Stanley Weinstein

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In tee Matter OF STANLEY WEINSTEIN DOING BUSINESS AS GENERAL TACK COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5688. Complaint, Aug. 12, 1949—Decision, May 28, 1950 By virtue of the established practice of imprinting or otherwise labeling or marking products of foreign origin and their containers, with the name of the country of their origin, in legible English words, in a conspicuous place, and as required by law, a substantial portion of the buying and consuming public has come to rely upon such marking, and is influenced thereby to distinguish and discriminate between competing products of ‘foreign and domestic origin, and when products composed in whole or substantial part of imported articles are offered and sold in the channels of trade in commerce throughout the United States; they are purchased and accepted as and for products wholly of domestic manufacture and origin, unless imprinted, labeled or marked in a manner which informs purchasers of their foreign origin.

There has been and is among members of the buying and consuming public a substantial and subsisting preference for products which are wholly of domestic manufacture or origin, as distinguished from those of foreign manufacture or origin and from those which are in substantial part made of materials or parts of foreign manufacture or origin. Where an individual engaged in purchasing, in bulk quantities, thumb tacks which had been imported from Belgium and other foreign countries, plainly stamped with the country of origin, and in plating, enameling, or lacquering the same, and mounting them on boards wrapped in cellophane, and thereafter packing them in his own containers for shipment— , Sold said products without any imprinting, labeling or marking upon the boards upon which they were mounted or the wrappers or cartons in which packed, and upon which in all cases there appeared his trade name and the words “Jersey City, New Jersey”;

With tendency and capacity to mislead and deceive purchasers and members of . the buying and consuming public into the false belief that said thumbtacks were wholly of domestic manufacture and origin, and thereby into the purchase 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.

Mr. Morton Nesmith for the Commission.

Mr. Saul Rubin, of New York City, for respondent. Complaint 46 F.T.C.

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 Commission having reason to believe that Stanley Weinstein, doing business as General Tack Co., 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:

Paracrary 1. Respondent, Stanley Weinstein, is an individual trading and doing business as General Tack Co., with his office and principal place of business at 525 Mercer Street, Jersey City, N. J. Par, 2. Said respondent is now and has been for several years last past engaged in the business of purchasing thumbtacks imported from Belgium and other foreign countries, plating or otherwise coating the tacks in this country, and selling and distributing said product. Par. 3. The respondent causes his said product when sold to be shipped from his place of business in the State of New Jersey to jobbers and dealers located in various other States of the United States and in the District of Columbia. Said jobbers and dealers in turn sell said thumbtacks to the general public. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said product in commerce between and among the various States of the United States and in the District of Columbia. His volume of business in such commerce is substantial.

Par. 4. In the course and conduct of his business, respondent purchases thumbtacks which are imported from Belgium and other foreign countries in bulk quantities, usually 500,000 to the case. These cases are plainly stamped with the country of origin. The respondent removes the tacks from these cases, plates, enamels, or lacquers them, mounts them on boards, ranging from 24 upward per board, wraps the boards in cellophane, and packs them in his own containers for shipment. Neither the boards upon which the tacks are mounted, the cellophane wrappers which enclose said boards, nor the cartons which. package the finished product are marked or labeled with the country of origin of said thumbtacks. In some instances, the boards upon which the tacks are mounted are marked “General Tack Co., Jersey City, N. J.,” and usually the style or lot number appears thereon. In all instances, the cartons in which the finished boards are packed are marked “General Tack Co., Jersey City, N. J.” Par. 5. By virtue of the practice, heretofore and now established, of imprinting and otherwise labeling or marking products of foreign GENERAL TACK CO. 849 847 ; Findings origin, and their containers, with the name of the country of their origin, in legible English words, in a conspicuous place, and as required by law, a substantial portion of the buying and consuming public has come to rely, and now relies, upon such imprinting, labeling or marking, and is influenced thereby, to distinguish and discriminate between competing products of foreign and domestic origin, including foreign-made and imported thumbtacks. When products composed in whole or substantial part of imported articles are offered for sale and sold in the channels of trade in commerce throughout the United States and in the District of Columbia, they are purchased and accepted as and for, and taken to be, products wholly of domestic manu- facture and origin unless the same are imprinted, labeled, or marked in a manner which informs purchasers that the said products, or parts thereof, are of foreign origin.

At all times material to this complaint, there has been, and now is, among said members of the buying and consuming public, including purchasers and users of thumbtacks, in and throughout the United States and in the District of Columbia, a substantial and subsisting preference for products which are wholly of domestic manufacture or origin, as distinguished from products of foreign manufacture or origin and from products which are in substantial part made of materials or parts of foreign manufacture or origin. Par. 6. The practice of respondent as aforesaid in offering for sale, selling, and distributing his thumbtacks of foreign origin without any imprinting, labeling, or marking on the boards upon which said tacks are mounted or the cartons in which they are packed to indicate to. purchasers that said thumbtacks are of Belgian or other foreign origin, has had and now has the tendency and capacity to mislead and deceive purchasers and members of the buying and consuming public into the false and erroneous belief that said thumbtacks are wholly of domestic manufacture and origin and into the purchase thereof in reliance upon such erroneous belief. Par. 7. The aforesaid acts and practices of the respondent, as herein: alleged, are all to the prejudice and injury of the public and constitute unfair arid deceptive acts and practices in commerce within the intent — and meaning of the Federal Trade Commission Act. Report, Frnpin¢s as TO THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 12, 1949, issued and thereafter served upon the respondent, Stanley Weinstein, an individual doing business as General Tack Co., its complaint in this proceeding, Findings 46 F. T.C.

