Allied New8-Photo Service Corp
Volume 39 · 39 F.T.C. 425
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Allied New8-Photo Service Corp, 39 F.T.C. 425 (1944). Consumer Law Library, https://consumerlawlibrary.org/decisions/v039-0065
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IN THE ~ATTER OF DAVID JACOBS AND ALLIED NEWS-PHOTO SERVICE CORP., ETC.
COMPLAINT, FINDINGS, AND ORDER IN REGARD TO Tile ALLEGED VIOLATION OF SEC. ll OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4884. Complaint, Dec. 31, 1942-Decision, Nov. 4, 1944 Where an individual and a corporation controlled by him, engaged in interstate sale and distribution of photographs and "Goldtone Miniatures" made therefrom, through the mails and salesmen whom they supplied with purported "Press Cards" which contained such matter as "To Police Department: Please extend every reasonable courtesy essential to the bearer," "Issued to" (followed by provision for "Signature of Bearer"), set forth their trade name" Allied News Photographic Service, 439 Madison Avenue, New York City," followed by the words "London, Paris, Berlin," contained a blank for the insertion of the name of a person as "General Manager," and set forth such other matter as might be expected to be contained on such a card, followed by provisions for bearer'!! description and the words "Not Transferable"- (a) Represented, directly or by implication, through use of corporate name "Allied News Photo Service Corporation," and trade names "Globe Press-Photo Service" and" Allied News Photographic Service," which were brought to the attention of prospects orally by their salesmen, by mailing envelopes sent to prospects, and by the display of aforesaid cards with which they supplied their salesmen, that they were in the business of obtaining photographs of persons of public interest for the press, throughout the United States; that such photographs were desired by them because of their news value; that newspapers desiring photographs of prospective subjects, would obtain said photographs from them; and that they were news or press photographers or photographic agencies as distinguished from portrait photographers;
The facts being that they did not conduct a news or press photographic agency and had no regular connection with any such, nor did they, except in rare instances, furnish them with photographs; but were engaged in the business of making photographs and "Gold tone Miniatures" and selling them to individual private customers; (b) Represented falsely, directly and by implication, through the use of the aforesaid cards and statements by their agents, that the persons who carried said cards were accredited representatives of a recognized news photographic service or agency to whom, in the course of their work, police authorities frequently accorded oppor· tunities to photograph current events not accorded to others; and that they had offices or agencies or representatives in London, England; Paris, France; and Ber· lin, Germany;
(c) Represented to prospects directly and by Implication, through their representatives and salesmen, that photographs were desired in order that prints might be available in the event that the press desired them for publication, and that many newspapers obtained such photographs from them;
When in fact they desired to take photographs in order that they might receive orders therefor and for" Gold tone Miniatures" made therefrom, !rom the subjects thereof; ·and they were not, except in very rare instances, a. source of supply for photographs to newspapers;
638680"'-47-30 Complaint 39 F. T. C.
(d) Represented also that they were "official photographers" for, or were connected with, particular newspapers and were obtaining photographs for such newspapers, by means of statements of their representatives and salesmen and by the display of letters containing such statements, on the letterheads of such newspapers, which they had secured from them;
The facts being they had no connections with said newspapers and were not obtaining photographs for them, except that they did supply to each one print of each photo· graph taken in the community in which such newspaper was located, as considera· tion for the giving by said newspaper of the letter referred to above; and (e) After taldng photographs of those who had consented thereto, and submitting proofs thereof to such persons, in an endeavor to sell to said persons prints and later, "Goldtone Miniatures" made therefrom, represented, in letters sent to said persons, that they had on hand completed "Gold tone Miniatures" of such per· sons; that such miniatures had been made for purposes of display at an exhibi· tion as especially fine examples of their art and workmanship; that said exhibi· tion had been concluded and many of the miniatures there displayed by them bad been purchased by the persons whom they portrayed; that unless the said indi· viduals purchased the said miniatures they would be dismantled or used by their salesmen as examples of their workmanship; and that although the regular or usual price at. which such miniatures were sold by them was $75.00, said individu· als might purchase them at a special or reduced price of $12.50; The facts being they never displayed any miniatures at any "exhibition" in any ac· cepted sense of the word, but merely from time to time hung some few on the wall!! of their place of business; only in rare instances did they even have miniatures of the individuals to whom such letters were sent, since usually such miniatures were made only after they had been ordered; and the price of $12.50 quoted by tbelr was not special or reduced but was their regular and usual selling price; With the effect of misleading and deceiving a substantially large number of the pur· chasing public into the erroneous belief that said representations were true, and thereby into the purchase of substantial numbers of their said photographs and miniatures, and with capacity and tendency so to do: II eld, That such acts and practices, under the circumstances set forth, were all to th~ prejudice and injury of the public, and constituted unfair and deceptive acts an practices in commerce.
