Winterine Manufacturing Company

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IN THE MATTER OF WINTERINE 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 .W95. Complaint, Apr. 16, 1943-Decision, Nov. 1!2, 1943 'Where a corporation engaged in the manufacture and Interstate sale and distribution of a so-called antlft•eeze solution which it sold to garages and service stations; through advertisements in newspapers, radio continuities, adver- . tising folders, and otherwise, directly and by implication- ( a). Represented that its said product furnished protection to the cooling systems of automobiles and other combustion type engines against freezing and other damaging effects, was safe and dependable for use as recommended, and bad proved itself to be a superior permanent type antifreeze; and (b) Represented that it protected the entire cooling system of automobile engines against corrosion, rust, and deterioration, would not cause rust or other damage to the hose connections, radiator finish, or engine, and would not evaporate or clog passages ln the cooling system: 'lhe facts being that its said product, composed of a calcium chloride base, was Inferior to antifreeze solutions containing glycerine or alcohol bases and was not safe and dependable, but use thereof caused rust, corrosion, clogged Passages, and other serious damage to the engines, radiators, Ignition wire, spark plugs, bose connections, and exterior finish of automobiles: '\V'Jth effect of misleading and deceiving a substantial portion of the purchasing public Into the erroneous belief that such false representations were true, and of inducing It to purchase substantial quantities of said product as a result of such mistaken belief:

1I eld, 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.

. Before !J!r. Randolph Preston, trial examiner. Mr. Je.~se D.J{ash for the Commission.

McDonough & !J/cDonough, of Denver, Colo., for respondent. ColiiPLAINT Pursuant to the provisions of the Federal Trade Commi.ssion Act nnd by virtue of th.~ authority vested in it by said act, the Federal 1'trade Commission having reason to believe that 'Vinterine Manufacturing Co., a corporation, hereinafter referred to us respondent, :as violated the provisions of said act, and it appearing to the Commis- ?10n that a proceeding by it in respect thereof would be in the public Interest, he1·eby issues its complaint stating its charges in that respect as follows:

Complaint 37F.T.C.

PARAGRAPH 1. Respondent, Winterine :Manufacturing Co., is a cor· poration, organized and existing under and by virtue of the laws of the State of Colorado, with its office and principal place of business located at 105--109 'Vazee Market, Denver, Colo. 1 PAR. 2. The respondent is now, and for more than 1 year last past, has been engaged in the manufactlU'e, sale, and distribution of a so· called antifreeze solution designated "Antartic" recommended for use in the cooling system of automobiles and other combustion type engines. Said product is sold by the respondent to jobbers, garuges, and service stations for resale to the purchasing public. Respondent causes its said product when sold to be transported from its place of business in the State of Colorado to purchasers thereof located in various other States of the United. States and in the District of Columbia. The respondent maintains and at all times mentioned herein has maintained a course of trade in said product 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 said business and for the purpose of inducing the purchase of its said product "Antartic" the respondent has circulated and is now circulating among prospective purchasers throughout the United States many false advertisements concerning its said product by means of the United States mails, by advertisements in newspapers, by radio continuities, by means of advertising folders, pamphlets, display posters, and other advertising material. Among and typical of such false statements and representations circulated as aforesaid, are the following: When you put a Permanent-type Antifreeze solution In the cooling system of your car you do it for protection * " " a protection agalnst freezing and its damaging effects for an entire season * " " you have a right to expect that . . The result of painstaking experiments and months of careful research and development, Antarctic is a safe, dependable and trouble-free, all-winter protection for your car.

ANTARCTIC does more than protect your car against unexpecled freezing. It also pt·otects against corrosion, rust and deterioration of the entire cooling system " " "

G UA.RANTEE. The manufa~turer of Antarctic antifreeze guarantees; If used according to directions, in a normal cooling system, Antarctic A11ti(recze will protect the cooling Rysteru from ft·eezlng for a full winter season. It will not cause rust or deteriorate the hose, rauiator or engine of your car. It will not cause damage to the finish of your car. It will not evaporate. It will not clog passages in the cooling system.

