Rice Coat & Suit Company

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In THE Marrer oF RICE COAT & SUIT COMPANY ET AL.

COMPLAINT, SETTLEMENT, FINDINGS, AND ORDER IN REGARD TO THE AL- LEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1914, AND OF AN ACT OF CONGRESS APPROVED OCT. 14, 1940 Docket 6069. Complaint, Dec. 12, 1952—Decision, Mar. 31, 1953 Where a corporation and its three officers, engaged in the manufacture and interstate sale and distribution of wool products as defined in the Wool Products Labeling Act— (@) Misbranded ladies’ coats in that they were not stamped, tagged or labeled as required by said Act and the Rules and Regulations promulgated thereunder; and (6) Misbranded certain of said coats in that they were labeled or tagged as containing “100 Percent Wool Interlining”’, notwithstanding the fact that said interlinings were not 100% wool as “wool” is defined by said Act but were composed of reused or reprocessed wool, together with substantial quantities of nonwoolen fibers:

Held, That such acts and practices, under the circumstances set forth, constituted misbranding of wool products in violation of said Act and Rules and Regulations, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and practices in commerce. Before Mr. Abner L. Lipscomb, hearing examiner. Mr. George E. Steinmetz for the Commission. Brown & Koralchik, of Kansas City, Mo., for respondents. Complaint Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Rice Coat & Suit Company, a corpora- _ tion, and Frank Rice, Louis Rice and Joseph Koralchik, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts, 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:

ParacrapH 1. Respondent Rice Coat & Suit Company is a corporation, organized and existing under and by virtue of the laws of the State of Missouri; and respondents Frank Rice, Louis Rice and Joseph Koralchik are the president, vice-president-treasurer and secretary, respectively, of the said respondent corporation, and as such, Consent Settlement 49 F.T.C.

direct and control the policies, acts and practices of the corporate respondent. The offices and principal place of business of all respondents is located at 617 Wyandotte Street, Kansas City, Missouri. Par. 2. Subsequent to the effective date of the said Wool Products Labeling Act and more especially since 1947 , respondents have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment and offered for sale in commerce, as “commerce” is defined in the Wool Products Labeling Act, wool products, as “wool products” are defined therein. Par. 3. Certain of said wool products described as ladies’ coats were misbranded in that the fiber content of the interlinings contained therein was not separately set forth on the labels or tags attached thereto as required under the provisions of Section 4(a) (2) of the Wool Products Labeling Act of 1939 and Rule 24 of the Rules and Regulations promulgated under said Act. Par. 4. Certain of said wool products were misbranded within the intent and meaning of said Wool Products Labeling Act and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively labeled or tagged with respect to the character and amount of certain of the constituent fibers contained therein. Among the misbranded wool products aforementioned were ladies’ coats labeled or tagged by respondent corporation as containing “100 Per Cent Wool Interlining,” when in truth and in fact the said interlinings were not 100 per cent wool, as “wool” is defined in the Wool Products Labeling Act of 1939, but contained reused or reprocessed wool, together with substantial quantities of non-woolen fibers. Par. 5. The acts and practices of the respondents, as herein alleged, constitute misbranding of wool products and are in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder; and all of the aforesaid acts and practices, as herein alleged, are 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. CONSENT SETTLEMENT * Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, the Federal Trade 1The Commission’s “Notice” announcing and promulgating the consent settlement as published herewith, follows:

The consent settlement tendered by the parties in this proceeding, a copy of which is served herewith, was accepted by the Commission on March 81, 1953, and ordered entered of record as the Commission’s findings as to the facts, conclusion, and order in disposition of this proceeding.

The time for filing report of compliance pursuant to the aforesaid order runs from the date of service hereof, :

RICE COAT & SUIT CO. ET AL. 1253 1251 Findings Commission, on December 12, 1952, issued and subsequently served its complaint on the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts and practices in violation of the provisions of said Acts. , The respondents, desiring that this proceeding be disposed of by the consent settlement procedure provided in Rule V of the Commission’s Rules of Practice, solely for the purposes of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon the Commission’s acceptance of the consent settlement hereinafter set forth, and in lieu of answer to said complaint hereby:

1. Admit all the jurisdictional allegations set forth in the complaint.

2. Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to the Commission’s entry of said findings as to the facts, conclusion, and order to cease and desist, specifically refrain from admitting or denying that they have engaged in any of the acts or practices stated therein to be in violation of law. :

3. Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in Paragraph (f) of Rule V of the Commission’s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and practices which the Commission had reason to believe were unlawful, the conclusion based thereon, and the order to cease and desist, all of which the respondents consent may be entered herein in final disposition of this proceeding, are as follows:

FINDINGS AS TO THE FACTS Paracrapy 1. Respondent, Rice Coat & Suit Company is a corporation organized and existing under and by virtue of the laws of the State of Missouri. Respondents Frank Rice, Louis Rice and Joseph Koralchik are the President, Vice President and Treasurer, and Secretary, respectively, of said respondent corporation. Respondents Frank Rice and Louise Rice as officers of said corporate respondent formulate, direct and control its policies, acts and practices. Their address is 617 Wyandotte Street, Kansas City, Missouri. Par. 2. Respondent Joseph Koralchik, whose address is 811 Land Bank Building, Kansas City, Missouri has filed his affidavit herein, setting forth that he has never, at any time during his tenure of office as Secretary of respondent corporation participated in the manage- Conclusion 49 ELT. C.

ment, direction or control thereof, and has never taken part in the formulation or execution of any of the acts or policies hereinabove complained of.

