National Kream Co., Inc

Text (OCR of the scan; may contain errors)

Complaint 24K, 7.C. thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: Panacrapy 1. Said respondent, National Kream Company, Inc., is a corporation, organized and existing under the laws of the State of New York, with its office and principal place of business at 360 Furman Street, Borough of Brooklyn, in the city and State of New York. Respondent is now and, for more than one year last past, has been, engaged in the business of a jobber of foodstuffs, including a variety of flavoring extracts. Respondent sells and distributes said products in commerce between and among the various States of the United States and the District of Columbia; causing said products, when sold, to be shipped from its place of business i0 the State of New York to purchasers thereof located in a State or States of the United States other than the State of New York.

Par. 2. In the course and conduct of its business aforesaid, respondent is now, and for more than one year last past, has been, in substantial competition with other corporations, individuals, partnerships, and firms engaged in the business of selling and distributing foodstuffs and flavoring extracts in commerce between and among the various States of the United States and the District of Columbia.

Par. 3. In the course and conduct of its business, as aforesaid, the respondent sells a large variety of flavoring extracts, To the bottles which contain said flavoring extract are affixed labels, containing a reproduction of what appears to be an Italian coat of arms and the following wording:

Brevetto No. C135—KRegistration 352 Estratti-Bertola Insuperabili Premiatlalle Esposiziont Milano e Firenze—1908

ROSOLIO ROSA

Laboratorio-Chimico Nazionale Milano Italia

PRODOTTI IMPORTATI

Agenti Generall Paramount Sales Co.

The tmnslation for the foregoing Italian wording is as follows: Diploma No. C135-Registration 352

BERTOLA EXTRACT

Incomparable First Prize at the Expositions in Milan and Florence---1903

ROSOLIO ROSA

National Chemical Laboratory Milan Italy Imported Products General Agents Paramount Sales Co., %Oz.

Said representations made upon the labels, as aforesaid, indicate and imply to the members of the purchasing public that the said flavoring extracts are prepared, compounded and packaged by the ~ational Chemical laboratory at Milan, in Italy, and are imported Into the United States. Said language further implies that the said product was awarded first prize at certain expositions in the ?ities of Milan and Florence, Italy, in competition with other flavoring extracts there exhibited. In truth and in fact, said flavoring extracts are not prepared, compounded and packaged by a National Chemical Laboratory in Milan, Italy, and are not imported into the United States; they were not exhibited at any Italian exposition, U~d were awarded no medals or other prizes; but, on the contrary, said flavoring extmcts are prepared, compounded and packaged in the State of New York by an American manufacturer. . 'l'here is n large number of Italian-Americans among the purchasing public who show a preference for goods produced abroad, under th~ belie£ that they are superior to those produced in this country, l>aid belief prevailing particularly i11 extracts and the like. These Purchasers are led to believe, because of the statements contained on the label and the fact that said label is printed in the Italian lang'llagc, that they are buying an imported extract of superior merit to the domestic product. The're are among respondent's competitors ally who's<'ll both the domestic and imported products, and who, ln the course and conduct of their businf'ss, honestly and truthfully tepresellt their merchandise.

PAR. 4. The above and foregoing representations, as shown Ly the1 ubeJs llSPd by respondent, as described in paragraph 3, have the capacity and tendency to, and do mislead and deceive the purchasing public into the belief that the said flavoring extracts so labeled are prepared, compounded and packaged abroad, and imported into the United States, and have the capacity and tendency to, and do induce the said purchasing public, acting in such erroneous belief, to purchase respondent's product, thereby diverting trade to the respondent from those of its competitors who do not misrepresent and falsely label their products; and in t!1is manner respondent does substantial injury to competition in interstate commerce.

PAR. 5. The above acts and things done or caused to be done by the respondent, were and are each and all to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in interstate commerce within the meaning and intent of Section 5 of "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER

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 other purposes," the Federa! Trade Commission, on the 19th day of August 1936, issued and served its complaint in this proceeding upon respondent, National Kream Company, Inc., a corporation, charging it with use of unfait methods of competition in commerce in violation of the provisions o:f said act. After the issuance of said complaint and the filing of respondent's answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by Astor Hogg, attorney for the Commission, before W. w. Sheppard, an examiner of the Commission theretofore duly designated by it and in opposition to the allegations of the complaint by Henry M. Duke, attorney for the respondent; and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and answer thereto, testimony and othet evidence, and brief in support of the complaint (respondent's counsel having waived the filing of brief) 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 drawn therefrom:

FINDINGS AS TO THE FACTS

PARAGRAPH 1. Respondent, National Kream Company, Inc., is a corporation organized and existing under the laws of the State of N"ew York. Its office and principal place of business is located at ~60 Furman Street, Borough of Brooklyn, in the city of New York In said State. For more than one year last past, respondent has been engaged in the business of jobbing food stuffs, including a variety of flavoring extracts. It sells and distributes said products in commerce between and among the various States of the United States and the District of Columbia, causing said products when sold, to be shipped from its place of business in the State of New York to the Purchasers thereof located in States of the United States other than the State of New York. In the course and conduct of its business as aforesaid, respondent is now and for more than one year last past has been in substantial competition with other corporations and with partnerships, firms, and individuals engaged in the business of selling and distributing food stuffs and flavoring extracts in commerce between and among the various States of the United States and the District of Columbia.

