Dickson Weatherproof Nail Co.

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IN THE MATTER OF DICKSON WEATHERPROOF NAIL CO.

COM:PLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC, 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket ~700. Complaint, Feb. 5, 19~2-Decision, Nov.!, 19~3 'Where an Individual engaged ln the manufacture and Interstate sale and distribution of various kinds of roofing nails, for use principally for fastening sheet metal roofing to wooden roofsltepresented that the holding strength of its "Dickson Lock Screw Shank Lead Head Nail" was 25 percent greater than that of plain drive screw nalls, through such statements in advertising circulars and advertisements in trade journals as "Dickson Lock Screw Shank Lead Head Nail. This nail turns as it is driven. The tapered locking projections cause It to have 25 percent more holding strength than a plain drive screw"; 'lhe facts being that results of tests by the. Bureau of Standards and other evidence disclosed that there was little difference, If any, In holding strength between its said product and that of plain drive screw nails; 'With tendency and capacity to mislead and deceive a substantial portion of the PUrchasing public and to cause It to purchase substantial quantities of such product as a result of the mistaken belief so engendered: lleld, That such acts and practices, under the circumstances set forth, were all to the prejudice of the public and constituted unfair acts and practices in commerce.

Before Mr. Edu•ard E. Reardon and Mr. John lV. Addison, trial examiners.

Mr. R. P. Bell-inger for the Commission.

Mr. Robert B. Dickson, of Evanston, Ill., 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 Dickson 'Veather- Nail Co., a corporation, hereinafter referred to as respondent, ftoof ~s ~iolated the provisions of said act, and it appearing to the Comllussron 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, Dickson Weatherproof Nail Co., is a corboration, organized and existing by virtue of the laws of the State of elaware, with its principal office and place of business at 1615 Sher- ~~n Avenue, Evanston, Ill., and a branch office and factory located at Irmingham, Ala. Respondent is now, and for more than 4 years 1169637-44-38 Complaint 37F.T.C.

last past has been, engaged in the manufacture and sale of various kinds of lead head roofing nails used principally for fastening galvanized sheet metal rooting to wooden roofs. Respond~nt makes and sells a nail, called by it, "Dickson Long Screw Shank Lead Head Nail." Respondent causes said product, when sold, to be transported from its places of business in the States of Illinois and Alabama to 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 product in commerce between and among the several States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of its aforesaid business, and for the purpose of inducing the purchase of its roofing nails designated as "Dickson Long Screw Shank Lead Head Nail," respondent has made false and misleading statements with respect to the claimed superiority and efficiency of its said product by means of circulars dissemi.nated to prospective purchasers through the United States mails and distributed to prospective purchasers in connection with samples of said product. Among and typical of the statements and representations so used and circulated is the following: Dickson Long Screw Shank Lead Head Nail. This nail turns as It Is llriven. The tapered locking projections cause it to have 25% more holding strength thad a plain drive screw.

PAR. 3. Through the use of the foregoing statement and representation and others of similar import and meaning not set out· herein, the respondent has represented and now represents that the holding strength of its Dickson Long Screw Shank Lead Head Nail is 25 percent greater than a plain drive screw nail under all conditions and circumstances.

PAR. 4. The above and foregoing statement and representation is false, misleading and deceptive. The holding power of ·the Dickson Long Screw Shank Lead Head Nail is not 25 percent greater than plain drive screw nails manufactured and sold by competitors. In truth and in fact, there is little difference, if any, between the holding power of respondent's Long Screw Shank Lead Head Nail and plain drive screw roofing nails.

PAR. 5. The use by the respondent of the foregoing false and misleading statement and representation respecting its said product has had, and now has, the tendency and capacity to, and does, misle~d and deceive a substantial portion of the purchasing public into the mt~­ taken and erroneous beljef that such statement and representation IS true, and causes a substantial portion of the purchasing public, because DICKSON WEATHERPROOF NAIL CO. 555 553 Findings of such mistaken and erroneous belief, to purchase substantial quan· tities of respondent's product.