By reason of the matters set out in said affidavit the Commission finds that the said complaint, insofar as it relates to the respondent Joseph Koralchik as an individual should be dismissed. Par. 3. Subsequent to the effective date of the said Wool Products Labeling Act and more especially since 1947, respondents, other than Joseph Koralchik, have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment and offered for sale in commerce, as “commerce” is defined in the Wool Products Labeling Act, wool products, as “wool products” are defined therein.

Par. 4. Certain of said wool products described as ladies’ coats were misbranded in that the fiber content of the interlinings contained therein was not separately set forth on the labels or tags attached thereto as required under the provisions of section 4 (a) (2) of the Wool Products Labeling Act of 1939 and Rule 24 of the Rules and Regulations promulgated under said Act.

Par. 5. Certain of said wool products were misbranded within the intent and meaning of said Wool Products Labeling Act and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively labeled or tagged with respect to the character and amount of certain of the constituent fibers contained therein. Among the misbranded wool products aforementioned were ladies’ coats labeled or tagged by respondent corporation as containing “100 Percent Wool Interlining,” when in truth and in fact the said interlinings were not 100 percent wool, as “wool” is defined in the Wool Products Labeling Act of 1939, but contained reused or reprocessed wool, together with substantial quantities of non-woolen fibers. CONCLUSION The acts and practices of the respondents Rice Coat & Suit Company, a corporation, and Frank Rice and Louis Rice, individually, and as officers of said respondent corporation, and Joseph Koralchik as an officer of said respondent corporation, as herein found, constitute misbranding of wool products and as such are in violation of the Wool Products Labeling Act of 1989, and the Rules and Regulations promulgated thereunder; and all of the aforesaid acts and practices, as herein found, are 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. RICE COAT & SUIT CO, ET AL. 1255 1251 .: Order ORDER TO CEASE AND DESIST It is.ordered, That the respondent, Rice Coat & Suit Company, a corporation, and its officers, and respondents Frank Rice and Louis Rice, individually and as officers of said corporation, and Joseph Koralchik as an officer of said corporation and respondents’ respective representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for introduction into commerce, or the offering for sale, sale, transportation or distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, of ladies’ coats or other “wool products,” as such products are defined in and subject to the Wool Products Labeling Act of 1939, which products contain, purport to contain or in any way are represented as containing “wool,” “reprocessed wool” or “reused wool,” as those terms are defined in said Act, do forthwith cease and desist from misbranding such products by:

1. Falsely or deceptively stamping, tagging, labeling or otherwise identifying such products as to the character or amount of the constituent fibers included therein;

2. Failing to securely affix to or place on each such product a stamp, tag, label or other means of identification showing in a clear and conspicuous manner;

(a) The percentage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding five percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers; (6) The maximum percentage of the total weight of such wool product of any non-fibrous loading, filling or adulterating matter; (c) The name or the registered identification number of the manufacturer of such wool product or of one or more persons engaged in introducing such wool product into commerce, or in the offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce as “commerce” is defined in the Wool Products Label ing Act of 1939;

3. Failing to separately set forth on the required stamp, tag, label or other means of identification the character and amount of the constituent fibers appearing in the interlinings of such wool products, as provided in Rule 24 of the Rules and Regulations promulgated under the said Act.

Provided, That the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by paragraphs (a) Order 49H, TC.

and (b) of section 3 of the Wool Products Labeling Act of 1939, and Provided further, That nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Rules and Regulations promulgated thereunder; It is further ordered, That the complaint herein insofar as it relates te Joseph Koralchik individually be, and the same is hereby dismissed. It is further ordered, That the respondents herein shall, within sixty (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. [sgd] Frank Rica Rice Coat & Suit Company, a corporation By [sgd] Franz Rice (Name) President - (title) [sgd] Franx Rice Frank Rice, individually, and as an officer of Rice Coat & Suit Company, a corporation.

[sgd] Louis Rice Louis Rice, individually, and as an officer of Rice Coat & Suit Company, a corporation.

{sgd] Josreu Koratcuix Joseph Koralchik, individually and as an officer of Rice Coat & Suit Company, a corporation.

Date: February 12, 1953 The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this the 31st day of March, 1953.

DEL MAR SEWING MACHINE CO. 1257 Syllabus In the Marrer or ANTHONY AND LENA OLIVERIO D. B. A. DEL MAR SEWING MACHINE COMPANY COMPLAINT, SETTLEMENT, FINDINGS, AND ORDER IN REGARD TO THE AL- LEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, Hocket 6013. Complaint, July 18, 1952—Decision, Apr. 2, 1953 When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public, and such articles are not marked, or are not adequately marked, showing that they are of foreign origin, or if marked, and the markings are covered or otherwise concealed, such purchasing public understands and believes such articles to be wholly of domestic origin.

There is among members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machines.

