Rice, Gerald a

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In THE MArrer OF GERALD A. RICE DOING BUSINESS AS OFFICE OF CIVIL PREPARATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SHC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 53821. Complaint, May 19, 1945—Decision, Oct. 10, 1946 Where an individual engaged in the interstate sale and distribution of correspondence courses of study for examinations for United States civil service positions— (a) Falsely represented through use of the trade-name “Office of Civil Preparation” and the designations “Chief Special Agent,” “Director,” and ‘Assistant Director “in correspondence with prospective purchasers, and through the use of a spread eagle design which simulated the Great Seal of the United States, and other emblems of the United States Government, on his letterheads, advertising material and application blanks, that his so-called Office of Civil Preparation was a branch of or connected with the United States Civil Service Commission or some agency of the United States Government ; (») Represented inaccurately and misleadingly in advertisements distributed to prospective students throughout the northwestern states that thousands of positions were then available in hundreds of branches of the United States Civil Service and that vacancies existed in the specific positions he listed; that a common school education was usually sufficient to fill positions in the civil service, including such listed positions; and that said positions were available because of vacancies due to death, retirements and normal Government expansion and might be obtained through his “Office of Civil Preparation” ;

The facts being that most of the positions listed by him require special training and qualifications; the number of vacancies does not run into thousands, and many conditions other than death, age, and retirement govern the placement of new employees in civil service; no examinations were contemplated in the near future for a number of the positions listed for the reason that the registers therefor contained sufficient names to fill all vacancies; and announcements for many examinations are made for which only persons having veteran preference are eligible;

With tendency and capacity to confuse, mislead, and deceive members of the public into the erroneous belief that such representations were true, and of inducing them to purchase his courses of study and instruction on account thereof: ; 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. Clyde M. Hadley, trial examiner. Mr. William M. Pencke 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 OFFICE OF CIVIL PREPARATION 203 202 Complaint Trade Commission having reason to believe that Gerald A. Rice, an individual, doing business under the Name of Office of Civil Preparation, hereinafter referred to as respondent, has violated the provisions of the 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: ParacrapyH 1. Respondent, Gerald A. Rice, is an individual, trading and doing business under the name and style of Office of Civil Preparation, with his office and principal place of business in the city of Spokane and State of Washington; his mailing address being Room 418, Spokane Hotel, Spokane, Wash.

Par. 2. For more than 4 years last past, respondent had been engaged in tiie sale and distribution in commerce between and among the various States of the United States of courses of study and instruction intended for preparing students thereof for examination for certain civil-service positions under the United States Government, which said courses were pursued by correspondence through the medium of the United States mail. Respondent, in the course and conduct of said business during the time aforesaid, caused his said courses of study and instruction to be transported from his said place of business in the State of Washington to, into and through States of the United States other than Washington to the purchasers thereof in such other States. There has been at all times mentioned herein a course of trade in said courses of instruction so sold and distributed by respondent in commerce between and among the various States of the United States. Par. 3. In the sale of said courses of study and instruction respondent made use of printed advertising matter and letters mailed or distributed to prospective students throughout the northwestern States of the United States in and by which various false, misleading, and deceptive representations were made in regard to said courses of study and matters and things connected therewith. Typical of such representations were the following:

CIVIL SERVICE MEN—WOMEN—18 to 45 YEARS OF AGE MANY OPPORTUNITIES COMMON SCHOOL EDUCATION USUALLY SUFFICIENT Railway Mail Clerk Storekeeper-Gauger Immigrant Inspector Postal Laborer Customs Positions Telephone Operator Jr. Post Office Clerk File Clerk Meat Inspector City Mail Carrier Social Security Positions Forest and Field Clerk Rural Mail Carrier Internal Revenue Income Tax Auditor Stenographer Immigration Clerk Junior Graduate Nurse. Typist Customs Inspector Postmaster Customs Patrol Inspector 204. FEDERAL TRADE COMMISSION DECISIONS Complaint 43 ELA If you want to be ready to fill one of the next thousands of jobs with the Government that must be filled from time to time due to death, retirements, and normal Government expansion, fill in the attached card and mail at once. Above are a few of the 900 different Office of Civil Preparation kinds of Goy’t jobs Box 1000 Spokane, Washington A Few of the Many Desirable Positions in Federal Civil Service Border Patrol Chauffeur Mechanic Customs Inspector Fingerprint Classifier Park Ranger Railway Mail Clerk Forest & Field Clerk Post Office Clerk Revenue Agent R. F. D. Carrier Distillery Inspector Civil Service Examiner Meat Inspector Telephone Operator Prison Guard Weather Bureau GOVERNMENT POSITIONS ATTENTION !! Wanted at once: Men and Women, ages 18 to 45, who are interested in the Government Service as a career.

