Samuel B. Smith

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IN THE 11ATTER OF SA11UEL B. S11ITH COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5080. Complaint, Aug. 18, 1948-Decision, June 18, 1944 Where an individual engaged in interstate sale and distribution of printed mailing cards, designed and intended for use by creditors and collection agencies in obtaining information concerning debtors, which, captioned "Identification" on the detachable stub at the top, followed by words "Identification No." and "Divisional Office," advised addressee to "Please Retain This Stub," called on the part below for his name and address and those of his employer, for his monthly earnings, minimum salary desired, information as to car and home ownership, the number of his dependents, length of time in present position, name and place of employment of spouse, if married, invited him "to describe briefly type of work. for which you are best fitted," and gave as return address" Central Clearing Office Occupational Information";

Making use of a plan under which purchasers addressed the cards-identified by numbers he placed thereon-to the persons concerning whom information was sought at their last known address, inserted opposite the words "Divisional Offi.ce" a geographical designation such as "Western" or "Central," and stamped and mailed them and he sent to purchasers such reply cards as were filled out and mailed back- · Falsely represented through use of said cards and name "Central Clearing Office Occupational Information," and placed in the hands of his customers means of falsely representing, directly and by implication, to those to whom said cards were sent, that he was ~ngaged in the business of conducting a.n employment agency and placing individuals in gainful positions;

When in fact the whole scheme was an attempt to obtain by deceit and subterfuge, information for the sole purpose of facilitating the collection of alleged delinquent accounts;

With effect of misleading and deceiving many persons to whom the said cards were sent into the mistaken belief that said representations were true and that the said name truthfully indicated the character of the concern requesting the information, and, by reason thereof, into giving information which they would not have otherwise supplied:

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.

Before Mr. Arthur F. Thomas, trial examiner.

Mr. Randolph W. Branch 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 Samuel B. Smith, an individual, 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 SAMUEL B. SMITH I 619 618 Complaint would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: · PARAGRAPH 1. Respondent, Samuel B. Smith, is an individual, with an office and principal place of business at Room No. 505, United Mine Workers Building, Springfield, Ill. In conducting,his business respondent has used the name "Central Clearing House Occupational Information." PAn. 2. Respondent for a period prior to about May 1, 1943, was engaged in the business of selling and distributing printed mailing cards, designed and intended to be used by creditors and collection agencies in obtaining information concerning debtors.

Respondent caused said cards to be transported from his aforesaid place ;:I of business in the State of Illinois to purchasers thereof in various States of the United States and in the District of Columbia. Respondent maintained a course of trade in said cards in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. The said cards sold and distributed by respondent were substantially in the form exemplified by a photostatic copy of the said card, hlllarkederein andExhibitmade A,a partattachedhereof.lhereto and by this reference· incorporated .,; ' Upon said cards when they were delivered to purchasers thereof, respondent placed numbers, which were his code numbers and identified his customers to him.

Respondent's purchasers addressed the cards to the persons concerning Whom information was sought· at their last known addresses, inserted opposite the words "Divisional Office" a geographical designation such as "Western" or "Central," attached the postage necessary for their delivery to such persons and deposited them in the United States mails. Such of the reply cards as were filled out and mailed were received by respondent, the customers identified by the code numbers and sent by him to the various purchasers. · · PAR. 4. Through the use of the said cards and the use of the name "Central Clearing Office Occupational Information" respondent has falsely represented, and placed in the hands of his customers means of fa~sely representing, directly and by implication, to those to whom the ~td cards were sent, that respondent was engaged in the business of con- .ucting an employment agency and placing individuals in gainful positions. · PAR. 5. The said representations were false and misleading. In truth and in fact respondent was not engaged in the business of conducting an employment agency or placing individuals in gainful positions. The cards we~e. sent only for the purpose of obtaining information concerning the recrptents for the sole purpose of facilitating the collection of alleged delin- ~ent accounts, and the whole scheme was merely an attempt to obtain Is information by deceit and subterfuge. . ~An.. 6. The use by respondent, as hereinabove set forth, of the fore-· ~omg false and misleading statements and designation has had the tenency and capacity to mislead, and has misled and deceived, many persons to whom the said cards were sent into the erroneous and mistaken belief that said statements and designation were true f!.nd correct, and by reason thereof to give information which they would not have otherwise supplied. PAn. 7. The aforesaid acts and practices of respondent, as herein al- 1 Not published. For identical exhibit included with the findings, seep. 621 infra. Findings 38 F. T. C.

leged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and mean-. ing of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on August 18, 1943, issued and subsequently served its complaint in this proceeding upon the respondent, Samuel B. Smith, an individual, 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. Subsequent to the service of the complaint, on February 10, 1944, a hearing for the taking of testimony and other evidence was held at Springfield, Illinois, before Arthur F. Thomas, an examiner of the Commission theretofore duly designated by it, at which hearing respondent admitted all the material allegations of fact set forth in said complaint, and waived further hearing as to the facts and other intervening procedure and agreed that the Commission might enter its order without further hearing. Thereafter the matter came on for final hearing on the complaint, the admission aforesaid, and certain testimony introduced by respondent at said hearing, and duly recorded and filed in the office of the Commission, 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, Samuel B. Smith, is an individual, with an office and principal place of business at Room No. 505, United Mine Workers Building, Springfield, Ill. In conducting his business respondent has used the name "Central Clearing Office Occupational Information." PAR. 2. Respondent for a period prior to about May 1, 1943, was engaged in the business of selling and distributing printed mailing cards, designed and intended to be used by creditors and collection agencies in obtaining information concerning debtors.

