Lewin, Joseph

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IN THE MATTER OF .JOSEPH LEWIN, TRADING AS LEEV-NO-RING CHEMICAL CO~IPANY CO:Vll'LAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2921. Complaint, Sept. 17, 19.'16-Decision, Feb. 11, 1987 Where an individual, engaged In preparation of cleaning ftuid, and offer and sale thereof- Caused his trade name, ineludiug words "Leev-No-Ring" to appear on labels affixed to containers of his product, and featm·ed same in circulars, folders, llnd other forms of printed mutter published and rlrculated by him among the general public, and rl'presentPd that his said ftnlds could be used safely nnd without injury to the most delicate fabrics or materials, and would remove all grease spots instantly and without injury to such fabrics, and would not in any instance leave a ring, facts being his said product, used on fabrics dyed with non-fast or fugitive dyes, did affect colors thereof by causing same to hlePd or run, rmd In case of certain fabrics '\ ,. did IPave appcararwe of a mark Ol' ring thereon; \ lth car1ac!ty and tendency to mislead and deceh·e purchasers and pro:-;pectlve Purcilasers tlwreof into belief that said fluids could be used safely and Without injury and with results claimed therefor, as above set forth, and to Induce purel111se of his snill prouucts in such erroneous beliefs, and with effcet of thcrphy uirPrtiug trade to him from competitors, including those Who, as manufacturers, compounders, sellers, and distributors of like and similar produds, truthfully advertise and represent the nature, merit, and Value of their rPspectlve products, or do not advertise and represent that the same have merit or value whi(·h they <lo not possess; to the substantial injury of competition in commerce:

1 tell, 'that such ads and vrnctices were to the prejudice of the pul1lic and compt'titors, an<l con~titutetl unfair nwtholls of comrwtltion. Before rjr. lV. lV. Sltep pard, trial examiner. 11/r. Joseph 0. Feltr for the Commission.

1IIr. Olyde L. Rogers, of Washington, D. C. and lllr. David S. ilndron, of New York City, for respondent. Co.Mll\INT Pursuant to the provisions of an Act of Congress approved Sep- 1 ~tnber 2G, 1914, entitled "An Act to create a Federal Trade Commts- Slon, to define its powe.'rs and duties, and for other purposes, "the Fed- ~ral Trade Commission having reason to believe that Joseph Lewin ,~as been and is using unfair methods of competi.tion in c?mmerce .as ~llltnerce'' is defined in said act, and it appeanng to s:nd Comnus- 81011 that a proceeding by it in respect thereof would be in the public 754 FEDERAL TRADE COl\11\IISSION DECISIONS Complaint 24F. T. C.

interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. .Joseph Lewin, hereinafter refprred to as respondent, is an individual trading as LPev-No-Ring Chemical Company, having his office and principal place of busi1~ess located at 207 West 17th Street, in the city of New York, in the State of New York. Respondent for more than one year last past has been, and still is, engaged in the preparation of Cleaning Fluids and offering said products for sale and selling the same, in commerce between the State of New York and the several States of the United States and in the District of Columbia. When said products are sold, respondent transports or causes the same to be transported from his place of business i.n the State of New York to the purchasers thereof located in States of the United States other than the State of New York and in the District of Columbia. There has been for more than one year last past, and still is, a constant current of trade and commerce in said products so compounded by respondent, between and among the various States of the United States and in the District of Columbia. Respondent is now and for more than one year last past has been in substantittl competition with other individuals, and with partnerships, corpora· tions, and firms engaged in the manufacture nnd compounding of like and similar products and in the sale thereof in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of his business, as aforesaid, the respondent, in soliciting the sale of and selling his cleaning fluids and for the purpose of creating a demand upon the part of the con· suming public for said products, adopted as and :for a trade name under which to carry on business the words, "Leev-No-Ring Chemical Company." Respondent causes and for more than one year last past has caused said trade name containing the hyphenated words "Leev-No-Ring" to appear on labels affixed to the containers of his products. Said trade name is also featured in circulars, folders, and other forms of printed matter relating to such products which respondent issues, publishes, and circulates and has issued, published, and circulated to and among the general public of the United States. The respondent makes and has made to the general public many other unfair, false, and misleading statements with reference to the value and merits of his said products, a portion of which are as follows: LEEV-NO-RING The Perfect Cleaning Fluid NON-INJURIOUS To The l\{ost Delicate Materials.