On his letterheads, advertising material, and application blanks, respondent used the spread-eagle design in imitation of the Great Seal of the United States and other emblems of the United States Government; and in conducting correspondence with prospective purchasers of said courses of study, respondent used, among others, such designations as “Chief Special Agent,” “Director,” and “Assistant Director.” Par. 4. By means of the foregoing statements and representations and others to the same effect not herein set out, respondent represented and implied that the “Office of Civil Preparation” was a branch of, or was connected with, the United States Government or the Civil Service Commission of said Government; that at the time of the dissemination of respondent’s advertisements thousands of positions were available in hundreds of branches of the United States civil service and that vacancies existed in the specific positions listed in respondent’s advertising material; that a common-school education was usually sufficient to fill positions in the civil service, including the positions listed by respondent; that said positions were available because of vacancies due to death, retirements, and normal government expansion and may be obtained through respondent’s Office of Civil Preparation.

Through the use of the simulation of the official United States Government insignia, the trade name, “Office of Civil Preparation,” and the designations “Chief Special Agent,” “Director,” and “Assistant Director,” the respondent represented and implied that respondent’s OFFICE OF CIVIL PREPARATION 205 202 Complaint so-called Office of Civil Preparation was a branch of, or connected with, the United States Civil Service Commission or some agency of the Government of the United States.

When making personal calls upon prospective purchasers of his said course of study, respondent stated that he was a Government man or implied that he was connected with the United States Government ; that civil-service positions were immediately available and that he could place said prospective students in such Government positions. Par. 5. In truth and in fact, all of said statements and representations were false, deceptive, exaggerated, and misleading. Said Office of Civil Preparation was not connected with nor a part of any branch or agency of the United States Government. Respondent Gerald A. Rice operated said business solely for the purpose of selling courses of eeoe study designed to prepare students thereof for civil-service examinations; he was not a Government man or employee of the United States Civil Service Commission or any other branch of the United States Government and had no power or authority whatever to promise, or place any person in, civil-service positions. The words “Office of Civil Preparation,” as used in said trade name, the spread-eagle designs reproduced in the advertising material, and the use of official designations were all grossly misleading and created the impression and belief among members of the purchasing public that respondent was officially connected with or that his business constituted a part of the United States Government or the United States Civil Service Commission.

The representation that a common-school education was usually sufficient to obtain civil-service positions was inaccurate and misleading particularly with respect to the positions listed in respondent’s advertising material. In truth and in fact, most of said positions require special training and qualifications.

The representation that thousands of positions were available, including those specifically listed by respondent, due to death, retirement, and normal government expansion was exaggerated and misleading. While some vacancies occur due to the circumstances described by respondent, their number does not run into thousands; there are, moreover, many conditions prevailing which govern the placement of new employees in civil service other than those of death, age, and retirement.

In truth and in fact, no examinations had been held for some time or were contemplated in the near future for a number of the positions listed by respondent in his advertisements for the reason that the registers for said respective positions contained sufficient names to fill all vacancies. Moreover, announcements for many examinations Findings 43h Tes are made for which only persons having veteran preference are eligible.

Par. 6. The use by the respondent of the representations aforesaid, has had the tendency and capacity to confuse, mislead, and deceive members of the public into the erroneous and mistaken belief that such representations were true, and induced them to purchase respondent’s courses of study and instruction in said commerce on account thereof. Par. 7. The aforesaid acts and practices of the respondent, as herein alleged, were all to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. Report, Finpines As To THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on May 19, 1945, issued and subsequently served its complaint in this proceeding upon respondent Gerald A. Rice, charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said. Act. On May 3, 1946, the Commission granted respondent’s motion to file his answer out of time, in which answer he admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearings as to said facts. Thereafter the proceeding regularly came on for final hearing before the Commissionon the said complaint and the answer thereto, and the Commission, having fully considered the matter and being 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 Paracrarn 1. Respondent, Gerald A. Rice, is an individual, trading and doing business under the name and style of Office of Civil Preparation, with his office and principal place of business in the city of Spokane and State of Washington; his mailing address being Room 418, Spokane Hotel, Spokane, Wash.

