R. E. Nye

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IN Tile 1IA TTER OF R. E. NYE DOING BUSINESS AS INTERNATIO"'AL SERVICE B1JREAU & ASSOCIATES COMPL.UNT, FINDINGS, AXD ORDERS IX REGARD '1'0 THE ALLEGED VIOLATION SEC. 5 UF AN AOT OF CONGRESS APPROVED SEPT. 26 , 1914 Docket 5912. Complaint Aug. 8, lD51-Dec' ision, Oct. 9, 1951 Where an individual engaged under the trade naile "International Service Bureau and Associates," ill locating delinquent debtors, for his clients, involving business intercourse among persons in various states; In attempting to secure information concerning their adurcsses, which he might in turn sell to his clients, through a form letter sent to debtors, together \vitb a form for their use in Supplying their address, occupation, etc., and return envelope addressed to " DishUli"emellt Offce, International Service Bureau and Associates" at his Washington adrlress- Falsely represented through said form letters, mailed to the persons concerning whom information was sought at their la t known address, that he was holding a sum of money for the recipients or persons of irlcntical name, and that the information was requested in order to positively identify the recipients so that saidllJOney might be paid to them; The facts being nothing of yalue, eXCe!JLng a few postage stamps, was sent to the addressees; the whole plan was designed and intended to obtain information by ,subterfuge; and the addresses' unuerstcmcling that he was holding money for tl1em was enhancell by the misleading and deceptive expression Disbursement Offce With capacity and tendency (Q mislead and deceive many !Jersons to \yhorn said form letters were sent into Ole erroneous belief that said representations were true and thereby inrlnce them to supply information \yhicl1 they other wise would nut have supplied:

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

Before Mr. Frank Hie?' trial examiner. Mr. J. W. Brookfield, h. for the Commission. COl\fPLAIN'l 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, ha,vjng reason to believe that H. E. Nye, an individual trading and doing business as International Service Bureau & Associates, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a pro- INTERNATIONAL SERVICE BUREAU 379 378 Complaint ceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. Respondent R. E. Nye is an individual trading and doing business under the name International Service Bureau & Associates, with his offce and principal place of business located at 400 Fifth Street, NvV., in the city of Washington, D. C. Respondent is now and for more than one year last past has been engaged in the business of locating delinquent debtors, obtaining information concerning them and in selling such information to his clients PAR. 2. In the course and conduct of his business respondent causes letters and other material to be transported by the United States mails in the District of Columbia to the recipients thereof located in the District of Columbia and also in various States of the "Cnited States and the recipients of said letters in turn cause letters and other materials to be transported by the. United States mails from their respective locations in the District of Columbia and various other States to respondent at his place of business in the District of Columbia. Responc1enfs business as thus conducted involves intercourse of a business and commercial nature between himscH and his clients and the persons from ,,,ham information is sought located in various States of the 1.united States and in the District of Columbia. PAR. 3. The form letter sent by respondent to debtors and the form to be used in supplying information are as follows: International Service Bureau & Associates 400 FIFTH STREET. NORTHWEST-WASHINGTON I , D. C. Date Addressee Deal' ::11': ------ There has come into our custody a sum of money which we believe should be paid to a person of 3-' our name. Wil you kindly fill out and return to us the enclosed form to assist us in determining if you are the person to whom payment should be made.

If identification is satisfactory, you wil receive our check within fifteen days. A self-acldressed envelope is enclosed for convenience in making reply. Very truly yours, (Signed) R. E. 1Sye, Claim No. 012860 H. E. NYE HEN: 19 Disbursement Offcer. DISBURSEMENT OFFICE INTERNATIONAL SERVICE BUREAu & ASSOCIATES 400 5th Street . 'V.

Washington 1, D. C.

___ __ __ _ _ ; _ Complaint 48 F. T. C. Below is the requested information. Please send the cl1eck. are______-------------------------- Street and N 0______----- ------------- Ci ty ---------------------- ----- S ta te___- - Occupa tioll_____ En1ployer ------ ---- -------------- ---- Employer s Address_ Home Phone______-- Business Phonc- Husband or Employer address_ Bank - --- Address____--------- Fteference__-_llddress- Reference__ address_ Claim Number_- Fil in and return this blank within 30 days. AHo,.. two n-eeks for mailng the check.

