Mcdonald Chocolate Co., J. G

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IN THE MATIER OF J. G. McDONALD CHOCOLATE COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Doclcet !'106. Complaint, Jan. 31, 1936-Decision, June JZ, 193'1 Where a corporation engaged in manufacture and sale of "straight" goods candy, and of so-called "break and take," "draw," or ''deal" assortments, sale and distribution of which latter type to public, with means or opportunity of obtaining a prize or becoming a winner by lot or chance connected therewith, teaches and encourages gambling among children, who comprise a substantial number of the purchasers and consumers of such type, nnd particularly of assortments sold and distributed through different colored centers or pushcards, and sale and distribution of which, by lot or chance, provides easy means of disposing of such type candy, for which there Is constant demand, and sale of which In the markets of the other, or "straight," merchandise has been followed by a marked decrease therein, due to gambling or lottery feature connected with former- ~old to jobbers and retailers assortments so packed and assembled as to In· volve, or as to be designed to fnvoln•, use of a lottery scheme fn sale and distribution to consumers thereof, and consisting of (1) number of penny pieces of uniform size and shape, concealed colored centers of some of which differed from those of the majority, together with number of larger pieces to be giren free of charge and as prizes to chance purchasers of those pieces, colored centers of which uiffered, as aforesaid, from majority; (2) burs or canuy, together with pushcards, for sale under a plan, and in accordance with cards' explanatory legend, under which purchaser's five <'ents secm·ed one or more bars, drpendlng on number or lf'gend pu~hed by chance, and last push likewise receives specified number of aduitlonal pieces; and (3) assortments or packages of candy or varying size, together with punchboard, for sale unuer a plan, and In accordance with said board's explanatot·y legend, pursuant to which purchaser received, for five cents paid, one of aforesaid packages or nothing other than privilege of a punch, dertendent upon number thus secured by chance; In competition with many who sell their exclusively "straight'' merchandise in competl· tlon with such "ltreak and take," "draw," or "deal'' assortments, and with many who regard such sale anu distribution as morally bad and as en· couraglng gambling, and especially among children, as injmlous to the Industry through resulting In the merchandl;;lng of a chance or lottery in· stead of cnuuy, nnd ns providing retnllers with a mrans of violating the laws of the several States, nnu some of whom, by rrason tht'reof, refuse to sell candy so packed and assembled that same can be resold to public by lot or ehance, and in violation of public policy; With result that such competitors were thereby put to n disadvantage In competing, retailers bought, from it and other employing same methods ot sale, such candy as more salable, sales of sueb unwllllng competitors, who could compete on even terms only by giving snme or similar devices. J. G. McDONALD CHOCOLATE CO. 139 138 Comphlint Bhowed mat·k£>d decrease In their unwillingness to do so, some competitors began sale and distribution of candy to public by lot or chance to meet competition of manufacturers who thus sold and distributed their products, trade was diverted to it and others from said unwilling competitors, and public and competitors. were prejudiced and injured, and there was a restraint upon and a detriment to the freedom of fair and leg~ttmate competition in Industry concerned :

Held, That such acts and practices, under the conditions and circumstances set forth, were all to the prejudice of the public and competitors and constituted unfair methods of competition.

Before Mr. Oltarles P. Vic-ini and Mr. Henry M. 'White, trial examiners.

Mr. P. 0. Kolinski and Mr. Henry 0. LarJc for the Commission. Senior & Senior, of Salt Lake City, Utah, for respondent. Complaint l)ursuant to the provision11s 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 J. G. McDonald Chocolate Company, a corporation, hereinafter referred to as respondent, has been and is using unfair methods of competition in conmwrce, as "commerce" is defineu in sa.id act of Congress, 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: P ARAGRAI'II 1. Respondent is a corporation, organized under the laws of Utah with its principal office and place of business in the city of Salt Lake City, State of Utah. U.respondent is now, and for several years last past, has been engaged in the manufacture of candy and in the sale and distribution thereof to wholesale and retail dealers located at points in the various States of the United States, and causes said products, when so sold, to be transported from its place of business in the city of Salt Lake City, State of Utah, to Pllrcha&'rs thereof in other States of the United States at their t·espcctive places of business, and there is now, and has been for several years last past, a course of trade and commerce by said l'cHpond<>nt in such candy, bl.'tween and among the States of the United States. In the course and conduct of the said business, re- SfloJH.h•nt is in competition with othH corporations and with indi- Viduals and partnerships engaged in the sale and distribution of ea11uy and candy products in commerce between and among the ''nrious States of the United Statps.

