Jannette B. Downs

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IN THE 11ATTER OF JANNETTE B. DOWNS COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 _ Docket 5081. Complaint, Nov. 13, 1943-Decision, June 14, 1944 Where an individual engaged under the trade name "National Bureau of Missing Heirs" in inter~tate sale and distribution of reply post cards designed for use by creditors and collection agencies in locating delinquent debtors which, headed by aforesaid trade name along with her address and words "Estate Probate Attorneys In All Principal Cities" and "Searchers of Records," advised the person addressed that said "National Bureau of Missing Heirs" was "looking for a person of your name," had reasons to believe said person might be the one, that the matter was of "distinct importance to you" in that event, and requested that, to verify_ this, person "please answer the questions on the attached reply card" for return to said bureau, calling, among other things, for his name and address, and that of his employer and bank, home ownership and description; Making use of a plan under which her customers addressed the cards to the persons concerning whom information was sought at their last known addresses or in the care of.others believed to-have knowledge of their whereabouts, returned them to her for mailing, and the cards filled out and returned by the recipients to her, were by her sent to the customers, identified by numbers; (a) Falsely represented and placed in the hands of her customers means of falsely representing, directly and by implication, to those to whom said cards were sent, that the "National Bureau of Missing Heirs" had connections with attorneys in all principr•l cities who engage in probate matters, was engaged in the business of locating heirs to estates or to interests therein and of searching records, and that the persons concerning whom information was sought had or might have interests in estates or lands which might be of financial benefit to them; when her sole purpose was to secure information to facilitate collection of alleged delinquent accounts by her customers; and (b) Falsely represented, directly and by implication, through use of name "National Bureau of Missing Heirs" that her business bore some relation to estates and the locating of the heirs thereto and to interests therein; when it was merely a disguise for the true nature of the business;

With effect of misleading many persons to whom said cards were sent into the er- . roneous belief that the said representations were true, and by reason thereof into giving illformation which they would not otherwise have supplied: Held, That said 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.

Mr. Eugene D. O'Sullivan, of Omaha, Nebr., 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 Jannette B. Downs, an individual, I.

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JANNETTE B. DOWNS 647 646 Complaint 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 would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

. PARAGRAPH 1. Respondent, Jannette B. Do~·ns, is an individual, trad- Ing and doing business under the name "National Bureau of Missing ~cirs," with an office and principal place of business at Keen Hotel Build- Ing, Omaha, Nebr. · PAR. 2. Respondent is now, and for more than one year last past has I,"been, engaged in the business of selling and distributing reply postcardsdesigned and intended to be used by creditors and collection agencies in i' obtaining information concerning debtors. · Respondent causes the said cards to be transported from her aforesaid place of business in the State of Nebraska to purchasers thereof in various States of the United States and in the District of Columbia. She main- ~ains, and at all times mentioned herein has maintained, a course 0f tradeIn the said cards in commerce between and among the various States of the r!United States and in the District of Columbia. PAR. 3. The said cards are in the form exemplified by a photostatic~opy thereof, marked Exhibit A, attached hereto, and by this reference I Incorporated herein and made a part hereof.! PAR. 4. Respondent's customers cause the said cards to be addressed to the persons concerning whom information is sought at their last known r.·addresses or in the care of other persons who arc believed to have knowledge of the whe1;eabouts of such persons. The cards are then sent store- ~pondent at Omaha, Nebr., who causes the individual cards to be placed lU the United States mail. At the time .of mailing the return portion of . each card bears a number, '\Which is respondent's code number by which she can identify the customer who is seeking the information concerning the addressee of the carcl. Such of the cards as are filled out and mailed by the recipients thereof are received by respondent, the customers identified by the code ·numbers, and the cards sent to the customers so identified. PAR. 5. Through the use of the aforesaid cards respondent has represented, and placed in the hands of her customers means of falsely representing, directly and by implication, to those to whom said cards were sent, that the National Bureau of Missing Heirs has connections with attorneys in all principal cities who engage in probate matters, is engaged in ~he business of locating heirs to estates or to interests therein and of search- Ing records, and that the persons concerning whom information is sought have or may have interests in estates or lands which may be of financial benefit to them. · The said representations were false and misleading. In truth and in fa~t respondent in conducting the business called National Bureau of M1~sing Heirs has no connection with attorneys in all principal cities who en~age in probate matters. She is not engaged in the business of locating heirs to estates or to interests therein or in the business of searching rec?rds. She has no knowledge of any interests in estates or lands to ':'hich the persons concerning whom information is sought may be entitled. The sole purpose of the said cards is to secure information in order to facilitate the collection of alleged delinquent accounts by respondent's customers.