The'words “Universal” and “Majestic” and other well-known domestic names are the names or parts of the names of, or used as trade names, marks or brands by, oue or more business organizations transacting and doing business in the United States, which are and have been well and favorably known to the purchasing public, and which are and have been well and long established in various industries; and there is a preference among members of the purchasing public for products manufactured by well and favorably known and long established concerns whose identity is connected with the words ‘Universal’ and “Majestic” and other well known domestic names, Where two partners engaged in the competitive interstate sale and distribution of sewing machines of which heads imported from Japan were a part— (a) Failed adequately to disclose such foreign origin on their said sewing machine heads, upon which the word “Japan”, displayed on the back of the arm when imported, became concealed through attachment of a motor and, where displayed on a medallion, on the front of the arm, in some instances, was so small and indistinct as not to constitute adequate notice to the public, and upon which no other mark was placed to inform the public of said origin ;

(6) Falsely represented through the featured use of the words “Universal”, “Majestic” and other well known domestic trade or brand names on the front horizontal arm of the head, and use in advertising of such names, that the product was manufactured by or connected in some way with the well and favorably known firm long associated with the particular name, and thereby also enhanced the public belief that the sewing machines were of domestic origin;

1258 FEDERAL: TRADE COMMISSION DECISIONS Complaint 419 F.T.C.

(c) Represented, directly or by implication, that they were making a bona fide offer to sell Singer, White, Domestic, and New Home portable sewing machines for $25, and that said machines were being offered during a clearance sale at a reduced price and for a limited time only, through such statements as “CLEARANCE SALE! WHILE THEY LAST! REBUILT PORTABLE ELECTRIC SEWING MACHINES, SINGERS, WHITES, DOMESTICS, NEW HOMES, $25. Hurry! Only a few machines left to clear out at this price. * * * ;5 1 3 1 8 11 1811 956 31 11 0.000000 a5 1 3 1 8 12 1930 962 2 2 0.169075 :3 1 3 2 0 0 671 980 1307 327 -1 4 1 3 2 1 0 671 980 1307 31 -1 5 1 3 2 1 1 671 982 61 24 96.756760 Thes 1 3 2 1 2 753 981 78 25 96.734467 facts5 1 3 2 1 3 852 981 85 30 96.428345 beings 1 3 2 1 4 958 982 66 23 96.354134 that5 1 3 2 1 5 1044 980 64 27 96.250603 said5 1 3 2 1 6 1129 980 73 25 96.746780 offers 1 3 2 1 7 1223 986 60 19 95.599663 was5 1 3 2 1 8 1304 982 52 23 95.599663 not5 1 3 2 1 9 1377 986 17 19 96.784065 a5 1 3 2 1 10 1414 981 130 29 96.209213 genuine,5 1 3 2 1 11 1567 981 74 24 96.721008 bona5 1 3 2 1 12 1662 980 55 26 96.407875 fide5 1 3 2 1 13 1738 982 80 29 95.690468 offer,5 1 3 2 1 14 1843 982 50 24 95.690468 but5 1 3 2 1 15 1915 989 63 17 96.721092 was4 1 3 2 2 0 740 1023 1236 32 -1 5 1 3 2 2 1 740 1025 85 23 96.663971 made5 1 3 2 2 2 844 1025 31 23 96.917007 to5 1 3 2 2 3 894 1024 100 24 96.100601 obtains 1 3 2 2 4 1013 1024 81 24 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2 4 2 806 1109 162 28 95.346512 attempted5 1 3 2 4 3 984 1109 30 23 96.026985 to5 1 3 2 4 4 1031 1108 53 24 96.078697 sells 1 3 2 4 5 1101 1106 136 26 96.599678 different5 1 3 2 4 6 1253 1108 56 24 96.212425 ands 1 3 2 4 7 1326 1112 78 20 96.507561 more5 1 3 2 4 8 1420 1108 154 28 96.368622 expensive5 1 3 2 4 9 1591 1114 76 23 96.821678 ones,5 1 3 2 4 10 1684 1109 191 28 96.092278 particularly5 1 3 2 4 11 1892 1109 86 23 96.293472 those4 1 3 2 5 0 739 1150 1239 29 -1 5 1 3 2 5 1 739 1151 31 25 96.684189 of5 1 3 2 5 2 790 1151 94 25 96.835297 which5 1 3 2 5 3 905 1151 90 24 96.110092 heads5 1 3 2 5 4 1015 1150 85 25 96.110092 made5 1 3 2 5 5 1120 1150 31 24 96.857491 in5 1 3 2 5 6 1171 1150 96 29 96.709297 Japan5 1 3 2 5 7 1288 1156 75 18 