Woolman, Nelson E

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IN THE MATTER OF NELSON E. WOOLMAN AND LYLE G. JACKSON, TRADING AS POWER SEAL COMPANY CO~IPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 20, 1914 Docket 3014. Complaint, Dec. 11, 193G-Decision, Nov. 19, 19Si Where partners engaged in manufacture awl sale of their "Power Seal" pellet form preparation for use in internal combustion engine- Hepresented, in newspaper and other advertising, through pamphlets and cards dh;trilmted to cu:-;tomers and prospective customerl!l, and in extensive radio advertising of their aforesaid pt·oduct under its aforesaid trade-marl• and name, that said "Power Seal" would restore compression in such engines and completely rejuvenate sluggish motors through sealing and resenting leaky and pitted valves, and would restore efficiency and increase power and effect savings in oil and gas, facts being use thereof had no effect upo!l performance of engines in which used, power and efficiency of engine would not be changed thereby, as represented by it, and aforesaid various representations were false, misleading, and deceptive; With capacity anu tendency to mislead purchasing public into erroneou.~ and untrue belief that said "Power Seal" would produce in such engines re· suits claimed as aforesaid, and into purchase thereof by reason of such belief, and to divert trade to it from competitors engaged in sale of similar products for similar purposes in interstate commerce and who do not misrepresent the same:

Held, 'that such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Charles P. Vicini, trial examiner. 111 r. Reuben J. 111artin for the Commission. lllr. Lawrence lV. Allen, of Hollywood, Calif., for respondents. Complaint Pursuant to the provisions of an Act of Congress approved Sep· tember 2G, 1914, entitled "An Act to create a Federal Trade Cod1Jl115" sion, to define its powers and duties, and for otlwr purposes," the Federal Trade Commission, having reason to believe that Nelson ~· 'Voolman and Lyle G. Jnckson, copartners, trading and doing busi· ness under the name of Power Seal Company, have been and tn:e using unfair methods of competition in commerce as "commerce" 15 defined in said act, and it appearing to said Commission that a pro· ceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: POWER SEAL COMPANY 1429 1428 Complaint PARAGRAPH 1. The respondents, Nelson E. 1Voolman and Lyle G. Jackson, are copartners trading under the name and style of Power Seal Company, with their principal office and place of business located at 1601 South Broadway in the city of Los Angeles within the State o£ California. Said respondents are now and for more than one year last past have been engaged in the manufacture aml sale of an engine dope in pellet form under the trade name "Power Seal." Said respondents cause said "Power Seal" when sold to be transported to the purchasers thereof located in the State of California and in vari- ~Us St~tes of the United States other than the State of California. here Is now and has been for a long time, to wit, more than one year 1 ast past, a constant current of trade and commerce by said responde~ts in said "Power Seal" between and among the various States of t le United States.

In the course and conduct of their said business, said respondents ~re n?w and for a long time, to wit, more than one year last past, have ee? In substantial competition in commerce between and among the Various States of the United States with sundry other corporations, Partnerships, firms, and individuals engaged in the interstate sale and distribution of various other engine dopes . . b ~An. 2. Said respondents, in the course and conduct of their said USiness, as hereinbefore set out in paragraph 1, have been and now ~reengaged in extensive advertisement of their said product "Power eal.'' As a means of furthering and aiding in the interstate sale ~d distribution of said product, and as media of such advertising, t' ey have been and now are using newspapers of interstate circula- ;~~' printed cards, an~l circulars, and broadcasts over radio stations h .Interstate transmittal.

"J:lSaiCl respondents, in their said advertisements of the product ti ower Seal" have made and are now making various false, decepst v~, and misleading statements concerning said product, which sttid an~ ernent~ serve to deceive and mislead the public as to the character Sa\I effectiveness of said "Power Seal." Among the statements which 1 ll.e respondents have used and are now using in advertisements in th Wfspapers and in printed cards and circulars, and over the radio are e ollowino-. o• 1. nestores Power.

