Setchell Carlson, Inc

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In the MatTeER OF SETCHELL CARLSON, INC, COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5689. Complaint, Feb. 18, 1949—Decision, Feb. 2, 1950 A substantial portion of the purchasing public is not able to, and does not, distinguish or recognize the difference between radio receiving tubes, which perform the primary function of detecting, amplifying, and receiving broad- | cast radio signals, and rectifiers or “rectifier” tubes, which perform only the auxiliary function of converting alternating current into direct current and which do not increase the power of a radio receiving set to detect, amplify, or receive broadcast radio signals; and believes that the power of a radio receiving set to detect, amplify, and receive broadcast radio signals is increased by the extent to which the number of tubes is increased. Where a corporation engaged in manufacturing and assembling radio receiving sets, and in the interstate sale and distribution thereof to the purchasing public and to dealers; in advertising their sets through folders, price lists, pamphlets, circulars, and other advertising material— Represented directly and by implication that some of said sets were equipped with five necessary, active and fully functioning tubes which performed the recognized and customary functions of radio receiving set tubes in detecting, amplifying, and receiving radio signals broadcast by radio transmitters, and that others of such sets were equipped with six such tubes, through such statements as “Five G. T. Tubes, Including Rectifier,” “Six G. T. Tubes, Including Rectifier,” and others of similar import; The facts being that one or more of the devices in each of its sets referred to as a tube was not a radio receiving tube and did not perform the recognized and customary function of such a tube in detecting, amplifying, and receiving radio signals broadcast by a radio transmitter, but performed the auxiliary function of converting alternating current into direct current and was known as a rectifier or “rectifier tube,” and did not increase the power of the set to detect, amplify, and receive broadcast radio signals; With tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the mistaken belief that said representations were true, and with effect of thereby inducing purchase by it of its said sets: Held, that such acts and practices under the circumstances set forth were all to the injury and prejudice of the public and constituted unfair and deceptive acts and practices in commerce.

Mr. Charles S. Cox for the Commission.

Smith & Sehm, of St. Paul, Minn., 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 Complaint 416 F.T.C.

Trade Commission, having reason to believe that Setchell Carlson, Inc., a corporation, 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:

Paracrapu 1. Respondent Setchell Carlson, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Minnesota, with its principal office and place of business at 2233 University Avenue, St. Paul, Minn. The respondent is now, and has been for more than 2 years last past, engaged in the business of manufacturing, assembling, selling, and distributing radio receiving sets.

Par. 2. In the course and conduct of its said business, respondent corporation sells and distributes its radio receiving sets to dealers for resale and to buyers among the purchasing public. Said respondent now causes, and for more than 2 years last past has caused, its said products when sold to be transported from its place of business in St. Paul, Minn., to purchasers thereof located in the various States of the United States other than the State of Minnesota and in the District of Columbia.

Respondent maintains, and at all times mentioned herein has maintained, a course of trade in commerce in said products between and among the various States of the United States and in the District of Columbia. Respondent’s volume of business in such commerce is substantial.

Par. 8. In the course and conduct of its business for the purpose of inducing the purchase of respondent’s radio receiving sets, respondent has circulated by mail, and otherwise, advertising folders, price lists, pamphlets, circulars, and otherwise, many statements and representations concerning its said radio receiving sets. By said means, responcent has made false and misleading statements and representations in describing said radio receiving sets, their power, capacity, and reception, and the number of active, fully functioning tubes in said radio sets. Among such statements and representations so made and circulated by respondent are the following: Five G. T. Tubes, Including Rectifier.

Six G. T. Tubes, Including Rectifier.

