respondent has Leen and is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act. On May 22, 1934, said respondent filed herein an answer in writing to saifl complaint, electing to refrain from contesting this proceeding and consenting to the issuance of an order to cease and desist from the practices set forth in the complaint herein. Thereafter this proceeding came on regularly for disposition and llecision by the Commission under subdivision (2) of Rule III of the Rules of Practice and Procedure adopted by the Commission, and the Commission being fully advised in the premises: It i8 ordel'cd, That respondent, Drew Corporation, its officers, directors, agents, representatives, servants, and employees in connection with the sale, offering for sale, or distribution in interstate commerce and the District of Columbia of flavoring extracts or other products, cease and desist from the use of any word or words, statement, picture, or other means of representation, which represents or implies that such flavoring extracts or other products are imported or are prepared, compounded, and packaged abroad and imported into this country when such are not the facts. It i8 furtlter ordered, That respondent, within 60 days from and after the date of the service upon it of this order, shall file with the Commission a report in writing, setting forth in detail the manner and form in which it is complying with the order to cease and desist hereinabove set forth.

CALIFORNIA ALFALFA PRODUCTS CO. 53 Complaint