Harold Eisenberg and Sam Eisenberg doing business as Plymouth Textiles

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IN Tile latter OF HAROLD EISEKBERG AND SAM EISENBERG DOING BUSINESS AS PLYNIOUTII TEXTILES LAl j FTXDlXGS '\ND ORDERS IX REGARD TO THE ALLEGED VIOLATION OF SEC. G OF .\.X ACT OF CO.:GRESS APPROVED SEPT. 26 , 1914 Docket 58UD. Camp/a-int, Apr. 1, 1951-lJecision, Jnl)) , 1951 Wbere t\VO partners engaged in conducting a mail-order business in the interstate sale of remnants and patches of cloth to tbe general public; in advertising in newspapers and veriodicals and utl1erwise-. (a. Mislc:1lJingly and errolleously represented that assortments of cloth in clncled pieces of suffcient size to be made into aprons and children s sun suits, through such statements as " Ideal for aprons, children s sun suits patchwork quilts " etc. ; \yht n in fact only one piece of cloth in the assortment was of such size and the remainder consistell of scraps, trimmings and small irregular pieces; and (b) Hepresenterl that thread and a buttonhole makcr \were furnished to purchasers of the assortments without cost or obligation of any nature, through such stat.ements as " li' REE 100 yds. Thread VALUE FREE! With your First Order '; ., * Amazing Ncw Button Hole 1aker x x all this free to introduce our nig PATCH and RE lia:KT assortment, " etc. The fads being that the cost of such articles was included in the charge f()r the assortmcnt and the only instances in which the articles were furnished without cost were those in which tbe other llerchandisc, namely, the remmmts and patches, was returned by the purchaser; 'With tt'ndellcy and capacity to mislead and deceiye a suhstantial portion of the pnrcl1asing public with respect to their merchandise and the articles purportedly offcrcd without cost, find thereby cause it to pUlchase their proclncts:

Held That such acts and practices, under the circumstances set forth, were all to the IJrejudice of the public and constituted unfair and deceptive acts. and practices in commerce.

Before Jlfr. William L. Pack trial examiner. MT. Mor-ton Nes11with and 1111'. John O. WUlimns for the Commission. 111 r. Sidney H. Asch of New Yark City, for respondents. COMPLAINT Pursuant to the. provisions of the Federal Trade Commission Act the Federaland bv virt.ue of the authority vested in it by said act, Trade COlnmission, having reason to believe that IIarolc1 Eisenberg and Sam Eisenberg, copartners, doing business as Plymouth Textiles hereinafter referred to us respondents have violated the provisions of said act, and it appearing to the Commission that a proceeding by it in respect thereof ,vould be in the public interest, l1ereby issues its eornplaint, sta6ng" its charges in that respect as follmvs: 21:iS40- 54- Complaint 48 F. T. C. PARAGRAPH 1. Respondents, Harold Eisenberg and Sam Eisenberg, are copartners doing business as Plymouth Textiles, with their offce and principal place of business located at 195 Plymouth Street Brooklyn, N. Y. Said respondents are now and for several years last past have been engaged, among other things, in conducting a mailorder business in the sale of patches and remnants to the genera public.

PAR. 2. In connection with said business respondents cause and have caused said products, when sold, to be shipped from their place of business in the city of Brooklyn, N. Y., into and through other States of the United States to purchasers located in said other States. Respondents maintain a.nd have maintained a course or trade in said products, in commerce, among and bct,veen the various States of the Lnited States. Their volume of trade in said products in such commerce is and has been substantial.

PAR. 3. In the course and conduct of the aforesaid business, and for the purpose or promoting the sale or their said products, in commerce respondents make and have made certain statements, representations and claims concerning said products and the use to which the same may be put, by means of advertisements inserted in newspapers and periodicals and other advertising literature. Among and typical said statements and representations are the following: BIG PATCH and REMNANT Assortment 4 lbs. only $1.98 Plus C. O. D. Postage FREE 1 000 yds. Thread Value Button Hole Maker $1. FREE 1 With Your First Order! 1 000 yds. White No. 50 thread, equals 14-5 spools (70if value). Amazing, new Button Hole )'laker, fits any machine. Sells elsewhere for $1.00. All this free to introduce our BIG PATCH and REMNANT Assortment of 18-22 yds. of new, color-fast, cotton print goods. Ideal for aprons, child1ren s sun suits, patchwork quilts'; * * PAR. 4. By means of the aforesaid statements respondents represented that there were included in their said assortment pieces of cloth of suffcient size out of which aprons and children s sun suits could be made.

PAn. 5. The said representation was false, misleading and deceptive. In truth and in fact, only one piece of the assortment was of suffcient size out of which an apron or a child' s S11n suit could be made. The balance of said assortment consisted of scraps, trimmings, and small irregular pieces of material.

PAR. 6. Respondents further represent, through the use of the word "free" in connection with the thread and buttonhole maker, that such , FEDERAL TRADE COMMISSION DECISIOXS Decisions articles were furnished to the purchasers of their assortments without cost or obJjgation of any nature. In truth and in fact, such articles were not furnished "free" or without cost or obligation as the cost thereof was included in the charge made for the assortment. PAR. 7. The use by the respondents of the aforesaid false, misleading, and deceptive statements and representations had the capacity and tendency to mislead and deceive a suhstantial portion of the purchasing public to believe that such representations are true and into the purchase of substantial quantities of respondents' said products in reliance on such erroneous belief.

