Marlin Firearms Co

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IN THE MATTER OF l\IARLIN FIREAR~IS COl\IP ANY oCOii!PLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 2fi, 1914 Dor:ket 38"/1. Complaint, Aug. 17, 19J9-Decision, Nov. "/, 1939 \Vllrre a corporation eng:1ged, under corporate name long associated with manufacture of high quality firearms, in sale and distribution of razor blades and other products- Represented, directly and indirectly, through such statements as "* * • Marlin, world-famous for its firearms, has produced a really fine blade to sell at little more than 1¢ a blade • • • made with the same care that has ma(le 1\Iarlin guns tops in quality for 67 years," "Marlin, world-famous firearms manufacturer, bas found a way to lH'Oduce a truly fine razor blade • * *," etc., that such so-called "Marlin" blades were made by it and manufadurrr of "1\Iarlin" firearms, facts being products in question, sold by it undrr its trade-mark and de~ignated by it as aforesaid, were made by another comimny whose output in part it purebased, and it did not own or control manufacturing plant in which such blades were manufactured; 1With effect of misleading and deceiving substantial portion of purchasing public, on the part of which, as of consuming puulic and dealers, there had long been preference for dealing direct with manufacturer as thereby securing lower prices, elimination of middlemen's profits, superior products and other advantages, and also on the part of which there would be preference for blades manufactured by sudt fireat·ms manufacturer as supposedly hettcr equipped, by reason of its reputation, to make high-grade product, into erroneous and mh;taken belief that such statements, representations and advertisement's were true, and that said blades were made by it, and into purchase thereof because of such belief: Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce.

Nr. J. lV. Brookfield, Jr. for the Commission. Jlr. Edwa-rd J. B-rennan, of New Haven, Conn., for respondent. Complaint Pursuant to the provisions of the Federal Trade Commission Act, .and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Marlin Firearms Co., a corporation, hereinafter referred to as respondent, has violated the provisions of the said act, and it appearing to the 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:

:i\IARLIN FIUEAU:i\IS CO. 1301 1300 Complaint PARAGRAPH 1. Marlin Firearms Co. is a corporation organized and existing under and by virtue of the laws of the State of Connecticut,. with its principal place of business located in New Haven, Conn. PAR. 2. Respondent is now, and has been for more than 1 year· last past, engaged in the sale and distribution of razor blades and other products. In the course of its business the respondent causes said razor blades to be transported from its principal place of business in the State of Connecticut to purchasers thereof at their respective points of location in various States of the United States other than the State of Connecticut and in the District of Columbia. There is now, and has been at all times mentioned herein, a course of rrade in said razor blades sold by respondent in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its business, as aforesaid, respol)(lent has published or caused to be published in newspapers ami periodicals, having a general circulation, among and between various States of the United States, advertisements containing the following statements and representations and others similar thereto: Here is u new, high-speed, luxury razor blade made of the finest surgical !'teel by craftsmen with years of experience. Marlin, world-famous for its firearms, has pt•oduced a really fine blade to sell at little more than 1¢ a blade • * *. It's not hurd to understand why Marlin is one of the finest blades in the world. They are made with the same care that has made l\Iarlin guns tops in quality for 67 years.

1\Iarlin, world-famous firearms manufacturer lias found a way to produce a truly fine· razor blade * * •. These blades are hardened, ground and honed scientifically by craftsmen with a true knowledge of flue steel. l\Iade by the l\Iarliu Firearms Company, mnkers of fine fire-arms for 65 years. l\Iad~ of finest Swedish surgical steel and guaranteed by the makers of the famous Marlin guns.

Through the use of the statements hereinabove set forth, and others of similar import or meaning not specifically hereinabove set forth, respondent has represented and does now represent, directly and indirectly, that it is the manufaetmer of razor blades and that the aforesaid blades designated by respondent as "l\Iarlin" blades llle manufactured by the respondent, the manufacturer of "1\Iarlin" firearms~ PAR. 4. In truth and in :fact respondent does not make or mann· facture razor blades, and the aforesaid blades sold by respondent under its trade-mark and represented as "l\Iarlin" blades are manufactured by another company, whose output, in part, is purchase(l by respondent. Respondent does not own or control the manufacturing plant in which the aforesaid blades are manufactured. Findings 29F.T.C.

PAR. 5. There has long been a preference on the part of a substantial portion of the purchasing anJ consuming public and dealers to deal direct with a manufacturer in the belief that lower prices, elimination of middlemen's profits, superior products and other advantages can thereby be obtained. Furthermore, the name "Marlin" has long been associated with the manufacture of high quality firearms and there would be a preference on the part of a substantial portion of the purchasing public for razor blades manufactured by the Marlin Firearms Co. in the belief that the company, by reason of its reputation, is better equipped to manufacture a high grade product. PAR. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and advertisements with respect to its razor blades has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements, representations and advertisements are true, and that such razor blades are manufactured by respondent, and into the purchase of said razor blades because of said erroneous and mistaken belief.