LEEV-NO-RING is !lnfe on silks and artificial silks as well ns on all delicate tabrles. Dries thoroughly leaving NO-RING. LEEV-NO-RING CHEMICAL CO. 755 753 Complaint Removes all grease spots instantly without injury to the most delicate fabric. Wlll not injure the most delicate fabrics. PAn. 3. The statements and representations set forth in paragraph 2 hereof have the capacity and tendency to mislead and deceive Purchasers and prospective purchasers of respondent's products into the belief:

(a) That the respondent's cleaning fluids can be used safely and Without injury to the most delicate fabrics or materials; (b) That respondent's cleaning fluids when used will remove all grease spots instantly without injury to the most delicate fabrics; (c) That the respondent's cleaning fluids when used will not in any instance leave a ring;

Whereas, in truth and in fact, respondent's said products when used 0.n fabrics dyed with certain kinds of dye, such as non-fast or fugitive dyes, does affect the colors of such fabrics by causing the same to bleed or run. Nor is it true, as represented, that the use of respondent's said products on certain fabrict> does not result in the ~Appearance of a mark or ring on such fabrics. I11 truth and in fact, 111 either or in both of these ways such fabrics are in fact injured by the use of respondent's said products thereon . . PAn. 4. There are among the competitors of the respondent in 1~ltcrstate commerce manufacturers, compounders, and distributors of hke and similar products who truthfully advertise and represent the nature, merit, and value of their respective products. There are also an:tong such competitors of the respondent manufacturers com- Pounders and distributors of like and similar products who do not advertise and otherwise represent that such products have merit or l'value which they do ·not have.

PAn. 5. The above alleged acts and practices of respondent have the capacity and tendency to mislead and deceive purchasers and Prospective purchasers into the erroneous beliefs described in paragraph 3 hereof and into the purchase of respondent's products in such beliefs. Thereby trade is diverted by respondent from respondent's competitors in interstate commerce referred to in paragraph 4 and as a consequence thereof substantial injury is done by respondent to competition in interstate commerce .

. PAR, 6. Said acts and practices of respondent are all to the prej~­ dice of the public and respondent's competitors, and constitute un~a1r ltlethods of competition in commerce within the intent and meamng of Section 5 of an Act of ConO'ress entitled "An Act to create-~ l1'ederal Trade Commission to a:fine its powers and dutie.s, and for other purposes," approved September 26, 1914. 756 FEDERAL TRADE COl\Il\IISSION DECISIONS Findings 24 F. T. C. REPORT, FINDINGS AS TO Tile FACTS, AND ORDER 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 September 17, 1936, issued, and on September 21, 1936, served its complaint in this proceeding upon respondent, Jost>ph Lewin, charging him with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer, the Conunission, by order entered herein, granted respondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, which substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and the substitute answer briefs and oral arguments of counsel having been waived, and 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 dmwn therefrom: FINJliNGS AS TO THE FACTS PARAGR.\PII 1. Joseph Lewin, hereinafter referred to as respondent, is an individual trading as Leev-No-Ring Chemical Company. His office and principal place of business is located at 207 West 17th Street, in the dty of New York, in the State of New York. For moro than ·one year last past he has been, and still is, doing business under the name and style of Leev-No-Ring Chemical Company. In the operation of this business he has bet>n and is engaged in the preparation of cleaning fluids and offers and has offered said products for sale and sells same in commerce between the State of New York and the severn! States of the United States, and in the District of Columbia.