Mr. Randolph W. Branch for the Commi.,sion.
Mr. Boris Marcus, of .New York City, for respondents. 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 CoJlld mission, having reason to believe that David Jacobs, an individual, an r Allied News-Photo Service Corporation, a corporation, also trading undl the nameR, Allied News Photographic Service, Shelburne Studios, S~c. burne Co., l\Iiniature Gallery of New York and Globe Press-Photo Servic.d hereinafter refrrred to as respondents, have violated the provi..;ions of sltl t act, and it appearing to the Commission that a proceeding by it in res~c thereof would be in the public interest, hereby issues its complaint statlllg its charges in that respect as follows:
DAVID JACOBS, ET AL. 427 425 Complaint PARAGRAPH 1. Respondent, David Jacobs, is an individual, with an office and principal place of business at 439 Madison Avenue, city and ~tate of New York; respondent, Allied News-Photo Service Corporation, lS a corporation, organized under the laws of the State of New York, with an office and principal place of business at 439 Madison Avenue, city and State of New York. Respondent, Jacobs, holds all the offices in said cor- Poration and is now, and at all times mentioned herein has been, in control of the management, policies and operation thereof, particularly in respect to the acts and practices herein alleged. Said respondents trade under the names, Allied News Photographic Service, Shelburne Studios, Sehlburne Co., Miniature Gallery of New York, and Globe Press-Photo Service. PAR. 2. Respondents are now, and have been for more than two years last past, engaged in the business of making photographs of persons, and selling and distributing said photographs and "Goldtone Miniatures., Inade therefrom. Respondents cause said photographs and miniatures, When sold, to be transported from their aforesaid place of business in the State of New York to purchasers thereof in various other States of the United States and in the District of Columbia. Respondents maintain, and at all times mentioned herein have ]llaintained, a course of trade in said photographs and miniatures in commerce between and among the Various States of the United States and in the District of Columbia. PAn. 3. In the course and conduct of their said business and for the purpose of securing permission to take said photographs as a necessary pre- Itninary to inducing the purchase thereof, respondents have made, and c~used to be made, false and misleading statements and representations With respect to the identity, nature and character of their business, to Prospective subjects for and purchasers of said photographs and miniatures.
PAn. 4. Through the use of the names, "Allied News-Photo Service Corporation," "Globe Press-Photo Service" and "Allied News Photog.r~phic Service" respondents have represented, directly and by implication, to prospective subjects for photographs, that they are in the business ?f obtaining photographs of persons whose photographs are or may be of Interest to the public for the press, i.e., for newspapers, magazines and Other periodicals published throughout the United States; that such Photographs are desired by respondents because of their present or prospective news value; that respondents are connected with newspapers in such a fashion that in the event that such papers desire photographs of such prospective subjects, they would obtain them from respondents and that the said respondents are news or press photographers or photographic agencies as distingui.':ihed from portrait photographers. The said names are brought to the attention of prospective subjects, and subjects, orally by respondents' salesmen, by the use of mailing ensfVelopes~ards sentwith towhichprospectiverespondentspurchaserssupply oftheirphotographssalesmen andandrepresentatives.by the display a1d cards are substantially in the following form: Complaint 39 F. T. C.
.......................................
To Police Department:
Please extend every reasonable courtesy essential to the bearer Issued to ........................... .
Signature of Bearer Authorized as Staff Photographer Allied News Photographic Service 439 Madison Avenue B. Gordon New York City • General Manager London Paris Berlin CONDITIONS The holder hereof in accepting this card, assumes all risk of injury or accident and damage to person or property incident to the use thereof.
The bearer agrees to abide by any reasonable direction of a Police officer or a member of the Fire Dept.