6 Tubes—Including Rectifier.

6 Tubes—2-12SK7, 1-28A7, 1-12SQ7, 1-50L6, 1-355. Tubes used are: 1-12SA7, 1-12SK7, 1-12SQ7, 1-50L6, 1-35Z5. SETCHELL CARLSON, INC. 399 397 Findings The aforesaid statements and representations together with similar statements and representations of respondent not herein set out, purport to be descriptive of respondent’s radio receiving sets, the number of necessary functioning tubes with which they are equipped and serve as5 1 2 1 5 2 596 860 284 42 95.140335 representations5 1 2 1 5 3 898 871 43 20 96.449928 on5 1 2 1 5 4 960 859 57 32 96.928429 thes 1 2 1 5 5 1035 862 79 37 96.978012 parts 1 2 1 5 6 1133 857 37 32 96.692986 of5 1 2 1 5 7 1189 857 56 32 96.553856 thes 1 2 1 5 8 1264 856 203 41 96.810791 respondents 1 2 1 5 9 1484 859 35 28 96.776283 to5 1 2 1 5 10 1537 854 163 32 96.422714 members5 1 2 1 5 11 1717 854 38 31 96.972496 of5 1 2 1 5 12 1772 851 74 33 96.900978 said4 1 2 1 6 0 541 905 1307 48 -1 5 1 2 1 6 1 541 912 208 41 95.924461 purchasing5 1 2 1 6 2 771 911 116 41 93.143364 public5 1 2 1 6 3 910 910 66 32 96.041054 ands 1 2 1 6 4 998 913 35 28 96.844307 to5 1 2 1 6 5 1056 909 128 31 96.835190 dealers5 1 2 1 6 6 1205 908 76 31 96.868546 that5 1 2 1 6 7 1302 906 73 33 96.679901 said5 1 2 1 6 8 1397 905 96 33 96.339874 radios 1 2 1 6 9 1515 905 170 41 96.990250 receiving5 1 2 1 6 10 1705 907 65 29 96.977859 sets5 1 2 1 6 11 1792 914 56 21 96.996788 area 1 2 1 7 0 541 953 1308 51 -1 5 1 2 1 7 1 541 962 177 42 90.872581 equipped.5 1 2 1 7 2 737 972 89 21 96.470772 some5 1 2 1 7 3 844 960 83 32 96.098969 with5 1 2 1 7 4 945 959 65 32 96.098969 five5 1 2 1 7 5 1028 959 67 32 96.971947 ands 1 2 1 7 6 1111 969 90 21 97.007584 some5 1 2 1 7 7 1218 958 83 32 96.382797 with5 1 2 1 7 8 1319 957 51 33 96.783005 six5 1 2 1 7 9 1388 956 116 41 96.912056 active,5 1 2 1 7 10 1522 956 91 41 96.800323 fully5 1 2 1 7 11 1630 953 219 40 96.958473 functioning4 1 2 1 8 0 543 1009 542 49 -1 5 1 2 1 8 1 543 1009 103 49 96.115105 tubes.3 1 2 2 0 0 542 1054 1305 344 -1 4 1 2 2 1 0 584 1054 1261 46 -1 5 1 2 2 1 1 584 1063 32 32 96.734589 A5 1 2 2 1 2 636 1061 202 34 96.427612 substantial5 1 2 2 1 3 856 1060 142 32 95.985718 numbers 1 2 2 1 4 1017 1060 38 32 96.857338 of5 1 2 2 1 5 1072 1060 58 31 96.499786 thes 1 2 2 1 6 1149 1058 206 42 96.577202 purchasing5 1 2 2 1 7 1375 1057 115 42 96.730621 public5 1 2 2 1 8 1507 1056 127 33 95.938309 believes 1 2 2 1 9 1653 1056 77 31 96.545647 that5 1 2 2 1 10 1749 1054 96 32 96.437965 radio4 1 2 2 2 0 543 1100 1303 52 -1 5 1 2 2 2 1 543 1124 113 21 96.955299 means5 1 2 2 2 2 667 1113 57 31 96.955299 thes 1 2 2 2 3 735 1111 170 41 96.480240 reception5 1 2 2 2 4 918 1111 67 32 96.549202 ands 1 2 2 2 5 996 1109 233 33 96.713829 transmissions 1 2 2 2 6 1242 1109 38 31 96.603851 of5 1 2 2 2 7 1291 1108 107 32 96.699150 sounds 1 2 2 2 8 1409 1118 109 21 95.922874 waves5 1 2 2 2 9 1530 1106 68 32 95.922874 ands 1 2 2 2 10 1609 1106 89 32 96.427162 theirs 1 2 2 2 11 1711 1100 135 37 95.678848 audible4 1 2 2 3 0 542 1155 1303 49 -1 5 1 2 2 3 1 542 1163 252 41 96.494621 reproduction,5 1 2 2 3 2 809 1163 68 32 96.494621 ands 1 2 2 3 3 889 1161 127 32 96.784813 believes 1 2 2 3 4 1031 1160 75 32 96.716125 that5 1 2 2 3 5 1121 1160 57 31 96.959061 thes 1 2 2 3 6 1192 1163 133 37 96.662460 greater5 1 2 2 3 7 1339 1159 58 31 97.011879 thes 1 2 2 3 8 1412 1157 140 32 96.673424 numbers 1 2 2 3 9 1567 1156 38 33 96.761856 of5 1 2 2 3 10 1621 1156 118 40 96.905121 active,5 1 2 2 3 11 1755 1155 90 42 96.983215 fully4 1 2 2 4 0 543 1207 1304 48 -1 5 1 2 2 4 1 543 1214 218 