American Tobacco Company

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IN THE MATTER OF AwIERICAN TOBACCO CO:MP ANY :MODIFIED CEASE AND DESIST ORDER Docket 4827. Order, April 9, 1952 Order modif~ying, in accordance with stipulation of counsel and order of the Court of Appeals for the Seyenth Circuit 011 March 11, 1952, Commission original order issued on .Tune 20, HI:Jl, 47 F. C. 1393-which required respondent, "and its officers, representatives, agents, and employees, to cease and desist from specified rnisrepresentation in connection with the offer and sale of its Luck~' Strike cigarettes-so as to delete from said order the words above quoted, as below set forth.

Before Afr'. John L. Hornor' hearing examiner. jJf,;,. John R. Phillips, J1' for the Commission. Chadbourne, Wallace, Pm'lee ill Whiteside of New York City, and Covington, B'llrling, Rublee, O'Brian Sho1'b of 'Vashington, D. C. for respondent.

:MODIFlED ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the amended complaint of the Commission, the respondent' answer thereto, testimOllY and other evidence in support of and in opposition to the allegations of said amended complaint, the Trial Examiner s recommended decision and exceptions thereto, and briefs and oral argument of counsel; and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act, and having issued an order to cease and desist; and The American Tobacco Company, a corporation, the respondent having filed in the United States Court of Appeals for the Seventh Circuit its petition to review and set aside the order to cease and desist issued herein; and thereafter counsel for respondent and the Commission having entered into a stipulation filed in said Court on March 10, 1952, providing that said petition to review shall be disluissed without hearing on the merits; that upon said dismissal the Commission shall modify said order to cease and desist by eliminating therefrom the words "and its officers, representatives, agents and employees" after the words "IT IS ORDERED that the respondent The American Tobacco Company, a corporation; and that said voluntary dismissal of said petition to review shall be without prej Helice to any subsequent application by respondent to the Commission for any Order 48 F. T. C. ' 1110dification of any other provisions of said order to cease and desist and shall not be construed by the Commission to limit its power to make any such modification pursuant to section 5 of the Federal Trade Commission Act and Rule XXVII of the Commission s Rules of Practice; and the Court having on :March 11, 1952, entered an order dismissing the petition to review, without hearing upon the merits in accordance with the terms of the stipulation of counsel; and . Thereafter, the Commission having reconsidered the matter, and being of the opinion that its order should be modified so as to accord with the aforesaid stipulation of counsel and order of the United States Court of Appeals for the Seventh Circuit; It is olde'1'ed That the respondent, The American Tobacco Company, a corporation, directly 01' 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 its Lucky Strike brand of cigarettes, do forthwith cease and desist from representing, by any means, directly or by implication: (1) That among independent tobacco experts, Lucky Strike cigarettes have twice as many smokers as all other brands of cigarettes combined; or that any greater proportion or number of independent tobacco experts or of a.ny other group or class of people smoke Lucky Strike cigarettes than is the fact...

. (2) That independent tobac~o experts who smoke Lucky Strike cigarettes do so because of their knowledge of the grades or quality of the tobacco Pllrchased by the respondent for use in the manufacture of Lucky Strike cigarettes.

(3) That Lucky Strike cigarettes or the smoke therefrom contains less acid than do the cigarettes 01' the smoke therefrom of any of the other leading brands of cigarettes.

( 4) That Lueky Strike cigarettes or the smoke therefrom is less irritating to the throat than the ciga.rettes or the smoke therefrom of any of the other leading brands of cigarettes. ( 5) That Lucky Strike cigarettes or the smoke therefrOll1 is easy on one s throat or will provide any protection against throat irritation or coughing.

(6) That Lucky Strike cigarettes or the smoke therefrom contains less nicotine than do the eigarettes or the smoke therefrom of any of the four other leading brands of cigarettes. It 1'8 turt1wI' ordered That the respondent shall, within sixty (60) days after service upon it of this modified order, file with the Commission a report, in writing, showing in detail the manner and form in which it has eomplied with this order.

, MALLEABLE. CHAIN MANUFACTURERS INS'fITUTE ' ET AL. 1163 Syllabus