Leonard Custom Tailors Co., the, Etc

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IN THE MATTER OF THE LEONi\RD CUSTOM TAILORS CO., E~C.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO Tllll ALLEGED VIOLATION OF SEC. 5 OF AN AC1' OF CONGRESS APPROVED SEPT. 26, 1914 Docket 48~5. Complaint, Oct. 2, 19-S2-Decision, Jan. 14, 1943 Where n corporation, engaged in the manufacture and Interstate sale~ and distribution of m~n·s clothes; in advertisements In pamphlets.· newspapers, magazines, and othet· pet•iodicals of interstate circulation- . Represented that Its product was benchmade, or made strictly by hand, from woolen materials which were exclusive to it and could not be obtained elsewhere;

Facts being that It was not so made, and men's clothing manufactured from Identical woolens could be purchased from other dealers; With effect of misleading a substantial portion of the purchasing public into the erronPOUR belief that such misrPpresentat.lons WPre true, because of whi('h It purchased said product:

Held, That such acts and practices w~re all to the prejudice and injury of· the public, and constituted unfair and deceptive acts and practices In commerce.

Mr. R. P. Bellinger for the Commission.

Complaint Pursuant to the provis.ions of the Federal Traue Commission Act, nntl by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that The Leonard Custom Tailors Co., a corporation, also trading as Leonard Custom Tailors Co., as Leonard Custom Tailors, and as A von Park Clothes, hereinafter referred to as the 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 in that respect as follows:

PARAGRAPH 1. Respondent, The Leonard Custom Tailors Co., i~ a corporation, organized, existing, and doing business under and by vhtue of the laws of the State of Ohio, having its office and prineipal place of business in the Textile Building, Cincinnati, Ohio. Respondent is now anu for some time last past has been engaged in the manufacture, sale, and distribution of men's clothes, underits corporate name and under the trade names Leonard Custom Tailors Co., Leonard Custom Tailors and A von Park Clothes. PAR. 2. In the course and conduct of its said business responqent,. in its own name, or one of its aforesaid trade names, has transported l:i287J3-43·-VOI. 36-10 Complaint 36E'. T. C. its said product, or caused the. same to be transported, when ,sold, from its place of business in the State of Ohio to purchasers thereof located in the various States of the United States, other than the State of Ohio, and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in its said product, 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 aforesaid business ree.pondent has misleadingly and falsely represented that its said product is handmade from woolens obtainable exclusively from respondent, such false representations being made through the use of statements and advertisements appearing in pamphlets, newspapers, magazines, and other periodicals sent through the United States mails and having interstate circulation. Among and typical of the said false, misleading, and deceptive statements and representations are the following:

America's foremost direct-to-consumer Leonard custom tailoring, Made-To- Measure, Exclusive Woolens, bench-made quality, $31.7;) to $39.75. Also Deluxe Imported Fabrics, $44.75 up to $59.75. American selling rights confined to us. Greatest Opportunity Offering America's foremost direct-to-consumer Leonard custom tailoring Made-To-Measure. $29.75 to $39.75 Exclusive Leonard woolens, same quality bench-made clothes always featured by Leonard. · Leonard alone features exclusive Imported fabrics from the choice looms of Europe and selected domestics from the finest American mills. • • • your assurance of real bench-made quality In the precise manner of the fine custom tailor.

I Exclusive Leonard woolens. American selling rights confined to us. PAR. 4. By means of the aforesaid statements and representations, and others of similar import and meaning not specifically set out herein, the respondent has represented, directly or by implication, that its men's clothes are bench-made, or made strictly by hand, from woolen materials which are exclusive to respondent and cannot be obtained elsewhere.

PAR. 5. Such statements and representations are false, misleading, and deceptive. In truth and in fact respondent's clothes are not bench-made, or made strictly by hand, and the woolen materials from which said clothing is made are not peculiar to or exclusive to respondent, but men's clothes manufactured from identically the same woolens can bo purchased in the United States from dealers other than respondent.

PAR. 6. The use by the respondent of the foregoing false, deceptive,and ·misleading statements and representations as herein set forth have had and now have the tendency and capacity to and do mislead THE L·EONARD CUSTOM TAILORS 00., ETC. 107 105 Findings and deceive ~ substantial portion of. the purchasing public into the erroneous and mistaken belie{ that said statements and representations are true, and because of said erroneous and mistaken belief a substantial number of the purchasing public has purchased and is purchasing respondent's said product.