41 96.404266 functioning5 1 2 2 4 2 772 1213 96 33 96.078979 tubes5 1 2 2 4 3 880 1212 36 33 96.907234 in5 1 2 2 4 4 927 1212 57 32 96.909393 thes 1 2 2 4 5 997 1211 95 33 96.735901 radios 1 2 2 4 6 1104 1210 143 33 96.992981 receiving5 1 2 2 4 7 1285 1213 58 38 96.965149 set,5 1 2 2 4 8 1356 1209 57 33 96.932411 thes 1 2 2 4 9 1423 1209 109 33 96.932411 better5 1 2 2 4 10 1543 1208 57 33 97.011086 thes 1 2 2 4 11 1610 1207 237 44 96.589066 performance4 1 2 2 5 0 543 1256 1302 50 -1 5 1 2 2 5 1 543 1265 68 33 96.699539 ands 1 2 2 5 2 625 1265 57 32 96.677780 thes 1 2 2 5 3 696 1268 134 38 96.798714 greater5 1 2 2 5 4 844 1263 44 32 96.798714 its5 1 2 2 5 5 903 1273 113 32 96.502953 powers 1 2 2 5 6 1031 1262 37 32 96.502953 of5 1 2 2 5 7 1084 1260 176 41 96.997986 detection,5 1 2 2 5 8 1277 1259 243 43 96.858650 amplification5 1 2 2 5 9 1536 1258 67 33 96.967880 ands 1 2 2 5 10 1619 1257 171 42 96.587334 reception5 1 2 2 5 11 1807 1256 38 34 96.986168 of4 1 2 2 6 0 542 1307 1302 48 -1 5 1 2 2 6 1 542 1316 108 31 96.341293 sounds 1 2 2 6 2 666 1325 119 30 96.634621 waves,5 1 2 2 6 3 802 1313 68 33 96.788399 ands 1 2 2 6 4 886 1325 19 21 96.860336 a5 1 2 2 6 5 921 1312 202 33 96.570671 substantial5 1 2 2 6 6 1139 1311 141 32 96.612991 numbers 1 2 2 6 7 1295 1310 39 33 96.191872 of5 1 2 2 6 8 1350 1310 56 32 96.924187 thes 1 2 2 6 9 1423 1309 207 43 96.595123 purchasing5 1 2 2 6 10 1646 1307 114 43 96.540871 public5 1 2 2 6 11 1775 1308 69 42 96.995926 buy4 1 2 2 7 0 542 1363 511 35 -1 5 1 2 2 7 1 542 1366 98 32 96.312767 radios 1 2 2 7 2 653 1369 65 28 96.860962 sets5 1 2 2 7 3 731 1365 108 32 96.393311 under5 1 2 2 7 4 852 1364 77 32 96.975510 that5 1 2 2 7 5 940 1363 113 32 96.374916 belief.3 1 2 3 0 0 541 1410 1306 502 -1 4 1 2 3 1 0 583 1410 1261 43 -1 5 1 2 3 1 1 583 1416 82 32 95.115509 Par.5 1 2 3 1 2 684 1417 28 30 94.417770 4.5 1 2 3 1 3 736 1416 43 31 93.290955 In5 1 2 3 1 4 798 1414 182 32 35.414886 truth-ands 1 2 3 1 5 1000 1414 34 31 96.305740 in5 1 2 3 1 6 1055 1413 82 40 96.305740 fact,5 1 2 3 1 7 1156 1413 57 32 96.457954 thes 1 2 3 1 8 1232 1412 179 41 96.765083 foregoing5 1 2 3 1 9 1430 1414 195 29 96.192947 statements5 1 2 3 1 10 1645 1410 68 32 93.292313 ands 1 2 3 1 11 1732 1419 112 31 91.597862 repre-4 1 2 3 2 0 542 1460 1301 46 -1 5 1 2 3 2 1 542 1467 185 32 92.368942 sentations5 1 2 3 2 2 739 1466 98 31 96.566666 made5 1 2 3 2 3 847 1466 44 40 96.948067 by5 1 2 3 2 4 904 1466 57 31 96.558937 thes 1 2 3 2 5 972 1464 205 40 96.656807 respondents 1 2 3 2 6 1189 1475 55 19 96.682564 ares 1 2 3 2 7 1258 1463 97 40 96.633629 false,5 1 2 3 2 8 1368 1461 171 42 95.189316 deceptive5 1 2 3 2 9 1552 1461 67 31 96.934914 ands 1 2 3 2 10 1632 1460 211 40 94.724411 misleading.4 1 2 3 3 0 541 1510 1306 50 -1 5 1 2 3 3 1 541 1517 245 43 91.007103 Respondent’s5 1 2 3 3 2 801 1515 171 34 96.020325 aforesaid5 1 2 3 3 3 987 1515 97 32 96.020325 radios 1 2 3 3 4 1097 1514 171 42 96.953758 receiving5 1 2 3 3 5 1280 1517 66 29 96.953758 sets5 1 2 3 3 6 1360 1524 56 21 96.904724 ares 1 2 3 3 7 1430 1516 60 29 96.986038 not5 1 2 3 3 8 1503 1512 168 42 96.280228 equipped5 1 2 3 3 9 1684 1511 83 32 96.340034 with5 1 2 3 3 10 1782 1510 65 32 96.827759 five4 1 2 3 4 0 542 1562 1303 46 -1 5 1 2 3 4 1 542 1579 38 21 95.929680 or5 1 2 3 4 2 593 1568 51 32 95.929680 six5 1 2 3 4 3 658 1568 117 40 96.087578 active,5 1 2 3 4 4 787 1577 186 31 96.893547 necessary,5 1 2 3 4 5 986 1566 90 41 96.849434 fully5 1 2 3 4 6 1091 1564 217 43 96.784164 functioning5 1 2 3 4 7 1321 1563 106 40 96.873749 tubes,5 1 2 3 4 8 1441 1562 230 