Universal Industries, Inc

Volume 39 · 39 F.T.C. 69

Citation: 39 F.T.C. 69
Docket: 3882
Decision: 1944-08-16
Document type: modifying order
Case type: consumer protection
Statutes: FTC Act (section 5)
Industry: sales stimulator plans
Outcome: modified
Relief: cease_and_desist; compliance_reporting
Source: Original volume PDF
Original PDF: This decision as a PDF

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Cite this decision

Universal Industries, Inc, 39 F.T.C. 69 (1944). Consumer Law Library, https://consumerlawlibrary.org/decisions/v039-0017

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Order status: unknown. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

Cited by 0 later FTC decisions

Cites

32 F.T.C. 1270 — ASSOCIATED NEWS PHOTOGRAPHIC SERVICE, INC., BLACKSTONE STUDIOS, INC., AND LEO FRIED AND WILLIAM SHAPIRO cited_neutral
39 F.T.C. 1 — PABST CHEMICAL CO. (Pabst Pharmaceutical Co., Inc., doing business as) cited_neutral

Text (OCR of the scan at left; may contain errors)

IN THE ~ATTER OF UNIVERSAL INDUSTRIES, INC., ET AL.

MODIFIED CEASE AND DESIST ORDER Docket 3882. Order, August 16, 19# Modified order in proceeding in question, in which original order issued on April 24, 1941, 32 F.T.C. 1270, requiring respondents, their officers, representatives, etc., in connection with the offer, etc., in commerce, of sales stimulator plans, or devices, including trade cards, circulars, and other advertising material, and tableware and other products used as premium merchandise in connection with the operation of any sales stimulator plan, to cease and desist from misrepresenting their financial condition, business history, price, value of products, and salesmen's earnings, and goods offered as compensation for service, as free or when not free, and misrepresenting the cost of the plan to the purchaser through failing to reveal additional payment required, as in said order specified. ~ODIFIED 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 respondents, testimony and other evidence taken before ~iles J. Furnas, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, and report of the trial examiner thereon, and briefs filed herein, and the Commission having duly made and issued its findings as to the facts, conclusion and order to cease and desist dated April24, 1941; and the Commission having further considered said order to ceas~ and desist heretofore issued, and being of the opinion that the public interest requires that a modified order to cease and desist should be issued in said cause; and the Commission having given due notice to the respondents to show cause on July 24, 1944, why this case should not be reopened for the purpose of modifying said order to cease and desist; and the Commission having considered the matter and the record herein, and having issued its order modifying said order in certain respects, issues this its modified order to cease and desist. It is ordered, That the respondent Universal Industries, Inc., a corporation, its officers, representatives, agents, and employees, the respondent, Abraham Leonard Koolish, an individual, and respondent George William Ehrlich, an individual, and their respective 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 sales stimulator plans or devices, including trade cards, circulars, and other advertising material, and tableware and other products used as premium merchandise in connection with the operation of any sales stimulator plan, do forthwith cease and desist from:

Order 39 F. T. C.

1. Misrepresenting, in any manner, the financial condition and assets of respondents' business or the length of time in which said respondents have been engaged in business.

2. Representing as cust.:>mary or regular prices or values for any of respondents' products, prices or values which are, in fact, fictitious or greatly in excess of the prices at which such products are customarily offered for sale and sold in the normal course of business. 3. Representing any specified sum of money as possible earnings or profits of agents, salesmen, representatives, or distributors for any stated period of time which is not a true representation of the net earnings or profits which have been made for such stated period of time by a substantial number of respondents' active agents, salesmen, representatives, or distributors in the ordinary course of business under normal conditions and circumstances.

4. Representing any specified sum of money as earnings or profits of any specified agent, salesman, representative, or distributor for any stated period of time which has not, in fact, been consistently earned, net, by such agent, salesman, representative, or distributor in the ordinary course of business and under normal conditions and circumstances. 5. Using the term "free," or any other term of similar import or meaning, to describe or refer .to articles offered as compensation for distributing respondents' merchandise.

6. Misrepresenting the cost of any sales plan or sales stimulator to any dealer or merchant by failing to reveal that additional sums of money must be paid by such dealer or merchant in the operation of such sales plan or the use of such sales stimulator.

It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with this order.