U. S. Air Seal, Inc

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IN THE MATTER OF U. S. AIR SEAL, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 15 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1014 Docket 1,18"/. Complaint, July 13, 19W-Ded~ion, Jan. 15, 191,1 Where 11 corporation engaged in manufacture of its "Air Seal" automobile accessory compound to prevent tire blow-outs, and In interstate sale thereof, in statements with refet·ence thereto, through pamphlets and circular ad- Yertising and otherwise-- (a) RPpresented that use of its said product would cause tires to be immune to and safe from blow-outs, and would control blown-out tire by retaining enough air in tube for safe stopping, through such statements as "Not one manufacturer has produced a blow-out proof tire, but all makes of tires are immediately made safe by Air Sealing from this danger," and "Air Seal will absolutely control a blown-out tire by retaining enough air after a blow·out to allow you to come to a straight-a-head, safe stop-sometimes even pet·mitting you to go on to a service station for repairs," and through invitation, as a test, to "DRIVE A NAIL IN AN AIR-SEALED TIRE" and depiction of nail being driven into tire, facts being such product would not cam·e tires to be immune and safe from such happenings or prevent blow-outs caused by large holes, tube punctm·es or broken beads, and would not control a blown-out tire by retaining enough air for safe stopping or otherwise; and (b) Represented, as aforesaid, that use of its said "Air Seal'' would eliminate friction and extend life of tube, and preserve rubber, and that such "Air Seal" was superior to similar products used to prevent escape of air from tubes, and that use thereof produced a 25 percent increase in tire mileage, tht·ough such statements as "* * * unlike most other products which are designed for blow-out control and puncture proofing, does not eugender friction (heat), thus, it eliminates the primary cause of blow-outs," and "Air Sealed tubes will outlast two or three casings," and "* • • preserves the rubber," and "Regardless of the number of tire miles you are now getting, Air Seal will positively give you 25 percent or more," facts being it would not eliminate friction, extend life of tube, give 25 percent or nn~· appreciable increased tire mileage nor accomplish other results claimed for it as above set forth, and was not superior in such particulars to similar products used to prevent escape of air from tubes;

With effect, through use of such fale, deceptive, and misleading statements, representations and claims, of misleading and deceiving substantial portion of purchasing public into erroneous and mistaken belief that such statements, representations and claims were true, and of causing substantial portion of purchasing public, because of such erroneous and ml~taken belief, to, pur~hase substantial quantitie" of its said product: lleld, That such acts and practices, under the circumstances set forth, were all to the prejudice of the public, and constituted unfair and deceptive acts and practices in commerce.

Mr. Jesse D. [{a~h for the Commission.

Mr. Paul Z. Ilodge, of 'Varren, Ohio, for respondent. Complaint 32 F. T. C. 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 U.S. Air Seal, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to the Commission that a proceeding by it would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. The respondent, U. S. Air .Seal, Inc., is a corporation organized, existing, and doing business under the laws of the State of Ohio, with its principal place of business located at Broad- "·ay and High Streets, Girard, Ohio.

PAR. 2. The respon<.lent is now, and for more than 1 year last past has been, engaged in the manufacture and sale of an automobile accessory compoun<.l designed to prevent blow-outs in tires, known and designated as "Air Seal." Respondent causes its product, when sold by it, to be transported from its aforesaid place of business in the State of Ohio to the purchasers thereof located in various other States of the United States an<.l in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said automobile accessory compound "Air Seal" in commerce among and between the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of its said business and for the purpose of inducing the purchase of its said product, respondent, by means of advertising in pamphlets and circulars anu by other means, has made, and is now making, false statements and representations regarding the efficacy and effect of its product, and the results that are achieved by its use.

Among and typical of the false statements and representations contained in sai<.l advertisements, so used and. disseminated as aforesaid, are the following:

Not one manufacturer bas produced a blow-out proof tire, but all makes of tires are imnwdiately made safe by Air Sealing from this danger. Air Seal will absolutely control a blown-out tir~ by retaining enough air after a blow-out to allow yon to come to a straight-a-head, safe stop-sometimes PYPn permitting yon to go on to a !1ervice station for repairs. Air Seal, unlike most other products which are designed for blow-out control and punctm·e proofing, does not engendE>r friction (heat), thus, it eliminates the primary cause' of blow-outs.

Air Sealed tubes will outlast two or three casings. Air Sal preserv'ps the rubber.

U. S. AIR SEAL~ INC. 425 423 Findings Make this test-drive a nail into your tire and after removil1g it you will discover not one pound of air has escaped. Do you know of any other tire or tube that will withstand this torture.

DRIVE Picture of A NAIL IN AN nail being AIR-SEALED ui'iven into TIRI!:. tire. Regardless of the number of tire miles you are now getting, Air Seal will positively give you 25% or more.

