American Mushroom Industries, LTD

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IN THE MATTER OF AMERICAN MUSHROOM INDUSTRIES, LTD.

CO~lplaint, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OJJ' SEC. 5 OF AN ACT OF CO:\"GRESS APPROVED SEPT. 26, lOH Docket ."J.OJ"/. Compla.int, 1/eb. 12, 193"/-Dccision, Oct. 26, 193"/ Where a corporation engaged in promoting sale of mushroom spawn, purchased by it from producer thereof, and by it sold prhnarily through mail order, in reRponsc to prolific ad¥ertising, for price, ordinarily, about ten-fold that paid by professional planters for snme quantity of same identical !;J)finn produced by same producrr, aud, as thus engaged, in competition With those who sell mushroom spawn in interstate and foreign commerce Without fah.;ely n•preflenting that there is a shortage of fresh mushrooms on the marl\et, no exiJerience is necessary in growing of said product, there is a big profit in such growing at home, or making use of any false and mlslPading t·rpresentations below set forth; in soliciting sale of and selling its said spawn, In correspondt>nce, adrertisements and trade literature-- (a) Representell that same would produce extraordinary financial returns to llUrehascrs nnd users thereof, and that mushroom growing was so simple incxperiencl'd amateurs possessing no previous knowledge or technical skill might earn sub~tantiul weekly iueome raising such product in any idle spnce about the house, there was shortage on the market, spawn sold by it was a new and superior type which would produce white mushrooms at rate of from two and one-lwlf to three pounds per square foot p£'r planting, and mushrooms grown therefrom were surwrlor to, or commanded higlJpr prices than, white musllrooms grown from other spawn, and it gave hook free to it~ eustonwrs, tllrough sneb statements, among others, as "Shortage of fr£'sh mu:;llrooms 011 the market. New growers needed imllll'lliately. Earn UJ) to ~:!3.00 or more "' "' "'," "* • • even a boy or girl can really grow mushrooms the Al\II wny," "* • • BIG PROFIT business nt your own Home l\Inke BIG l\IONEY full or part time • • *," '"Prices are adnlllelug rapidly • • *," facts being there wns no such Nhortnge, pric£'s hnd been on a downward trend with many professional growers forct•d into bn11l•ruptcy, pro<luct could not be successfully raised in any idle ~-;pace about the home, but growing tll£'reof involved unpleasant t•lPment.'!, r£'f1nirrd r::qwrience, and wns not simple or easy occupation, spawn sold Ly it was of snme type as that sold by producer in large quantities to many otllers, no book was given free to customers, but cost thereof wns lndudt>d in purchase price of spawn sold, and representations afore~aid wt•re otlwrwise false; and (b) llepresPnh•d that it wns tlw large::;t concern in the world of its kind, and that 1t llad a world-wide ser>iee and gave "Nxpert Adrice--Laboratoi"Y Annly>;is-Itesenreh," and mnintaiue1l "u starr of experts to advise you on every phase of tlu~ industry" and it had an office in Loudon, Englund, fnt-ts being It muintnhwd 11o offices in said city, nor any sud1 world-wide serviee, hnd 110 personnel In the United States eompetent to give expert adrice on raising of such products, nor any laboratories, or research facilities of ~,-, II ! :FEDERAL TRADE COMMISSION DECISIONS 1180o· II1 Complaints:. 2G 1•'.1',(:. its own, and was not the largest concern in the world engaged in sale of mushroom spawn;