96.522484 were5 1 3 2 5 8 1384 1156 17 18 95.951180 a5 1 3 2 5 9 1421 1151 83 28 95.951180 part;5 1 3 2 5 10 1527 1150 50 25 96.481232 thes 1 3 2 5 11 1596 1151 110 28 96.564339 alleged5 1 3 2 5 12 1728 1151 149 24 96.110313 clearance5 1 3 2 5 13 1890 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1530 114 24 96.764023 thereof5 1 3 4 2 8 1519 1531 29 23 96.788460 to5 1 3 4 2 9 1571 1531 143 29 96.595673 purchases 1 3 4 2 10 1737 1530 63 24 96.512566 said5 1 3 4 2 11 1823 1531 151 23 96.330856 machines4 1 3 4 3 0 734 1572 1236 30 -1 5 1 3 4 3 1 734 1576 57 23 96.790024 ands 1 3 4 3 2 814 1575 72 24 96.663002 with5 1 3 4 3 3 910 1575 85 24 96.341217 effects 1 3 4 3 4 1018 1575 31 23 96.304024 of5 1 3 4 3 5 1071 1574 130 28 96.467026 unfairly5 1 3 4 3 6 1224 1573 145 29 96.125107 diverting5 1 3 4 3 7 1390 1574 31 23 96.635620 to5 1 3 4 3 8 1442 1574 77 22 96.579010 them5 1 3 4 3 9 1543 1572 177 24 96.327034 substantial5 1 3 4 3 10 1742 1573 84 23 96.623856 trades 1 3 4 3 11 1847 1574 30 22 92.837067 in5 1 3 4 3 12 1898 1578 72 18 92.132530 com-4 1 3 4 4 0 733 1615 1239 30 -1 5 1 3 4 4 1 733 1623 94 19 96.259712 merce5 1 3 4 4 2 838 1617 77 24 96.571609 from5 1 3 4 4 3 928 1617 76 25 95.802414 theirs 1 3 4 4 4 1017 1617 193 28 96.370735 competitors,5 1 3 4 4 5 1223 1621 105 23 94.233215 among5 1 3 4 4 6 1338 1616 93 23 94.233215 whom5 1 3 4 4 7 1443 1620 75 19 96.170982 were5 1 3 4 4 8 1530 1615 134 25 96.170982 included5 1 3 4 4 9 1676 1616 100 23 96.334656 sellers5 1 3 4 4 10 1789 1615 31 24 95.322876 of5 1 3 4 4 11 1831 1615 141 24 95.646400 domestic4 1 3 4 5 0 735 1654 1233 36 -1 5 1 3 4 5 1 735 1660 107 30 96.570969 sewing5 1 3 4 5 2 860 1659 156 29 96.316277 machines,5 1 3 4 5 3 1036 1659 57 24 95.898331 ands 1 3 4 5 4 1112 1659 100 24 96.268158 sellers5 1 3 4 5 5 1231 1658 61 24 96.782455 also5 1 3 4 5 6 1310 1657 31 25 96.446930 of5 1 3 4 5 7 1359 1658 49 24 96.032402 thes 1 3 4 5 8 1425 1657 143 29 96.749451 imported5 1 3 4 5 9 1585 1657 128 29 96.327972 product,5 1 3 4 5 10 1732 1656 32 24 96.530991 of5 1 3 4 5 11 1780 1654 93 27 96.543602 whom5 1 3 4 5 12 1892 1663 76 18 96.235466 some4 1 3 4 6 0 735 1700 1237 31 -1 5 1 3 4 6 1 735 1703 172 28 96.647926 adequately5 1 3 4 6 2 930 1701 148 25 96.340775 indicated5 1 3 4 6 3 1101 1701 49 24 96.340775 thes 1 3 4 6 4 1172 1700 114 29 96.451370 foreign5 1 3 4 6 5 1309 1700 93 29 96.611496 origin5 1 3 4 6 6 1425 1700 30 24 96.549110 of5 1 3 4 6 7 1477 1700 49 24 96.836937 thes 1 3 4 6 8 1548 1700 122 28 96.569145 products 1 3 4 6 9 1692 1706 31 18 96.451744 or5 1 3 4 6 10 1744 1700 99 28 96.435005 parts;5 1 3 4 6 11 1867 1700 29 23 96.405884 to5 1 3 4 6 12 1921 1700 51 23 96.405884 thea 1 3 4 7 0 734 1743 569 30 -1 5 1 3 4 7 1 734 1744 99 29 96.583458 injury5 1 3 4 7 2 847 1744 31 24 96.365379 of5 1 3 4 7 3 889 1743 186 30 96.248726 competitions 1 3 4 7 4 1088 1743 30 24 95.793793 in5 1 3 4 7 5 1132 1749 171 18 94.806335 commerce:3 1 3 5 0 0 663 1782 1307 159 -1 4 1 3 5 1 0 663 1782 1307 33 -1 5 1 3 5 1 1 663 1786 83 29 94.874428 Held,5 1 3 5 1 2 769 1787 77 23 94.874428 That5 1 3 5 1 3 867 1786 69 24 96.370094 such5 1 3 5 1 4 958 1786 63 23 96.674057 acts5 1 3 5 1 5 1042 1785 58 24 96.037117 ands 1 3 5 1 6 1120 1784 151 29 96.037117 practices,5 1 3 5 1 7 1291 1784 92 23 96.371460 under5 1 3 5 1 8 1404 1784 50 23 96.640999 thes 1 3 5 1 9 1474 1783 224 24 96.494461 circumstances5 1 3 5 1 10 1719 1783 44 23 96.997162 sets 1 3 5 1 11 1783 1782 88 28 95.726601 forth,5 1 3 5 1 12 1894 1788 76 18 96.960030 were4 1 3 5 2 0 735 1824 1232 33 -1 5 1 3 5 2 1 735 1830 40 24 95.850807 all5 1 3 5 2 2 799 1830 29 23 95.806778 to5 1 3 5 2 3 853 1829 50 24 95.806778 thes 1 3 5 2 4 927 1827 149 30 96.344360 prejudice5 1 3 5 2 5 1101 1827 57 24 96.714928 ands 1 3 5 2 6 1182 1826 99 29 95.673798 injury5 1 3 5 2 7 1306 1826 30 25 96.808060 of5 1 3 5 2 8 1361 1827 49 24 96.608154 thes 1 3 5 2 9 1434 1825 95 29 96.205849 public5 1 3 5 2 10 1555 1826 58 23 96.639893 ands 1 3 5 2 11 1638 1825 29 24 