charging said respondent with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of that act. The respondent’s answer to said complaint was filed on October 14, 1949, but on February 28, 1950, he filed with the Commission a motion for leave to withdraw said original answer and to file in lieu thereof substitute answer dated February 25, 1950, in which he admitted all of the material allegations of fact set forth in the complaint and waived all intervening procedure and further hearings as to said facts, and said motion was subsequently granted. Thereafter, this proceeding regularly came on for final hearing before the Commission upon the complaint and the substitute answer thereto; and the Commission, having duly considered the matter and being now 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 FAU.S ParacraPH 1. Respondent, Stanley Weinstein, is an individual trading and doing business as General Tack Company, with his office and principal place of business located at 525 Mercer Street, in the City -of Jersey City, State of New Jersey.

Par. 2. Said respondent is now and for several years last past he has been engaged in the business of purchasing thumbtacks imported from Belgium and other foreign countries, plating or otherwise coating the tacks in this country, and selling and distributing said product. Par. 8. The respondent causes his said product, when sold, to be shipped from his place of business in the State of New Jersey to jobbers and dealers located in various other States of the United States and in the District of Columbia. Said jobbers and dealers in turn sell said thumbtacks to the general public. Respondent maintains, and at all times mentioned herein he has maintained, a course of trade in said product in commerce between and among the various States of the United States and in the District of Columbia. His volume of business in such commerce is substantial.

Par. 4. In the course and conduct of his business, respondent purchases thumbtacks which are imported from Belgium and other foreign countries in bulk quantities, usually 500,000 to the case. These cases are plainly stamped with the country of origin. The respondent removes the tacks from these cases, plates, enamels, or lacquers them, _ mounts them on boards, ranging from 24 upward per board, wraps the boards in cellophane, and packs them in his own containers for shipment. When said tacks are so mounted, wrapped and packaged, GENERAL TACK CO. 851 847 - Findings however, the country of origin thereof is not shown on the boards upon which they are mounted, the cellophane wrappers which enclose said boards, or the cartons which package them. In some instances, the boards upon which the tacks are mounted are marked “General Tack Co., Jersey City, N. J.,” and usually the style or lot number appears thereon. In all instances, the cartons in which the finished boards are packed are marked “General ‘Tack Co., Jersey City, N. J.” Par. 5. By virtue of the practice, heretofore and now established, of imprinting and otherwise labeling or marking products of foreign origin, and their containers, with the name of the country of their origin, in legible English words, in a conspicuous place, and as required by law, a substantial portion of the buying and consuming public has come to rely, and now relies, upon such imprinting, labeling, or marking, and is influenced thereby, to distinguish and discriminate between competing products of foreign and domestic origin, including foreign-made and imported thumbtacks. When products composed in whole or substantial part of imported articles are offered for sale and sold in the channels of trade in commerce throughout the United States and in the District of Columbia, they are purchased and accepted as and for, and taken to be, products wholly of domestic manufacture and origin unless the same are imprinted, labeled, or marked in a manner which informs purchasers that the said products, or parts thereof, are of foreign origin.

At all times mentioned herein there has been, and now is, among said members of the buying .and consuming public, including purchasers and users of thumbtacks, in and throughout the United States and in the District of Columbia, a substantial and subsisting preference for products which are wholly of domestic manufacture or origin, as distinguished from products of foreign manufacture or origin and from products which are in substantial part made of materials or parts of foreign manufacture or origin.

Par. 6. The practice of respondent in offering for sale, selling, and distributing his thumbtacks of foreign origin without any imprinting, labeling, or marking on the boards upon which said tacks are mounted or on the wrappers in which they are enclosed to indicate to purchasers that said thumbtacks are of Belgian or other foreign origin, has had and now has the tendency and capacity to mislead and deceive purchasers and members of the buying and consuming public into the false and erroneous belief that said thumbtacks are wholly of domestic manufacture and origin and into the purchase thereof in reliance upon such erroneous belief.

854002—52 57 Order 46 F.T.C.

CONCLUSION The acts and practices of the respondent, 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 substitute answer of the respondent, in which answer said respondent admits all of the material allegations of fact set forth in the complaint and waives all intervening procedure and further hearings as to said facts, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That the respondent, Stanley Weinstein, individually and trading as General Tack Co., or trading under any other name or trade designation, and said respondent’s agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act, of thumbtacks or other similar products, do forthwith cease and desist from:

Offering for sale or selling any such products of foreign origin without clearly and conspicuously disclosing on the boards on which such products are mounted, or other packages or containers in which they are sold to the consuming public, the country or origin of such products. Ltis 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.

P. LORILLARD CO. 853 Modified Order