140 FEDERAL TRADE CO~Il\IISSIOX DECISIO!'S Complaint 2;jF.T.C.

PAR. 2. In the course and conduct of its business, as described in paragraph 1 hereof, respondent sells and has sold to wholesale and retail dealers, various packages or assortments of candy, so packed nml assembled as to involve the use of a lottery scheme when sold and distributed to the consumers thereof. Certain of said packages are hereinafter described for the purpose of showing the methods llsed by respondent, but this list is not all inclusive of the various packages, nor does it include all the details of the several sales plans which respondent has been or is using in the distribution of candy by lot or chance:

(a) One of said assortments"is composed of a number of pieces of candy of uniform size, shape, and quality, together with a number of larger pieces of candy, which larger pieces of candy are to be given as prizes to purchasers of said pieces of candy of uniform size, shape, nnd quality, in the following manner:

The majority of the said pieces of caudy ot uniform slze, shupe, nnd qnullty, have centers of the snme color, bnt a small number of said pieces of candy have centers of a dlll'erent color. 'lbe said pieces of candy of uniform size, shape, ond quality, retail at the price of one cent each, but the purchaser who procures one of the said cnndics having n center of a ditl'crent color thnn the majority, Is entitled to receive, and Is to be given free of charge, one ot the said hnger 11ieces of candy he1·etofore referred to. The color of the center of said pieces of candy is effectively concealed from purchasers and prospective pmehasers until a selection has been made and the piece of cnndy broken open. The afore· !mid purchase1·s of said cnndy }laying n center colorl?d differently from the rna· jorlty thus procure one of the said larger pieces of candy wholly by lot or chaul'e. The respondent furnishes to said wholesale and retail dealers, with said assortment, a display card to be used by the retail dealer in offer· ing said can<ly to tho public. The display card bears a legend or statement informing the prospective purchaser that the said candy is being sold in accordance with the above described sales plan. (b) Another assortment manufactured and distributed by respond· ent is composed of a number of pieces of candy, and a number of larger pieces of candy, together with a device commonly called a push card. The candy contained in said assortment is dist.ributed to pur· chasers in tho following manner:

The push card has a number of partially perforated discs, and when a pu«b ts made and the disc separated from the card, a legend or number is disclosed. Sales arf! 1¢ each and the card bears statements Jnformlng customers and pro· Epectlve customers that certain specified legend~ or numbers entitle the pur· cbnser to one of the small pieces of candy, and that certain other specified legends or numbers entitle the purchaser to one of the larger pieces ot candy· Tlle purchaser ot the last push from said card Is also entitled to one of tll9 larger pieces of candy. The legends or numbers on the discs or pushes are ctl'ectlvely concealed from the pnrchnser and pro~pt'Ctlve purchaser until a selec· J. G. 1\I<:DO:XALD CHOCOLATE CO. 141 138 Complaint Uon lias been made nnd tlle disc separated from the card. The fact as to whether a Purchaser receives one of the small bars of candy or one of the larger bars ot <'andy for the price of 1¢ ls tlm9 cletprmined wholly by lot or chance. The respondent also manufactures and distributes a similar assortlnent where the pieces or bars of candy are correspondingly larger, and where the sales are 5¢ each instead of 1¢ each. (c) Another assortment manufactured and distributed by respondent is composed of a number of Loxes of a::;sorted chocolates, together With a device commonly called a punch board. The said boxes of candy are distributed to the consuming public by means of said punch board in the following manner:

The sales by means of said punch board are 5¢ each, nnd when a pnnch i!! lnnde from said board, n number Is disdosed. The number9 begin with one> anrl continue to the nnmhE>r of punches there are on the board, but the numbers nre not arranged in numerical sequenre. 1'he board bears a statement informiug the cu~;tomer aud pro~}Jective custolliel' as to which numlu~rs receive a Lox of candy. The numbers on said board are efl'ecth·ely concealed froru the purclmsez·s and prospeetlve purchnscrs uutil 11 srlection hns bern made and the particular pnnrh srpnrnted from the board. The boxes ot cnmly ore' worth lnorp thnn 5¢ each, and a pnrcllnser wllo obtains one of the numbers calling for n box of cniHly rPcPlves the snme for the price of 5¢. 'I'he purchaser who doe~:~ not qualify by obtaining oue of the numbers culliug for one of the boxes ot ttllHly receives nothing for his money other than the privilege of punching 11 number fl"om the bonn!. The boxes of cnnrly In said n;;sortment are tlltl!;' di.'!tributcd from punches on ~;nid board wholly by lot or cll!lnce. PAR. 3. The wholesale dealers to whom respondent sells its assortlnents, resell !:mid assortments to retail dealers, and said retail deal· ers, and the retail dealers to whom respondent sells direct, expose ~nid assortments for sale, and sell said candy to the purchasing public In accordance with the nforcsnid sales plans. Respondent thus snp- Pli<'s to and places in the hands of others the means of conducting lotteries in the sale of its products in accordance with the sales Plans hereinabow set forth, as a means of inducing purchasers thereof to purchase re::;pondent's said products in preference to enndy offered for sale and sold by its competitors.

PAn. 4. The sale of said candy to tlle purchasing public in the tnanner above allegetl involn•s a game of ehance or the sale of a chance to procure (a) larger pieces of candy; (b) larger bars of {'andy; or (c) Loxes of cnntly.

The use Ly r£>spontlent of said method of the sale of candies, and the sale of cantlies Ly and through the use thereof and by the aid Qf said method is a practice of the sort which the common law and ~criminal statute~s have long deemed contrary to public policy; all<l Is contrary to an established public policy of the Government of the llnited States. The use Ly respondt>nt of said method has the dan- FEDERAL TRADE COl\Il\IISSION DECISIOXS142 Complaint 25.1l'.T.C. gerous tende1wy unduly to hinder competition or create monopoly in this, to wit: that the use thereof has the tendency and capacity to exclude from the branch of the candy trade involved in this proceeding competitors who do not adopt and use the sttme method or an equivalent or similar method involving the same or an equivalent or similar element of chance or lottery scheme. 'Vherefore, many persons, firms and corporations who make and sell candy in competition with the respondent, as above alleged, are unwilling to offer for sale or sell candy so packed and assembled as above alleged, or otherwise arranged and packed for sale to the purchasing public so as to involve a game of chance, and such competitors re frain there from.

PAn. 5. Many dealers in and ultimate purchasers of candy are attracted by respondent's said method and manner of packing said candy, and by the element of chance involved in the sale thereof in the manner above described, and are thereby induced to purchase said candy so packed and sold by respondent, in preference to candy offered for sale and sold by said competitors of respondent who do not use the same or equivalent methods. The use of said methou by respondent has the tenuency and capacity, because of said game of chance, to divert to respondent trade and custom from its said competitors who do not use the same or an equivalent method; to exclude from said candy trade all competitors who are unwilling to and who do not usc the same or an equivalent method because the same is unlawful; to lessen competition in said candy trade, and to tend to create a monopoly of Sttid candy trade in respondent and such other llistributors of candy as usc the same or an equivalent method, and to deprive the purchasing public of the benefit of free competition in said candy trade. The use of said method by the respondent has tho tendency and capacity to eliminate from said candy trade all actual competitors, and to exclude therefrom all potential competitors, who do not adopt and use said method or an equivalent method. PAR. 6. Many of said competitors of re..c:;pondent are unwilling t« adopt and use said method or any method involving a game of chanc£ or the sale of a chance to win something by chance or any other method that is contrary to public policy.

ran. 7. The aforenwntionetl methods, acts and practices of therespondent are all to the prejudice of the public and of respondent's competitors as hE>reinabove nlle>gl'd. Said methods, acts nnd practices constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congres.c:;, entitled "An Act to cr<>ate a Federal Trade Commission, to define its powers and tlnti<>s, and for ot hf:'r purposes," npprowd September 2G, 1914. J, G. McDONALD CHOCOLATE CO. 143 138 Findings REPORT, FINDINGS AS TO THE FACTs, AND ORDER Pursuant to the provisions o£ an Act o£ Congress, approved September 26, 1914, entitled "An Act to create a Federal Trade Comlllission, to define its powers and duties, and for other purposes" the Federal Trade Commission, on January 31, 1936, issued and serv~d a complaint upon the respondent, J. G. McDonald Chocolate Company, a corporation, charging that respondent had been and was lising unfair methods of competition in commerce as "commerce" is defined in said act of Congress.