96.528915 of5 1 3 5 2 12 1692 1824 192 30 96.422203 competitors,5 1 3 5 2 13 1912 1825 55 23 97.013359 anda 1 3 5 3 0 734 1866 1234 31 -1 5 1 3 5 3 1 734 1871 178 25 96.105087 constituted5 1 3 5 3 2 938 1869 101 25 95.942451 unfair5 1 3 5 3 3 1067 1869 57 24 96.880051 ands 1 3 5 3 4 1153 1869 146 28 95.276360 deceptive5 1 3 5 3 5 1327 1869 62 23 96.416069 acts5 1 3 5 3 6 1417 1868 58 23 96.497101 ands 1 3 5 3 7 1501 1867 142 29 96.499458 practices5 1 3 5 3 8 1671 1867 29 23 96.560020 in5 1 3 5 3 9 1728 1872 156 18 96.543945 commerce5 1 3 5 3 10 1913 1866 55 24 95.790901 anda 1 3 5 4 0 733 1911 621 30 -1 5 1 3 5 4 1 733 1912 100 25 96.033714 unfair5 1 3 5 4 2 845 1913 132 24 96.033714 methods5 1 3 5 4 3 992 1912 30 24 95.510643 of5 1 3 5 4 4 1035 1911 185 30 95.510643 competitions 1 3 5 4 5 1233 1911 121 24 96.243774 therein.2 1 4 0 0 0 700 1983 1108 145 -1 3 1 4 1 0 0 700 1983 1108 145 -1 4 1 4 1 1 0 703 1983 779 41 -1 5 1 4 1 1 1 703 1986 127 32 96.336113 Before5 1 4 1 1 2 839 1986 66 31 74.119156 Afr.5 1 4 1 1 3 943 1985 68 32 96.466385 Johns 1 4 1 1 4 1019 1984 120 40 96.059082 Lewis,5 1 4 1 1 5 1149 1983 143 41 95.801292 hearings 1 4 1 1 6 1302 1983 180 32 96.569878 examiner.4 1 4 1 2 0 703 2033 823 43 -1 5 1 4 1 2 1 703 2036 67 32 90.400894 Mr.5 1 4 1 2 2 783 2036 154 32 93.242043 Williams 1 4 1 2 3 946 2035 37 33 92.672432 L.5 1 4 1 2 4 995 2035 153 41 96.618736 Taggart5 1 4 1 2 5 1159 2034 57 32 96.594208 for5 1 4 1 2 6 1225 2034 58 31 96.403526 thes 1 4 1 2 7 1294 2033 232 34 95.853683 Commission.4 1 4 1 3 0 700 2082 1108 46 -1 5 1 4 1 3 1 700 2087 148 41 65.574524 Depaolé5 1 4 1 3 2 861 2085 30 32 91.826424 &5 1 4 1 3 3 905 2086 114 40 92.610146 Nicco,5 1 4 1 3 4 1035 2085 38 33 96.711464 of5 1 4 1 3 5 1088 2084 70 34 96.332764 Sans 1 4 1 3 6 1171 2084 192 40 93.226608 Francisco,5 1 4 1 3 7 1378 2082 115 41 92.959221 Calif.,5 1 4 1 3 8 1508 2082 57 33 96.475754 for5 1 4 1 3 9 1579 2082 229 41 96.548225 respondents.2 1 5 0 0 0 1211 2167 209 34 -1 3 1 5 1 0 0 1211 2167 209 34 -1 4 1 5 1 1 0 1211 2167 209 34 -1 5 1 5 1 1 1 1211 2167 209 34 92.422638 Complaint2 1 6 0 0 0 659 2239 1310 551 -1 3 1 6 1 0 0 659 2239 1310 441 -1 4 1 6 1 1 0 700 2239 1269 46 -1 5 1 6 1 1 1 700 2246 172 32 96.166443 Pursuant5 1 6 1 1 2 892 2248 34 29 96.426712 to5 1 6 1 1 3 947 2244 58 32 97.001427 thes 1 6 1 1 4 1024 2242 190 43 96.899490 provisions5 1 6 1 1 5 1233 2242 38 32 96.787338 of5 1 6 1 1 6 1289 2241 58 33 96.383369 thes 1 6 1 1 7 1366 2241 143 32 96.339607 Federal5 1 6 1 1 8 1529 2241 111 32 96.924538 Trades 1 6 1 1 9 1660 2239 222 34 96.580238 Commissions 1 6 1 1 10 1901 2241 68 30 96.822411 Acta 1 6 1 2 0 661 2289 1306 48 -1 5 1 6 1 2 1 661 2296 67 33 96.283340 ands 1 6 1 2 2 746 2295 46 42 96.701042 by5 1 6 1 2 3 811 2295 111 32 96.246529 virtues 1 6 1 2 4 940 2294 39 32 96.586273 of5 1 6 1 2 5 997 2294 57 32 96.993370 thes 1 6 1 2 6 1074 2292 173 42 96.542755 authority5 1 6 1 2 7 1265 2292 114 32 97.013947 vested5 1 6 1 2 8 1398 2292 36 31 96.895485 in5 1 6 1 2 9 1453 2292 28 31 96.570648 it5 1 6 1 2 10 1498 2291 45 43 96.665886 by5 1 6 1 2 11 1563 2290 72 33 96.225204 said5 1 6 1 2 12 1654 2290 77 40 96.959259 Act,5 1 6 1 2 13 1750 2289 57 32 96.811623 thes 1 6 1 2 14 1826 2289 141 32 91.260277 Federal4 1 6 1 3 0 661 2339 1307 46 -1 5 1 6 1 3 1 661 2346 112 32 96.522125 Trades 1 6 1 3 2 795 2344 233 41 96.418411 Commission,5 1 6 1 3 3 1048 2343 129 42 96.107544 having5 1 6 1 3 4 1196 2353 118 22 96.052505 reasons 1 6 1 3 5 1334 2346 35 28 97.004150 to5 1 6 1 3 6 1389 2342 127 32 96.870331 believes 1 6 1 3 7 1535 2341 77 32 96.426559 that5 1 6 1 3 8 1631 2340 163 41 93.289497 Anthony5 1 6 1 3 9 1817 2339 151 33 92.260086 Oliverio4 1 6 1 4 0 661 2390 1308 46 -1 5 1 6 1 4 1 661 2397 69 33 96.827095 ands 1 6 1 4 2 751 2397 94 31 92.735405 Lena5 1 6 1 4 3 868 2395 163 40 92.735405 Oliverio,5 1 6 1 4 4 1055 2398 206 38 91.872993 copartners,5 1 6 1 4 5 1285 2393 104 41 96.137520 doing5 1 6 1 4 6 1409 2392 152 33 96.575859 business5 1 6 1 4 7 1585 