Weight Eyes Hair Height Age NOT TRANSFERABLE PAn. 5. The aforesaid representations were deceptive and untrue. I.n truth and in fact, respondents do not conduct a news or press photograph\j agency but are engaged in the business of making portrait photographs an Goldtone Miniatures and selling them to individual private customers. Respondents have no regular connection with any newspaper or ne~s gathering or news disseminating agency, nor do they, except in rare 1n· stances, furnish photographs to newspapers or to such agencies. Respond· ents seek permission to take photographs of individuals as a. necessary pre· liminary to the sale of said photographs and Gold tone Miniatures to such individuals and not for the purpose of obtaining photographs of present or potential news value for the press.
PAR. 6. Through the use of the said cards and oral statements of re· spondents' agents and representatives, respondents have represented, directly and by implicn.tion, thn.t the persons who carry such said car~ a.r~ accredited representatives of a. recognized news photographic service 0 DAVID JACOBS, ET AL. 429 425 Complaint agency to whom, in the course of their work, there are frequently accorded by police authorities opportunities to observe and take photographs of current events not accorded to others, and that respondents have offices or agencies or representatives in London, England; Paris, France and Berlin Germany. ' PAR. 7. The aforesaid representations were deceptive and untrue. In truth and in fact respondent has not, and never had, offices or agencies or representatives in London, England or Paris, France, or Berlin, Germany. Respondents' representatives and salesmen were not accredited representatives of a recognized news photographic service or agency, and the said cards were supplied to them solely for the purpose of inducing those asked to pose for photographs to believe that their pictures were being sought because of their present or potential news value. PAR. 8. Respondents' representatives and salesmen also orally represented, directly and by implication, to prospective subjects that their photographs were desired in order that prints would be available in the event that they were desired for publication by the press and that many newspapers obtained such desired photographs from respondents. PAn. 9. The aforesaid representations were deceptive and untrue. In truth and in fact respondents desired to take photographs in order that they might receive orders therefore and for Goldtone Miniatures made therefrom, from the subjects thereof, and not in order that they might be available for publication in the press. Respondents were not, except in 'Very rare instances, a source of supply for photographs to newspapers. PAR. 10. Respondents also represented that they were "official photographers" for, or were connected with, particular newspapers and were obtaining photographs for such newspapers. Such representations were made orally by respondents' representatives and salesmen and the display of letters on the letterheads of such newspapers containing such statements.
PAn. 11. The said representations were deceptive and untrue. In truth and in fact respondents did not have connections with said newspapers and were not obtaining photographs for them, except that respondents did supply to each such newspaper one print of each photograph taken in the c?~munity in which such newspaper was located as. consideration for the gJ.vmg by said newspaper of the letter referred to above. PAn. 12. After taking photographs of those who consented thereto, respondents submitted proofs thereof to such persons and endeavored to sell them prints and later endeavored to sell to such persons "Gold tone Miniatures" made from said photographs. In the course and conduct of their business and for the purpose of inducing the purchase of said mini- ~tures, respondents have made and caused to be made, directly and by ~rnplication by means of letters sent to prospective purcha.<;ers of said min- Iatures ma~y false and deceptive representations with respect thereto. Among and typical of such representations are the following. • •• our photographer made several very fine portrait studies of you, one of which \Ve have found admirably adaptable for reproduction as a Goldtone Miniature. Recently we held an exhibition of Gold tone Miniatures and we are disposing of those Which remain ~t the especially reduced price of $12.50. Our regular price is $75. We Offer you the opportunity or acquiring one of these yourself at the special price of 112.50.
Complaint 39 F. T. C.
Recently we made a Goldtone Miniature from one of your negatives for display at an exhibition of miniatures. . . • The exhibition has been concluded and we are ... offering you the opportunity of acquiring for yourself this fine reproduction at the greatly reduced price of $12.50. Our regular price is $75. We would appreciate hearing from you before dismantling the miniature . . • . a very fine miniature of yours which we have on hand from our recent exhibition of miniatures ..•. Inasmuch as we have no further exhibitions planned at this time we believe that the miniature would be of far greater value to you than to us ...• those few miniatures which remain will shortly be sent out to our salesmen as additional samples of our workmanship.
As your negatives were very suitable for miniature work, we recently finished a Gold· tone Miniature from one of these negatives for an exhibit. Inasmuch as this exhibit is over, we can now offer this excellent piece of workmanship to you at a price of $12.50. The regular price for this work is $75.00.