42 96.554161 respectively,5 1 2 3 4 9 1684 1562 62 31 96.268646 but5 1 2 3 4 10 1758 1562 87 31 96.063377 have4 1 2 3 5 0 542 1613 1302 44 -1 5 1 2 3 5 1 542 1618 158 32 96.614952 installed5 1 2 3 5 2 718 1617 142 40 96.687851 therein,5 1 2 3 5 3 879 1627 62 21 96.566490 ones 1 2 3 5 4 958 1627 37 20 96.566490 or5 1 2 3 5 5 1014 1626 92 21 96.128342 more5 1 2 3 5 6 1123 1615 123 32 96.212440 ballast5 1 2 3 5 7 1264 1613 298 41 96.345749 nonfunctioning,5 1 2 3 5 8 1579 1613 124 41 96.701065 tuning5 1 2 3 5 9 1720 1613 124 31 96.954559 beacon4 1 2 3 6 0 542 1662 1302 43 -1 5 1 2 3 6 1 542 1668 95 33 96.379433 tubes5 1 2 3 6 2 652 1679 37 22 96.793861 or5 1 2 3 6 3 703 1667 145 33 96.809097 rectifiers 1 2 3 6 4 862 1666 103 33 95.610748 tubes.5 1 2 3 6 5 1012 1665 90 34 95.369781 Such5 1 2 3 6 6 1116 1665 124 33 95.369781 ballast5 1 2 3 6 7 1255 1675 37 22 96.771164 or5 1 2 3 6 8 1306 1664 123 41 96.691795 tuning5 1 2 3 6 9 1444 1664 123 31 96.797722 beacon5 1 2 3 6 10 1583 1662 95 33 96.482536 tubes5 1 2 3 6 11 1693 1673 38 22 93.271484 or5 1 2 3 6 12 1746 1662 98 32 91.780212 recti-4 1 2 3 7 0 541 1713 1303 45 -1 5 1 2 3 7 1 541 1719 61 32 96.998474 fibers 1 2 3 7 2 617 1719 105 39 96.499397 tubes,5 1 2 3 7 3 739 1718 140 40 96.499397 devices,5 1 2 3 7 4 896 1717 66 32 96.498718 ands 1 2 3 7 5 979 1716 195 32 96.605896 accessories5 1 2 3 7 6 1191 1716 41 31 96.397598 do5 1 2 3 7 7 1249 1719 60 28 96.364204 not5 1 2 3 7 8 1324 1725 92 21 96.364204 serves 1 2 3 7 9 1433 1725 36 21 96.856201 as5 1 2 3 7 10 1486 1713 219 41 93.298515 amplifying,5 1 2 3 7 11 1722 1713 122 31 91.925941 detect-4 1 2 3 8 0 541 1764 1303 47 -1 5 1 2 3 8 1 541 1770 70 41 96.339790 ing,5 1 2 3 8 2 624 1780 38 21 96.339790 or5 1 2 3 8 3 673 1768 193 41 96.708771 oscillating5 1 2 3 8 4 877 1768 96 31 96.444496 tubes5 1 2 3 8 5 985 1767 67 31 96.338005 ands 1 2 3 8 6 1065 1767 42 31 96.338005 do5 1 2 3 8 7 1118 1770 60 27 96.663605 not5 1 2 3 8 8 1190 1765 152 42 95.439514 performs 1 2 3 8 9 1355 1776 65 30 96.752991 any5 1 2 3 8 10 1433 1764 207 41 96.849548 recognized,5 1 2 3 8 11 1653 1766 191 37 95.510452 customary4 1 2 3 9 0 543 1812 1301 44 -1 5 1 2 3 9 1 543 1820 155 32 96.501350 functions 1 2 3 9 2 717 1819 37 32 93.279099 of5 1 2 3 9 3 772 1818 210 33 76.577011 radio-tubes5 1 2 3 9 4 1000 1818 34 31 96.584198 in5 1 2 3 9 5 1053 1817 57 31 96.584198 thes 1 2 3 9 6 1129 1815 176 40 96.624672 detection,5 1 2 3 9 7 1324 1815 242 41 95.856262 amplification5 1 2 3 9 8 1587 1813 67 32 96.067429 ands 1 2 3 9 9 1673 1812 171 42 96.315117 reception4 1 2 3 10 0 541 1869 301 43 -1 5 1 2 3 10 1 541 1870 38 33 96.131355 of5 1 2 3 10 2 595 1870 96 33 96.469986 radios 1 2 3 10 3 706 1869 136 43 95.505745 signals.3 1 2 4 0 0 540 1915 1304 451 -1 4 1 2 4 1 0 583 1915 1260 45 -1 5 1 2 4 1 1 583 1921 82 32 91.917686 Par.5 1 2 4 1 2 685 1924 27 29 96.145584 5.5 1 2 4 1 3 736 1920 95 32 96.190834 Each5 1 2 4 1 4 850 1920 67 31 96.829796 ands 1 2 4 1 5 936 1919 46 32 96.423248 all5 1 2 4 1 6 1001 1919 37 32 96.774773 of5 1 2 4 1 7 1056 1919 57 31 96.680573 thes 1 2 4 1 8 1132 1917 180 42 96.289398 foregoing5 1 2 4 1 9 1330 1917 87 43 96.638535 false5 1 2 4 1 10 1435 1917 67 32 96.853905 ands 1 2 4 1 11 1520 1915 204 41 93.263641 misleading5 1 2 4 1 12 1743 1918 100 28 92.531563 state-4 1 2 4 2 0 541 1965 1302 48 -1 5 1 2 4 2 1 541 1976 108 28 96.226646 ments5 1 2 4 2 2 673 1973 66 32 96.364052 ands 1 2 4 2 3 763 1970 285 43 96.636086 representations5 1 2 4 2 4 1071 1969 96 32 96.196632 made5 1 2 4 2 5 1191 1969 44 41 96.196632 by5 1 2 4 2 6 1258 1968 205 