PAR. 4. The foregoing statements and representations are grossly exaggerated, misleading, and untrue. In truth and in fact, respondent's said product will not cause tires to be immune and safe from blow-outs, or prevent blow-outs caused by large holes, tube punctures, or broken beads; it will not control a blow-out tire by retaining enough air for safe stopping or otherwise; it will not eliminate friction; it will not extend the life of the tube; it will not preserve rubber; it is not superior to similar products used to prevent the escape of air from tubes; and it will not· give 25 percent or- any nppreciable' increased tire mileage.

PAR. 5. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and claims with respect to its product, disseminated as aforesaid, has had, and now has, the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations and claims are true, and to cause, and it has caused, a substantial portion of the purchasing publi~ because of such erroneous and mistaken belief, to purchase substantiftl quantities of respondent's product. 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 ORDER J;>ursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on July 13, 1940, issued and served its complaint in this proceeding upon respondent U. S. Air Seal, Inc., charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On December 4, 1940, the respondent filed its answer, in which answer it admitted Findings 32F.T.C.

all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer thereto, 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.

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent U.S. Air Seal, Inc., is a corporation organized and doing business under the laws of the State of Ohio, with its principal place of business formerly located at Broadway and High Street, Girard, Ohio, but now located at 33 Cherry Street, Niles, Ohio.

PAR. 2. The respondent is now and for more than 1 year last past has been engaged in the manufacture and sale of an automobile accessory compound designed to prevent blow-outs in tires, known and designated as 11Air Seal" Respondent causes its product, when sold by it, to be transported from its aforesaid place of business in the State of Ohio to the purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said automobile accessory compound "Air Seal" in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its said business and for the purpose of inducing the purchase of its said prC'duet, respondent, by means of advertising in pamphlets and circulars and by other means, has made, and is now making, false statements and representations regarding the efficacy and effect of its product, awl the results that are achieved by its use.

Among and typical of the false statements and representations contained in said advertisements, so used a!1d disseminated as aforesaid, are the following:

Not one manufacturer has pro!lucrd a blow-out proof tire, but all makes ot tirrs are immrdiately made safe by Air Sraling from this danger. Air Seal will ab~olutely coutrol a blown-out tire by retaining enough .1lr after n blow-out to allow you to come to a straight-a-head, safe stop-sometimes even permitting you to go on to a service station for repairs. Air Seal, unlike most othrr products which are designed for blow-out control and puncture proofing, does not engender friction (heat), thus, it eliminates the primary cause ot blow-outs.

U. S. AIR SEAL, INC. 427 423 Order Air Sealed tubes wlll outlast two or three casings. Air Seal preserves the rubber.

Make this test--drive a nail into your tire and after removing it you will discover not one pound of air has escaped. Do you know of any othrr tire or tube that will withstand this torture.

DRIVJ!l Picture of A NAIL IN AN nail being AJR-BI'lALEJ) driven into TIRE. tire. Regardle!<s of the number of tire miles you are now grtting, Air Real will vositively gh·e you 25% or more.

PAR. 4. The foregoing statements and representations are grossly exaggerated, misleading, and untrue. In truth and in fact, respondent's said product will not cause tires to be immune and safe from blow-outs, or prevent blow-outs caused by large holes, tube punctures, or broken beads; it will ·not control a blown-out tire by retaining enough air for safe stopping or otherwise; it will not eliminate friction; it will not extend the life of the tube; it will not preserve rubber; it is not superior in these particulars to similar products used to prevent the escape of air from tubes; and it will not give 25 percent or any appreciable increased tire mileage. PAn. 5. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and claims with respect to its product, disseminated as aforesaid, has had, and now has, the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations and claims are true, and to cause, and it has caused, a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase substantial quantities of respondent's product. CONCLUSION The aforesaid acts and pi·actices of respondent as herein found are all to the prejudice 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 respondent, in which answer respondent admits all the material Order 3Zli'". T. c: allegations of fact set forth in said complaint and states that it wa:ives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the bets and conclusion that said respondent has violated the provisions of the Federaf Trade Commission Act.

It is ordered, That the respondent, U. S. Air Seal, In~·., its officers,. representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution for use in inner tubes of its product designated "Air- Seal," or any other product of substantially tile same composition,. whether sold under the name "Air Seal" or some other name, in commerce as "commerce'' is defined in the Federal Trade C<'lmmissiolll Act, do forthwith cease and desist from representing: 1. That the use of its product will cause tires to be immune to, orsafe from, blow-outs or prevent blow-outs caused by large holes,. tube punctures, or broken beads.

2. That the use of its product will control a blown-out tire by retaining enough air in the tube for safe stopping. 3. That its use will eliminate friction, extend the life of the tube,. or preserve rubber, or that said product is superior to similar products used to prevent the escape of air from tubes; or 4. That its use produces a 25 percent, or any other appreciate,. increase in tire mileage.

It is further ordered, That 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.

NATIONAL PROPRIETARIES, INC. 429 Complaint