2. Sen! 8 ' 3 "'' up leaky rings and valves: · "'lis 4. Mak up valve pits and abrasions: 5 p es valve seat perfectly· · owe s ' 6. S r eal restores efficiency to your motor: aves m 7 · P owe soney in oil and gas·• r eal Restores Compression: Complaint 25F. T.C.

8. Bring back power and pep with POWER SEAL; 9. Which? $20 to $40 for Ring and Valve job or "POWER SEAL" at $2 installed;

10. Increases POWER-SPEED-1\IILEAGE;

11. Eliminates Sloppy rings;

12. Reduces Oil Pumping ;

13. A rare compound which expands and plates under heat, refined and blended in our laboratory, and formed into convenient PELLETS; 14. POWER SEAL expands plating the cylinder walls and scaling the valves. It is guaranteed to restore power nnd compression; 15. Ends all need for valve and ring jobs; 16. Your Power Seal dealer in San Ft"ancisco • • • will apply Power Seal and fully tune your motor for only two dollars. The results will be higher compression, n smoother running motor, more power, and less carbon. 17. rower Seal will loosen carbon, expand the rings, increase compression nnd give you new car performance.

18. My Chevrolet pumped oil • • • giving only 12 miles per gallon of gas: after powersealing my car uses only 1 quart of oil every GOO miles and !'Ill getting 18 miles per gallon on gas.

19. rower Seal is forced into hot cylinders under pressure-restores rost vower-reduces excessive oil pumping-increases gas mileage, and Is guaran· teed harmless to motors.

20. 1'he sparkplugs in my car were continually oily. Five minutes after u~ing Power Seal they were dry and have stayed dry for nine months! 21. Eliminate carbon knocl•s, oil pumping, high gasoline consumption and low power in your car without tearing down the motor. 22. When high compression motors lose their high compression, then tbe trouble begins. rower Seal ls a lwrmless compound which will remove tlle carbon from your motor and resprlng your piston rings, thus giving you Ugher compression-more power-more gasoline mileage-and lower oil con· snmption. You can have n quiet running motor and Ilew car perfor!llance at a cost of only two dollars by visiting your Power Seal dealer • • "'· 23. If the things you desire are higher compression, more power, more gasoline mileage, and less oil consumption, perhaps rower Seal is the answer to your problem. It costs only two dollars and one hundred thousand California motorists say that it will correct the motor faults just mentioned. • " .Spend two dollars for a rower Seal Job and Motor tune up and you will hn-ve new car performance.

24. Ir your car struggles over the hills-if it pounds and coughs because of carbon-if it burns oil as fast as gasoline and burns gasoline faster tho.n 1l should-it needs rower Seal. • • • It will remove carbon-Increase compression-cut down fuel and oil consumption-and give you quiet running motor In just a few minutes.

Said statements and representations used by said respondents in their said advertisements, as hereinabove set out, and many other statements and representations of like import and tenor ,which 11r~ not set out herein but which have been used and are now being used by said respondents, have had and do now have the tendency an. capacity to, and have created, and do now create, among the public POWER SEAL COMPANY 1431 1428 Findings the false impression and erroneous belief that "Power Seal" is a reliable anc.l efficient engine dope, the use of which will increase the power and efficiency of the engine, will increase the compression of the engine, and will bring about economy in operation by de- C'reasing gasoline and oil compression.

In truth and in fact "Power Seal" is not a reliable and efficient engine dope. It will not increase the power or efficiency of the e~gine. It will not increase the compression of the engine. It WJll not bring about economy of operation by decreasing gasoline and oil consumption or by any other means.