42 96.443390 respondents 1 2 4 2 7 1486 1967 191 41 96.351685 describing5 1 2 4 2 8 1700 1966 45 32 96.847176 its5 1 2 4 2 9 1769 1965 74 33 96.895988 said4 1 2 4 3 0 542 2017 1302 46 -1 5 1 2 4 3 1 542 2023 96 32 96.027817 radios 1 2 4 3 2 655 2022 169 41 96.896667 receiving5 1 2 4 3 3 841 2025 64 28 97.004684 sets5 1 2 4 3 4 922 2021 66 32 96.864021 ands 1 2 4 3 5 1006 2021 56 31 96.720375 thes 1 2 4 3 6 1079 2020 140 32 96.523888 numbers 1 2 4 3 7 1236 2019 38 32 96.449036 of5 1 2 4 3 8 1291 2019 95 31 96.789024 tubes5 1 2 4 3 9 1402 2018 179 32 96.938637 contained5 1 2 4 3 10 1597 2017 142 41 96.765594 therein,5 1 2 4 3 11 1757 2028 87 21 96.342804 were4 1 2 4 4 0 543 2067 1301 45 -1 5 1 2 4 4 1 543 2074 65 31 96.821182 ands 1 2 4 4 2 628 2084 54 21 96.594894 ares 1 2 4 4 3 700 2073 187 31 94.775581 calculated5 1 2 4 4 4 904 2076 46 36 96.591377 to,5 1 2 4 4 5 969 2072 65 31 96.411911 ands 1 2 4 4 6 1052 2071 86 31 96.758163 have5 1 2 4 4 7 1154 2071 68 32 95.589615 had5 1 2 4 4 8 1241 2071 67 31 95.589615 ands 1 2 4 4 9 1324 2080 75 21 96.811958 now5 1 2 4 4 10 1416 2070 85 30 96.450882 have5 1 2 4 4 11 1517 2069 57 31 96.614204 thes 1 2 4 4 12 1592 2069 165 41 96.595879 tendency5 1 2 4 4 13 1776 2067 68 32 96.790489 anda 1 2 4 5 0 541 2117 1303 49 -1 5 1 2 4 5 1 541 2124 154 42 96.702164 capacity5 1 2 4 5 2 712 2127 46 37 96.132973 to,5 1 2 4 5 3 777 2123 67 32 96.132973 ands 1 2 4 5 4 863 2124 42 32 96.878204 do5 1 2 4 5 5 922 2121 142 33 96.334656 misleads 1 2 4 5 6 1082 2121 67 32 96.777557 ands 1 2 4 5 7 1168 2121 132 31 96.673927 deceives 1 2 4 5 8 1318 2131 18 21 96.941635 a5 1 2 4 5 9 1355 2118 201 33 96.388000 substantial5 1 2 4 5 10 1573 2118 138 42 96.600243 portions 1 2 4 5 11 1730 2117 38 33 96.630127 of5 1 2 4 5 12 1785 2118 59 31 96.635429 thea 1 2 4 6 0 541 2169 1302 48 -1 5 1 2 4 6 1 541 2175 207 42 96.619820 purchasing5 1 2 4 6 2 767 2174 115 42 96.864174 public5 1 2 4 6 3 901 2173 73 32 96.667336 into5 1 2 4 6 4 994 2172 57 32 96.802269 thes 1 2 4 6 5 1070 2171 166 32 96.299957 mistaken5 1 2 4 6 6 1258 2171 66 32 96.922646 ands 1 2 4 6 7 1345 2180 178 23 96.744949 erroneous5 1 2 4 6 8 1542 2169 104 32 96.425003 beliefs 1 2 4 6 9 1665 2169 77 31 96.554749 that5 1 2 4 6 10 1762 2169 81 31 96.554749 such4 1 2 4 7 0 540 2219 1303 47 -1 5 1 2 4 7 1 540 2225 284 41 96.561531 representations5 1 2 4 7 2 838 2235 56 21 95.580421 ares 1 2 4 7 3 907 2228 83 27 95.580421 true.5 1 2 4 7 4 1035 2223 49 31 87.432793 Asa5 1 2 4 7 5 1130 2223 105 31 96.470917 results 1 2 4 7 6 1247 2222 38 32 96.337357 of5 1 2 4 7 7 1298 2220 92 33 96.755898 these5 1 2 4 7 8 1403 2230 178 23 96.028999 erroneous5 1 2 4 7 9 1596 2220 65 31 96.028999 ands 1 2 4 7 10 1675 2219 168 32 96.722839 mistaken4 1 2 4 8 0 540 2268 1303 49 -1 5 1 2 4 8 1 540 2276 130 41 96.748352 beliefs,5 1 2 4 8 2 684 2287 17 21 96.625099 a5 1 2 4 8 3 716 2274 202 34 96.438591 substantial5 1 2 4 8 4 931 2274 141 31 96.674133 numbers 1 2 4 8 5 1086 2273 38 32 96.947357 of5 1 2 4 8 6 1136 2272 58 32 97.003601 thes 1 2 4 8 7 1207 2271 205 43 96.538765 purchasing5 1 2 4 8 8 1426 2270 115 42 96.541862 public5 1 2 4 8 9 1554 2271 86 31 96.741287 have5 1 2 4 8 10 1654 2268 189 43 96.015587 purchased4 1 2 4 9 0 541 2322 1048 44 -1 5 1 2 4 9 1 541 2339 18 20 95.076309 a5 1 2 4 9 2 572 2327 202 32 95.076309 substantial5 1 2 4 9 3 786 2327 134 32 96.132843 volumes 1 2 4 9 4 931 2325 37 33 93.294769 of5 1 2 4 9 5 981 2323 231 43 92.318626 respondent’s5 1 2 4 9 6 1225 2323 97 33 96.799042 radios 1 2 4 9 7 1334 2322 170 42 96.611740 receiving5 1 2 4 9 8 1514 2325 