PAR. 8. The aforesaid acts and practices of the respondents, as herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaniug of the Federal Trade Commission Act. DECISION OF THE COMMISSION Pursuant to Rule XXII of the Commission s Rules of Practice and as set forth in the Commission s "Decision of the Commission and Order to File Report of Compliance " dated July 12, 1951, the initial decision in the instant matter of Trial Examiner 'Wiliam L. Pack, as set ont as follows, became on that date the decision of the Commission. rXITIAL DECISION BY 'VILLIA)I L. PACK nual EXAMINER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission, on April 4, 1951, issued and subsequently served its complaint in this proceeding upon the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts .and practices in commerce in violation of the provisions of that act. After the filing by respondents of their answer to the complaint, a stipulation ,vas entered into whereby it was stipulated and agreed that a statement of facts executed by counsel supporting the complaint and counsel for respondents might be 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 such statement of facts might serve as the basis for findings as to the facts and conclusion based thereon and an order disposing of the proceeding, without presentation of proposed findings and conclusions or oral argument. The stipulation further provided that upon appeal to or review hy the Commission such stipulation might be set aside hy the Commission and this matter remanded for further proceedings under the complaint. Thereafter the proceeding regularly came on for final consideration by the trial examiner upon the Finding 48 F. 'r. C.

complaint, answer, awl tipulatjon, the. stipulation having been approved by the trial examiner, who, after d1l1y consic1edng the record herein, iinds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom, and order.

FIXDlXGS AS TO THE Fc\CTS PARAGHAPII 1. The respondents, I-Iarold Eisenbcrg and Sam Eisenberg, are copartners (luing business as Plymouth Textiles, ,with their offce and principal place of business located at 19;) Plymont.h Street Brooklyn N. Y. Respondents are now nnd for several years last past have been engaged in conducting a mail-order business in the sale of remnants and patches of cloth to the general public. \R. 2. Respondents cause and have can sed their merchandise, when sold, to be shipped fronl their place of business in the State of New York to purchasers located in various other States of the United States. Hcspondents Hwintain and have maintained a course of trade in their merchandise in commerce among and between the various States of the United States. Their volume of trade in such commerce has been substantial.

PAH. 3. In the course and conduct of their business, respondents have advertised their merchandise by means of advertisements inserted in newspapers and periodicals, and by means of other advertising material. Among and typical of such advertise,ments is ths' following:

To Introduce 18-22 Yd. New Print BIG l'N CH & nEMNAN' Assortment 4 Ibs.

ONLY $1 Plus C. O. D. postage.

FHEE 1 000 yds. Thread V AL-CE Dutton Hole Maker $1.

FRE:B ! With your First Order 1 000 yrl . White, 1'0. 50 'l'bread, equals 14-5if spools (IO yalue). Amazing new Dutton Hole illaker, fits any machine, sells elsewhere for OO. All tllis free to introduce our BIG PATCH and HEll ANT assortment of 18-22 yards of ne"' , color-fast, cotton print goods. Ideal for aprons, children s sun Sl1its, patchwork Cluilts, doll dresses, pin cushions, pot holders, etc. A use for every pntcb. Complete witll patterns, instructions. Yes, only 9S plus postage and C. O. D. handling $1.98 back if not satisJiecl, but you, keep the FREE; GIFTS, regardless! Order tOllay! PLYMOUTH TEXTILES Order PLY)IOUTH TEXTILES Dept, K1, IU5 Plymouth Street, Brooklyn 1, N. y, PAR. 4. This advertisement was erroneous and misleading in that it represented, directly or by implication, that the assortment of merchandise referred to included pieces of doth which were of suffcient size to be made into aprons and children s sun suits. Actually only one piece of cloth in the assorhnent was of that size. The remainder of the assortment consisted of scraps, trimmings and small, irregular pieces of material.

PAR. 5. Respondents' advertisement 'vas erroneous and misleading for the further reason that it represented through the use of the word free" in connection with the thread anc1buttonhole maker that such articles were furnished to the purchasers of such assortments without cost or obligation of a.ny nature. Actually, such articles ,were not genentlly furnished free or without cost or obligation, as the cost thereof was included in the charge made for the assortment. The only instances in which the articles were furnished without cost were those in which the other merchandise (remnants and patches) was returned by the purchaser.

PAR, 6. The nse by respondents of these erroneous and misleading representations has the tendency and capacity to mislead and deceive a substantial portion of the purchasing public with respect to respondents' merchandise and with respect to the articles purportedly offered without cost, and the tendency and capacity to cause such portion of the public to purchase respondents' merchandise as a result ,of the erroneous and mistaken belief so engendered. CONCLUSION The acts and practices of the respondents as hereinabove set out are all to the 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 It is ordered That the respondents, Harold Eisenberg and Sam Eisenberg, individually and as copartners trading under the name Plymouth Textiles, or trading under' any other name, and their representative, agents, and employees, directly or through any corporate or other device. in connection with the offering for sale, sale, and distribution of ren nants and patches of cloth in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Order 4S F. T. C.

1. Representing, directly or by implication, that assortments of remnants and patches include pieces of cloth suffciently large to be made into aprons or children s SUll suits, unless such assortments do in fact consist in substantial part of pieces of cloth which are of suffcient size for such purposes.

2. Using the word "free" or any other word or words of similar import, to designate or describe articles the cost of which is included in the price of other merchandise, or which are not in fact gifts or gratuities furnished without cost or obligation to the recipient thereof. ORDER TO FILE Import OF COMPI.,AXc:g It i8 ordered That the respondents herein shah, 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 complied with the order to cease and desist (as required by said declaratory decision and order of July 12, 1951J. AMASIA IMPORTING CORP. ET AL.

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