Par. 2. For more than 4 years last past, respondent had been engaged in the sale and distribution in commerce between and among the various States of the United States of courses of study and instruction intended for preparing students thereof for examination for certain civil-service positions under the United States Government, which said courses were pursued by correspondence through the medium of the United States mails. Respondent, in the course and conduct of said business during the time aforesaid, caused his. said courses of OFFICE OF CIVIL PREPARATION 207 202 Findings study and instruction to be transported from his said place of business in the State of Washington to, into and through States of the United States other than Washington to the purchasers thereof in such other States. There has been at all times mentioned herein a course of trade in said courses of instruction so sold and distributed by respondent in commerce between and among the various States of the United States.

Par. 3. In the sale of said courses of study and instruction respondent made use of printed advertising matter and letters mailed or distributed to prospective students throughout the northwestern States of the United States in and by which various false, misleading and deceptive representations were made in regard to said courses of study and matters and things connected therewith. Typical of such representations were the following:

CIVIL SERVICE MEN—WOMEN—18 to 45 YHARS OF AGE MANY OPPORTUNITIES COMMON SCHOOL EDUCATION USUALLY SUFFICIENT Railway Mail Clerk Storekeeper-Gauger Immigrant Inspector Postal Laborer Customs Positions Telephone Operator Jr. Post Office Clerk File Clerk Meat Inspector City Mail Carrier Social Security Positions Forest and Field Clerk Rural Mail Carrier Internal Revenue Income Tax Auditor Stenographer Immigration Clerk Junior Graduate Nurse Typist Customs Inspector Postmaster * Customs Patrol Inspector If you want to be ready to fill one of the next thousands of jobs with the Government that must be filled from time to time due to death, retirements, and normal Government expansion, fill in the attached card and mail at once. Above are a few of the 900 different Office of Civil Preparation kinds of Goy’t jobs Box 1000 Spokane, Washington A Few of the Many Desirable Positions in Federal Civil Service Border Patrol Chauffeur Mechanic Customs Inspector Fingerprint Classifier tieaaaceNe enPark Ranger Railway Mail Clerk Forest & Field Clerk Post Office Clerk Revenue Agent R. F. D. Carrier Distillery Inspector Civil Service Examiner Meat Inspector Telephone Operator Prison Guard Weather Bureau GOVERNMENT POSITIONS ATTENTION !! Wanted at once: Men and Women, ages 18 to 45, who are interested in the Government Service as a career.

Findings 43 F. T. C. On his letterheads, advertising material, and application blanks, respondent used the spread-eagle design in imitation of the Great Seal of the United States and other emblems of the United States Government; and in conducting correspondence with prospective purchasers of said courses of study, respondent used, among others, such designations as “Chief Special Agent,” “Director,” and “Assistant Director.” Par. 4. By means of the foregoing statements and representations and others to the same effect not herein set out, respondent represented and implied that the “Office of Civil Preparation” was a branch of, or was connected with, the United States Government or the Civil Service Commission of said Government; that at the time of the dissemination of respondent’s advertisements thousands of positions were available in hundreds of branches of the United States civil service and that vacancies existed in the specific positions listed in respondent’s advertising material; that a common school education was usually sufficient to fill positions in the civil service, including the positions listed by respondent; that said positions were available because of vacancies due to death, retirements, and normal government expansion and may be obtained through respondent’s Office of Civil Preparation. Through the use of the simulation of the official U. S. Government insignia, the trade name, “Office of Civil Preparation” and the designations “Chief Special Agent,” “Director,” and “Assistant Director,” the respondent represented and implied that respondent’s so-called Office of Civil Preparation was a branch of, or connected with, the United States Civil Service Commission or some agency of the Government of the United States.

