Atlas Wall Paper Mills, Inc

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IN THE :MATTER OF ATLAS WALL PAPER MILLS, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. li OF AN ACT OF CONGRESS APPROVED Sell. 26, 1914 Docket 1,:288. Complaint, .Auo. 29, 191,0-Demsion., Aug. 6, 191,1 Wbere a corporation engaged in the manufacture and interstate sale and distribution of wall paper; through price lists and sample books and oral statements by its salesmen- Represented and implied to jobber and retailer purchasers that the wall paper in question might be washed or cleaned with water without suffering damage or loss of appearance and was capable of resisting the usual effects of water, that the colors printed thereon would not fade, and that it was unaffected by exposure to sunlight, through such statements, in referring to said products, ,as "washable," "water-resisting," "colorfast," lind "printed with the best non-fading colors obtainable"; Facts being such wall paper was not washable or water-resisting, as such terms are commonly understood, since application of water1· thereto caused it to deteriorate substantially and the colors to smear, and the colors were not fast, but faded appreciably when subjected to sunlight for short periods of time;

With effect of misleading and deceiving a substantial portion of the purchasing public into the erroneous belief that such representations were true, with result that it purchased a substantial quantity 'of said products: 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.

Mr.ll!aurice 0. Pearce for the Commission. Palmer & Serles, of New Yo1ii: City, 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 the Atlas ·wall Paper Mills, 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 in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Atlas 'Vall Paper Mills, Inc., is a corporation duly chartered, organized, and existing under and by virtue of the laws of the State of Illinois, with its principal office and place of business located in Coal City, State of Illinois. ATLAS WALL PAPER MILLS, INC. 889 888 Complaint • PAR. 2. Respondent is now, and for many years last past has been, engaged in the manufacture, sale, and distribution of wall paper. Respondent causes and has caused its said product, when sold, to be transported from its place of business in the State of Illinois, to purchasers thereof located in the various States of the United States other than the State of Illinois, and in the District of Columbia. Respondent now maintains, and at all times herein mentioned has maintained, a course of trade in its said wall paper 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, for the purpose of inducing the purchase of its product, the respondent has made false and misleading representations and statements with respect to the character rrnd qualities of certain items of its said product, such representations being disseminated among prospective purchasers, both jobbers and retailers, by appearing in its price lists and sample books, the latter of which are often exhibited to the ultimate purchaser, and by means of oral statements made by respondent's agents and salesmen.

Among and typical of the words and statements used by the respondent, as aforesaid, are the words "washable," "water resisting," and "colorfast," and the legend "printed with the best non-fading colors obtainable."

Through the use of the foregoing representations, statements, and others of similar import not specifically set out herein, the respondent represents that such items of its said wall paper may be washed or cleaned with the use of water without suffering damage or loss of appearance, and that said paper is capable of resisting the usual and customary effects of water; that the colors printed on said paper will not fade; and that said paper is unaffected by exposure to . sunlight.

PAR. 4. The foregoing representations and statements are grossly exaggerated, false, and misleading. In truth and in fact, certain items of said wall paper concerning which such representations are made are not wrrshable or water resisting, as such terms are usually and customrrrily understood by the purchasing public. Said paper is incapable of resisting the usual and customary effects of water as the application of water to said paper causes it to deteriorate substrrntially rrnd crruses the colors in said paper to smear, with the result that said paper suffers a substantial change in appearance. The colors used in said paper are not fast or free from fading, nor are such colors capable of resisting tho usual and ordinary effects 890 FEDERAL TRADE CO.MMISSION DECISIONS Findings 33F.T.C.

of sunlight. In truth and in fact, the colors printed on respondent's said paper fade appreciably when subjected to sunlight for short periods .of time.

PAR. 5. The use by the respondent of the foregoing false and misleading representations and statements, with respect to certain items of its said wall paper, has had and now has the capacity and tendep.cy to and does mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such representations and statements are true, and thrtt respondent's wall paper possesses character and qualities which it does not, in fact, possess. As a result of such erroneous and mistaken belief the purchasing public has been induced to and does purchase a substantial quantity o'f respondent's product. PAR. 6. The aforesaid acts and practices of respondent 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 Tile FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 29, 1940, issued, and subsequently served its complaint in this proceeding upon ~respondent Atlas 1Vall Paper Mills, Inc., a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of 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.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Atlas 'Vall Paper Mills, Inc., is a corporation duly chartered, organized and existing under and by virtue ATLAS WALL PAPER MILLS', INC. 891 888 Findings of the laws of the State of Illinois, with its principal office and place of business located in Coal City, State of Illinois. PAR. 2. Respondent is now, and for many years last past has been, engaged in the manufacture, sale and distribution of wall paper. Respondent causes and has caused its said products, when sold, to be transported from its place of business in the State of Illinois to the purchasers thereof located in the various States of the United ~states other than the State of Illinois and in the District of Columbia. Respondent no\v maintains, and at all times herein mentioned has maintained, a course of trade in its said wall paper in commerce between and among the various States of the United States and in the District of Columbia.

PAn. 3. In the course and conduct of its business as aforesaid, for the purpose of inducing the purchase of its products, the respondent has made false and misleading representations and statements with respect to the character and qualities of certain of its products. Such representations were disseminated among prospective purchasers, both jobbers and retailers, through price lists and sample books, the latter of which are often exhibited by retailers to the ultimate purchaser, and through oral statements made by respondent's agents and salesmen.

Among· and typical of the statements used by the respondent in referring to the qualities of certain of its products are "washable,'' "water-resisting," "color-fast," and "printed with the best non-fading colors obtainable."

Through the use of the foregoing statements and others of similar import not set out herein, the respondent represents and implies that the wall paper so referred to may be washed or cleaned with water without suffering damage or loss of appearance, and that said paper is capable of resisting the usual and customary effects of water; that the colors printed on said paper will not fade; and that said paper is unaffected by exposure to sunlight.

PAR. 4. The foregoing representations and statements are false and misleading. In truth and in fact, the wall paper concerning which such representations are made is not washable or water-resisting, as such terms are usually and customarily understood by the purchasing public. Said paper is incapable of resisting the usual and customary effects of water, as the application of water to said. paper' causes it to deteriorate substantially and causes the colors in said paper to smear, with the result that said paper suffers a substantial change in appearance. The colors used in said paper are not fast Order 33F.T.C.

or free from fading, nor are such colors capable of resisting the usual and ordinary effects of sunlight. In truth and in fact, the colors printed on respondent's said paper fade appreciably when subjected to sunlight for short periods of time. PAR. 5. The use by the respondent of the foregoing false and misleading representations and statements, with respect to said wall paper, 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 representations are true, and that respondent's wall paper possesses qualities which it does not, in fact, possess. As a result of such erroneous and mistaken belief, the purchasing public has been induced to, and does, purchase a substantial quantity of respondent's said products. CONCLUSION The aforesaid acts and practices of 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 respondent, 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 is Ordered, That the respondent, Atlas w·an Paper Mills, Inc., 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 wall paper in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing that wall paper is washable, water-resisting, colorfast or nonfading, when such paper is affected in appearance, or otherwise, when washed or cleaned with water or when exposed to sunlight;

2. Using the terms "washable," "water-resisting," "color-fast," or "printed with the best nonfading colors obtainable," or any other ATLAS WALL PAPER MILLS; Th"C. 893 888 Order term or terms of similar import and meaning, to designate, describe, or refer to wall paper which is affected in appearance, or otherwise, when washed or cleaned with water or when exposed to sunlight. It is 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.

435526m-42-vol. 83-G7 Syllabus 33F.T. 0.