'Vlwn said products are sold, respondent transports or causes the same to be transported flom his place of business in the State of New York to purchasers thereof located in States of the United States other than the State of New York, and in the District of Columbia. There has been for more than one year last past, and there still is, a constant c·urrent of trade and commerce in said products so compounded by respondent, between and among the various States of the United States, and in the District of Columbia. Respondent is now, and for LEEV-NO-RING CHEMICAL CO. 757 753 Findings more than one year htst past has been, in substantial competition With other individuals, and with partnerships, corporations, and firms engaged in the manufacture and compounding of like and similar products and in the sale thereof in commerce between and among the Various States of the United States, and in the District of Columbia. PAR. 2. In the course and conduct of his business, as aforesaid, the respondent, in soliciting the sale of and selling his cleaning fluids and for the purpose of creating a demand upon the part of the consuming public for said products, adopted as and for a trade name Under which to carry on business the words, "Leev-No-Ring Chemical Company." &spondent causes and for more than one year last past has caused said trade name containing the hyphenated words "Leev- No-Using" to appear on labels affixed to the containers of his product. Said trade name is also featured in circulars, folders, and other forms of printed matter relating to such products which respondent issues, Publishes and circulates and has issued, published, and circulated to and among the general public of the United States. The respondent n 1~kes and has made to the general public many otller deceptive aml misleading statements with reference to the value and merits of his said products. Among the claims thus advertised by respondent for the purpose of inducing members of the public to purchase his Products, are the following:

LEEV-NO-HING Tile Perfect Cleaning F'luitl NON-INJUHJOUS To The l\lo~t be lieu te l\Ia terials.

LEEV-NO-HING is safe on silks ami artificial silks as well as on all (lelicale fabrics. Dries thoroughly leaving NO-lung. Ilemoves all grease spots instantly without injury to the most delicate fabt·ic. Wm not Injure the most delicate fabrics.

PAn. 3. The statements and representations set forth in paragraph 2 hereof have the capacity and tendency to mislead and deceive purchasers and prospective purchasers of respondent's products into tho belief:

. (a) That the respondent's cleaning fluids can be used safely and \VIthout injury to the most delicate fabrics or materials; (b) That respondent's cleaning fluids when used will remove all grease spots instantly without injury to the most delicate fabrics; . (c) That the respondent's cleaning fluids when used will not in any Instance leave a ring;

f In_ truth and in fact, respondent's said products when used on dabr1cs dyed with certain kinds of dye, such as non,fast or fugitive bYes, does affect the colors of such fabrics by causing the same to l~ed or run. Nor is it true, as represented, that the use of respondent's said products on certain fabrics does not result in the appearance of Order 24F.T.C.

a mark or ring on such fabrics. In truth and in fact, in either or in both of these ways such fabrics are in fact injured by the use of respondent's said products thereon.

PAR. 4. There are among the competitors of the respondent in commerce as herein set out, manufacturers, compounders, sellers and distributors of like and similar products who truthfully advertise and represent the nature, merit, and value of their respective products. There are also among such competitors of the respondent, manufac· turers, compounders, sellers and distributors of like and similar products who do not advertise and otherwise represent that such products have merit or value which they do not have. PAR, 5. The above alleged acts and practices of respondent have the capacity and tendency to mislead and deceive purchasers and prospective purchasers into the erroneous beliefs described in para· graph 3 hereof and into the purchase of respondent's products in such beliefs. Thereby trade is diverted by respondent from respond· ent's competitors in interstate commerce referred to in paragraph 4 and as a consequence thereof substantial injury is done by respond· ent to competition in interstate commerce. CONCLUSION The aforesaid acts and practices of the respondent, Joseph J ~ewin, . are to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in commerce, within the intent and meaning of Section 5 of an Act of Congress, approved September 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes." ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Com· mission upon the complaint of the Commission and the answer filed herein, dated January 26, 1937, by respondent, admitting all the. material 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 respondent has 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, Joseph Lewin, trading as Lee~­ No-Ring Chemical Company, his representatives, agents, and em· LEEV-NO-RING CHEMICAL CO. 759 753 Order Ployees, in connection with the offering for sale, sale, and distribution of his cleaning fluids in interstate commerce or in the District of Columbia do forthwith cease and desist from: Representing through the use of the phrase "Leev-No-Ring" in its trade name, on its stationery, advertising matter or on the labels attached to the containers in which it sells and ships its said cleaning fluid, or in any other manner by words or phrases of like import that:

(a) The respondent's cleaning fluids can be used safely and without injury to the most delicate fabrics or materials; (b) Respondent's cleaning fluids when used will remove all grease spots instantly without injury to the most delicate fabrics; . (c) The respondent's cleaning fluids when used will not in any Instance leave a ring;

It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a re- Port in writing setting forth in detail the manner and form in which he has complied with this order.

Syllabus 24F.T.0•