PAR. 7. 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. Rerort, FINDINGS AS TO Tile FACTS, .AND ORDER l)ursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on October 2, 1942, issued and there- ·after served its complaint in this proceeding upon the respondent, The Leonard Custom Tailors Co., a corporation, also trading as Leonard Custom Tailors Co., as Leonard Custom Tailors and .as Avon Park Clothes, charging it with the use of unfair and deceptive acts and practices in commerce in, violadon of the provisions of said act. On October 26, 1942, the respondent filed its answer, in which answer it .admitted 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 ~n 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, The Leonard Custom Tailors Co., is a ·corporation, organized, existing, and doing business unuer and by virtue of the laws of the State of Ohio, having its office and principal place of business in the Textile Building, Cincinnati, Ohio. Respondo()nt is now and for some time last past has been engaged in the manufacture, sale, and distribution of men's clothes, under its corporate name and under the trade names Leonard Custom Tailors Co., Leonard Custom Tailors, and A von Park Clothes.

PAR. 2. In the course and conduct of its said business, respondent, in its own name or one of its aforesaid trade names, has transported its said product, or caused the same to be transported, when sold, from its place of business in the .State of Ohio to purchasers thereof located Findings 3GF. T. C.

in the various States of the United States, other than the State oi Ohio, and in the District of Columbia.

Respondent maintains, and at all times mentioned herein has maintained, a course of trade in its said product, 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 aforesaid business, respondent has mislf'ndingly and falsely represented that its said product is handmade from woolens obtainable exclusively from respondent, such false representations being made through the use of statements and advertisements appearing in pamphlets, newspapers, magazines, and other periodicals sent through the United States mails and having interstate circulation. Among and typical of the said false, misleading, and deceptive statements and representations are the following: America's foremost dit•ect-to-consumer Leonard custom tailot·ing, Made-to- Measure, Exclusive lVoolens, bench-made quality $31.75 to $30.75. Also Deluxe Imported Fabrics, $44.75 up to $59.75. American selling rights confineu to us. Gt·eatest Opportunity Offering America's foremost direct-to-consumer I.eonard custom tailoring l\lade-To-1\Iea~;m·e. $29.75 to $39.75 Exclu>dve Leonard woolens, same quality bench-made clothes always featured by Leonard. Leonard alone features exclusive lmpot·ted fabrics from the choice looms of Europe and selected domestics from the finest American mills. • • • your nssurnnce of real bench-made quality In the precise manner or the fine custom tailor.

Exclusive Leonard woolens. {American selling rights confined to us. PAR. 4. By means of the aforesaid statements and representations, and others of similar import and meaning not specifically set out herein, the respondent has represented, directly or by implication, that' its men's clothes are bench-made, or strictly by hand, from woolen· materials which are exclusive to respondent and cannot be obtained elsewhere.

PAR. 5. Such statements and representations are false, misleading, and deceptive. In truth and in fact respondent's clothes are not benchmade, or made strictly by hand, and the woolen materials from which said clothing is made are not peculiar to or exclusive to respondent, but men's clothes manufactured from identically the same woolens can be purchased in the United States from dealers other than respondent. PAR. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements and representations as herein set forth 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 said statements and representations are true, and because of said erroneous and mistaken belief a substan- THE LEONARD CUSTOM TAILORS CO., ETC. 109 log Ot·der tial number of the purchasing public has purchased and is purchasing respondent's said product.

, CONCLUSION ... .

The aforesaid acts and practices of the 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 Co~nmission and the answer of respondent, in whi~h 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 responuent has violated the provisions of the Federal Trade Commission Act:

It i8 ordered, That the respondent, The Leonard Custom Tailors Co., a corporation, also trading as Leonard Custom Tailors Co,, as. Leonard ·Custom Tailors, and as A von Park Clothes, or trading under any other name or names, 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 men's clothes in commm'Ce as "commerce" is defined in the Federal Trade Commission Act, <lo forthwith cease and desist from:

1. Representing that its men's clothes are bench-made or handmade.

2. Representing that the woolen materials from which respondent's men's clothing is made are exclusive to respondent or that respondent is the only dealer from whom clothes manufactured from the same materials can be purchased.

It isfurther 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 fonn in which it has -complied with this order.

110 FEDERAL TRADE COl\WISSION DECISIONS Syllabus 3G F. '1'. C.