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 P. C. Kolinski, attorney for the Commission and in opposition to the allegations of the complaint by II. L. Mulliner, attorney for the respondent, before Charles P. Vicini and Henry M. Whhe, examiners of the Commission theretofore duly designated by it, 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 said complaint, the answer thereto, testimony and other evidence, briefs in support of the complaint and in opposition thereto, and the oral arguments of Henry C. r~ank, counsel for the Commission, and Charles F. Solomon, secretary of the respondent corporation; and the Commission having duly considered the same and being 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 F.\CTS . Paragraph 1. Respomlent, J, G. l\IcDonald Chocolate Compa~1y, ~s a corporation organized under the laws of the State of Utah, With Its }lrincipal office and place of business located in Salt Lake City, Utah. Respondent is now, and for several years last past has. been, engaged in the manufacture of candy in Salt Lake City and In the ~ale and distribution thereof to rl'tail dealers and jobbers located in the State of Utah and other States of the United States. It causes f~1e saill candy wJH.m sold to Le s1dpped or transported from its pri~1t·Jpa} place of business in the State o£ Utah to purchasers thereof In Utah anu in the States of the United States other than the State of U.tah. In so carrying on said business, respondent is and ?as b~en l'ngaged in interstate commerce and is and has been engaged m active e?Jnpetition "ith other corporations and with partner1.'ships and indi- ''hluals PngagNl in the mnnnfncture of candy anll m the sale RIHl l:'i~J21 ' 391 12 CO~Il\IISSION DECISIONS 144 FEDERAL TRADE Findings 25 F. T.C. distribution thereof in commerce between and among the various States of the United States.

PAn. 2. In the course and conduct of its business, as described in paragraph 1 hereof, respondent sells and has sold to jobbers. and retail dealers, certain assortments of candy so packed and assembled as to involve or which are designed to or may involve, the use of a lottery scheme when sold and distributed to the consumers thereof. Several of such assortments manufactured, sold, and distributed by respondent are composed of a number of pieces of candy of uniform size and shape, together with a number of larger pieces of candy, which larger pieces of candy are given free of charge and as a prize to purchasers of said pieces of candy of uniform size and shape in the following manner: The majority of said pieces of candy of uniform size and shape have centers of the same color, but a small number of said pieces of candy have centers of a different color. The said pieces of candy of uniform size and shape retail at the price of 1¢ each, but the purchaser who procures one of said candies having a center colored differently from the majority is entitled to receive and is to be given free of charge one of the said larger pieces of candy contained in said assortment. The color of the centers of said pieces of candy of uniform size and !'ihape in said assortment is effectively concealed from purchasers and prospective purchasers until a selection has been made and the piece of candy broken open. The aforesaid purchasers of said candies who procure a candy having a center colored differently from the majority of said pieces of candy of uniform size and shape thus procure one of the said larger pieces of candy wholly by lot or chance.

Respondent also distributes several assortments of candy which are composed of a number of bars of candy, together with a device commonly called a "push card." The said bars of candy are distributed to the consuming public by means of said push card in the following manner: The push card has a number of partially perforated discs, and when a push is made and the disc separated from the card a number or legend is disclosed. Sales are 5¢ each, and the card bears a statement or statements informing customers and prospective customers that all the numbers or legends pushed from said card receive one bar of candy, but that certain specified numbers or legends receive one or more additional bars of candy. The push card also bears a legend stating that the last push on the card receives a specified number of additional bars of candy. All pur· chasers receive one bar of candy, but purchasers obtaining the sped· fled numbers or legends receive additional bars of candy of the same size and quality. The numbers or legends on said card are effectively J, G. l\IcDON ALD CHOCOLATE CO. 145 138 Flu dings -concealed from the purchaser or prospective purchaser until a push 01• sale has been made and the particular push separated from the card. The additional bars of candy in said assortment are thus distributed to purchasers of pushes from said card wholly by lot or -chance.