75 28 96.924141 sets.3 1 2 5 0 0 540 2370 1303 200 -1 4 1 2 5 1 0 582 2370 1261 45 -1 5 1 2 5 1 1 582 2377 81 32 94.105133 Par.5 1 2 5 1 2 678 2379 26 30 94.105133 6.5 1 2 5 1 3 729 2374 74 34 96.273949 Thes 1 2 5 1 4 815 2375 171 33 96.530998 aforesaid5 1 2 5 1 5 1000 2378 70 29 96.997902 acts5 1 2 5 1 6 1084 2373 66 33 96.530830 ands 1 2 5 1 7 1163 2373 164 42 96.750801 practices5 1 2 5 1 8 1340 2372 38 32 96.940918 of5 1 2 5 1 9 1390 2372 58 32 96.215401 thes 1 2 5 1 10 1460 2370 205 42 96.215401 respondents 1 2 5 1 11 1678 2381 36 21 97.006302 as5 1 2 5 1 12 1726 2370 117 32 96.441315 hereina 1 2 5 2 0 542 2421 1301 48 -1 5 1 2 5 2 1 542 2428 129 41 96.758415 alleged5 1 2 5 2 2 686 2439 56 20 96.576736 ares 1 2 5 2 3 755 2427 45 31 94.447922 all5 1 2 5 2 4 814 2430 35 28 96.523766 to5 1 2 5 2 5 862 2427 58 31 96.523766 thes 1 2 5 2 6 932 2426 117 41 96.514122 injury5 1 2 5 2 7 1063 2425 67 32 96.815567 ands 1 2 5 2 8 1144 2422 172 44 96.560425 prejudice5 1 2 5 2 9 1330 2424 37 31 97.012505 of5 1 2 5 2 10 1381 2424 57 31 96.830704 thes 1 2 5 2 11 1451 2421 114 42 96.938950 public5 1 2 5 2 12 1580 2422 67 32 96.949905 ands 1 2 5 2 13 1661 2421 182 32 96.614449 constitute4 1 2 5 3 0 541 2472 1302 46 -1 5 1 2 5 3 1 541 2478 117 33 96.406929 unfair5 1 2 5 3 2 673 2478 67 32 96.641327 ands 1 2 5 3 3 754 2477 173 41 96.641327 deceptive5 1 2 5 3 4 940 2480 70 28 96.617905 acts5 1 2 5 3 5 1024 2476 67 32 96.547401 ands 1 2 5 3 6 1105 2475 163 41 96.755852 practices5 1 2 5 3 7 1282 2474 35 32 96.743950 in5 1 2 5 3 8 1332 2484 180 22 96.514755 commerce5 1 2 5 3 9 1528 2472 121 33 96.938606 within5 1 2 5 3 10 1662 2473 57 31 97.005508 thes 1 2 5 3 11 1732 2472 111 32 96.925529 intent4 1 2 5 4 0 540 2524 974 46 -1 5 1 2 5 4 1 540 2530 66 32 96.411339 ands 1 2 5 4 2 621 2529 159 41 95.824516 meanings 1 2 5 4 3 793 2528 39 33 96.438072 of5 1 2 5 4 4 845 2528 57 32 96.819054 thes 1 2 5 4 5 916 2527 144 32 96.015030 Federal5 1 2 5 4 6 1074 2526 113 32 96.500061 Trades 1 2 5 4 7 1201 2524 224 34 96.500061 Commissions 1 2 5 4 8 1438 2524 76 31 96.656624 Act.2 1 3 0 0 0 762 2602 859 46 -1 3 1 3 1 0 0 762 2602 859 46 -1 4 1 3 1 1 0 762 2602 859 46 -1 5 1 3 1 1 1 762 2608 145 40 64.638947 Report,5 1 3 1 1 2 921 2608 173 31 67.734016 Frnprnes5 1 3 1 1 3 1106 2616 39 22 70.994415 as5 1 3 1 1 4 1157 2616 40 22 94.620712 TO5 1 3 1 1 5 1209 2615 70 21 94.620712 THES 1 3 1 1 6 1291 2605 121 39 92.903191 Facts,5 1 3 1 1 7 1422 2614 72 21 96.043533 ANDS 1 3 1 1 8 1507 2602 114 34 95.957771 ORDER2 1 4 0 0 0 540 2677 1302 94 -1 3 1 4 1 0 0 540 2677 1302 94 -1 4 1 4 1 1 0 583 2677 1259 47 -1 5 1 4 1 1 1 583 2685 172 31 96.208725 Pursuant5 1 4 1 1 2 770 2687 36 28 95.705719 to5 1 4 1 1 3 823 2683 56 32 96.762177 thes 1 4 1 1 4 897 2682 190 42 96.581375 provisions5 1 4 1 1 5 1105 2682 37 31 97.000160 of5 1 4 1 1 6 1159 2681 57 31 96.499771 thes 1 4 1 1 7 1232 2680 144 32 96.819321 Federal5 1 4 1 1 8 1389 2679 115 43 95.329750 Trades 1 4 1 1 9 1523 2677 224 33 96.013107 Commissions 1 4 1 1 10 1765 2677 77 39 96.429192 Act,4 1 4 1 2 0 540 2728 1301 43 -1 5 1 4 1 2 1 540 2736 57 30 96.935585 thes 1 4 1 2 2 613 2734 141 32 96.631073 Federal5 1 4 1 2 3 769 2734 112 31 96.232018 Trades 1 4 1 2 4 898 2732 223 34 96.650459 Commissions 1 4 1 2 5 1136 2743 42 20 96.570244 on5 1 4 1 2 6 1194 2730 175 41 96.570244 February5 1 4 1 2 7 1386 2732 48 38 96.798523 18,5 1 4 1 2 8 1452 2731 89 38 94.753738 1949,5 1 4 1 2 9 1556 2729 111 31 96.621078 issued5 1 4 1 2 10 1684 2728 67 31 92.774231 ands 1 4 1 2 11 1767 2728 74 31 91.307961 sub- Findings 46 F.T.C.

