Imperial Candy Co

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF IMPERIAL CANDY COMPANY MODIFIED CEASE AND DESIST ORDER Docket 2833. Order, Mar. 25, 1940 1\Ioditled order, pursuant to provisions of Section 5 (1) of Federal Trade Commission Act, in proceeding In question, In which originul order Issued on July 9, 1937, 25 F. T. C. 481, and in which Court of Appeals for the Ninth Circuit, on Feb. 14, 1939, in Ilelen Ardelle, Inc. et q.l., v. Federal Trade Commission, 101 F. (2d) 718, 28 F. T. C. 1894, rendered its opinion and issued Its decree modifying order in question in certain particulars and affirming same in other particulars- Uequlrlng respondent, its officers, representatives, agents. and employees, In connection with the offer for sale and distribution in interstate commerce of candy to forthwith cease and desist from selling and distributing to jobbers and wholesalers for resale to retailers, or to retailers direct, candy so packed and assembled that sales thereof to the general public are to be made hy means of a lottery, gaming device, or gift enterprise, or supplying to, or placing in the hands of wholesalers, jobbers or retailers, assortments of candy, contents of which are arranged to constitute a lottery, gaming device, or gift enterprise In the sale or distribution of such candy to the public, or packing or assembling in the same assortment for sale to the public at retail boxes of candy, together with a device commonly called a "punchboard" which is for use, or which may be or is designed to be used, In distributing or selling said candy to the public at retail, or furnishing to retail and wholesale dealers and jobbers punchboards, with assortments of candy or separately, bearing statements informing the purchasing public that the candy is being sold by lot or chance, or in accordance with a sales plan which constitutes a lottery, gaming device, or gift enterprise, as below set forth. Modified ORDER TO CEASE AND DESIST This proceeding coming on for further hearing before the Federal Trade Commission and it appearing that on July 9, 1937 the Commission made its findings as to the facts herein and concluded therefrom that respondent had violated the provisions of section 5 of the Federal Trade Commission Act, and issued and subsequently served its order to cease and desist; and it further appearing that on February 14, 1939, the United States Circuit Court of Appeals for the Ninth Circuit rendered its opinion and issued its decree modifying the aforesaid order of the Commission in certain particulars and affirming said order in other particulars.

Now, theref{Yf'e, Pursuant to the provisions of subsection (i) of se~'­ tion 5 of the Federal Trade Commission Act, the Commission issues 790 FEDERAL TRADE COl\Il\IISSION DEoCrrSJ.ONS Order 30 ~'. T. C.

this its modified order to cease and desist in conformity with the said decree;

It is ordered, That the respondent, Imperial Candy Co., a corporation, its officers, representatives, agents, and employees, in connection with the offering for sale, sale, and distribution in interstate commerce of candy, do forthwith cease and desist from: 1. Selling and distributing to jobbers and wholesale dealers for resale to retail dealers, or to retail dealers direct, candy so packed and assembled that sales of such candy to the general public are to be made by means of a lottery, gaming device, or gift enterprise. 2. Supplying to or placing in the hands of wholesale dealers aml jobbers or retail dealers assortments of candy whose contents are arranged to conduct a lottery, gaming device, or gift enterprise in the sale or distribution of the candy contained in said assortments to the public.

3. Packing or assembling in the same assortment of candy for sale to the public at retail boxes of candy, together with a device commonly called a "punchboard" which punchboard is for use, or which may be or is designed to be used, in distributing or selling said candy to the public at retail.

4. Furnishing to retail and wholesale dealers and jobbers a device commonly called a "punchboard," either with assortments of candy or separately, bearing a legend or .legends or statements informing the purchasing 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.

It is further ordered, That respondent, Imperial Candy Co., 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.

ROGERS CANDY CO. 791 Order