With effect of misleading and deceiving a substantial portion of purchnAln and consumipg' public info eri:oneous belief that·'all said represcntnt:lone~ were true, and into purchase of said spawn in reliance thereon, nnd Wlih result that,. through ·such false and misleading representations made 1111 above indicated, it increased its own sales of such mushroom spawn, thnn dishonestly promoted, advertised or .r~presented, and with effect of iih· sening thereby market for similar spawn by other growers, merchants or dealers who truthfully represent nature, advantage or expectant finnnc:i 11! return from· planting 'their spawn or. desirability of becoming mushroom growers, and their true size and character as commercial concems in In· dustry in question, a~d expert. advice and service which they are cHpnblo of giving purchasers of their products, and result that trade wns I:IIUA unfairly diverted to it from aforesaid .competitors who do not make \\~\: of same or similar representations in conduct of their respective husl· nesses; to the substantial injury of ·competition in commerce: Held, That such acts and practices were to the prejudice of the public uud competitors and constituted unfair methods of competition. ·Before Mr. John W. Addiso,n and M1': Irving D. Royal, t.rittl exammers. . Mr. Jarnes M. Harnm<Jnd for the Commission. Complaint Pursuant to the provisions of · an Act o£ 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 reasot1 to believe that Amcr· ican Mushroom Industries, Ltd., hereinl_\.ft~r referred to as the r:· spondent, has been and is using unfair methods of competition. 111 commerce, as "commerce" is defined in said act, and it appeanng to the Commission 'that a proceeding by it in respect thereof wou.ld be in the public interest, hereby issued its' complaint stating Jts .. chn,rges in that respect as follows: . . . PARAG~A~H 1. Respbn~lent, A~1eri~an ~~usi:room Industries, Ltdf 1s a Cm1adian Corporation, havmg Its prmcipal office and place 0 · business . at 28-30 Bloor Street, west., Toronto, Canada. It ~Jso maintains a branch office in the United States located _at '73 _"'c~s1 Eagle Street, Buffalo, N. Y. The ·res})Ondent com})any IS no", n,J .· . ~s has been, for more than one year last past, engaged m the busm_eof promoting the sale of mushroom spawn. Approximately 9o7'J of its total sales are made in the United States and the balance ll; Canada:. II~ the :mn·se and co~1duct of· its business in .the Unit~cf States It ships said mushroon). spawn when sold from Its place . business in New York; to the purchaser~ thereof, some located 111 . .

AMERICAN· MUSHROOM INDUSTIUES, LTD. 1181 Complaint 1179 the State of New York, ar{d other~ located in various other States the United States and in the District of Columbia. There is now, 0 f • ltnd has been for more than one year last past, a constant current of trade and commerce by respo!ident in the aforesaid mushroom spawn,. between and among the va:r:ious States of the United States ,1nd between the United States and the Dominion of Canada. In ~he course and conduct of its business the respondent is now, and ]las been, in substantial compef.ition w.ith other corporations, firms, partnerships, and persons likewise engaged in. the sale of mu~hroom spawn in corrimer~e betwe~n ~nd among t~e various States of the l]united States and m the D~stnct of Columbia. · PAR. 2. In the course and cm'lduct of its business, as ch~scribed in paragraph. I hereof, and for more than one year last past, the respondent herein, in soliciting the sale of and selling its ml!shroom spawn in commerce, as herein set out, states in its correspondence, advertisements; and trade literature, among other things, that: Shortage of fresh mushrooms on the market. New growers JH~etled immediately. Earn up to $25.00 or more growing fancy ·white Queen l\lushrooms in your cellar, shed, · stable or some other vacant space.-Experience is unnecessary.

So simple to do that even ·a boy or girl can really grow mushrooms the AMI way.

[cast increasii1g demand insures ready market. Start this BIG PROFIT business at your own Home Make BIG MONEY full or part time--year around.

There's a real shortage of fresh mushrooms on the market. This is the ideal time to start.

Prices are advancing rapidly all over the country. Said statements together with other similar statements not herein set 0ut, serve as representations on the part of the respondent to a substantial portion of the purchasing public that there is a shortage. of and a tremendously increasing demand for fresh mushrooms and , that the respondent's mushroom spawn ·will produce extraordinary Jinaucial returns to purchasers and users thereof; that said spawn m:ty be planted in any idle space about the home; that mushroom owing is au easy and pleasant occupation and may be successfully accomplished by persons of no experience whatsoever. Tn truth and in fact, there is no shortage of mushrooms or any unusual demand therefor, and prices are not advancing. On the coni.l':try prices for a nuniber of years have been on a downward trend. 'lhc production of mushi·rooms by amateur growers at home, in small heels, is not highly remunerative financially. Mushrooms cannot be HHccessfully raised in any idle space about the home, but can only be ~lown in properly constructed places kept at a definite temperature, •O 1182 FEDERAL TRADE COl\Il\IISSION DECISIONS Complaint 25 F. T. C. ventilated in a precise manner, accompanied by the exclusion of light. The raising of mushrooms cannot be satisfactorily accomplished in the home as the preparation of the beds involves the use of a compost made from manure, which produces a highly disagreeable odor. l\fushrooms cannot be successfully grown without experience, as production requires a high degree of horticultural skill. It is not a simple or easy occupation, clue to the hard. work and skill required, the disagreeable od.or incident to preparing the compost, erecting the beds, and the constant care and attention required in regulating the temperature, humidity, and ventilation. :Mushrooms cannot be grown the year around.