PAR. 4. Through the use of the statements and representations hereinabove set forth anu others similar thereto, not specifically s('t out herein, the respondent has represented directly or by implication that its product "Antarctic" furnishes protection to the cooling syst('IDS of WINTERINE MANUFACTURING CO. 597 Findings automobile and other types of combustion engines against freezing and other damaging effects; that it is safe and dependable for use as recommended and has proved itself to be a superior permanent-type antifreeze; that it protects the entire cooling system of automobile engines against corrosion, rust and deterioration; that its use will not cause rust or other damage to the hose connections, radiator, finish of automobiles, or the engine; and that it will not evaporate or clog passages in the cooling system.

PArt 5. The foregoing claims, statements~ and representations are grossly exaggerated, false, and misleading. ln truth and in fact respondent's product "Antarctic" is composed of a calcium chloride base and is inferior to antifreeze solutions containing glycerine or alcoholic bases. It is not a safe and dependable product for use as recommended and has not proven itself to be a superior type of antifreeze. It does not protect the cooling system of engines against corrosion, rust, or other deterioration. The use of said product causes and has caused rust, corrosion, clogged passages, and other serious <lnmage to the engines, radiators, ignition wires, spark plugs, hose connections, and to the exterior finish of automobiles. PAR. 6. The use by the respondent of the foregoing false and misleading statements and representations disseminated as aforesaid has the tendency and capacity to, and does, mislead and deceive a 8llbstantial portion of the purchasing public into the erroneous and lnistaken belief that such false statements and advertisements are true and to induce, and does induce, the public to purchase substantia.] quantities of respondent's product as the result of such belief. PAn. 7. The aforesaid nets and practices of the respondent as herein alleged, are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and lneaning 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 April 16, 1943, issued and subse- ({U.ently served its complaint in this proceeding upon respondent, \V'interine Manufacturing' Co., a corporation, charging it with the use of unfair and deceptive ~cts and practices in commerce in violation of Provisions of that act. An answer was .filed by the respondent 0~ May 3, 1943. A hearing was held before a trial examiner of the Commission theretofore duly • desirrnuted by it, at which hearing a st· b 1PUlntion as to the facts was entered into between the attorney for the Commission and the attorney for respondent, and read into the Findings 37F.T.C.

record. This stipulation provides that, subject to the approval of the Commission, the facts therein set forth shall be taken as the facts in this proceeding and in lieu of testimony in support of the allegations of the complaint, or in opposition thereto, and that the Commission may proceed upon said statement of facts to make its report, stating. its findings as to the facts and its conclusion based thereon and enter its order disposing of the proceeding without the presentation of argument or the filing of briefs. Respondent expressly waived the filing of a trial examiner's report upon the evidence. Thereafter, tlie proceeding regularly came on for final hearing before the Commission on the complaint, answer and stipulation as to the facts, said stipulation having been accepted and approved by the Commission; and the Com· mission, 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. 1Vinterine Manufacturing Co., is a corporation, or· ganized and existing under and by virtue of the laws of the State of Colorado, with its office and principal place of business located at 105-109 ·wazee Market, Denver, Colo.

P .AR. 2. The respondent, for more than 1 year prior to December 19, 1942, had been engaged in the manufacture, sale, and distribution of ~' so-called antifreeze solution designated "Antarctic," recommended for use in the cooling system of automobiles and other combustion-type engines. Said product was sold by respondent to jobbers, garages, and service stations for resale to the purchasing public. Respondent caused said product, when sold, to be transported from its place of business in the State of Colorado to purchasers thereof located in various other , States of the United States and in the District of Columbia. 'fh6 respondent maintained, and at all times mentioned herein had main· tair)ed, a course of trade in said product among and between various States o:f the United States. · PAR. 3. In the course and conduct of its aforesaid business and for • ,r the purpose o:f inducing the purchase of its said product "Antarctic, respondent, prior to December 19, 1942, circulated among prospective purchasers throughout the United States many advertisements concerning its said product by means of the United States mails, by advertise· ments in newspapers, by radio continuities, by means of advertising folders, pamphlets, display :folders, and other advertising material· Among nnd typical of such statements and representations circulated as aforesaid are the following:

WINTERINE MANUFACTURING CO. 599 595 Fln9.ings When you put a permanent type antifreeze solution in the cooling system ot your car conditioned for protection-a protection against freezing and its damaging effects for an enti!·e season • • • you have a right to expect that protection.

