Westphalia Manufacturing Company, Inc.

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

IN THE MATTER OF WESTPHALIA MANUFACTURING COMPANY, INC., AND POLY CHEMICAL LABORATORIES, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 6 OF AN ACT OF CONGRESS APPROVED SEPT. 20, 1914 Docket 2566. Complaint, Oct. 2, 1935-order, Nov. 22, 1935 Consent order requiring respondent corporations, and each of them, their agents, etc., to cease and desist, directly or indirectly, In connection with offering for sale or selling in interstate commerce their cleaning tlulu, known and described as llid-0-Spot, from representing on labels affixed to the container or containers of such product, or in advertisements, oral, printed, or written, that Rid-O·Spot, when used for cleaning purpose» leaves no rings or that it removes all grease spots without injury to the most delicate fabric or color.

Mr. James M. Brinson for the Commission.

Co:r.rPLAINT 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 the 'Vestphalia :Manufacturing Company, Inc., a corporation, and the Poly Chemical Laboratories, Inc., a corporation, hereinafter designated as respondents, have been and are using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to said Commission that a proceed.ing by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent ·westphalia Manufacturing Company r Inc., 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 New Jersey.

Respondent Poly Chemical Laboratories, Inc., is also a corporation organized, existing, and doing business under and by virtue of the laws of the State of New Jersey.

The main offices and principal places of business of said respondent corporations are located at Jersey City in the State of New Jersey. Respondents are now and have for several years last past been engaged in the sale and distribution of a cleaning fluid which they have described and designated as "Rid-0-Spot", in commerce among and between the State of New Jersey and the various other States of the United States and the District of Columbia. It has been WESTPHALIA MANUFACTURING CO., INC., ET AL. 533 532 Complaint and is the practice of said respondent corporations to transport or cause said product to be transported when sold from their said place of business in the State of New Jersey to purchasers of such product located in the various other States of the United States. In the course and conduct of their business, said respondent corporations have been and were, and each of them has been and was, at all times mentioned herein, in competition with other individuals, partnerships, and corporations similarly engaged in the. sale and distribution in interstate commerce of cleaning fluids. PAR. 2. Respondents in the course and conduct of their said business, described in paragraph 1 hereof, have offered for sale and sold said cleaning fluid by means of false and misleading statements and representations to the effect that Rid-0-Spot is a cleaning fluid which leaves no rings and removes all grease spots instantly without injury to the most delicate fabric or color and other representations and statements to the same, equivalent, or similar effect. The following statements on the labels affixed to containers of their product are typical of the representations by which respondents sell their product:

RID-0-SPOT CLEANING FLUID Leaves No Rings. Removes all Grease Spots Instantly without injury to the most oellcate Fabric or color In truth and in fact, the use of respondents' said product on fabrics dyed with certain kinds of dyes, such as non-fast or fugitive dyes, does affect the colors of fabrics upon which said product has been used by causing them to bleed or run, as such effect is generally des~ribed in the trade. The use of said product on certain fabrics produces and leaves a ring, spot or mark, and such fabrics are in fact injured by the use thereon of such product. PAR. 3. There are now and for several years past have been inclividuals, partnerships and corporations offering for sale and selling in interstate commerce cleaning fluids for fabrics of all kinds. PAR. 4. The aforesaid representations of respondents are false, and each of them has had and has, and all of them have had and have, the capacity and tendency to mislead and deceive the public into the belief that they are true, and into the purchase of such product of respondents in reliance upon such erroneous belief. Such representations have had and have, and each of them has had and has, the capacity and tendency to divert trade to respondents from competitors offering for sale and selling cleaning fluids in interstate commerce.

PAR. 5. The above and foregoing practices of respondents have been and are, and each of them has been and is, to the prejudice of Order 21F.T.C.

the public and of respondents' competitors, and have been and are unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of an Act entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", approved September 26, 1914. ORDER TO CEASE AND DESIST Respondents herein, having filed their answer to the complaint in this proceeding, and having subsequently filed with this Commission their motion that they be permitted to withdraw said answer and that they be permitted to file in lieu thereof as a substitute answer the draft of proposed substitute answer submitted in connection with said motion, and the Commission having duly considered the said motion- It i8 hereby ordered, That the said motion be and the same hereby is granted'; that the said answer be and the same hereby is withdrawn and that the said proposed substituted answer be and the same hereby is filed in lieu of the said answer so withdrawn. And the said respondents, in and by their said substituted answer, state that they refrain from contesting the proceeding and consent that the Commission may make, enter and serve upon them and upon each of them, an order to cease and desist from the violations of the law alleged in the complaint, without hearing, without evidence, and without findings as to the facts or other intervening procedure, and the Commission being fully ad vised in the premises- It iB hereby further ordered, That respondents, 'Vestphalia Manufacturing Company, Inc., a corporation, and Poly Chemical Laboratories, Inc., a corporation, and each of them, their agents, employees, and representatives, and the agents, employees and representatives of each of them, cease and desist, directly or indirectly, in connection with offering for sale or selling in interstate commerce their cleaning fluid, known and described as Rid-0-Spot, from representing on labels affixed to the container or containers of such product, or in advertisements, oral, printed, or written, that Rid-0-Spot, when used for cleaning purposes leaves no rings or that it removes all grease spots without injury to the most delicate fabric or color. It i.~ further ordered, That the respondents shall within 30 days after the service upon them of this order file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist hereinabove set forth. · Al\IERICAN ARMY AND NAVY STORES, INC. 535 Complaint