Sweets Co. of America, Inc

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IN THE l\IATTER OF SWEETS COMPANY OF AMERICA, INC.

MODIFIED CEASE AND DESIST OUDER Docket 2959. Order, May 25, 1940 l\Iodified order, pursuant to provisions of Section 5 ( i) of Federal Trade Commission Act, in proceeding in question, in which original order issued on December 7, 1938, 27 F. T. C. 1190, and in which Court of Appeals for the Second Circuit on January 29, 1940, in S1ceets Compa.ny ot America, Inc. v. Federal Trade Commi.~sion, 1C9 F. (2d) 2!l6, 30 F. T. C. 162:), made and entered its written opinion directing that said order be modified by substitution of words "are likely to be made" for "may be made" in subdivision 1 thereof, by substitution of words "are likely to be used" for "may be used" in subdivision 2 thereof, and by substitution of words "are likely to be givf'n" for "may be given" in subdivision 3 thereof, and on February 19, 1940, entered its decree modifying Commission's order as aforesaid directed, and, as so modified, affirmed said order and directed respondent to comply therewith- Requiring respondent, Its officers, etc., in connection with offer, etc., of candy in interstate commerce or in the District of Columbia, forthwith to cease and desist from (1) selling, etc., candy so packed, etc., that sales thereof to the general public are to be made or are likely to be made by means of a lottery, etc., (2) supplying, etc., dealers with packages, etc., of candy which are used, or which are likely to be used, to conduct a lottery, etc., in sale, etc., of candy therein contained to public, or (3) supplying, etc., dealers, for sale to public, with packages, etc., of candy composed of individually wrapped pieces of candy of uniform size and shape and of different colors, together with larger pieces of candy or any other merchandise, which said larger pieces of candy or other merchandise are to be or likely to be given as prizes to the purchasers procuring pieces of said candy of a particular color, as in said order below set forth. Before Mr. Miles J. Furn11s and Mr. lVillimn 0. Reeves, trial examiners.

Mr. D. 0. Daniel for the Commission.

Mr. Louis II. Solomon, of New York City, for respondent. 1tfoDIFIED ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission on the complaint of the Commission, the answer of the respondent, the testimony and other evidence, and briefs and oral arguments for the respective parties; and the Commission having on December 7, 1938, made its findings as to the facts and conclusion that the respondent Sweets Co. of America, Inc., had violated the provisions of the Federal Trade Commission Act; and having on December 7, 1938, issued and subsequently served, upon the respondent, its order to cease and desist from said violations; and the respondent Sweets 1300 FE<DERAL TRAD'E 001\Il\IJSSION DE'ClS[ONS Order 30F.T.C.

Co. of America, Inc., having thereafter petitioned the United States Circuit Court of Appeals for the Second Circuit to review and set a.side said order to cease and desist; and said Court, on January 29, 1940, having made and entered its written opinion directing that said order to cease and desist be modified by the substitution of the words "are likely to be made" for "may be made" in subdivision 1 thereof, by the substitution of the words "are likely to be used" for "may be used" in subdivision 2 thereof, and by the substitution of the words "are likely to be given" for "may be given" in subdivision 3 thereof, and that, as so modified, the said order be affirmed; and the Court, on February 19, 1940, having enterd its decree modifying the Commission's order as directed in its opinion, and, as so modified, affirming it and directing the respondent to comply therewith; and the Court, having, in its decree, directed the Commission to modify its said order to cease and desist as set forth in said decree- Now, therefore, Pursuant to the mandate in said decree, and to the provisions of subsection (i) of section 5 of the Federal Trade Commission Act, the Commission issues this its modified order to cease and desist in conformity with said decree:

It is ordered, 'That the respondent Sweets Co. of America, Inc., it officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of candy in interstate commerce or in the District of Columbia, do forthwith cease and desist from: 1. Selling and distributing candy so packed and assembled that sales of such candy to the general public are to be made or are likely to be made by means of a lottery, gambling device, or gift enterprise. 2. Supplying to or placing in the hands of dealers, packages or assortments of candy which are used or which are likely to be used to conduct a lottery, gambling device, or gift enterprise in the sale or distribution of said candy contained in the said packages or assortments to the public.

3. Supplying to or placing in the hands of dealers for sale to the public packages or assortments of candy composed of individually wrapped pieces of candy of uniform size and shape and of different colors, together with larger pieces of candy or any other merchandise, which said larger pieces of candy or other merchandise are to be or are likely to be given as prizes to the purchasers procuring pieces of said candy of a particular color. It i8 further ordered, That the respondent shall, within 60 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 this order.

.MANHAT'l1A.N HAT 00., ii:NC., ET AL. 1301 Syllabus