L PAR. 3. The use by the said respondents Nelson E. ·woolman and Yle G. Jackson, copartners, trading and doing business under the ~ame ~nd style of Power Seal Company, of the foregoing false~ eceptlve and misleading representations has had and does now 1 lave the capacity and tendency to and does mislead and deceive the fllblic into the erroneous and untrue belief that Power Seal is in r~th and in fact a reHable and efficient engine dope, and that by ~~lllg same the user will obtain greater power and efficiency from 1 ~ engine, and greater" engine com pression, and that the use thereof ":~ll bring about economy in operation by decreasing gasoline and 01 c.onsumption. Acting in such erroneous belief, the consuming Pnbhc, and especblly that portion of the public operating motor cSars, have been induced and are now inc.luced to purchase "Power ea}" · f In preference to other engine dopes offered for sale by manudacturers, retail dealers, and distributors. As a result of such false, eceptive and misleading representations on the part of said respond- ~nts, trade is unfairly diverted to respondents from such manufac- Urers, retail dealers, or distributors of other engine dope who do not misrepresent the character and quality of their respective prodl.l.c~ or the results obtained from the use thereof. s . An. 4. Said false~ deceptive, and misleading representations of i a~d respondents contained in their advertisements have resulted in Pl1J~ry to respondents' competitors and to retail dealers, and in reJudice to the buying public, and constitute unfair competition in ~lllmerce within the intent and meaning of Section 5 of an Act of a o;gress approved September 26, 1914, entitled "An Act to create f 'ederal Trade Commission, to define its powers and duties, and or other purposes."

REPORT~ FINDINGS AS TO THE FACTS, AND ORDER te!~rsuant to the provisions of an Act of Congress approved Seper 2G, 1914, entitled "An Act to create a Federal Trade Commis- 14~~ FEDERAL TRADE UOMl\IISSION DECISIONS Findings 2:l F. T. C. sion, to defme its powers and duties, and for other purposes," the Federal Trade Commission, on December 11, 1936, issued and served its complaint in this proceeding upon respondents, Nelson E. Wool· man and Lyle G. Jackson, copartners, trading and doing business under the name of Power Seal Company, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint and the :filing of respondents' answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by Reuben J. Martin, attorney for the Commission, before Chas. p, Vicini, an examiner of the Commission theretofore duly designated by it, and in opposition to the allegations of the complaint by Law· renee ,V, Allen, attorney for the respondents, and said testimony and other evidence were duly recorded and filed in the office of the CoJll· mission. Thereafter the proceeding regularly came on for final hear· ing before the Commission on the said complaint, the answer thereto, testimony and other evidence, and brief in support of the complaint (counsel for the respondents not having filed any brief herein and not having requested oral argument); and the Commission, having duly considered the same and being now fully advised in the prel11· ises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion dra:wn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondents, Nelson E. 'Voolman and Lyle a. Jackson, are partners who trade and carry on business under the firJ1l name and style of Power Seal Company. They maintain their prin· cipal place of business at 1601 South llroad,vay in the city of Los Angeles within the State of California. Said. respondents are engaged in the manufacture and sale of a preparation in pellet form known, designated. and. sold und.er the trad.e name of "Power Seal," which said. preparation is recommended for the treatment of internal corn· bustion engines. Respondents recommend the use of said. preparation "Power Seal" for the purpose of releasing rings in combustion engines when such rings are gummed; for the purpose of causing the valves in combustion engines to seat properly; and for the purpose of acting as a lubricant. . Respondents, in the regular course and. cond.uct of their said busi,: ness, are engaged in interstate commerce and. cause said "Power Seal.' when sold by them, to be transported from their place of busines~ 1~ Los Angeles, Calif., through and into other States of the Utntet POWER SEAL COMPANY 1433 1428 Findings States to the respective purchasers thereof. In the course and conduct of their said business, respondents are now, and have been, in competition with various persons and corporations and with other P.ar~nerships also engaged in the manufacture and sale or the sale of 811hilar preparations recommended for like or similar uses and PUrposes.

PAn. 2. Respondents, in the course and conduct of their business, ~ave caused advertisements to be published in various newspapers: f ave made and are making use of printed advertising matter in the . orzn of pamphlets and cards which they have caused, and are caus- Ing, to be distributed among their customers and prospective customers, and have extensively advertised the product sold by them under the trade mark and name of "Power Seal'' over various radio stations located in Los Angeles, Calif.