Please T';ype or Print Information Give Complete Information to Expedite l\Iailng of Check PAR. 4. Respondent mails the said form letters to the persons concerning whom information is sought at their last-known address together with an envelope a.ddressed to International Service Bureau & Associates, 400 Fifth Street . "\17., ,Vashington, D. C. for use in returning said infon-nation form, if and -when completed. \H. 5. Through the use of the said form letters, respondent represents, directly and by implication, that he is holding a certain sum of money or other funds for the recipients of the form letters or persons of identical names and that the information requested in the form letters is desired by him in order to positively identify the recipients of the letters as the persons for whom he is holding the money so that said money may be paid to them.

Said representations are misleading and deceptive. In truth and in fact, respondent does not receive money and does not hold any money in his custody for the recipient of the form letters. On the contrary, the sale and only purpose in mailing said1letters with enc1oslues is to secure infol'llation concerning the addressee \which in turn may be sold to respondent' s clients. o check, money: or anything of value except E\, few postage stamps is sent to the addressee of said letters and respondent's whole pbn is designed for the purpose of and intended to obtain information by subterfuge. The use of the expression "Disbul'spnwnt Offce': on the form to be returned enhances the INTERNATIONAL SERVICE BcREAU 381 378 Decisions understanding in the minds of the addressees that respondent is hold. iug money or other funds for them and is misleading and deceptive in and of itself.

PAIL 6. The use of the foregoing misleading and deceptive statements, representations, and designations has the cRIJacity and tendency to mislead and deceive many persons to \whom the said fonn letters are sent into the erroneous and mistaken belief that the said statements and representations are true and to induce them to supply information to respondent which they other',ise woule! not have supplied. PAll. 7. The aforesaid acts and practices of respondent, as herein alleged, are all to the prejudice and injury of the public ane! constitute unfair and deceptive acts and practices in commerce 'within the intent and meaning of the Federal Trade Commission Act. DECISlOX OF THE CO L\nSSlON 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 CompEanee " dated October 9, 1951, the initinJ decision in the instant matter of trial examiner Frank Riel' , as set ant as follows, became on that date the decision of the Commis- SIOn.

INITL\L DECISION BY FIL\XK HTER, TRIAL EXAl\HXER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade COll1mission on August 8, 1951 , issued ana subsequently served its complaint in this proceeding upon the respondent n. E. Nye, an individual trading and doing business as International Service Bureau &. Associates, charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On -Ltugust 22, 1951, respondent filed his answer in which answer he admitted all the material allegations of facts set forth in said compla.int and waived all intervening procedure and and further hearing as to the said facts. Thereafter, the proceeding regularly came on for final consideration by the above-na.med trial examiner theretofore duly designated by the Commission upon said complaint and answer thereto, all intervening procedure having been waived, and said trial examiner, having duly considered the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts conclusion drawn therefrom, and order:

:

382 FEDERAL TRADE CQM1ISSION DECISIONS Findings 48 F. T. C.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent R. E. Nye is an individual trading and doing business under the name International Service Bureau & Associates, with his offce and principal place of business located at 40n Fifth Street., NIV., in the cit.y of 'Washington, D. C. Respondent. is now and for more than one year last past has been engaged in the business of locating delinquent debtors, obtaining information concerning them and in selling such information to his clients. PAR. 2. In the course and conduct of his business respondent causes let.t.ers and ot.her mat.erial t.o be t.transported by t.he Unit.ed St.at.es mails in t.he District of Columbia t.o t.he recipient.s thereof located in the District of Columbia and also in various States of the United States and the rcdpicnts of saiel letters in turn calise letters and other materials t.o be t.ransport.ed by the United States mails from their respective locations in the District of Columbia and various other Statea to respondent at his place of business in the District of Colmnbia.. Respondent' s business as thus conducted involves intercourse of a busine s and commercial nature between himself and his clients and the persons from whom i nformation is sought located in various states of the 'Cnited States and in the District of Columbia. PAR. 3. The form letter sent by respondent to debtors and the form to be used in supplying information are as follows International Service Bureau & Associates 400 FIFTH STREET, NORTHWEST-WASI-H\'GTON 1 , D. C. Date Addressee Dear Mr --------- There has come into our custody a sum of money which we be1ievc should be' paid to a person of Your name. 'Vil you kindly fill out and retlln to us the enclosed form to assist us in determining if you are the person to whom payment should be made.