PAn. 3. In the course and. cond.uct of its business, as described in paragraph 1 hereof, and. for more than one year last past, the respondent herein, in soliciting the sale of and in selling its mushrool11 spawn in commerce as herein set out, states in its correspondence, acln•rtisements, or trade literature, among other things, that: It has a ''World Will<> SPrvice."

'!'hat it gin•s "Expert Advice-Laboratory Analysis-llesearch." 'Ve maintain a staff of experts to advise you on every phase of the Industry· I.arg<>st concern of its kind in the World. No competition with fancy varit-ty, White Queens. Improved type, AMI svawn is mtirely different from any other Sl)fiW!l offered for sale.

'that 'Vhite Qnrrn mushrooms which can Le prmlncell only from Al\II spawn command the higher'lt twiees wherever marketed. Rome AI\II growers produce 3 Ius. to the square foot.-We would F;ay that 2 11~ lbs. per ~'\quare foot rf'pt·escnts the idral yield. American Mushroom Iwlnstries, Ltd., Torouto, Can., Duffalo, N. Y., Lomlon, Eng.

$1.50 hook FllEE.

Said statements serve as representations on the part of respondent to a substantial portion of the purchasing public that respondent maintains a world.-wide service, maintains a staff of experts; is in a position to give expert advice, laboratory and. rrsearch service; that it maintains an oftice in London, England, and. is the larrresto con-. cern in the world of its kind and that the spawn which it sells IS wpet·ior to all other types of mushroom spawn and produces mushrooms entirely superior to all other types of white mushrooms at the rate of from two and one-half to three pounds per square foot per planting; that they command higher prices than other mushromns and that it gives books free to its customers. In truth and in fact, rrspondent does not maintain offices in London, England, and does not maintain a world.-wide service. It maintains no personnel in the United. States competent to gh·e expert advice on AMERICAN MUSHROOM INDUSTRIES, LTD. 1183 1179 Complaint the raising of mushrooms and has no laboratory or research facilities of its own. It is not the largest concern in the world in the mushroom business. Mushroom spawn of the same type, sold by respondent, under the name of "White Queen" is sold in large quantities by the producer thereof to many corporations, firms, and individuals other than to the respondent, and the mushrooms raised therefrom do not command a higher price than mushrooms raised from other types of spawn producing white mushrooms and the said spa·wn will not produce from two and one-half to three pounds of mushrooms per ~quare foot per planting. Respondent does not give books free to lts customers, but the cost thereof is included in the purchase price of the spawn sold.

. P .An. 4. There are among the competitors of respondent, as set forth ln paragraph 1 hereof, other corporations, individuals, or partnerships who do sell mushroom spawn in interstate and foreign comlllerce and who do not falsely represent that there is a shortage of :fresh mushrooms on the market, or that no experience is necessary in the growing of mushrooms, or that there is big profit in growing lllushrooms at home, or use any of the false and misleading representations set forth in paragraphs 2 and 3 hereof. PAR, 5. The acts and practices of respondent in falsely representing ana advertising that there is a tremendous demand for mushrooms, that there is a shortage of mushrooms on the market, that it main- ~ains offices in London, England; and has a world-wide service; that lts mushroom spawn is superior to all other mushroom spawn and in lllaking the other representations set forth in paragraphs 2 and 3 hereof, have the capacity, tendency, and effect of misleading and d.eteiving, and have misled and deceived, a substantial portion of the Purchasing and consuming public into the erroneous belief that all of said representations are true and into the purchase of respondent's lllushroom spawn, in reliance on said representations. By means of these false and misleading representations, made to ~he purchasing public as above described, respondent has increased lts own sales of said mushroom spawn, so dishonestly promoted, advertised, or represented, thereby lessening the market for similar spawn sold oy other growers, merchants, or dealers, who truthfully represent the nature, advantage, or expectant financial return from Planting their mushroom spawn or the desirability of becoming lllushroom growers, and their true size and character as commercial concerns in the mushroom industry and the expert advice and service Which they are capable of giving purchasers of their products. 1G8121m--39----77 Findings 25 F. T.C. As a result thereof, trade is unfairly diverted to the respondent from competitors engaged in the sale in interstate commerce of simi~ Jar mushroom spawn, who truthfully represent the nature of the mushroom business or the desirability of becoming mushroom grow~ ers, or the demand for mushrooms, and the financial returns obtain~ able thereby, or the desirability of using the mushroom spawn sold by them or their true size in the industry and the financial returns to be obtained from growing mushrooms. Further, as a result thereof, substantial injury has been and is being done by respondent to the purchasing public and to competition in commerce among and between the various States of the United States and the District of Columbia.