In said advertising, respondents have made, and are making, nu- ~e~ous claims and representations concerning said product known and eslgnated as "Power Seal," the uses for which they recommend the ~me and the results that they claim will be accomplished by its use. t' respondents claim that the use of "Power Seal" in internal combust~on engines will restore compression, and will completely rejuvenate Ired and sluggish motors by sealing leaky and pitted valves and ~~seating them; that the use of "Power Seal" will restore efliciency to ~ -conditioned engines; that the use of "Power Seal" will effrct sav- In.gs in oil and rras consumr)tion ,· and that the use of "Power Seal" "Will . ~ Increase power, speed, and mileage .

.PAn. 3. The use of "Power Seal" in internal combustion engines Will not restore compression, will not rejuvenate tired and sluggish ~motors and will not seal leaky and pitted valves and reseat the vl_tlves. 1~ Use of "Power Seal" will not restore efficiency to ill-conditioned engines. The use of "Power Seal" will not effect savings in oil and ~~ consumption, and will not increase power, speed, and mileage. . e use of "Power Seal" will have no effect upon engine performance ~~ ~ngines in which it is used, and the power and efficiency of an gi~e would be unchanged by the use of said "Power Seal" as0 e~ribed in the advertising matter of respondents. e An. 4. The advertisements and recommendations of the respondd~~' ~s set out herein in paragraph 2, are false, misleading, and t ~tive, and have had, and do now have, the capacity and tendency 1~ frnislead the purchasing public into the erroneous and untrue be-t~ that "Power Seal" will produce in internal combustion engines the results claimed to Le produced in such advertisements, and into e Purchase of respondents' said product on account of such errone- Order 25F.'J'.C. ous belief. The misstatements and misrepresentations in such adver· tisements have had, and do now have, the capacity and tendency to divert trade from such of respondents' competitors selling similar products for similar purposes in interstate commerce as do not mis· represent their respective products.

CONCLUSION The aforesaid acts and practices of the respondents, Nelson ~· 'Voolman and Lyle G. Jackson, copartners, trading and doing busi· ness under the name of Power Seal Company, are to the prejudice of the public and competitors of the respondents, an~ constitute un· fair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congress a pprovecl September 2G, 1914, entitled "An Act to create a Federal Trade Commission, 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, the answer of re· spondents, testimony and other evidence taken before Chas. P. Vicini, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, and the brief filed herein (respondents having filed no brief and not having requested oral argument), and the Commission hav· ing made its findings as to the facts and its conclusion that said re· spondents, Nelson E. 'Voolman and Lyle G. Jackson, copartners, trading and doing business under the name of Power Seal Company, have violated the provisions of an Act of Congress approved Sep· tember 2G, 1914, entitled "An Act to create a Federal Trade Commis· sion, to define its powers and duties, and for other purposes." It is ordered, That the respondents, Nelson E. 'Voolman and Lyle G. Jackson, copartners, trading and doing business under the 1Ut~e of Power Seal Company, or trading under any other name, their representatives, agents, and employees, in connection with the offer· ing for sale, sale and distribution of the preparation now know11 and designated as "Power Seal," or any other preparation under whatever name sold composed of the same or similar ingredients a~d possessing similar properties, in interstate commerce or in the DIS· trict of Columbia, do forthwith cease and desist from 1. Representing that the use of said preparation in internal com· bustion engines will restore compression, will completely rejuvenllte tired and sluggish motors, will seal leaky and pitted valves and resent POWER SEAL COMPANY 1435 1428 Order them, will restore efficiency to ill-conditioned engines, will effect savings in oil and gas consumption, or that it will increase the power, speed or mileage of said engines;

2. Making any other similar representations of like import or effect as to the results which will accrue from the use of said preparation. It i.s furtlter OJYlered, That the respondents, Nelson E. 'Voolman and Lyle G. Jackson, copartners, trading and doing business under the name of Power Seal Company, shall, within GO days after service Upon them of this order, file with the Commission a report in writing se~ting forth in detail the manner and form in which they have com- Phed with the order hereinabove set forth.

Syllabus 25F. T.C.