If identification is satisfactory, you wil receive our check within fifteen d8YS. A self-addressed envelope is enclosed for convenience in maldng reply. Very truly ours Claim No. 0128GO (Signed) R. E. Nye :lg R. E. XYE Dis/Jursement QUi-cer.

______ _____ __ _______ INTERNATIONAL SERVICE BUREAU 383 378 Findings DISBURSEMEJ\T OFFICE INTERNATIONAL SERVICE BUREAU & ASSOCIATES 400 5th Street, :-. W.

Washington!, D. C.

Below is the requested information, Please send the check. arne -- Street and 0___ City - -- ---- State____ Occupa tion ----- Employer -------------- Employer s Address-- -_u- Home phone__ - ----- Business Phone- Ilusband or ernployer ---------- Address____------- Bank__ Jtddress- Reference______--- Jlddl'ess____------- Reference______--itddress____- Claim uilbel' Fil in and return this blank within 30 days. Allow two weeks for mailng the check.

Please Type or Print Information Give complete Information to Expedite Mailng of Check PAn. 4. Respondent mails the said form letters io the persons concerning 'whom information is sought at their Jast-knmvn address, together with an envelope addressed to International Service Bureau &. Associates, 400 Fifth Street, X\V., "\Vashington, D. C., for use in returning said information form, if and when completed. PAR. 5. Through the use of the said form letters, respondent represents, directly and by implication, that he is holding a certain sum of money or other funds for the recipients of the form letters or persons of identical names and that the information requested in the form letters is desired by him in order to positively identify the recipients of the letters as the persons for whom he is holding the money so that said money may be paid to them.

PAR. 6. Said representations are misleading and deceptive. In truth and in fact, respondent does not receive money and does not hold any money in his custody for the recipient of the form letters. On the 384 FEDERAL TRADE CO:vu\IISSION DECISIOKS Order 48 F.

contrary, the sale and only purpose in mailing said letters with enclosures is to secure information concerning the addressee which in No check, money or any-turn may be sold to respondent' s clients. thing of value except a few postage stamps is sent to the addressee of said letters and respondent's whole plan is designed for the purpose of and intended to obtain information by subterfuge. The use of the expression "Disbursement Offce" on the form to be returned enhances the understanding in the minds of the addressees that respondent is holding money or other funds for them and is misleading and deceptive in and of itself.

PAR. 7. The use of the foregoing misleading and deceptive statements, representations and designations has the capacity and tendency to mislead and deceive many persons to whom the said form letters are sent into the erroneous and mistaken belief that the said statements and representations are true and to induce them to supply information to respondent which they otherwise would not have supplied. COXCLUSIQN The aforesaid acts and practices of respondent, as herein found, are aU 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 Aet. ORDER It i. ordered That the respondent, R. E. Nye, an individual, trading as International Service Bureau & Associates, or any other name, his agents, representatives and employees, directly or through any corporate or other device, in connection with the use in commerce, as COlTlnerCe" is defined in the Federal Trade Commission Act, of form letters, reply forms, or any other printed or written material of a substantially similar nature, do forthwith cease and desist from: (1) Representing directly or by implication that respondent is holding a sum of money or any other thing of value for the recipients of said form letters, or other letters, or that the information requested is desired by respondent for the purpose of enabling respondent to make deli very of any such sum of money;

(2) Using form letters or other material which represents directly or by implication that respondent's business is other than that of locating delinquent debtors.

IXTERNATIONAL SERVICE BUREAU 385 378 Order ORDER TO FILE REPORT OF CO:MTLINCE It is ordered That the respondent herein shall, within sixty (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 the order to cease and desist (as required by said declaratory decision and order of October 9, 1951J. &, 386 FEDERAL TRADE CO:\MISSION DECISIOXS Syllabus 48 F. T. C.