PAR. 7. The aforesaid acts and practices of the respondent, as herein ·alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent .and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE Facts, AND Onder Pursuant to the 'provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 17, 1939, issued and served its complaint in this proceeding upon the respondent, Marlin Firearms Co., a corporation, charging it with the use of unfair and-deceptive acts and practices in commerce in violation of the provisions of the said act. After the issuance of said complaint and the filing of respondent's answer, the Commission, by order entered herein, .granted respondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts which substitute answer was duly filed in the office of the Commission. Thereafter this proceeding regularly came on for final hearing before the Commission on the said complaint and substitute answer and the Commission having duly considered the matter 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.

l\IARLIN FIREARMS CO. 1303 1300 Findings FINDINGS AS TO THE FACTS PARAGRAPH 1. 1\larlin Firearms Co. is a corporation organized and -existing under and by virtue of the laws of the State of Connecticut, with its principal place of business located in New Haven, Conn. PAR. 2. Respondent is now, and has been for more than 1 year last past, engaged in the sale and distribution of razor blades and other products. In the course of its business the respondent causes said razor blades to be transported from its principal place of business in the State of Conne~ticut to purchasers thereof at their respective })oints of location in various States of the United States other than the State of Connecticut and in the District of Columbia. There is now, and has been at all times mentioned herein, a course of trade in said razor blades sold by respondent in commerce between and among the various States of the United. States and in the District of Columbia. PAR. 3. In the course and conduct of its business, as aforesaid, respondent has published or caused to be published in newspapers and periodicals, having a general circulation, among and between various States of the United States, advertisements containing the following statements and representations and others similar thereto: Here is a new, high·speed, luxury razor ulade made of the finest surgical steel by craftsmen with years of experience. 1\Iarlin, world-famous for its firearms, bas produced a really ·fine blatle to sell at little more than 1¢ a blade • • • It's not hard to understand why Marlin is one of the finest blades in the world. They are made with the same care that has made 1\Iarlln guns tops ln quality for 67 years.

Marlin, world-famous firearms manufacturer hns found a way to produce a. truly fine razor blade * • "'· These blades are hardened, ground and boned scientifically by craftsmen with a true knowledge of fine steel. Made of finest Swedish surgical steel and guaranteed by the makers of the famous l\Iarlin guns.

Through the use of the statements hereinabove set out, and others of similar import or meaning not specifically hereinabove set forth, respondent has represented and does now represent, directly and indirectly, that it is the manufacturer of razor blades and that the aforesaid blades designated by respondent as "Marlin" blades are manufactured by the respondent, the manufacturer of ~Marlin" firearms.

PAR. 4. In truth and in fact respondent does not make or manufacture razor blades, and the aforesaid blades sold by respondent under its trade-mark and represented as "Marlin" blades are manufactured by another company, whose output, in part, is purchased by respondent. Respondent does not own or control the manufacturing plant in which the aforesaid blades are manufactured. 1304 FEDERAL TRADE COl\Il\IISSION DECISIONS Order 29F.T.C.

PAR. 5. There has long been a preference on the part of a substantial portion of the purchasing and consuming public and dealers to deal direct with a manufacturer in the belief that lower prices, elimination of middlemen's profits, superior products, and other advantages can thereby be obtained. Furthermore, the name "Marlin" has long been associated with the manufacture of high quality firearms and there would be a preference on the part of a substantial portion of the purchasing public for razor blades manufactured by the Marlin Firearms, Co. in the belief that the company, by reason of its reputation, is better equipped to manufacture a high grade product.

PAR. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and advertisements with respect to razor blades sold by it has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and advertisements are true, and that such razor blades are manufactured by respondent, and into the purchase of said razor blades because of said erroneous and mistaken belief.

CONCLUSION The aforesaid acts and practices of the respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondt~nt, in which answer respondent admits all the material allegations of fact set forth in said complaint, and states that it waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It i.~ ordered, That Marlin Firearms Co., a corporation, its officers, agents, and representatives, in connection with the sale and distribution of razor blades in commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist fmm: llrARLIN FIREARl\IS CO. 1305 1300 Order Representing that Marlin Firearms Co. is the manufacturer of the razor blades which it sells, unless and until it owns and operates, or directly and absolutely controls, the factory wherein said razor blades are manufactured.

It is fur·ther orde·red, That the respondent shall, within GO days after service upon it of this order, file with the Commission a report in writing, setting forth in detail the m~mnPr and form in which it has complied with this order.

1306 FEDERAL TRADE COl\Il\IISSION . DECISIONS Syllabus 29F. T. C.