Sorrells, Floyd Irl

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IN THE ~LATTER OF FLOYD IRL SORRELLS, TRADING AS TEXAS TASTY COMPANY MODIFIED ORDER TO CEASE AND DESIST Docket 3487. Order, April5, 1945 Modified order in proceeding in question-in which original order issued on January 10, 1939, 28 F. T. C. 64-requiring respondent, his representatives, etc., in connection with offer, etc., in commerce, of" Penny Nips" confections, to cease and desist from representing the same as noncompetitive, from misrepresenting qualities and properties thereof, endorsement by city officials, etc., terms and conditions to agents and representatives, necessity for securing state or municipal license for sale thereof, etc., and from use of term "free" to refer thereto, as in said order specified. Modified ORDER TO CEASE AND Desist This proceeding having heretofore been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, which answer admitted all of the material allegations of fact set forth in the complaint and waived all intervening procedure and further hearings as to the facts, and the Commission having, on January 10, 1939, issued and subsequently served upon the respondent its findings ag to the facts and conclusion and its order to cease and desist; and the Cornmission having further considered said order to cease and desist and having given due notice to the respondent to show cause, if any be had, why the proceeding should not be reopened for the purpose of modifying said order in the respects and to the extent set out in said notice, and the respondent having made no objections to the proposed modification of said order; and the Commission having duly considered the matter and the record herein, and having concluded that the public interest requires the modification of said order to cease and desist in the respects and to the extent set out in said notice.

It is ordered,· That the respondent, Floyd Irl Sorrells, an individual, trading as the Texas Tasty Company or under any other trade name, his representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of confections known as" Penny Nips," whether sold under that name or under any other name, in interstate commerce or in the District of Columbia, do forthwith cease and desist from: . Representing directly or in any manner whatever 1. That such confection is a noncompetitive article of merchandise. 2. That such confection will remain in marketable condition in weather temperature up to 132° Fahrenheit.

3. That the city officials of Fort Worth, Texas, or of any other city, have certified the purity of such confection, until and unless such officials have so certified respondent's confection.

4. That the liquid in such confection is pure fruit juice. 5. That respondent's representatives or agents will remain in the territory allotted to a dealer under contract, for the purpose of aiding the dealer in his sale of respondent's product, until the dealer has sold 650780-47-24 Order 40 F. T. C.

merchandise equaling the amount the dealer advanced to respondent's representative or agent as a consideration for the contract. 6. That such confection will be shipped by respondent to a bonded warehouse, where the dealer may withdraw it in small quantities by paying the amount due on each small box so withdrawn. 7. That free merchandise will be shipped to the dealer to reimburse him for expense incurred in paying shipping charges, unless such merchandise is actually shipped.

8. That such confection will be shipped to purchasers charges prepaid, unless it is in fact so shipped.

9. That products similar to respondent's confection or respondent's confection have never been sold in the territory allotted to the dealer, when such is not the fact.

10. That no state or municipal license will be charged the dealer for selling respondent's confection in the territory allotted to such dealer; and from 11. Using the term "free" or any other term of similar import and meaning to describe, designate or refer to any merchandise which is not a gift or gratuity and delivered to the recipient thereof without cost and unconditionally.

· It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

MONTGOMERY WARD & CO., INC. 327 Complaint