Thomasville Chair Company

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IN THE MATI'ER OF THOMASVILLE CHAIR COMPANY COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ~ OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2589. Complaint, Oct. 18, 1935-order, Dec. 20, 1935 Consent order requiring respondent, its officers, etc., in connection with the advertisement, offer for sale, and sale in interstate commerce of household or other furniture, to cease and desist from- ( a) Advertising or in any other way representing, directly or by implication, that articles of furniture made or sold by it and not made from wood derived from trees of the genus Swietenla of the Meliaceae family, otherwise known as Mahogany, are "Mahogany" or "1\lah"; (b) Advertising or in any other way representing, directly or by implication, that articles of furniture made or sold by it and not made from wood derived from the genus Juglans, of the tree family known as Walnut or Juglandaceae, are "walnut" or "oriental walnut"; or (c) Using word "walnut", either independently or in connection or conjunction with word "oriental", or with any other word or words, in its advertising matter of whatever character, so ns to represent, import, imply, or have capacity or tendency to confuse, mislead or deceive purchasers into belief that said articles of furniture are made, either in whole or in part, from wood derived from trees of the Walnut or Juglandaceae family, when such is not the fact.

Mr. T. H. Kennedy for the Commission.

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 the Thomasville Chair Company, a 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 in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. Respondent is a corporation organized, existing, and doing business under and by virtue of the laws of the State of North Carolina, with its principal place of business at Thomasville in the State of North Carolina. Respondent is now and for a· number of years last past has been engaged in the manufacture of a general line of bedroom and dining room furniture and to some extent of other miscellaneous furniture lines and in the sale and distribution of said THOMASVILLE CHAIR CO. 681 680 Complaint products in commerce between and among the various States of the United States. In the course of its said business, respondent has at all times herein referred to, used and does now use the name of Finch Furniture Company along with its own corporate name in consummating its business transactions. Said Finch Furniture Company is a fictitious name applied by respondent to one of the divisions or departments of respondent's business. Respondent causes its said products when so sold to be transported from its said place of business in Thomasville, N. C., or other State of origin into and through other States of the United States to purchasers of said products. Respond- Ents customers are wholesale furniture dealers, furniture jobbers, and retail furniture dealers. In the course and conduct of its said business, respondent is in competition with other individuals, partnerships, and corporations engaged in the sale and distribution of similar products in commerce between and among various States of the United States.

PAR. 2. In connection with and in the conduct of its said business, respondent caused advertising matter, statements, invoices and other Writings to be distributed in interstate commerce among its customers and prospective customers situated in States other than the State of origin of such distribution, in which said writings certain of its prod. Ucts were represented, designated and referred to as "Solid Mahogany" and as "Mahogany" while other products were represented and designated as "Oriental ·walnut" and "'Valnut." Invoices listed said Products as "Mah." or as "'Val." and which products so advertised and invoiced were sold and shipped in interstate commerce; when in truth and in fact (a) said products designated "Mahogany" or ''Mah." were made of woods other than Mahogany wood and (b) said Products designated "Walnut" or "'Val." were made of woods other than walnut wood.

PAR. 3. By means of said designations and descriptions of its said Products as set forth in paragraph 2 hereof, respondent places in the hands of respondent's customers the means whereby said respondent's customers may corrunit a deception and fraud upon the purchasing public by enabling said respondent's customers to represent that said products are made of mahogany wood or of walnut wood respectively and display respondent's said designations and descriptions as evidence and confirmation of the truth of said representations. The aforesaid representations made by respondent have had the capacity and tendency to cause said respondent's customers to resell said products as and for furniture made of mahogany wood or Walnut wood and thus eventually cause the purchasing public to pur~ chase said products made of woods other than mahogany or of woods 682 ~'EDERAL TRADE COMMISSION DECISIONS Order 21 F. T. C. other than walnut in the belief that the articles so purchased are made of mahogany wood or walnut wood respectively. PAR. 4. There were and are among the competitors of said _respondent, Thomasville Chair Company, many who have dealt in and sold a~d who deal in and sell similar products to those herein referred to made of mahogany or of walnut who have rightfully and truthfully represented and who rightfully and truthfully represent their said products to be made of mahogany or walnut wood respectively and the above alleged acts and practices of the said respondent have tended to and do tend to divert and have diverted and do divert business from and have tended to and do tend otherwise to prejudice . and injure said competitors; and there were and are among the competitors of said respondent many who have dealt in and sold and who 1 deal in and sell similar products to those herein referred to not made of mahogany wood or walnut wood respectively and who have rightfully and truthfully represented and who rightfully and truth· fully represent said products not to be made of mahogany wood or walnut wood respectively; and the above alleged acts and practices <>f said respondent have tended to and do tend to divert and have diverted and do divert business from and have tended to and do tend to otherwise prejudice and injure said competitors. PAR. 5. The above alleged acts and practices of respondent have been and are all to the prejudice of the public and competitors of said respondent and constitute unfair methods of competition in 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 26, 1914.

ORDER TO CEASE AND DESIST This proceeding having come on for final hearing by the Federal Trade Commission upon respondent's answer waiving all further procedure and consenting that the Commission may make, enter and serve upon it an order to cease and desist from the unfair methods of competition charged in the complaint, and the Commission being fully advised in the premises, It is now ordered, That the respondent, Thomasville Chair Company, a corporation, its officers, agents, representatives, and employees, in connection with the advertising, offering for sale, and sale in interstate commerce of household or other furniture cease and . 'd es1st from: THOMASVILLE CHAIR CO. 683 680 Order (1) Advertising or in any way otherwise representing, directly or by implication, by advertisements, advertising literature, invoices, stickers attached to the articles of furniture, or in any manner or by any means whatsoever, that articles of furniture manufactured or sold by the respondent and not made from wood derived from trees of the genus Swietenia of the Meliaceae family, otherwise known as mahogany, are ".Mahogany" or "1\Iah."

(2) Advertising or in any way otherwise representing, directly. or by implication, by advertisements, advertising literature, invoices, sticker~ attached to the articles of furniture, or in any manner or by any means whatsoever that articles of furniture manufactured or sold by the respondent and not made from wood derived from the genus J uglans, of the tree family known as walnut or J uglandaceae, are "walnut" or "oriental walnut."

(3) Using the word "walnut" either independently or in connection or conjunction with the word "oriental'', or with any other word or words, in its advertising matter of whatever character, so as t() represent, import, imply, or have the capacity or tendency to confuse, mislead or deceive purchasers into the belief that said articles of furniture are manufactured, either in whole or in part, from wood ?erived from trees of the walnut or Juglandaceae family, when such 1s not the fact.

It is further ordered, That respondent, Thomasville Chair Company, shall, within 60 days from the date of service upon it of this order, file with the Commission a report in writing, setting forth the lllanner and form in which it has complied with the order herein set forth.

684 FEDERAL TRADE CO:\i.l\USSION DECISIONS Syllabus 21 F. T. C.