Respondent caused said cards to be transported from his aforesaid place of business in the State of Illinois to purchasers thereof in various States of the United States and in the District of Columbia. Respondent maintained a course of trade in said cards in commerce between and among the various States of the United States and in the District of Columbia .. PAR. 3. The said cards sold and distributed by respondent were substantially in the form exemplified by a photostatic copy of the said card, marked Exhibit A, attached hereto and by this reference incorporated · herein and made a part hereof. .

Upon said cards when they were delivered to purchasers thereof, respondent placed numbers, which were his code numbers and identified his customers to him.

Respondent's purchasers addressed the cards to the persons concerning whom information was sought at their last known addresses inserted opposite the words "Divisional Office" a geographical design~tion such as '~Western" or "Central," attached. the postage necessary for their dehvery to such persons and deposited them in the United States mails. SAMUEL B. SMITH 621 618 Findings j'Q i 1~: i g i ! ; 1. i i E .. i !i tI~ j i ii jil. ~ !i i m l l~ t I :; i! i !! I ; :z 0 I I I .2 ~ i'!I I :d ~ i i f i i~ ~ I~ il I -~ ~ ~ ~ ! j'; '~ ., I I" t 0~ :I; ! I! :1 j! "g ! c ., .. :r: ~ '0 ~ l'-~ ·8 ,. l:i 1~ I ~ ·g i J~ ~ ~ ·~ l z I [ol ., .:: I ·0 I ~ "1.;,, ~ d ·u N iI 11 [:: 'l [ ;s z I ~ :g .. "" < j! I ~ i ,:; ~ -5 ~ z0 ;,; I 0 ~ lli :z ., -ti ! .g . f i " ! ·;"t!:; '0 t;::: ., i.E :s e: i ·" 0.E ~ ull ~• j ... ~ 1<1 ] '0 j!a e. ~ -~! .§ "' ., f J J l "' ~ 15 "' ~ ~~ -~ ~ E~ § t- ~ ~ :~ "' e ! " a ~ 0 :I:::] z z z a :s l!l ~ ~ .X A i I "' el R•l•mtt Central Clearing Office OCCUPATIONAL INFORMATION 406 Mine- Workera Bulldinz SPRINGFIELD, ILLINOIS 1·I I '.I .BUSINESS REPLY CARD rtr1t Cl•• PenUi He. ITt, ate. Ill, P. L. a 1L. SprfDt'ldd, DUaell . Central Clearlnl' Office, OCCUPATIONAL INFORMATION 606 Mfne Workers Bulldlnc SPRINGFIELD, ILLINOIS --------- -·- Such of the reply cards as were filled out and mailed were received by r ~spondent, the customers identified by the code numbers and sent by1 1m to the various purchasers. · PAR. 4. Through the use of the said cards and the use of the name "Central Clearing Office· Occupational Information" respondent has ~falsely represented, and placed in the hands of his customers. means of a~sely representing, directly and by implication, to those to whom the ~td cards were sent, that respondent was engaged in the business of con- .ucting an employment agency and placing individuals in gainful positrons.

. :' 622 FEDERAL TRADE COMMISSION, DECISIONS Order 38F. T. C.

PAR. 5. The said representations were false and misleading. In truth and in fact respondent was not engaged in the business of conducting an employment agency or placing individuals in gainful positions. The cards were sent only for the purpose of obtaining information concerning the recipients for the sole purpose of facilitating the collection of alleged de~ linquent accounts, and the whole scheme was merely an attempt to obtain this information by deceit and subterfuge.

PAR. 6. The use by respondent, as hereinabove set forth, of the fore~ going false and misleading statements, including the use of the name "Central Clearing Office Occupational Information," has had the tendel:J.cy and capacity to mislead, and has misled and deceived, many persons to whom the said cards were sent into the erroneous and mistaken belief that said statements and designation were true and that the said name truthfully indicated and described the character of the concern making the inquiry and requesting the information, and by reason thereof to give information which they would not have otherwise supplied. 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 decep· tive 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 respondent's admission of all the material allegations of fact set forth in said complaint made at a hearing held at Springfield, Ill., on February 10, 1944, at which hearing respondent waived the filing of the Trial Examiner's report upon the evidence, further hearing as to the facts and other intervening procedure, and agreed that the Commission might make its findings as to the facts and enter its order without further hearing, 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, Samuel B. Smith, an individual, his representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribu~ -tion of post cards or other mailable matter in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

I. Using the words "Central Clearing Office Occupational Information," or any other words of similar import, to designate, describe or refer to respondent's business; or othenyise representing, directly or by implication, that respondent's business is that of an employment agency or of placing persons in gainful positions.

2. Selling or distributing post cards or other mailable matter which represent, directly or by implication, that respondent's business is other tha;n that of obtaining information to be used in the collection of debts; or whieh represent, directly or by implication, that the information sought SAMUEL B. SMITH 623 618 Order by means of such devices is for any purpose other than for use in the collection of debts. . It is further ordered, That respondent shall, within 60 days after service upon hirn of this order, file with the Commission a report in writing, settmg forth in detail the manner and form in which he has complied therewith.

J L'j •::( r l! ! ( . I I,I I , • Complaint 38F. T. C.