Respondent also distributes several assortments composed of a number of packages of candy of varying size, tog~ther with a device c?mmonly called a "punchboard." The said packages of candy ure ~hstributed to the consuming public by means of said punchboard ~n the following munner: The punchboard has a number of holes 1n which slips of paper bearing numbers are secreted. The slips of paper and the numbers thereon are effectively concealed from purchasers and prospective purchasers until a punch or selection has been made and the particular slip of paper separated from the hoard. The punchboard has printed at the top thereof various statements or legends informing purchasers and prospective purchasers that certain numbers receive specified packages of candy. Sales are !5¢ each, and the packages of candy contained in said assortment are distributed to the consuming public in accordance with the legends at the top of said punchboard. The fact as to whether a purchaser receives one of the packages of candy or nothing other than the privilege of punching a number from said board for the price of 5¢ is thus determined wholly by lot or chance. · PAR. 3. The candy assortments involving the lot or chance feature, ~s above described, are generally referred to in the candy trade or llldustry as "break and take," "draw," or "deal" assortments. Assortments of candy without the lot or chance features in connection with their resale to the public are generally referred to in the candy trade or industry as "straight" goods. These terms will be used hereafter h1 these findings to distinguish these separate types of assortments. PAn. 4. The wholesale dealers or jobbers to whom respondent sells its assortments resell the same to retail dealers. Respondent also sells its said assortments direct to retail dealers. Numerous retail dealers purchase the a&'lortments described in paragraph 2 above ?ither from respondent or from wholesale dealers or jobbers who ln turn have purchased said assortments from respondent, and such retail dealers display said assortments for sale to the public as Packed by respondent and the candy contained in said assortments is generally sold and distributed to the consuming public in accordance with respondent's sales plans, as above described. PAR. 5. All sales made by respondent, whether to wholesalers and jobbers or to retail dealers are absolute sales and respondent retains llo control over said ass~rtments after they are delivered to the FEDERAL TRADE CO:\IMISSION DECISIONS 146 Fludlngs !!5F.T.O.

wholesale dealer or jobber or retail dealer. The assortments are assembled and pacln•d in such manner that they are designed to be used and are used by the retail dealer for distribution to the purchasing public by lot or chance without alteration or rearrangement. In the sale and distribution to jobbers and wholesale dealers for resale to retail dealers and to retail dealers direct of the assortments of eandy described' in paragraph 2, respondent has knowledge that said candy will be resold to the purchasing public by retail dealers by lot or chance, and it packs such candy in the way and manner described so that without alteration, addition or rearrangement thereof, it may be resold to the public by lot or chance by said retail dealers. PAn. 6. There are in the United States and in the territory served by this respondent many manufacturers of candy who do not manufacture and sell "break and take," "draw," or "deal" assortments of candy and who sell their "straight" goods in interstate commerce, in competition with the "brenk and take," "draw," or "deal" candy, and manufacturers of "l;traight" goods have noted a marked decrease in the sales of their products whenever or wherever the "break and take," "draw," or "deal" assortments have appeared in their markets. This decrease in the sale of "straight" candy is due to the gambling or lottery feature cmmect£><1 with the "break a11d ta k£>," "draw," or "deal" candy. 1Vitnesses from several branches of the eamly industry testified in this proceeding to the effl'ct that consumers prefen·ed to purchase the "break and take," "draw," or "ueal'' candy because of the gambling feature connected with its sale. The sale and distribution of "break and take," "draw," or "deal" packages or assortments of candy or of candy which has connected with its sale to the public the means or opportunity of obtaining a prize or becoming a winner by lot or chance, teaches and encourages gambling among children, who comprise a substantial number of the purchasers and consumers of this type of candy, particularly the assortments which are sold and distributed to the consumers by means of differently colored centers or "pushcards." PAR. 7. The sale and distribution of candy hy the retailers by the methods described herein is the sale and distribution of cnndy by lot or chance and constitutes a lottery or gaming device. The Commission finds that many competitors rrgard such sale and distribution as morally bad and as rncouraging gambling, especially among chil· dren; as injurious to the candy industry because it rrsults in the mer- <:handising of a chance or lottery instead of candy; and as providin~ retail merchants with a means of violating the laws of the several flat£>s. ll£>cnu~e of these reasons some competitors of r£>spondent re- J. G. l\IcDONALD CHOCOLATE CO. 147 138 Conclusion fuse to sell candy so packed and assembled that .it can be resold to t~e public by .lot or cha.nce. These c~mpetitors are thereby put to a ·disadvantage m competmg. The retailers, finding that they can dispose of more candy by the "break and take," "draw," or "deal" method, buy from respondent and others employing the same methods of sale,• and thereby trade is diverted to respondent and others usin(l'0 Similar methods from said competitors. Such competitors can compete on even terms only by giving the same or similar devices to retailers. This they are unwilling to do, and their sales of "straight" -candy show a marked decrease. The sale and distribution of candy by lot or chance provides an easy means of disposing of such products. There is a constant demand for candy which is sold by lot or chance, and in order to meet the competition of manufacturers Who sell and distribute candy which is sold by such methods, some competitors have begun the sale and distribution of candy to the Public by lot or chance. The use of such methods by respondent, in the sale and distribution of its candy, is prejudicial and .injurious to the public and its compl'! :tors, and has resulted in the diversion of trade to respondent from its said competitors, and is a restraint upon and a detriment to the frc"eLlom of fair and legitimate competition in the candy industry.

