P. A. Lefebvre & Co., LTD

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IN THg MATTER OF P. A~ LEFEBVRE & COMPANY, LIMITED, AND ZATIQUE LACOMB COMPLAINT, FI~DINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION· OF SEC. IS OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2993. Oompla€nt, Sept. 90, 1fJ96-Decislon, Nov. 20, 193G Where a corporation and an individual engaged in the manufacture, sale unl distribution of a product 11named "l\Iagic Gas," for mixing with gasoline or kerosene for use in internal combustion engines; in advertising the same in· pamphlet!!, and through labels attached to the containers thereof, and in· newspapers, periodicals, radio broadcasts, testimonials, placards, and otherwise- Falsely rept·esented that said product, thus mixed and used in the engines of motor vehicles, increased mileage' and preyented or removed and eliminated carbon and carbon troubles and improved starting, pickup, and power and performance, and increased economy and the life of the motor, and equalled gasoline at three cents a gallon, and solved the gasoline problem; With capacity and tendency to mislead and deceive purchasers of their said product into believing that when buying the same from them they were obtaining one that woul<l, when used by them, increase the efficiency of a motor vehicle, and that they were thereby gaining an advantage in the purchase of said product, and with effect of unfairly diverting trade to them from many competitors who make and distribute products that increase the efficiency of such vehicles and sell and distribute pt·oducts designated for similar usnge to that sold and distributed by them and do not misrepresent the capacities or effects thereof; to their sub:ltantiul injury and prejudice: 1Icld, That such acts nnd practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Mr. T.II. Kennedy for the Commission.

ColiiPI.AINT Pursuant to the provisions of an Act of Congress, approved September 26, 1914, entitled "An Act to create a Federal Trade Commission1 to define its powers and duties, and for other purposes," the Federal 'rrade Commission, having reason to believe that P. A. Lefebvre & Co:npany, Limited, a corporation, and Zatique Lacomb, hereinafter :referred to as respondents, have been and are using unfair methods ~f competition in commerce, as "commerce" is defined in said act of . 0~1gress, and it appearing to said Commission that a proceeding by lt In respect thereof will be in the public interest, hereby issues its complaint and states its charges in that respect as follows: • PARAGRAPH 1. The respondent P. A. Lefebvre & Company, Limited, ~~a corporation existing and doing business under and by virtue of e laws of the Dominion of Canada, having its principal place of Complaint 23F.T.C.

business at Alexandria, Ontario, Canada, and its manufacturing establishment and place of business for business transacted within the United States at l\falone, N. Y. Respondent Zatique Lacomb is an individual and at all times herein referred to has been and now is residing and maintaining his place of business at Malone, N. Y. Respondents, and each of them, during the five years last past have been engaged in the manufacture for sale and the sale of a product sold by the respondents under the trade name "Magic Gas" in commerce between and among the various States of the United States and the District of Columbia, and respondents and each of them causes and has caused said product, when sold by them to be transported in interstate commerce from their places of business in the State of New York and from other States of the United States and from the Dominion of Canada to purchasers thereof located in various States of the United States other than the State. of origin of the shipment or the Dominion of Canada and in the District of Columbia. PAR. 2. In the course and conduct of their said business, respondents and each of them are now, and they have been for more than five years last past, engaged in substantial competition with corporations, individuals, partnerships, and firms engaged in the manufacture for sale, sale, and distribution in commerce between and among the various States of the United States, with foreign countries and in the District of Columbia, of products used for purposes similar to the purposes for which respondents' "Magic Gas" is represented by respond· ents to be efficacious, and said competitors in interstate and foreign commerce have truthfully represented and now truthfully represent the properties, capacities and effects of their said products. PAR. 3. In the course and conduct of their said business as hereinabove described, respondents and each of them, in soliciting the sale of and selling in interstate and foreign commerce "Magic Gas," in advertising said products by pamphlets, labels attached to containers of the product, advertisements inserted in newspapers, periodicals and magazines, radio broadcasts, testimonials, placards, and other· wise, have made extravagant, deceptive, misleading, and false state· ments and representations regarding the value, efficacy, and effect of their said product, among which are the following: That "Magic Gas" when mixed with gasoline or kerosene and used in internal combustion engines in motor vehicles: (a) Inrreas~>s the mileagp of thp motor vehicle; (b) Prevents, removes or eliminates ft·om the motor, carbon, cnr!Jon knocl>9• and carbon troubles;

(c) 1\Iakes cars start and pick up easier or quicker and run better or smoother; d (d) Saves gasoline and oil, gives the engine more power; perfects ignition an lubrication and lessens odor nnd smoke;

P. A. LEFEBVRE & CO., LTD., ET AL. 987 985 Complaint (e) Will add to the life of the motor; increases the power of the motor; (f) Equals gasoline at 3¢ a gallon;

(g) Solves gasoline problem.