sequently served its complaint in this proceeding upon the respondent, Setchell Carlson, Inc., a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. No answer has been filed by respondent. On July 21, 1949, a stipulation as to the facts was entered into by and between the respondent and Daniel J. Murphy, Chief of the Trial Division, subject to approval by the Commission, whereby it was stipulated that the statement of facts set out in said stipulation might be made a portion of the record herein and taken as the facts in this proceeding and in lieu of evidence in support of, and in opposition to, the charges stated in the complaint and that the Commission might proceed upon said statement of facts to make its report stating its findings as to the facts, including inferences which might be drawn from said stipulated facts, and its conclusion based thereon and enter its order disposing of this proceeding without the presentation or oral argument or the filing of briefs. Respondent expressly waived the filing of a recommended decision by a trial examiner. Thereafter, this proceeding regularly came on for final hearing before the Commission upon said complaint and stipulation. The Commission, having approved, accepted, and filed said stipulation, and having duly 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 .

Paracraru 1. Respondent, Setchell Carlson, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Minnesota, with its office and principal place of business located at 2233 University Avenue, St. Paul, Minn. It is now, and for.more than 2 years last past has been, engaged in the business of manufacturing and assembling radio receiving sets, which it has sold and distributed, and now sells and distributes, to buyers among the purchasing public and to dealers for resale. Par. 2. In the course and conduct of its aforesaid business, respondent causes, and has caused, its said radio receiving sets, when sold, to be shipped and transported from its place of business in the State of Minnesota to purchasers thereof at their respective points of location in various other States of the United States and in the District of Columbia; and maintains, and at all times mentioned herein has maintained, a course of trade in said radio receiving sets in commerce among and between the various States of the United States and in the District of Columbia.