P .AR. 6. The above and foregoing acts, practices, and representations of the respondent have been and are all to the prejudice of the public and respondent's competitors, as aforesaid, and have been, and are, unfair methods of competition within the meaning and intent 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."

REPORT, FINJ>INGS AS TO THE FACTs, AND Onder Pursuant to the provisions of an Act of Congress approved September 2G, l!H4, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission, on February 12, 1937, issued and served its complaint in this proceeding upon respondent, American :Mushroom Industries, Ltd., charging it 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 thereto, testimony and other evidence in support of the allegations of said complaint were introduced by James 1\f. Hammond, attorney for the Commission, before John vV. Addison and Irving D. Royal, trial 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 the said complaint, the answer thereto, testimony and other evidence, and Commission's brief in support of the complaint, 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:

AMERICAN 1\IUSHROOl\I INDUSTRIES, LTD. 1185 lli9 Findings FINDINGS AS TO THE FACTS . PARAGRAPH 1. Respondent, American Mushroom Industries, Ltd., lS a Canadian corporation, having its principal office and place of business at 28-30 Bloor Street, West, Toronto, Canada. It also hlaintains a branch office in the United States located at 73 West Eagle Street, Buffalo, N. Y. The respondent company was, prior io the filing of the complaint herein, and for a long time prior thereto, engaged in the business of promoting the sale of mushroom spawn. This spawn was purchased by it from a Pennsylvania producer, who packed the same in one-pound containers furnished by the respondent. It is what is known in the trade as "dry" spawn, as distinguished from the "wet" spawn, the article generally used by professional growers. Respondent's sales were primarily of the " rntu"l order" type, and deliveries were made in that manner on l"~~eipt of orders in response to its prolific advertising. All adverttsmg and the labels on respondent's con.tainers featured the words "'l?l . r ute Queen." Uespondcnt claimed great superiority for this spawn over other types of white mushroom spawn, as hereinafter shown, although the expert testimony taken shows that all white lh.ushrooms are grown from the same identical type of spawn. Apl>l'o:x:imately 00% of respondent's total sales are made in the United States, anu the balance in Canada. In the course of its business in ~he United. States, it ships saitl mushroom spawn, when solu, from lts place of business in Buffalo, N. Y. to the purchasers thereof, ~orne located. in the State of New York, and others located in various ..: states of the United States and in the District of Columbia. There Was, prior to the filing of the complaint in this case, a constant curtent of trade and commerce by the respondent in the aforesaid mushloom spawn, between and among the various States of the United ~t:ttes and between the United States and the Dominion of Canada. fi ~ the conduct of its business, the respondent was, prior to tho hng of tho complaint herein, in February 1037, in substantial comp.etitiou with other corporations, firms, partnerships, and persons lkewiso engaged in the sale of mushroom spawn in commerce beri':eel: anu among the various States of the United States and in the lstrlct of Columbia.

PAn. 2. In the conduct of its business, as described hereinabove, 1t ie respondent herein, in soliciting the sale of and selling its mushtootn · · · _, · spawn m commerce, states m 1ts corresponuence, advertisernents and trade literature, among other things, that: d! Shortnge of fr!?sh mushrooms on tile market. New growers needed immeately. Earn up to $25.00 or more growing fancy White Queen Mushrooms Findings 25 F.T.C.

in your cellar, shed, stable or some other vacant space.-Experience is unnecessary.

So simple to do that even a boy or girl can really grow mushrooms the AMI way.

Fast Increasing demand insures ready market. Start this BIG PROFIT business at your own Home Make BIG MONEY full or part time-year around.

There's a real shortage of fresh mushrooms on the market. This Is tbe ideal time to start.

