Kidder Oil 00

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IN THE MATI'ER OF KIDDER OIL COMPANY MODIFIED CEASE AND DESIST ORDER Docket :3026. Order, May 20, 1941 Modified order, pursuant to provisions of section 5 (!) of Federal Trade Commission Act, in proceeding in question, in which (1) Commission on September 19, 1939, 29 F. T. C. 987, made its findings and conclusion and issued cease and desist order; and (2) Circuit Court of Appeals for the Seventh Circuit, on January 15, 1941, in Kidder OU Co. v. Federal Trade Commission, 117 F. (2d) 892, 32 F. T. C. 1823, rendered its decision modifying said order of Commission and on February 28, 1941, Issued its decree modifying same and directing Commission to modify such order In accordance therewith- Requiring respondent, its officers, etc., in connection with the offer, etc., of its product "Koatsal," in commerce, to cease and desist from representing (1) that Joseph K. Kidder is an original pioneer in the blending of colloidal graphite and lubricating oil and that he has great scientific knowledge which enabled him to develop Koatsal; (2) that Koatsal, when used as a lubricant in a motor operated under "full-film" conditions, penetrates r.nd adheres to all metal surfa~es it reaches, permeates the pores of the metal, soaks into the metal, and that the metal becomes plated with Koatsal and moving parts ride on this plating; (3) that the lubricating qualities thereof, when used as a lubricant under "full-film" conditions, are any greater than· the lubricating qualities of the oil therein contained; and ( 4) that the usual and customary earnings or profit to be derived from the sale of its product by distributors, etc., are larger than usual amounts actually so earned under normal conditions in the due course of business; as in order below in detail 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 September 19, 1939, the Commission made its findings as to the facts and concluded thereirom that the respondent had violated the provisions of the Federal Trade Commission Act and issued and subsequently served its order to cease and desist; and it further appearing that on January 15, 1941, the United States Circuit Court of Appeals for the Seventh Circuit rendered its decision modifying the Commission's order to cease and desist and on February 28, 1941, the aforesaid Circuit Court of Appeals issued its decree modifying the aforesaid order of the Commission and directed the Commission to modify its aforesaid order to cease and desist in accordance with said decree; Now, therefore, Pursuant to the provisions of subsection (i) of section 5 of the Federal Trade Commission Act, the Commission issues KIDDER OIL CO. 1543 1542 Modified Order this its modified order to cease and desist in conformity with the said court decree:

It is ordered, That the respondent, Kidder Oil Co., a corporation, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of its product "Koatsal" whether sold under that name or under any other name in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing:

1. That Joseph K. Kidder is nn original pioneer in the blending o:f colloidal graphite and lubricating oil and that he has great scientific knowledge which enabled him to develop Koatsal. 2. That Koatsal, when the same is used as a lubricant in a motor operated under "full-film" conditions, penetrates and adheres to all metal surfaces it reaches, permeates the pores o:f the metal, soaks into the metal, and that the metal becomes plated with Koatsal and moving parts ride on this plating.

3. That the lubricating qualities of Koatsal, when the same is used as a lubricant in a motor operated under "full-film" conditions, are any greater than the lubricating qualities of the oil which it contains. 4. That the usual and customary earnings or profit to be derived from the sale o:f its product by distributors, salesmen, and demonstrators are larger than and in excess o:f the usual and customary amounts actually so earned under normal conditions in the due course of business.

It is further ordered, That the respondent, Kidder Oil Co., a corporation, shall within 30 days after the entry 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. Syllabus 32F.T. C.