2403 34 21 96.806618 as5 1 6 1 4 8 1642 2391 66 32 96.914223 Del5 1 6 1 4 9 1730 2391 80 31 96.198776 Mars 1 6 1 4 10 1832 2390 137 41 96.197113 Sewing4 1 6 1 5 0 661 2439 1306 48 -1 5 1 6 1 5 1 661 2446 157 33 96.952660 machines 1 6 1 5 2 839 2445 188 42 96.341728 Company,5 1 6 1 5 3 1044 2442 207 34 96.689156 hereinafter5 1 6 1 5 4 1270 2442 151 33 96.468552 referred5 1 6 1 5 5 1440 2446 35 28 96.455597 to5 1 6 1 5 6 1494 2452 35 21 96.765030 as5 1 6 1 5 7 1547 2440 229 42 96.687920 respondents,5 1 6 1 5 8 1794 2439 86 32 93.228004 have5 1 6 1 5 9 1898 2439 69 32 91.899216 vio-4 1 6 1 6 0 660 2489 1308 48 -1 5 1 6 1 6 1 660 2497 92 33 97.011459 lated5 1 6 1 6 2 768 2497 58 32 96.987701 thes 1 6 1 6 3 843 2495 189 42 97.000053 provisions5 1 6 1 6 4 1051 2494 37 32 97.012733 of5 1 6 1 6 5 1105 2493 73 33 96.983582 said5 1 6 1 6 6 1195 2493 77 41 96.877754 Act,5 1 6 1 6 7 1289 2493 67 31 96.661385 ands 1 6 1 6 8 1372 2493 29 31 96.114349 it5 1 6 1 6 9 1418 2491 187 42 96.498528 appearing5 1 6 1 6 10 1620 2495 35 28 97.002357 to5 1 6 1 6 11 1672 2490 58 33 96.348671 thes 1 6 1 6 12 1747 2489 221 34 96.247208 Commission4 1 6 1 7 0 663 2539 1305 48 -1 5 1 6 1 7 1 663 2548 75 32 93.563629 that5 1 6 1 7 2 763 2559 18 19 93.563629 a5 1 6 1 7 3 805 2545 202 42 95.885483 proceedings 1 6 1 7 4 1029 2545 45 41 96.965279 by5 1 6 1 7 5 1098 2544 29 32 96.273872 it5 1 6 1 7 6 1150 2545 35 30 96.974663 in5 1 6 1 7 7 1208 2548 130 36 96.546654 respects 1 6 1 7 8 1360 2542 133 32 96.408928 thereof5 1 6 1 7 9 1516 2542 112 32 96.119896 would5 1 6 1 7 10 1651 2541 41 31 96.385506 be5 1 6 1 7 11 1715 2541 36 31 96.486588 in5 1 6 1 7 12 1773 2540 57 32 96.797066 thes 1 6 1 7 13 1854 2539 114 42 96.781982 publica 1 6 1 8 0 661 2590 1308 48 -1 5 1 6 1 8 1 661 2598 148 40 97.001984 interest,5 1 6 1 8 2 823 2596 125 41 96.662674 hereby5 1 6 1 8 3 963 2596 104 31 96.427261 issues5 1 6 1 8 4 1081 2594 44 32 95.942291 its5 1 6 1 8 5 1141 2593 194 42 95.942291 complaint,5 1 6 1 8 6 1350 2592 128 42 96.875313 stating5 1 6 1 8 7 1492 2592 43 32 96.907715 its5 1 6 1 8 8 1549 2593 139 40 96.324974 charges5 1 6 1 8 9 1702 2592 36 31 96.737389 in5 1 6 1 8 10 1751 2590 75 33 96.930244 that5 1 6 1 8 11 1841 2594 128 37 94.535828 respect4 1 6 1 9 0 659 2647 195 33 -1 5 1 6 1 9 1 659 2659 36 21 96.743248 as5 1 6 1 9 2 706 2647 148 33 96.631699 follows:3 1 6 2 0 0 661 2691 1307 99 -1 4 1 6 2 1 0 701 2691 1267 46 -1 5 1 6 2 1 1 701 2698 207 32 20.448143 Paracrapy5 1 6 2 1 2 924 2699 26 29 92.342567 1.5 1 6 2 1 3 973 2695 234 42 96.555588 Respondents5 1 6 2 1 4 1220 2694 164 40 93.297783 Anthony5 1 6 2 1 5 1399 2692 150 34 92.665611 Oliverio5 1 6 2 1 6 1564 2692 66 33 96.697777 ands 1 6 2 1 7 1642 2692 93 32 93.233650 Lena5 1 6 2 1 8 1750 2691 148 34 92.803635 Oliverio5 1 6 2 1 9 1914 2702 54 20 96.352211 area 1 6 2 2 0 661 2742 1307 48 -1 5 1 6 2 2 1 661 2752 196 38 92.470474 copartners5 1 6 2 2 2 870 2746 106 42 96.744026 doing5 1 6 2 2 3 986 2746 153 32 96.871574 business5 1 6 2 2 4 1150 2745 107 32 96.367302 under5 1 6 2 2 5 1268 2745 58 31 96.998566 thes 1 6 2 2 6 1337 2755 97 21 95.884499 names 1 6 2 2 7 1447 2743 37 33 95.884499 of5 1 6 2 2 8 1496 2743 63 32 96.616165 Del5 1 6 2 2 9 1572 2743 78 32 96.912346 Mars 1 6 2 2 10 1663 2742 136 41 96.474174 Sewing5 1 6 2 2 11 1810 2742 158 32 96.463425 Machine DEL MAR SEWING MACHINE CO. 1259 1257 Complaint Company with their office and principal place of business located at $230 Mission Street, San Francisco, California. Par. 2. Respondents are now, and have been for several years last past, engaged in the sale of sewing machines, of which heads imported from Japan are a part, to members of the purchasing public. In the course and conduct of their business respondents cause their said product, when sold, to be transported from their place of business in the State of California to the purchasers thereof located in various other States of the United States. Their volume of trade in said commerce has been and is substantial.