P.\H. 8. Respondent sells its merchandise in the States of Utah, Idaho, Montana, Colorado, 'Vashington, Oregon, California, Arizona, and New l\Iexico. The majority of its candy is sold as "straight" merchandise but its sales of "break and take," "draw," or "lh·nl'' assortments are substantial.

PAn. 9. The Commission further finds that the sale and distribution in interstate commerce of assortments or packages of candy so Packed and assembled as to enable retail dealers, without alterations, addition o1· rearrangement, to resell the same to the consuming public by lot or chance, is contrary to public policy. CONCLUSION The aforesaid acts and practices of respondent, J. G. McDonald Chocolate Company, a corporation, under the conditions and circumstances set forth in the foregoing findings of fact are all to the prejudice of the public and respondent's competitors, and constitute unfair lnethods of competition in commerce, and constitute violation of Section 5 of an .\ct of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and llntiE>s, nnd for other purposes."

148 FEDERAL TRADE CO!IHriSSION DECISIO:NS Order 25F.T. C.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondent, testimony and other evidence taken before Charles P. Vicini and Henry M. White, examiners of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, briefs filed herein, and the oral arguments of llemy C. Lank, counsel for the Commis~ion, and of Charles F. Solomon, secretary of respondent corporation; 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 Congre~s, 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 hereby ordered, That the rel>pondent, J. G. McDonald Chocolate Company, a corporation, its officers, directors, agents, representatives, and employees in the offering for sale, sale and distribution in interstate commerce of candy, do cease and desist from: 1. Selling and distributing to wholesale dealers and jobbers, for resale to retail dealers and to retttil dealers direct, candy so packed and assembled that sales of said candy to the general public are to be made, or may be made, by means of a lottery, ~aming device, or gift enterprise.

2. Supplying to or placing in the hands of retail ana wholesale dealers and jobbers, packages or assortments of candy which are used, or may be used, without alteration or rearratlgement of the contents of such packages or assortments, to conduct a lottrry, gaming device or gift cntl·rprise in the sale or distribution of the candy contained in said assortments to the public. 3. Packing or assembling in the same package or assortment of candy for sale to the public at retail pieces of candy of uniforll1 lize and shape having centers of a different color, together with jarger pieces of candy, which said larger pieces of candy are to be given as prizes to the purchaser procuring a piece of candy with 1\ c£'ntrr of a particular color.

4. Supplying to or placing in the hands of retail and wholesale dealers and jobs£'rs, as~ortments of candy, together with a device commonly cul~('U a ''pu:::h culll," ur a llevicc commonly calle1l ll "punchboard," for use, or which may be used, in distributing or sell· ing said candy to the public at retail.

5. Furnishing to retail and wholesale dealers and jobbers a del<·irc commonly calif<l a upnsh card," or a de>ice commonly called !l J, G. McDONALD CHOCOLATE CO. 149 138 Order "punchboard," either with packages or assortments of candy or separately, bearing a legend or legends or statements informing the })Urchasing public that the candy is being sold to the public by lot or chance, or in accordance with a sales plan which constitutes a lottery, gaming device, or gift enterprise. lt i8 further ordered, That the respondent, J. G. McDonald Chocolate Company, a corporation, shall within 30 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied With the order to cease and desist hereinabove set forth. FEDERAL TRADE COl\11\IISSION DECISIONS150 Complaint 2:>l!'.T.C.