Prices are advancing rapidly all over the country. These statements together with other similar statements not herein ~et out, serve as representations on the part of the respondent to a substantial portion of the purchasing public that there is a shortage and a tremendously increasing demand for fresh mushrooms, and that the respondent's mushroom spawn will produce extraordinary financial returns to purchasers and users thereof; that said spawn may be planted in any idle space about the home; that mushroom growing is an easy and pleasant occupation and may be successfully nccomplishcd by persons of no experience whatsoever. In truth and in fact, there is no shortage of mushrooms or any unusual demand therefor, and prices are not advancing. On the contrary, prices for a number of years have been on a down-ward trend, and many professional mushroom growers have been forced into bankruptcy because of that fact. The production of mushrooms by amateur growers at home, in small beds, is not highly remunera· tive financially, particularly in view of the fact that the responde~t usually charges approximately $5.00 per one-pound unit for ln~ spawn, as compared witih the price of 50c paid by professional planters for the same quantity of the same identical spawn prod~ce~ by the same producer. Mushrooms cannot be successfully raise in any idle space about the home, but can only be grown in properly constructed places kept at a definite temperature between fifty-fi""e and sixty-five degrees Fahrenheit, and ventilated in a precise Jllan· ner. The raising of mushrooms cannot be satisfactorily accom1l· plished in the home, as the preparation of the beds involves the ~se of a compost made from manure which, for several weeks after t 16 preparation conunences, produces a highly disagreeable odor. l~ metropolitan areas, this fact alone would, in many cases, pre\"en preparation of the beds. Mushrooms cannot be successfully grow? without experience, as production requires a high degree of bort cultural skill. It is not a simple or easy occcupation, due to t 1 ~ hard work and skill required, the disagreeable odor incident to pred paring the compost, erecting the beds, and the constant care and attention required in regulating the temperature, humidity.' ant ventilation. Mushrooms cannot be grown the year around w1thou AMERICAN MUSHROOM INDUSTRIES, LTD. 1187 1179 Findings artificial refrigeration or cooling devices necessary to keep the temperature below 65 degrees Fahrenheit. In most sections, the growing operations require heating in winter, and if grown in summer, cooling apparatus is necessary.

PAn. 3. In the course and conduct of its business, as described ~ereinabove, the respondent, in soliciting the sale of and in selling lts mushroom spawn in commerce as herein set out, states in its correspondence, advertisements, or trade literature, among other things, that:

It has a ''World Wide Service."

That it gives "Expert Advice-Laboratory Analysis-Research." We maintain a stair of experts to advise you on every phase of the Industry. Largest concern of its kind in the World.

No competition with fancy variety, White Queens. Improved type, AMI spawn is entirely di!Yerent from any other spawn offered t or sale.

That White Queen mushrooms which can be produced only from AMI spawn command the highest prices wherever marketed. Some AMI growers produce 3 lbs. to the square foot.-We would say that 21 Y:! lhs. per square foot represents the ideal yield . ., American Mushroom Indu:-;tries, Ltd. Toronto, Can., Buffalo, N. Y., London, "-'llg.

$1.50 book FREE.

Said statements serve as representations on the part of respondent to. a substantial portion of the purchasing public that respondent main. ~ains a world-wide service and maintains a staff of experts; that it is ~n a position to give expert advice and laboratory and research serv- Ice; that it maintains an office in London, England, and is the largest concern in the world of its kind; that the spawn which it sells is supcl"ior to nJl other types of mushroom spawn nnd produces mushrooms entirely superior to all other types of white mushrooms at the rate of from two and one-half to three pounds per square foot per Pl~nting; that mushrooms grown from its spawn command higher Prices than other mushrooms and that it gives books free to its customers.

The testimony and pleadings in this case show that the respondent docs not maintain offices in London, England, and docs not maintain a World-wide service. It maintains no personnel in the United States competent to give expert advice on the raising of mushrooms and has no laboraory or research facilities of its own. It is not the largest concern in the world engncreJ in selling mushroom spawn. :Mush·ro e orn spawn of the same type as that sold by respondent under the n:me of '''Vhite Queen" is sold in large quantities by the producer t ereof to many corporations, firms and individuals other than to the respondent. The mushrooms raised from respondent's spawn do not Findings 25 F. T.C. · command a higher price than mushrooms raised from other types of spawn producing white mushrooms anu the said spawn will not pro· duce from two and one-half to three pounds of mushrooms per square foot per planting. In fact, expert professional growers only average from one to one and one-fourth pounds per square foot, and the crop which an amateur would obtain, if one were obtained at all, would probably be less. Respondent does not give books free to its cus· tomers, but the cost thereof is included in the purchase price of the spawn sold.