1 Not publiahed. For identicul exhibit• included with the fmdingo, aee p. 650 infra. 648 FEDERAL· TRADE COMMISSION DECISIONS Findings· 38 F. T: C.

PAR. 6. Through the use of the name "National Bureau of Missing Heirs" respondent has represented, directly and by implication, that her business bears some relation to estates and the locating of heirs thereto or to interests therein.

Said representations were misleading and untrue. In truth and in fact respondent's business has nothing whatever to do with estates or to the locating of heirs thereto or to interests therein, and the said name is merely a disguise for the true nature of the business. ' PAR. 7. The use, as hereinabove set forth, of the foregoing false and misleading statements, representations and designation, has had the capacity and tendency to mislead and has misled, many persons to whom said cards were sent into the erroneous and mistaken belief that the said statements, representations and designation were true and correct, and by reason thereof to give information which they would not otherwise have supplied. · . PAR. ·8. The aforesaid acts and practices of respondent, as herein alleged, are aU to the prejudice and injury of the public, and constitute un7 . fair and deceptive acts and practices in commerce within the intent and meaning 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, November 13, 1943, issued and subsequently served its complaint in this proceeding upon the .respondent, Jannette B. Downs, an individual, trading under the name National Bureau of Missing Heirs, charging her with the use of unfair and deceptive acts and practices in coinmerce in violation of the provisions of that act. No answer to the complaint was filed. Subsequent to the service of the complaint, testimony and other evidence in support of the allegations of said complaint was introduced by R. W. Branch, attorney for the Commission, and in opposition to the allegations of the complaint by Eugene D. O'Sullivan, attorney for the respondent, before Arthur F. Thomas, an examiner of the Commission theretofore duly designated by it, and said testimony and other evidence were duly recorded and filed in the office of the Commission. The said testimony and evidence were introduced at a hearing held at Omaha, Nebr., on Febr1,iary 12, 1944, and at the hearing counsel for respondent waived the filing of a report upon the evidence by the trial examiner, briefs and application for oral argument, and agreed that the case might be submitted to the Commission for final disposition on the record. Thereafter the proceeding regularly came on for final hearing on said record, 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, Jannette B. Downs, is an individual, trading and dding business under the name "National Bureau of Missing Heirs," with a place of business at Keen Hotel, Omaha Nebr. PAR:· 2. Respondent, prior to August 1943, was engaged in the business of selhng and distributing reply post cards designed and intended to be JANNETTE B. DOWNS 649 646 Findings used by creditors and collection agencies in locating the whereabouts of delinquent debtors. The business was discontinued by respondent in August 1943. • ' PAR. 3. The business was originated by. one John Battelle in 1941, or . 1942, who some six months later entered the Army. Battelle traveled and solicited the business and respondent attended to the rest of the work. After Bat.telle entered the Army, respondent' continued the operation of the business, filled orders for cards and handled them in the appropriate f manner. She sold o'!' filled orders for about 1000 cards after Battelle's 11 ' ~ departure, taking and using the proceeds in accordance with their understanding. • il I PAR. 4. Respondent caused the said cards to be transported from Omaha, Nebr., to purchasers thereof in other States of the United States, l. and maintained a course of trade in said cards in commerce between and I. f,among the various States of the United States. i' PAR. 5. The cards sold and distributed by respondent were in the form exemplified by a copy thereof attached hereto as Exhibit A, and made a part hereof.

PAR. 6. Respondent's customers caused the said cards tope addressed to the persons concerning whom information was sought at their last known addresses or in the care of other persons who were believed to have knowledge of the whereabouts of such persons. Tqe cards were then sent to respondent at Omaha, Nebr., who caused the individual\ cards to be ~laced in the United States mail. At the time of mailing, the return portion of each card bore a number, which was respondent's code number by which she could identify the customer who was seeking the information concerning the addressee of the card. Such of the cards as were filled out and mailed by the recipients thereof were received by respondent, the customers identified by the code numbers, and the cards sent to the customers so identified.