PAR. 2. In the course and conduct of its business as aforesaid, respondent sells and has sold a large variety of flavoring extracts. To the bottles which contain said flavoring extracts are affixed labels containing a reproduction of what appears to be an Italian coat-of-arms and the following words:

Brevetto No. C135-Reglstratlon 352 Estrattl-Bertola Insuperabill Premlatl-alle Esposlzlonl Milano e Firenze-1903

ROSOLJO ROSA

Labor a torlo-Chlmlco Nazlonale Milano Italia

PRODOTTIIMPORTATI

Agentl Generall Paramount Sales Co. lh Oz.

The English translation of the foregoing Italian wording is as follows:

Diploma No. C135-Registration 3G2

BERTOLA EXTRACT

Incomparable First Prize at the Expositions in Milan and Florence-1903

ROSOLIO ROSA

National Chemical Laboratory Milan Italy Imported Products General Agents Paramount Sales Co., lh Oz.

PAR. 3. The representations made upon the labels as set forth in paragraph 2 hereof indicate and imply to the members of the purchasing public that the said flavoring extracts are prepared, compounded and packaged by the National Chemical Laboratory, at Milan, Italy, and are imported into the United States. Sa.id language further indicates and implies that the said extracts were awarded first prize at certain expositions held in the cities of Milan and Florence, Italy, in competition with other flavoring extracts there exhibited. The representations made by respondent are false and misleading in that said flavoring extracts are not and were not prepared, compounded or packaged by National Chemical Laboratory of Milan, Italy, and are not and were not imported into the United States from any foreign country. They were not exhibited tLt any Italian exposition and were awarded no medals or other prizes. As a matter of fact, said flavoring extracts are and were prepared, compounded, and packaged in the State of New Yorl.: by an American manufacturer.

PAR. 4. There are a .large number of Italian Americans among tho purchasing public who have and show a preference for flavoring extracts produced abroad under the belief that they are superior to those produced in this country. These purchasers are led to believe because of the statements contained on the labels and the fact that the said labels nre printed in the Italian language, that they are buying imported extracts of Italian origin for which they hHe 11 preference.

PAR. 5. The above and:foregoing representations, as shown hy the labels used by respondent us described in parngraph 2 hereof, have the en pacity and tendency to mislead untl tlecei ve the purdtasiug public into the belief that the said flavoring extracts so labeled are Ill J! 1: and were prepared, compounded and packaged abroad, and imported into the United States; and have the capacity and tendency to induce the said purchasing public acting under such erroneous beliefs to Purchase respondent's products, thereby unfairly diverting trade to the respondent from its competitors who rightfully and truthfully represent their merchandise and who do not in any wise falsely represent their products; and in this manner, respondent does substantial injury to competition in interstate commerce.

CONCLUSION

The aforesaid acts and practices of the respondent, National Kream Company, Inc., a corporation are to the prejudice of the public and of respondei1t'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 ~ct to create a Federal Trade Commission, to define its powers and «uties, and for other purposes."

ORDER TO CEASE AND DESIST

This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of respondent, testimony and other evidence taken before W. ,V, Shep- ~ard, an examiner of the Commission theretofore duly designated by It, in support of the allegations of said complaint and in opposition thereto, brief of the Commission filed herein (respondent having waived the filing of brief) and the Commission having ma,de its find- ~ngs as to the facts and its conclusion that said respondent had violated the provisions of an Act of Congress, approved September 26, ~914:, entitled "An Act to create a Federal Trade Commission, to define its powers a.nd duties, and for other purposes." It is ordered, That the respondent, National Kream Company, !nc., a corporation, its officers, representatives, agents, and employees, In connection with the offering for sale, sale, and distribution of ' ~~voring extracts or compounds in interstate commerce and in the !strict of Columbia, do cease and desist

1. From directly or indirectly advertising, designating or representing, through the use of words of any foreign language, or symbols, or picturizations, or through any other means or in any mantier, that flavoring extracts or compounds manufactured or com- P0t_lnded in the United States are manufactured or produced in Italy or In any other foreign country and imported into the United States;

2. From directly or indirectly ad:vertising, designating or representing, through the use of words, symbols or picturizations falsely indicating its flavoring .extracts or compounds were exhibited at any exposition or a warded a prize at any such exposition, that such products are of superior merit.

It is further ordered, That the respondent shall, within 30 days after the service upon it of this order, file with the Commission B report in writing setting forth in detail the manner and form in which it has complied with this order.

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