PAR. 13. Through the use of the representations in said letters hereinabove set forth, and others similar thereto not specifically set out herein respondents have represented, directly and by implication, to the individ· uals to whom said letters were sent, that respondents had on hand com· pleted Gold tone Miniatures of such persons; that such miniatures had been made for purposes of display at an exhibition as especially fine examples of respondents' art and workmanship; that said exhibition had been con· eluded and many of the miniatures there displayed by respondents h~d been purchased by the persons whom they portrayed; that unless the said individuals purchased the said miniatures they would be dismantled or used by respondents & salesmen as examples of respondents' workman· ship, and that although the regular or usual price at which such miniatures were sold by rer:-;pondents was $75.00, that said individuals might purchase them at a special or reduced price of $12.50. PAR. 14. The said representations were deceptive and untrue. In tr~t? and in fact rel"pondcnts never displayed any miniatures at any "exh1b1· tion" in any accepted senr;e of the word but merely from time to time hu~g some few such miniatures on ihe walls of their place of business. Only 10 rare instance<>s did they even have miniatures of the individuals to whom such letters were sent, since usually such miniatures were made only after they had been ordered. Respondents' regular and customary price for such miniatures was not $75.00 and the price of $12.50 quoted by respond· ents was not a special or reduced price but that at which they were rcgu· larly and usually sold by respondents. . 1~ AR. 15. The usc by respondents of the foregoing fabc and deceptive rrpresentations with respect to thrir photographs and miniatures has h~d, and now has,· the capacity and tendency to, and docs, mislead and dccc1ye a substantial portion of the purchasing public into the erroneous and ~~s taken brlicf that said statements and rrpresentations were true and 1ntd the purchase of substantial numbers thereof because of said erroneous o.n mistaken belief. 1 11 PAn. 16. The aforesaid acts and practices of respondents, as herein ' leged, are all to the prejudice and injury of the public, and constitute und fair and deceptive acts and practices in commerce within the intent f1n meaning of the Federal Trade Commission Act.
DAVID JACOBS, ET AL. 431 425 Findings REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on December 31, 1942, issued and subsequently served its complaint in this procee"ding upon respondents, David Jacobs, and Allied News-Photo Service Corporation, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondents' answer, the Commission, by order entered herein, granted respondents' motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, which substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and substitute answer; and the Commission, having duly considered the matter ~nd being now fully advised in the premises, finds that this proceeding is ~n 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, David Jacobs, is an individual, with his ~!free and principal place of business at 439 Madison Avenue, New York, .. ~. Y. Respondent, Allied News-Photo Service Corporation, is a corporah~n, organized under the laws of the State of New York, with its office and Prtncipal place of business at 439 Madison Avenue, New York, N.Y. Respondent, Jacobs, holds all the offices in said corporation and is now, and at ~ll times mentioned herein has been, in control of the management, and operation thereof, particularly in respect to the acts and prac- f.0hcies, lces herein found. Said respondents trade under the names Allied News ~hotographic Service, Shelburne Studios, Shelburne Company, Miniature allery of New York, and Globe Press-Photo Service. PAn. 2. Respondents are now, and have been for more than two years las~ past, engaged in the business of making photographs of persons and Selhng and distributing said photographs and "Gold tone Miniatures" lnade therefrom. Respondents cause said photographs and miniatures, Nhcn sold, to be transported from their place of business in the State of ew York to purchasers thereof in various other States of the United ~.states and in the District of Columbia. Respondents maintain, and at all unes mentioned herein have maintained, a course of trade in said photog?Phs and miniatures in commerce between and among the various States 0 the United States and in the District of Columbia. PAR. 3. In the course and conduct of their said business and for the pur- Pose of securing permission to take said photographs as a necessary prelim- ~nary to inducing the purchase thereof, respondents have made, and caused 0 be made fal-,e and misleading statements and representations to prospective subjects for and purchasers of said photographs and miniatures Concerning the identity nature, and character of their business. l>o PAn. 4. Through the 1use of the names" Allied News-Photo Service Corration," "Globe Press-Photo Service," and "Allied News Photographic Findings 39 F. T. C.