PAR. 7 .. Through the use of the aforesaid cards respondent has represented, and placed in the hands of her customers means of falsely representing, directly and by implication, to those to whom said cards were sent, that the National Bureau of Missing Heirs had connections with at- ~orneys in all principal cities who engaged in probate matters, was engaged 1n the business of locating heirs to estates or to interests therein and of searching records, and that the persons concerning whom information was sought had or might have interests in estates or lands which might be of financial benefit to them.

The said repr:esentations were false and misleading. In truth and in fa~t respondent, in conducting the business called National Bureau of Missing Heirs, had no connection with attorneys in all principal cities who ~ngage in probate matters. She was not engaged in the business of locatlllg heirs to estates or to interests therein or in the business of searching rec?rds. She had no knowledge of any interests in estates or la-nds to Wh1.ch the persons concerning whom information was sought might be entitled. The sole purpose of the said cards was to secure information in order to facilitate the collection of alleged delinquent accounts by respondent's customers.

~ AR. 8. Through the usc of the name "National Bureau of Missing He1!s" r~spondent represented, directly and by implication, that her ~u~mess bore some relation to estates and the locating of heirs thereto or 0 1llter(!sts therein. I,i ', li9154GIII._.{6-vol. 38-44 Findings 38 F. T. C.

-·· FILE NO. :2 ( () F\:.11 N~mo Age Rcstdenc&o Addrcu (pro•tiousl NcouutRobttv,Jo Rot.I.!Lonshlp lJ MoJni~d. M.1taa full Name Ph.:>no Number (ol o.~nyl Ntl'&rP51 Phon• I N"mo ol Yout Presonl Euts:-loyor Oop.utm~otl Yo!lrB.,rlk Gcrnct·.l.lx.:crJ 1;1tOnol Y.:.ursgll ~ -------------------------- i Said representations were misleading and tmtruc. In truth and in fact respondent's business had nothing whatever to do with estates or the locating of heirs thereto or·to interests therein, and the said name was merely a disguise for the true nature of the business. PAR. 9. The usc as hereinabove set forth, of the foregoing false and misleading statements and representations, including the use of the name "National Bureau of Missing Heirs," has had the capacity and t~ndency JANNETTE B. DOWNS 651 646 Order to mislead and has misled many persons to whom said cards were. sent into the erroneous and mistaken belief that the said statements and representations 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 otherwise have supplied.

CONCLUSION The aforesaid acts and practices of respondent, as herein found, ar~ aU 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 and testimony and other evidence taken before Arthur F. Thomas. an examiner of the Commission theretofore duly designated by it, in support ofthe allegations of said complaint · ~nd in opposition thereto, respondent having waived the filing of the trial . ~examiner's report upon the evidence and briefs, and the Commission havlllg made its findings as to the facts and its conclusion that said respondent ' . has violated the provisions of the Federal Trade Commission Act.· It is ordered, That the respondent, Jannette B. Downs, an individual, her representatives, agents and employees, qirectly or through any corpora~e or other device, in connection with the offering for sale, sale and distnbution of post cards or other mailable matter in commerce, as "commerce" is defined in the Federal Trade .Commission Act, do forth;with cease and desist from: . I' 1. Using the words "National Bureau of Missing Heirs," or any other Word or words of similar import, to designate, describe or refer to respond- ,, ent's business; or otherwise representing, directly or by implication, that respondent's business bears any relation to estates or to the rights or interests of heirs therein. ·. 2. Representing, directly or by implication, that respondent has connections with attorneys in principal cities.

. 3. Representing, directly or by implication, that respondent is engaged In the business of locating heirs to estates or interests therein. . 4. Representing, directly or by implication, that respondent is engaged I In the business of searching records. 5. Representing, directly or by implication, that persons concerning Whom information is sought through respondents' cards or other mailable matter, have or may have any interests in estates or any other property. · 6. Selling or distributing post cards or other mailable matter which represent, directly or by implication, that respondent's business is other than that of obtaining information to be used in the collection of debts; or Which represent, directly or by implication, that the information sought b.y 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 her of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which she has complied therewith. Syllabus 38 F. T. C.