SETCHELL CARLSON, INC. 401 897 Findings Par. 8. (a) In the course and conduct of its business and for the purpose of inducing the purchase of the radio receiving sets sold and distributed by it, respondent has circulated, by means of the United States mails and by various other means, advertising folders, price lists, pamphlets, circulars, and other advertising material in which it has made various statements and representations with respect to the power and capacity of said radio sets to detect, amplify, and receive signals broadcast by radio transmitters and with respect to the number of necessary, active, fully functioning tubes contained in such radio sets. Among such statements and representations.are the following:

Five G. T. Tubes, Including Rectifier.

Six G. T. Tubes, Including Rectifier.

6 Tubes—Including Rectifier.

6 Tubes—2-12SK7, 1-25A7, 1-12SQ7, 1-50L6, 1-35Z5. Tubes used are: 1-12SA7, 1-12SK7, 1-12SQ7, 1-50L6, 1-35Z5. (b) Through the use of the foregoing statements and representations and others of similar import and meaning not set out herein, all of which purport to be descriptive of the radio receiving sets sold and distributed by respondent and of the number of necessary, active, and fully functioning tubes contained in such sets, respondent represents, and has represented, directly and by implication, that some of said sets are equipped with five necessary, active, and fully functioning tubes which perform the recognized and customary functions of radio receiving set tubes in detecting, amplifying, and receiving radio signals broadcast by radio transmitters, and that other of such radio sets are equipped with six such tubes.

Par. 4. (a) The aforesaid statements and representations are false, misleading, and deceptive. One or more of the devices in each of respondent’s respective radio receiving sets referred to as a tube is not a radio receiving tube and does not perform the recognized and customary function of such a tube in detecting, amplifying, and receiving radio signals broadcast by a radio transmitter, but, in fact, performs the auxiliary function of converting alternating current into direct current and is known as a rectifier or “rectifier” tube. Thus, each of respondent’s respective radio receiving sets contains one or more rectifiers or “rectifier” tubes which have been designated, described, or referred to as a radio receiving tube. Such tubes do not increase the power of a radio receiving set to detect, amplify, and receive broadcast radio signals.

402 FEDERAL TRADE COMMISSION DECISIONS.

Order 46F.T.0.

(b) A substantial portion of the purchasing public is not able to, and does not, distinguish or recognize the difference between radio receiving tubes, which perform the primary function of detecting, amplifying, and receiving broadcast radio signals, and rectifiers or “rectifier” tubes which perform only the auxiliary function of converting alternating current into direct current and which do not incerase the power of a radio receiving set to detect, amplify, or receive broadcast radio signals. Such a portion of the purchasing public believes that the power of a radio receiving set to detect, amplify, and receive broadcast radio signals is increased by the extent to which the number of tubes is increased.

Par. 5. The use by respondent of the aforesaid false, misleading, and deceptive statements and representations has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that these statements and representations are true and causes, and has caused, a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent’s radio receiving sets.

CONCLUSION The acts and practices of respondent as herein found are all to the injury and prejudice 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 a stipulation of facts entered into by and between respondent and Daniel J. Murphy, Chief of the Trial Division, and said stipulation providing among other things, that the statement of facts set forth therein may be made a part of the record herein and taken as the facts in this proceeding and in lieu of evidence in support of, and in opposition to, the charges stated in the complaint and that the Commission may proceed upon said statement of facts to make its report, stating its findings as to the facts, including inferences which may be drawn from said stipulated facts, and its conclusion and enter its order disposing of this proceeding without the presentation of oral argument or the filing of briefs; and respondent having expressly waived a recommended deci- ‘sion by a trial examiner and the Commission having approved and accepted said stipulation of facts and having made its findings as to SETCHELL CARLSON, INC. 403 397 : Order the facts and its conclusion that respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That respondent, Setchell Carlson, Inc., a corporation, its officers, agents, representatives, 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 any radio receiving set, do forthwith cease and desist from directly or indirectly representing that any such radio receiving set is equipped with or contains a designated number of tubes or is of a designated tube capacity unless each and every one of the tubes referred to is capable of performing the recognized or customary function of detecting, amplifying, and receiving broadcast radio signals. ;

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

854002—52 29 404 . FEDERAL TRADE COMMISSION DECISIONS Syllabus: 46 F. T.C.