PAn. 6. 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, FIND~NGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on February 5, 1942, issued and subsequently served its complaint in this proceeding upon the respondent, · Dickson Weatherproof Nail Co., a corporation, charging it 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 respondent. Thereafter, testimony and other evidence in support of and in opposition to the complaint were introduced before trial examiners 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 examiners upon the evidence and the exceptions to such report, and briefs in support of and in opposition to the complaint .(oral argument not having been requested); and the Commission, hav- Ing duly considered the matter and being not fully advised in the Premises, finds that this proceeding is in the interest of the public and lnakes this its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, Dickson Weatherproof Nail Co., is a corporation, organized and existing under and by virtue of the laws of the State of Delaware, with its principal office and place of business located at 1515 Sherman Avenue, Evanston, Ill., and with a brunch office and factory located in Birmingham, Ala. Respondent is now, and for a number of years last past has been, engaged in the manufacture and sale of various kinds of roofing nails, such nails being used Principally for fastening sheet metal roofing to wooden roofs. Among respondent's products is a nail designated by it as "Dickson Lock Screw Shank Lead Head Nail."

PAn. 2. n(>spondent causes and has caus(>d its products, when sold, to be shipped from its places of business in the States of Illinois and Alabama to purchasers thereof located in various oth(>r States of the Conclusion 37 F. T. C. United States and in the District of Columbia. Respondent maintains and has maintained a course of trade in its products 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 business and for the purpose of inducing the purchase of its Dickson Lock Screw Shank Lead Head nails, respondent has made various representations with respect to such nails, such representations having been disseminated among prospective purchasers by means of advertising circulars and also by means of advertisements inserted in trade journals which have wide circulation throughout the United States. Among such representations are the following:

Dickson Lock Screw Shank Lead Head Nail. This nall turns as it is driven. 'lhe tapered locking projections cause it to have 25% more holding strength than a plain drive screw.

Through the use of these representations and others of similar import, respondent has represented that the holding strength of its Dickson Lock Screw Shank Lead Head nail is 25 percent greater than the holding strength of plain drive screw nails. PAR. 4. At the instance of the Commission, tests were made by the National Bureau of .Standards to determine the holding strength of respondent's nail as compared with that of plain drive screw nails, and the results of the tests are in evidence in this proceeding. These tests, as well as other evidence in the record, disclose that the holding strength of respondent's nail is not 25 percent greater than the holding strength of plain drive screw nails. In fact, there is little difference, if any, between the holding strength of respondent's nail and that of plain drive screw nails .. The Commission therefore finds that respondent's representations with respect to its nail, as set forth above, are erroneous and misleading.

PAR. 5. The Commission 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 respondent's product, and the tendency and capacity to cause such portion of the public to purchase substantial quantities of such product as a result of the erroneous and mistaken belief so engendered.

CONCLUSION The acts and practices of the 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.

DICKSON WEATHERPROOF NAIL CO. 557 553 , Order ORDER TO CEASE AND DESIST This proceeding havlng been heard by the Federal Trade Commission on the complaint of the Commission, testimony and other evidence taken before trial examiners of the Commission theretofore duly designated by it, report of the trial examiners upon the evidence and the exceptions to such report, and briefs in support of and in opposition to the complaint (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, Dickson 'Veatherproof Nail Co., a corporation, and its officers, agents, representatives, and employees, directly or through any corpot·ate or other device, in connection with ~he offering for sale, sale and distribution in commerce, as "commerce" Is defined in the Federal Trade Commission Act, of respondent's "Dickson Lock Screw Shank Lead Head" nails, or any other nails of substantially similar design, whether sold under the same name or under any other name, do forthwith cease and desist from representing, ditectly or by implication:

1. That said nails possess 25 percent or any other substantial percentage or amount of greater holding strength than plain drive screw nails.

2. That said nails possess any holding strength in excess of that actually possessed by them.

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.

Syllabus 37 F. T. C.