Wheeler, William

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IN THE :MATI'ER OF WILLIAM WHEELER, TRADING AS MIRACLE MANUFACTURING COMPANY COMPLAINT, FINDINGS, AND. ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 1i OF AN ACT OF CONGRESS APPROVED ·SEPT 26, 1914 Docket 4623. Complaint, Oct. 31, 1941-Decision, Nov. 2, 1943 Where an individual, engaged In the manufacture and Interstate sale and distributio;n of his "Miracle Radio Control'' and "Miracle .Aerial Loop", attachments for radio receiving sets- Represented directly or by implication that the use of his said devices would result In greatly improved radio reception, enable one to hear clearly and at all times radio broadcasts, otherwise unobtainable, both domestic and foreign and both long and short-wave, and that the results obtained through the use of such devices were "remarkable," "marvelous," and "unbelieVable", through such statements in periodical advertisements and advertising circulars and leaflets' as "World's Master of .Airways-Miracle Radio Control. Marvelous-Unbelievable. For long and short wave amateur, police and ship calls, code, etc.-Gets them all! • • • Foreign stations every day clear and loud.' Nothing like !t on the market. • • • Gets stations the world over. • • • .Adds many more stations you could not get before. • • • Radio's Old Reliable-Miracle .Aerial Loop-Remarkabl1:! Reception-for local 'and foreign stations-attach direct to radio''; The facts being that examination and tests of said devices by the Bureau of Standards and the testimony of the expert by whom the examinations and tests were made disclosed that said "Miracle Radio Control" bad no effect whatever upon a radio receiving set, and that said "Miracle A~rial Loop"which was nothing more than a length of insulated copper wire attached to a wire loop-was no more effective than a length of ordinary copper wire, and aside from such value as it might have as an aerial or aerial extension, added nothing to the performance of a radio receiving set; With tendency and capacity to mislead and deceive a substantial portion of tbe purchasing public with respect to his products, and to cause it to purchase substantial quantities thereof as a result of the erroneous belief so engendered: ' Held, That such acts and practices, as above set forth, were all to the prejudice of the public and constituted unfair acts and practices in commerce. Before ltfr. John lV. Addison, trial examiner. Mr. L. E. Oreel, Jr., and Mr. William L. Pencke for the Commission. 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 William Wheeler, an individual, trading as Miracle Manufacturing Co., hereinafter MIRACLE MANlJFACTURING CO. 547 546 Complaint 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, 'William Wheeler, is an individual, trading as Miracle ~Janufacturing Co., having his office and place of business located in the city of Conshohocken, in the State of Pennsylvania. Respondent is now, and for more than 1 year last past has been engaged in the manufacture, sale and distribution of certain lllechanical devices designated "Miracle Radio Control'' and "Miracle Aerial Loop." . ·Respondent causes his said products, when sold, to be shipped from his said place of business to purchasers thereof located in States other than the State of Pennsylvania, and in the District of Columbia. Respondent maintains, and at all times mentioned herein, has maintained, a course of trade in said products in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of his business, as aforesaid, and for the purpose of inducing the purchase of his said products, respond- £>nt has disseminated and now disseminates false, deceptive, and misleading statements and representations with respect to the prices of his said products, such statements and representations being made by llleans of advertisements appearing in newspapers, trade publications, circulars, and other written or printed matter. Among the statements a~d representations so disseminated by respondent with respect to h1s aforesaid "Miracle Radio Control" is the following: Special factory adv. price $2.85.

PAR. 3. The price indicated of $2.85 as a "Special Factory adv. ~rice" for· ".Miracle Radio Control" was and is not a special price, but 18 .the usual and regular price and the only price at which he has sold said "Miracle Radio Control."

PAR. 4. In the further course and cona'uct of. his business, as aforesaid, respondent has disseminated and now disseminates, through news- Papers, trade publications, circulars, and other written or printed lDatter, other false, deceptive, and misleading statements and repre- ~entations with respect to his aforesaid products, for the purpose of ~nducing the purchase of his said products, typical of which are the ollowinN•.,.

b ;vor·ld's. Master-Airways MIRACLE RADIO CO~TROL. 1\Iarvelous-Une ievable. For long and short wave amateur; police and ship calls, code, etc.,-Gets them all! Quick pick-up-no fade-out. Foreign stations every day clear and loud. Nothing like it on the market. Gets stations the wot·ld over.