• • • • • • • The result of painstaking experiments and months of careful research and development, Antarctic is a safe, dependable, and trouble-free, all-winter protec· tlon for your car. Antarctic does more than protect your car against unexpected freezing. It also protects against corrosion, rust, and deterioration of the entire cooling system.

• • • • • • • Guarantee. The manufacturer of Antarctic Antlft·eeze guarantees: If used according to directions, in a normal cooling system, ANTARCTIC ANTIFREEZE will protect the cooling system ft·om freezing for a full winter season. It will not cause rust or deteriorate the hose, radiator or engine of your car. It will not evapornte. It will not clog passnges In the cooling system. Said guarantee was conditioned upon adherence by the user to detailed directions for use supplied by respondent. PAR. 4. Through the statements and representations herein set forth and other similar statements not specifically set out herein, the respondent has represented, directly or by implication, that its product "Antarctic" furnishes protection. to the cooling systems of automobiles and other types of combustion engines against freezing and other damaging effects; that it is safe and dependable for use as recommended, and has proved itself to be a superior permanent type antifreeze; that it protects the entire cooling system of automobile engines against corrosion, rust, and deterioration; that its use will not cause rust or other damage to the hose connections, radiator, finish on automobiles, or to the engine; and that it will not evaporate or clog passages in the cooling system.

PAR. 5. The foregoing claims, statements, and representations nre grossly exnggerated, false, and misleading. In truth and in fact respondent's product "Antarctic" is composed of a calcium chloride base and is inferior to antifreeze solutions containing glycerine or alcohol bases. It is not a safe and dependable product for use as recommended, and has not proved itself to be a superior type of antifreeze. It does not protect the cooling systems of engines against corrosion, rust, or otlwr deterioration. The use of s.aid product causes, and has caused, rust, corrosion, clogged passages, and other serious damages to the engines, radiators, ignition wires, spark plugs, hose connections, and t" the exterior finish of automobiles.

PAn. 6. The use by the respondent of the foregoing statements and representations, disseminated as aforesaid, had the tendency and capacity to, and (lid, mislead and deceive a substantia 1 portion of the PUI'ehasing public into the <>rrotwous and mit4taken bdief that such false stat<'ments and repres<'ntations were tru<', antl induced the public Or!ler 37F.T.C.

to purchase substantial quantities of respondent's product as a. result of such belief.

CONCLUSION The foregoing 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, the answer of the respondent, and a. stipulation as to the facts entered into by and between counsel for the Commission and counsel for the respondent upon the record, which provides, among other things, that without further evidence or other intervening procedure the Commission may issue and serve upon the respondent findings as to the facts and conclusion based thereon and an order disposing of the proceeding, 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, 'Vinterine Manufacturing 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 in commerce, as "commerce" is defined in the Federal Trade Commission Act, of its antifreeze solution designated "Antarctic," or in any other antifreeze solution of substantially similar composition or having substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from representing, directly or by implication:

1. That said product is a safe and dependable antifreeze preparation for use in tpe cooling systems of automobile or other internal combustion engines.

2. That said product is a superio~ type of antifreeze preparation. 3. That said product will protect the cooling systems of automobile or other internal combustion engines against rust, corrosion, or other deterioration.

4. That said product will not rust, corrode, or clog the cooling systems of automobile or other internal combustion engines, or will not damage radiators, hose connections, or the exterior finish of automobiles.

WINTERINE MANUFACTURING CO. 601 595 Order it is_ further ordered, That respondent shall, within 60 days after service upon ito£ 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.

~60637--44----41 Complaint 37 F. T. C.