PAR. 4. In truth and in fact, respondents' representations and each of them as set forth in paragraph 3 hereof and respondents' advertisernents and representations in pamphlets, labels attached to containers of the product, newspapers, periodicals, magazines, radio broadcasts, testimonials, placards, and otherwise, are extravagant, deceptive, misleading, and false in the following respects: Respondents' product "Magic Gas" when mixed with gasoline or kerosene and used in internal combustion engines in motor vehicles Will not: increase the mileage of the motor vehicles; prevent, remove, or eliminate from the motor carbon, carbon knocks, or carbon troubles; Inake cars start and pick up easier or quicker or run better or smoother; save gasoline or oil; give engine more power; and perfect ignition and ~ubrication, or lessen odor or smoke; add to the life of the motor; lllcrease the power of the motor; result to the user in an equivalent of the cost of gasoline at the rate of 3¢ a gallon or any appreciable saving; or solve the gasoline problem.

PAR. 5. Respondents' advertising and representations hereinabove described have had and still have the tendency and capacity to mislead and deceive the purchasing public regarding the value, efficacy and effect of "Magic Gas," and further, as a direct consequence of the deceptive acts and representations of the respondents and the erroneous and mistaken beliefs induced by said acts as herein set out the Purchasing public has purchased respondents' "Magic Gas" with the result that trade has been unfairly diverted to the respondents from ~o~petitors engaged in the business of distributing or selling products tlesigned for similar usage who truthfully advertise and represent t le properties, capacities, or effects of their respective products and ;e results that may be expected to be obtained from the use thereof. 8 a result thereof, injury has been and is now being done by the respondents -and each of them to competition in commerce between ~~d am~ng the vari<.ms States of the United States, in the District of lurnha and in foreign commerce.

PAn. 6. The acts, practices and representations of the respondents ~nd each of them hereinabove set forth have been and are to the Injury and prejudice of the public and of the competitors of the respondents in interstate and foreign commerce, and have constituted and now constitute unfair methods of competition within the intent anu meaning of Section 5 of an Act of Congress, entitled "An Act to te a Federal Trade Commission, to define its powers and duties, for other purposes," approved September 26, 1914. Findings 23 F. T.D. REPORT, FINDINGS As TO THE FACTs, AND Onder Pursuant to the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Cornmission, to define its powers and duties, and for other purposes," the Federal Trade Commission, on September 30, 1936, issued, and on October 5, 1936, served its complaint in this proceeding upon respondents, P. A. Lefebvre & Company, Limited, a corporation, and Zatique Lacomb, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint, the respondents filed in the office of the Commission, and answer admitting all the ma· terial allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure. There· after, this proceeding regularly came on for final hearing before the Commission on the said complaint, aml the Commission having duly considered the same and being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Since in or about 1931, the respondent, P. A. J,e· febvre & Company, Limited, a corporation, has been organized and exi"ts as a corporation under the laws of the Dominion of Canada aml has maintained during aU of said time and now maintains ~ts principal place of business in the Dominion of Canada at AlexandrHt, Ontario, Canada, and has maintained at all times herein referred to and now maintains its principal place of business for business conducted within the United States, at Malone, N. Y. During all of said time the respondent, Zatique Lacomb, an individual, has maintained and now maintains his principal place of business at Malone, N. Y.

PAR. 2. Since said Hl31, respondents and each of them have been e.ngaged in tlle manufacture for sale and sale and distribution of .a. product sold by the respondents under the trade name of "Magic Gas." The respond('nts and each of them have sold this product to various firms, pei·sons, associations, or corporations located not only in the State of New York, but in other States of the United States, and after sales have been co11snmmated, the respondents and each of them have shipped the purchas('d goods or caused them to be shipped from the place of business of the respondents in 1\falone, N. Y., or from the place of business of P. A. Lefebvre & Company' P. A. LEFEBVRE & CO., LTD., ET AL. 989 gss Findings a corporation at Alexandria, Ontario, Canada, or from States in the United States other than the State of New York, to purchasers thereof located in States other than the State of New York or than the State of origin of the shipment.

PAn. 3. Respondents, and each of them, during all the time herein referred to, have represented that the said product "Magic Gas" is to be mixed with gasoline or kerosene for use in internal combustion engines in motor vehicles and that when so used, results will be achieved as hereinafter more fully set forth, which \vill Le greatly beneficial to the users thereof.