Adds many more stations you could not get before. Can be operated without aerial or ground.

Radios's Old Reliable MIRACLE AERIAL LOOP Gets local and foreign stations clear as a crystal; just connect to radio; no aerial, no ground required. Most remarkable reception you have ever beard. PAR. 5. Through the use of the statements and representations hereinabove set forth, and other statements and representations similar thereto, not specifically set out herein, all of which purport to be descriptive of the results to be obtnined through the use of respondent's aforesaid products, respondent represents, directly and by implication, that the use of the device designated "Miracle Radio Con· trol'' or the device designated "Miracle Aerial Loop" as an attachment to a radio receiving set will improve radio reception broadcast over domestic and foreign, local and longcdistance stations by short and long wave frequencies; that each of said devices will prevent fade-out or diminution of sound volume in radio reception and will bring in foreign stations clear and loud; that each of said devices will make it possible to bring in radio broadcasts from stations which, without said device, could not be tuned in, and that ·said devices will make possible satisfactory radio reception without aerial or ground connec· tions; and that said devices will improve radio reception in an "un· believable" and "wonderful" manner; and that said devices will amplify and control the sound waves in radio reception. PAR. 6. The statements and representations advertised and dis· seminated by respondent, as aforesaid, are grossly exaggerated, false, and misleading.

In truth and in fact, the use of respondent's said products will not improve radio reception broadcast over domestic and foreign, local and long-distance stations, by short- and long-wave frequencies. Said devices will not prevent fade-out or diminution of sound volume in radio reception or bring in foreign stations clear or loud. Said de· vices will not make it possible to tune in broadcast programs which could not be brought in otherwise, or amplify or control the sound waves or radio reception. Practically all radio sets manufactured within the past 6 or 8 years will give satisfactory reception witho~t antenna or ground connections, and there is no advantage in this connection to be gained by the use of said devices. Neither of sa~d devices, whether used singly or in combination, will improve radio reception in any manner whatsoever.

MIRACLE MANUFACTURING CO. 549 546 Findings PAR. 7. The acts and practices of the respondent in using the foregoing false, deceptive, and misleading statements and' representations ~as 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 blief that said statements, representations, and advertisements were and are true. As a result of such erroneous and mistaken belief, so induced, a substantial number of the purchasing public have purchased respondent's said products. PAR. 8. The aforesaid acts and practices of 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 Tile FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on October 31, 1941, issued and subsequently served its complaint in this proceeding upon the respond- ~nt, William 'Vheeler, an individual, trading as Miracle Manufacturlng Co., charging him with the use of unfair and deceptive acts and Practices in commerce in violation of the provisions of that act. No answer was filed by the respondent. Thereafter, testimony and other evidence in support of and in opposition to the complaint were introduced before a trial examiner of the Commission theretofore duly designated by it, and such testimony and other evidence were duly . recorded and filed in the office of the Commission. Subsequently, the matter came on for final hearing before the Commission on the complaint, testimony, and other evidence, report of the trial examiner Upon the evidence, and brief in support of the complaint (no brief having been filed by respondent and oral argument not having been requested); and the Commission, having duly considered the matter ~n<l being ~ow fully advised in the premises, finds that this proceedl~g is in the interest bf the public and makes this its findings as to t e facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS t PARAGRAPH 1. -The respondent, William 'Vheeler, is an individual, bra~ing us Mirncle Manufdcturing Co., with his office and place of . U.slness located at 520 Harry Street, Conshohocken, Pa. Respondent~ .f ' and for some five years last past has been, engaged in the manuacture, sale, and distribution of certain mechanical devices designed as attachments for radio receiving sets and designated by respondent as ""~~r· . ' . . ·0 Iracle Radio Control" and "Miracle Aer1nl Loop." Findings 37F.T. C.