PAR. 4. There are among the competitors of re~pondent, as set forth in paragraph 1 hereof, other firms and individuals who sell mush· room spawn in interstate and foreign commerce and who do not falsely represent that there is a shortage of fresh mushrooms on the market, or that no experience is necessary in the growing of mushrooms, or that there is big profit in growing mushrooms at home, and who do not use any of the false and misleading representations set forth in paragraphs 2 and 3 hereof.

PAR. 5. The acts and practices of respondent in falsely representing and advertising that there is a tremendous demand for mushrooms; that there is a shortage of mushrooms on the market; that it main· tains offices in London, England, and has a world-wide service; that its mushroom spawn is superior to all other mushroom spawn and in making the other representations set forth in paragraphs 2 and 3 hereof, have the capacity, tendency and effect of misleading and de· ceiving, and have misled and deceived, a substantial portion of the purchasing and consuming public into the erroneous belief that all of said representations are true and into the purchase of respondent's mushroom spawn, in reliance on said representations. Dy means of these false and. misleading representations, made to the purchasing public as above described, respondent has increased its own sales of said mushroom spawn, so dishonestly promoted, advertised, or represented, thereby lessening the market for similar Rpawn sold by other growers, merchants, or dealers, who truthfully represent tho nature, advantage, or expectant financial return from planting their mushroom spawn or the desirability of becoming mushroom growers, and their true size and character as commercial concerns in the mushroom industry and the expert au vice and service which they are capable of giving purchasers of their products. As a result thereof, trade has been unfairly divrrted to the re· spondent from competitors referred to herein who do not make use of the same or similar misrepresentations in the conduct of their respective businesses. As a further result, substantial injury has been AMERIUAN MUSHROOM INDUSTRIES, LTD. 1189 ~179 Oruer done by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia.

CONCLUSION The aforesaid acts and practices of the respondent, American Mushroom Industries, Ltd., 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 Commission, to define its powers and duties, and for other purposes."

OTIDim TO CEASE AND DESIST . This proceeding having been heard by the Federal Trade Commis- Sion upon the complaint of the Commission, the answer of the respondent, and the testimony and other evidence taken before John ,V, Addison and Irving D. Royal, examiners of the Commission theretofore duly designated by it, in support of the allegations of said compl~i~t, brief filed herein in support of the complaint, and the Comll1Ission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress, approved Sl'ptember 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, American Mushroom Industries, L~d., its oflicers, representatives, agents, and employees, in connection ~Ith the offering for sale, sale, and distribution of mushroom spawn In interstate commerce or in the District of Columbia, do forthwith cease and desist from:

1. Uepresenting, or holding out, as usual or customary earnings or Profits to be derived by mushroom growers, any sum or amount in e:x:cess of the average, usual, and customary sums or amounts actually earned by users of respondent's spawn or other spawn, under normal conditions in due course of business;

2. Representing that mushroom growing is so simple inexperienced nrnateurs possessing no previous knowledge or technical skill may earn substantial weekly incomes raising mushrooms in any idle space about the home, such as an attic, garage or basement; 3. Representing that there is a shortage of mushrooms on the :market, or distorting or exaggerating in any manner the true facts concerning'~ rnushr·oom growinO'ol· 1190 FEDERAL TRADI~ COl\Il\HSSION DECISIONS Order 25F. T. C.

4. Representing that the mushroom spawn sold by it is a new and superior type or variety which will produce white mushrooms in a greater quantity per square foot than is actually the case, or that mushrooms grown from its spawn are superior to or command higher prices than white mushrooms grown from other spawn; 5. Representing itself to be a larger concern than it actually is or that it is one of the pioneers in the mushroom or mushroom spawn industry;

6. Representing that it is one of the largest concerns of its kind in the world;

7. Representing that it maintains a world-wide service or maintains a staff of scientific and laboratory personnel; 8. Representing that it has an office in London, England, or any other place when .such is not the case.

It is further ordered, That the respondent shall, within 30 days after the 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 this order.

NATIONAL LABORATORY 1191 Syllabus