PAn. 4. During all of the time that respondents have Leen engaged in the foregoing business there have Leen other firms, associations, partnerships, or corporations engaged in similar business to that- -of the respondents, to wit: the sale and distribution of products which will benefit the users thereof in increasing the efficiency of the operation of motor' vehicles and said other firms, associations, partnerships, or corporations have been engaged in interstate commerce in said business. The respondents, during all of the aforesaid time, were and still are in competition in commerce in the sale of Sf!.id "Magic Gas" with other individuals, firms, and corporations likewise engaged in the sale and distribution of products having an dficacy similar to that claimed by the respondents for "Magic Gas." PAn, 5. In soliciting the. sale of their product, respondents have continuously, during all the aforesaid time, represented in advertising said product by pamphlets, lal>els attached to containers of the product, advertisements inserted in newspapers, periodicals and l11magazines, radio broadcasts, testimonials, placar<ls, and otherwise ~hat "Magic Gas" when mixed with gasoline or kerosene and used in ll1ternal combustion engines in motor vehicles, increases the mileage of the motor vehicle, prevents, removl's, or eliminates from the motor, c~rbon, carbon knocks, and carbon troubles, makes cars start and Plck up easier or quicker and run better or smoother, saves gasoline a_nd oil, gives the engine more power, perfects ignition and lubricatton, lessens odor and smoke, adds to the life. of the motor, increases the power of the motor, equals gasoline at 3¢ a gallon, and solves the gasoline problem. These repre:-entations have been made through advertising mediums and otherwise and caused by the respondents to be circulated in interstate commerce to their customers and prospective customers.

Par. 6. As a matter of fact, respondent's said product, "1\Iagic Gas," When mixed<l with gasoline or kerosene and used in internal com· bustion engines and motor vehicles, will not increase the mileage Conclusion 23F.T.C.

of the motor vehicles. Its use will not prevent, remove or eliminate from the motor, carbon, carbon knocks or carbon troubles. Its use will not make cars start and pick up easier or quicker, or run better or smoother and will not save gasoline or oil. It does not give the engine more power, perfect ignition and lubrication and lessen odor or smoke. Its use does not add to the life of the motor, increase the power of the motor or result to the user in an equivalent of the cost of gasoline at the rate of 3¢ a gallon or any appreciable saving, or solve the gasoline problem.

PAR. 7. There is a preference among purchasers or prospective purchasers of respondents' products, located in various States of the United States, for a product that will improve the efficiency of motor vehicles and each and every representation by the respondents with regard to "Magic Gas," describes a product that purchasers or prospective purchasers of respondents' product desire. The representations made by the respondents above referred to have the capacity and tendency to mislead and deceive the purchasers of respondents' product into believing that when purchasing said product from respondents, they will obtain a product that will, when used by them, increase the efficiency of a motor vehicle, and that such purchasers are thereby gaining an advantage by purchasing respondents' product.

PAR. 8. The representations of respondents as aforesaid, have had and do have the tendency and capacity to mislead and deceive a substantial number of the purchasers of respondents' product. PAR. 9. There are many competitors of respondents who manufacture and distribute products that increase the efficiency of motor vehicles and who sell and distribute products designated for similar usage to that sold and distributed by the respondents in various States of the United States, who do not misrepresent the capacities or effects of their products.

PAR. 10. Respondents' acts and practices as hereinabove set forth tend to and do unfairly divert trade to respondents from such competitors to the substantial injury and prejudice of such competitors. CONCLUSION The aforesaid acts and practices of the respondents, P. A. Lefebvre & Company, Limited, a corporation, and Zatique Lacomb, are to be prejudice of the public and of respondents' competitors, and constitute unfair methods of competition in commerce, within the intent and meaning of Section 5 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." P. A. LEFEBVRE & CO., LTD., ET AL. 991 985 Order ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis. sion upon the complaint of the Commission and the answer filed herein on November 5, 1936, by respondents, admitting all the rna· terial allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, and the Commission having made its findings as to the facts and its conclusion that said respondents have 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 ordered, That the respondent P. A. Lefebvre & Company, Limited, a corporation, its officers, representatives, agents and employees, and Zatique Lacomb, an individual, his representatives, agents, and employees, in connection with the offering for sale, sale, and distribution in interstate or foreign commerce or in the District of Columbia of a product designated "Magic Gas," or a product of the same or substantially the same composition as the product designated "Magic Gas," do forthwith cease and desist from representing, directly or indirectly, that said product, when mixed with gasoline or kerosene and used in internal combustion engines and motor ve· hicles, will :

(a) Increase the mileage of the motor vehicle; (b) Prevent, remove or eliminate from the motor carbon, carbon knocks and carbon troubles;

( o) Make cars start and pick up easier and quicker and run better or smoother;

(d) Save gasoline and oil, give the engine more power; perfect ignition and lubrication and lessen odor and smoke; (e) Add to the life of the motor; increase the power of the Inotor;

(f) Equal gasoline at 3¢ a gallon;

(g) Solve the gasoline problem.

It is further ordered, That the respondents and each of them shall, within 60 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 this order. 992 FEDERAL TRADE COMl\IISSiuS DEClSIONS Syllabus 23 F. T. C.