PAR. 2. Respondent causes, and has caused, his products, when sold, to be shipped from his place of business in the State of Pennsylvania to purchasers thereof located in various other States of the United States. Respondent maintains and has maintained a course of trade in his products in commerce among and between the various States of the United States ..

PAR. 3. In the course and conduct of his business and for the purpose of inducing the purchase of his products, respondent has made various representations with respect to such products, such representations having.been made by means of advertisements inserted in periodicals and also by means of advertising circulars and leaflets. distributed among prospective purchasers. Among these representations were the following:

World's Master of Airways-MIRACLE RADIO CONTROL. Marvelous-Unbelievable. For long and short wave amateur; pollee and ship calls, code, etc.,- Gets them all! Quick pick-up-fade-out. Foreign stations every day clear and loud. Nothing like it on the market. • • • • • .. • Gets stations the world over. • • • • • • • Adds many mot·e stations you could not get before. • • • • • • • Radio's Old Reliable--MIRACLE AERIAL LOOP-Remarkable Reception-for lo,cal and foreign stations-attach direct to radio. • PAR. 4. Through the use of these representations and others of similar import, respondent has represented, directly or by .implication, that the use of his devices, Miracle Radio Control and Miracle Aerial Loop, will result in greatly improved radio reception, that such de· vices enable one to hear clearly and at all times radio broadcasts, both domestic and foreign, and both long-wave and short-wave, which otherwise would be unobtainable, and that the results obtained through the use of such devices are "remarkable," "marvelous," and "unbelievable."

PAR. 5. At the instance of the Commission both of respondent's devices were examined and tested by the National Bureau of Standards and the results of such tests form a part of the record in this proceed· ing. These tests, as well as the testimony of the expert who. conducted them, disclose that the device Miracle Radio Control has no effect whatever upon a radio receiving set. It is wholly without value insofar as improving radio reception is concerned. The device Miracle Aerial Loop is, in fact, nothing more than a length of insulated cop· per wire attached to a wire loop. The device is capable of serving as an ordinary aerial or aerial extension for a raQ.io receiving set, but is no more effective for that purpose than is a length of ordinary MIRACLE MANUFACTURING CO. 551 546 Order copper wire. Aside from such value as it may have as an aerial or ' aerial extension, the device adds nothing to the performance of a radio receiving set.

PAn. 6. The Commission therefore finds that the representations made by respondent with respect to his devices, as set forth in paragraphs 3 and 4 hereof, are erroneous and misleading. · PAR. 7. The 1Commission finds further that the use by respondent of these erroneous and misleading representations has the tendency and capacity to mislead and deceive a substantial portion of the purchasing Public with respect to the value and effectiveness of respondent's prod- Ucts, and the tendency and capacity to cause such portion of the public to purchase substantial quantities of such products as a result of the erroneous and mistaken belief so engendered. CONCLUSION The acts and practices of the resp.ondent, 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 Commis- Sion upon the complaint of the Commission, testimony and other evidence taken before a trial examiner of the Commission theretofore duly de~ignated by it, report of the trial examiner upon the evidence, and brief in support of the complaint (no brief having been filed by respondent and oral argument not having been requested); and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of the Federal Trade ·Commission Act.

It is ordered, That the respondent, William 'Vheel~r, individually, and trading as Miracle Manufacturing Co., or trading under any other llame, and his agents, representatives, and employees, directly or ~through any corporate or other device, in connection with, the offering . or sale, sale and distribution in commerce, as' "commerce" is defined 111 the Federal Trade Commission Act, of respondent's devices desigll_ated "Miracle Radio Control'' and "Miracle Aerial Loop," or any Sl '1 ' · In! ar devices, whether sold under the same names or under any other ~ames, do forthwith cease and desist from representing, directly or by 11nPlication: · fi ~· That respondent's device Miracle Radio Control has any bene- Cia! effect upon a radio receiving set.

Order 37F. T.C.

2. That respondei).t's device Miracle Aerial Loop has any beneficial effect upon a radio receiving set in excess of that of an ordinary aerial or aerial extension.

It is further ordered, That respondent shall, within 60 days after service upon him o£ this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

\ • DICKSON WEATHERPROOF NAIL CO. 553 Complaint I