Service," respondents have represented, directly and by implication, to prospective subjects for photographs that they are in the business of obtaining photographs of persons whose photographs are, or may be, of interest to the public for the press, i.e., for newspapers, magazines, and other periodicals published throughout the United States; that such photographs are desired by respondents because of their present or prospective news value; that respondents are connected with newspapers in such a fashion that in the event that such papers desire photographs of such prospective subjects, they would obtain them from respondents; and that the said respondents are news or press photographers or photographic agencies as distinguished from portrait photographers. The said names are brought to the attention of subjects and prospective subjects orally by respondents' salesmen, by the use of mailing envelopes sent to prospective purchasers of photographs, and by the display of cards with which respondents supply their salesmen and representatives. Said cards are in substantially the following form:
To Police Department:
Please extend every reasonable courtesy essential to the bearer lBBued to............................ ~ Signature of Bearer ~ Authorized as Staff Photographer , • ~ t:l Allied News Photographic Service 439 Madison Avenue B. Gordon New York City General Manager London Paris Berlin .................................
CONDITIONS The holder hereof in accepting this card, assumes all risk of injury or accident and damage to person or property incident to the use thereof.
The bearer agrees to abide by any reasonable direction of a Police officer or a member of the Fire Dept.
....... ...... ...... ...... ......
.................................Weight Eyes Hair Height Age NOT TRANSFERABLE DAVID JACOBS, ET AL. 433 425 Findings PAR. 5. The aforesaid representations are deceptive and untrue. In truth and in fact, respondents do not conduct a news or press photographic agency but are engaged in the business of making portrait photographs and "Gold tone Miniatures" and selling them to individual private customers. Respondents have no regular connection with any newspaper or news-gathering or news-disseminating agency, nor do they, except in rare instances, furnish photographs to newspapers or to such agencies. Respondents seek permission to take photographs of individuals as a necessary preliminary to the sale of said photographs and "Gold tone Miniatures" to such individuals and not for the purpose of obtaining photographs of present or potential news value for the press. PAn. 6. Through the use of the said cards and oral statements of respondents' agents and representatives, respondents have represented, directly and by implication, that the persons who carry such said cards are accredited representatives of a recognized news photographic service or agency to whom, in the course of their work, there are frequently accorded by police authorities opportunities to observe and take photographs of current events not accorded to others, and that respondents have offices or agencies or representatives in London, England; Paris, France; and Berlin, 9ermany. These representations are deceptive and untrue. In truth and 1n fact, respondents have not, and never. had, offices or agencies or representatives in London, England; or Paris, France; or Berlin, Germany. ~respondents' representatives and salesmen are not accredited representatives of a recognized news photographic service or agency, and the said cards were supplied to them solely for the purpose of inducing those asked btoecausepose forof theirphotographspresent orto potentialbelieve thatnewstheirvalue.pictures were being sought PAn. 7. Respondents' representatives and salesmen also orally represented, directly and by implication, to prospective subjects that their J:>hotographs were desired in order that prints would be available in the event that they were desired for publication by the press and that many newspapers obtained such desired photographs from respondents. These representations were deceptive and untrue. In truth and in fact, respondents desired to take photographs in order that they might receive orders ~herefor and for "Gold tone Miniatures" made therefrom, from the sub- ~acts thereof, and not in order that they might be available for publication ln the press. Respondents were not, except in very rare instances, a source of supply for photographs to newspapers.
PAR. 8. Respondents also represented that they were 11 official photographers" for, or were connected with, particular newspapers and were . obtaining photographs for such newspapers. Such representatio~ were lnade orally by respondents' representatives and salesmen and the display of letters on the letterheads of such newspapers containing such statements. These representations were deceptive and untrue. In truth and in fact, respondents did not have connections with said newspapers and were not obtaining photographs for them, except that respondents did supply to e~ch such newspaper one print of each photograph taken in the commutllty in which such newspaper was located as consideration for the giving by sa.id newspaper of the letter referred to above. · PAn. 9. After taking photographs of those who consented thereto, respondents submitted proofs thereof to such persons and endeavored to sell Findings 39 F. T. C.
them prints and later endeavored to sell to such persons "Gold tone Miniatures" made from said photographs. In the course and conduct of their business and for the purpose of inducing the purchase of said miniatures, respondents have made and caused to be made, directly and by implication, by means of letters sent to prospective purchasers of said miniatures, many false and deceptive representations with respect thereto. Among and typical of such representations are the following: • • • our photographer made several very fine portrait studies of you, one of which we have found admirably adaptable for reproduction as a Goldtone Miniature. • • • • • • Recently we held an exhibition of Gold tone Miniatures and we are disposing of those which remain at the especially reduced price of $12.50. Our regular price is $75. We offer you the opportunity of acquiring one of these yourself at the special price of $12.50. • • • • • • Recently we made a Goldtone Miniature from one of your negatives for display at an exhibition of miniatures • • •. The exhibition has been concluded and we are • • • offering you the opportunity of acquiring for yourself this fine reproduction at the greatly reduced price of $12.50. Our regular price is $75. • • • • • • We would appreciate hearing from you before dismantling the miniature. • • • • • • • • • a very fine miniature of yours which we have on hand from our recent ex· hibition of miniatures. • • • Inasmuch as we have no further exhibitions planned at this time we believe that the miniature would be of far greater value to you than to us. • • • those few miniatures which remain will shortly be sent out to our salesmen as additional samples of our workmanship.