When making personal calls upon prospective purchasers of his said courses of study, respondent stated that he was a Government man or implied that he was connected with the United States Government; that civil-service positions were immediately available and that he could place said prospective students in such Government positions. Par. 5. In truth and in fact, all of said statements and representations were false, deceptive, exaggerated and misleading. Said Office of Civil Preparation was not connected with nor a part of any branch or agency of the United States Government. Respondent Gerald A. Rice operated said business solely for the purpose of selling courses of study designed to prepare students thereof for civil-service examinations; he was not a Government man or employee of the United States Civil Service Commission or any other branch of the United States Government and had no power or authority whatever to promise, or place any person in, civil-service positions. The words “Office of Civil Preparation,” as used in said trade name, the spread-eagle designs reproduced in the advertising material, and the use of official OFFICE OF CIVIL PREPARATION 209 202 Order designations were all grossly misleading and created the impression and belief among members of the purchasing public that respondent was officially connected with or that his business constituted a part of the United States Government or the United States Civil Service Commission.

The representation that a common-school education was usually sufficient to obtain civil-service positions was inaccurate and misleading particularly with respect to the positions listed in respondent’s advertising material. In truth and in fact, most of said positions require special training and qualifications.

The representation that thousands of positions were available, including those specifically listed by respondent, due to death, retire- ESment, and normal government expansion was exaggerated and misleading. While some vacancies occur due to the circumstances described by respondent, their number does not run into thousands; there are, moreover, many conditions prevailing which govern the placement of new employees in civil service other than those of death, age and retirement.

In truth and in fact, no examinations had been held for some time or were contemplated in the near future for a number of the positions listed by respondent in his advertisements for the reason that the registers for said respective positions contained sufficient names to fill all vacancies. Moreover, announcements for many examinations are made for which only persons having veteran preference are eligible. Par. 6. The use by the respondent of the representations aforesaid, has had the tendency and capacity to confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such representations were true, and induced them to purchase respondent’s courses of study and instruction in said commerce on account thereof. CONCLUSION The acts and practices of the respondent as herein found were all to the prejudice and injury of the public and constituted 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 respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint and states that he waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and con- Order 43. TAC:

clusion that said respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That respondent, Gerald A. Rice, his 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 “ecommerce” is defined in the Federal Trade Commission Act of courses of study and instruction intended for preparing students thereof for examinations for Civil Service positions under the United States Government, or any similar courses of study, do forthwith cease and desist from:

1. Representing, directly or by implication, that respondent has any connection with the United States Government or any branch or agency thereof, through the use of the term “Office of Civil Preparation,” or any other term of similar import or meaning, as a trade name or as a part thereof.

2. Representing, directly or by implication, that respondent has any connection with the United States Government or any branch or agency thereof, through the use of the terms “Chief Special Agent,” “Director,” “Assistant Director,” or any other term of similar import or meaning, to designate or describe respondent or any of his representatives or salesmen.

3. Representing, through the use of emblems or other picturizations resembling or simulating official United States Government insignia, that respondent is connected with the United States Government or any branch thereof.

4. Representing in any manner, either directly or by implication, that respondent has any connection with the Government of the United States, or any branch thereof, including the Civil Service Commission.

5. Representing, directly or by implication, that the number of positions available in the United States Civil Service or any branch thereof is greater than is actually the fact. 6. Representing, directly or by implication, that respondent is authorized by the Civil Service Commission to qualify applicants for government positions or that jobs in the United States Civil Service can be obtained through respondent or by completing respondent’s courses of study.

se Representing, directly or by implication, that certain specified civil-service positions are open and available to students of respondent’s courses of study when in fact such positions are not open and available or when positions are such that students of respondent’s courses are not properly qualified.

OFFICE OF CIVIL PREPARATION 211 202 Order 8. Representing, directly or by implication, that examinations for positions in United States civil service are held at more frequent intervals than is actually the fact or that the positions listed by respondent are immediately available or that respondent can place applicants in such positions.

9. Representing, directly or by implication, that a common school education is sufficient to qualify applicants for all positions listed by respondent.

10. Misrepresenting in any manner the positions or opportunities for employment in civil-service positions of students of respondent’s courses of study.

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.

734584—49—vol. 48317 Syllabus 43 F. 'T. C.