• • • • • • As your negatives were very suitable for miniature work, we recently finished a Gold· tone Miniature from one of these negatives for an exhibit. Inasmuch as this exhibit is over, we can now offer this excellent piece of workmanship to you at a price of $12.50. The regular price for this work is $75.00.
PAn. 10. Through the use of the representations in said letters, here~n above set forth, and others similar thereto not specifically set out here~dn, respondents have represented, directly and by implication, to the indivl • uals to whom said letters were sent, that respondents had on hand com· plcted "Gold tone Miniatures" of such persons; that such miniatures had been made for purposes of display at an exhibition as especially fine exam· ples of respondents' art and workmanship; that said exhibition had heed concluded by many of the miniatures there displayed by respondents h~ been purchased by the persons whom they portrayed; that unless the sal~ individuals purchased the said miniatures they would be dismantled a~ . used by respondents' sale::;men as examples of respondents' workmanship' and that although the regular or usual price at which such miniatures were sold by respondents was $75.00, that said individuals might purchase theJll at a special or reduced price of $12.50. These representations are decep- DAVID JACOBS, ET AL. 435 425 Order tive and untrue. In truth and in fact, respondents never displayed a~y miniatures at any "exhibition" in any accepted sense of the word but merely from time to time hung some few such miniatures on the walls of their place of business. Only in rare instances did they even have miniatures of the individuals to whom such letters were sent, since usually such miniatures were made only after they had been ordered. Respondents' regular and customary price for such miniatures was not $75.00 and the Price of $12.50 quoted by respondents was not a special or reduced price but that at which they were regularly and usually sold by respondents. PAR. 11. The use by respondents of the foregoing false and deceptive representations with respect to their photographs and miniatures has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements and representations are true and into the Purchase of substantial numbers thereof because of said erroneous and mistaken belief.
CONCLUSION· The aforesaid acts and practices of respondents, 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 and the answer of respondents, in (which answer respondents admitted all the material allegations of fact set horth in said complaint and waived all intervening procedure and further hearing as to said facts, and the Commission having made its findings as t? the facts and conclusion that said respondents have violated the pro- VIsions of the Federal Trade Commission Act.
It is ordered, That respondent, David Jacobs, an individual, his representatives, agents, and employees, and respondent, Allied News-Photo ~~rvice Corporation, its officers, representatives, agents, and employees, JomtJy or severally, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of photographs ahd miniatures made therefrom in commerce, as "commerce" is defined in t e Federal Trade Commission Act, do forthwith cease and desist from: . 1: Using the words "News" or "Press," or any other word or words of sunllar import or meaning, in or as a part of any corporate or trade name for the business of selling to persons photographed prints of such photo- ~raph.~; or otherwise representing in any manner in connection with such URtness that respondents arc news or press photographers. . 2: Representing, directly or by implication, in the course of _thmr usual buRtness as commercial portrait photographers that they desire to take Photographs of individuals because of the present or potential news value 9!J~h photographs, or for any reason other than their desire to sell to suchlf ndtvtduals prints of such photographs.
Order 39 F. T. C.
3. Representing, directly or by implication, that they have any regular connection with any newspaper or news-gathering or news-disseminating agency.
4. Representing, directly or by implication, that they maintain any place of business or any agent or employee in any location where in fact no place of business or agent or employee is maintained. 5. Representing, directly or by implication, as the regular or usual prices of their products, any amounts other than those at which such products are regularly and customarily sold by them; or representing as special or reduced prices the amounts at which such products are regularly and customarily sold by them.
6. Representing, directly or by implication, that they have prepared or placed on exhibition any photograph or miniature of any purchaser or prospective purchaser thereof unless such photograph or miniature has in fact been produced or placed on exhibition.
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 com· plied with this order.
GENERAL FOODS CORP., ET AL. 437 Syllabus