Par. 38. When the sewing machine heads are received by respondents, the word “Japan” appears on the back of the vertical arm. Before the heads are sold to the purchasing public as a part of a complete sewing machine, it is necessary to attach a motor to the head in the process of which the aforesaid word is covered by the motor so that it is not visible. In some instances, said heads, when received by respondents, are marked with a medallion placed on the front of the vertical arm upon which the word “Japan” appears. This word is, however, so small and indistinct that it does not constitute adequate notice to the public that the heads are imported. Respondents place no other marks on their imported sewing machine heads or on complete sewing machines, showing foreign origin, or otherwise inform the public that the heads are imported, before they are offered for sale to the public.

Par. 4. When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public, and such articles are not marked, or are not adequately marked, showing that they are of foreign origin, or if marked, and the markings are covered or otherwise concealed, such purchasing public understands and believes such articles to be wholly of domestic origin. There is among the members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machines. Par. 5. The failure of respondents to adequately disclose on the sewing machine heads that they are manufactured in Japan has the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product is of domestic origin and to cause substantial numbers of the purchasing public to purchase sewing machines, of which said heads are a part, because of said erroneous and mistaken belief.

As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been and is being done to competition in commerce. Complaint 49 F.T.C.

Par. 6. Respondents use the words “Universal” and “Majestic” and other well known domestic names as trade or brand names for their sewing machine heads and complete sewing machines, which words are printed or embossed on the front horizontal arm of the head in large, conspicuous letters and use said trade or brand names in their advertising matter. The words “Universal” and “Majestic” and the other well known domestic names are the names, or parts of the names of, or used as trade names, marks or brands by one or more business organizations transacting and doing business in the United States, which are and have been well and favorably known to the purchasing public and which are and have been well and long established in various industries.

Par. 7. By using trade or brand names such as “Universal” and “Majestic” and other well known domestic names, respondents represent, directly or by implication, that their product is manufactured by, or connected in some way with, the well and favorably known American firm or firms with which said names have long been associated, which is contrary to the fact. Par. 8. There is a preference among members of the purchasing public for products manufactured by well and favorably known and long established concerns whose identity is connected with the words “Universal” and “Majestic” and other well known domestic names. The use of said trade or brand names by respondents on their sewing machines and heads enhances the belief on the part of the public that the said sewing machines are of domestic origin. Par. 9. Respondents, in their advertising, make the following statements:

CLEARANCE SALE! WHILE THEY LAST! REBUILT PORTABLE ELECTRIC SEWING MACHINES SINGERS WHITES DOMESTICS $25.00 NEW HOMES New Motor . New Foot Control! New Case! . New Wiring and Plugs! 5-Year Parts Guarantee! Hurry! Only a few machines left to clear out at this price. First come — first served. Sorry, cash and carry only ! Open Monday Eve. Till5 1 9 3 2 5 1556 2668 16 24 96.784119 93 1 9 4 0 0 940 2709 819 112 -1 4 1 9 4 1 0 1037 2709 621 27 -1 5 1 9 4 1 1 1037 2712 76 24 94.581284 DEL5 1 9 4 1 2 1132 2712 82 23 94.581284 MARS 1 9 4 1 3 1236 2710 149 25 95.957428 SEWING5 1 9 4 1 4 1405 2710 178 25 96.330887 MACHINES 1 9 4 1 5 1602 2709 56 26 93.786522 CO.4 1 9 4 2 0 991 2752 717 27 -1 5 1 9 4 2 1 991 2754 81 25 96.338287 Sales5 1 9 4 2 2 1086 2755 59 23 96.338287 ands 1 9 4 2 3 1162 2752 115 26 96.190643 Services 1 9 4 2 4 1291 2753 175 24 92.725357 Authorized5 1 9 4 2 5 1483 2752 105 24 92.665649 Necchi5 1 9 4 2 6 1603 2752 105 24 96.453117 Dealer4 1 9 4 3 0 940 2793 819 28 -1 5 1 9 4 3 1 940 2796 69 25 81.010773 32805 1 9 4 3 2 1023 2796 123 23 96.360092 Missions 1 9 4 3 3 1163 2795 96 24 95.587318 Streets 1 9 4 3 4 1274 2794 76 24 96.692825 Near5 1 9 4 3 5 1366 2794 139 24 86.058907 Valencia5 1 9 4 3 6 1542 2812 5 5 86.058907 .5 1 9 4 3 7 1585 2794 55 24 92.508774 MI.5 1 9 4 3 8 1655 2793 104 25 89.970757 7-5143 DEL MAR SEWING MACHINE CO. 1261 1257 Complaint By and through the use of the aforementioned statements, respondents represented, directly or by implication, that they were making a bona fide offer to sell Singer, White, Domestic and New Home rebuilt portable electric sewing machines for the sum of $25.60 and that said machines were being offered during a clearance sale at a reduced price and for a limited time only. The aforesaid representations were false, misleading and deceptive. In truth and in fact the offer to sell rebuilt Singer, White, Domestic and New Home Sewing Machines for $25.00 was not a genuine or bona fide offer, but was made for the purpose of obtaining leads as to persons interested in purchasing sewing machines. After obtaining such leads, respondents make no effort to sell the sewing machines advertised but attempt to sell different and more expensive sewing machines, particularly machines of which heads made in Japan are a part. Respondents’ alleged clearance sales were not clearance sales at a reduced price for a limited time only, but actually were continuous offers over long periods of time and the price set out in their advertisements was the usual and customary price at which said rebuilt sewing machines were offered for sale. Par. 10. Respondents, in their advertising, make further statements, such as the following:

(Picturization of portable electric sewing machine) (Electric Sewing machines $169.50) By and through the use of the aforementioned statements, respondents represented, directly or by implication, that their portable electric sewing machines were customarily sold to members of the purchasing public for the sum of $169.50. In truth and in fact, the sum of $169.50 is a wholly fictitious price and greatly in excess of the amount usually and ordinarily charged for said sewing machines by respondents. Par. 11. The use by respondents of the foregoing 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 all such statements and representations were and are true and to induce the purchase of substantial quantities of said sewing machines as a result of this erroneous and mistaken belief. Par. 12. Respondents, in the course and conduct of their business, are in substantial competition in commerce with the sellers of domestic sewing machines and also sellers of imported sewing machines, some of whom adequately disclose to the public that their machines or parts thereof are of foreign origin.

Par. 13. The failure of respondents to adequately disclose on the sewing machine heads that they are manufactured in Japan and also 2601388— 55, 83 Consent Settlement 49 F.T.C.

the use of trade or brand names such as “Universal” and “Majestic” and other prominent domestic names have the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product is of domestic origin and is manufactured by the well and favorably known firm or firms with which said trade or brand names have long been associated and to induce members of the purchasing public to purchase sewing machines, of which said heads are a part, because of this erroneous and mistaken belief.

As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been and is being done to competition in commerce. Par. 14. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice and injury of the public and of respondents’ competitors and constitute unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act. CONSENT SETTLEMENT 1 Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on July 18, 1952, issued and subsequently served its complaint on the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act. The respondents, desiring that this proceeding be disposed of by the consent settlement procedure provided in Rule V of the Commission’s Rules of Practice, solely for the purpose of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon the Commission’s acceptance of the consent settlement hereinafter set forth and in lieu of answer to said complaint, hereby (1) Admit all the jurisdictional allegations set forth in the complaint.

(2) Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order +The Commission’s “Notice” announcing and promulgating the consent settlement as published herewith, follows:

The consent settlement tendered by the parties in this proceeding, a copy of which is served herewith, was accepted by the Commission on April 2, 1953, and ordered entered cf record as the Commission’s findings as to the facts, conclusion, and order in disposition of this proceeding.

The time for filing report of compliance pursuant to the aforesaid order runs from the date of service hereof, DEL MAR SEWING MACHINE CO. 12638 1257 Findings to cease and desist. It is understood that the respondents, in consenting to the Commission’s entry of said findings as to the facts, conclusion, and order to cease and desist, specifically refrain from admitting or denying that they have engaged in any of the acts or practices stated therein to be in violation of law. (8) Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in Paragraph (f) of Rule V of the Commission’s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and practices which the Commission had reason to believe were unlawful, the conclusion based thereon, and the order to cease and desist, all of which respondents consent may be entered herein in final disposition of this proceeding, are as follows: , FINDINGS AS TO THE FACTS Paracrapy 1. Respondents Anthony Oliverio and Lena Oliverio are copartners doing business under the name of Del Mar Sewing Machine Company with their office and principal place of business located at 3230 Mission Street, San Francisco, California. Par. 2. Respondents are now, and have been for several years last past, engaged in the sale of sewing machines, of which heads imported from Japan are a part, to members of the purchasing public. In the course and conduct of their business respondents cause their said product, when sold, to be transported from their place of business in the State of California to the purchasers thereof located in various other States of the United States. Their volume of trade in said commerce has been and is substantial.

Par. 3. When the sewing machine heads are received by respondents, the word “Japan” appears on the back of the vertical arm. Before the heads are sold to the purchasing public as a part of a complete sewing machine, it is necessary to attach a motor to the head in the process of which the aforesaid word is covered by the motor so that it is not visible. In some instances, said heads, when received by respondents, are marked with a medallion placed on the front of the vertical arm upon which the word “Japan” appears. This word is, however, so small and indistinct that it does not constitute adequate notice to the public that the heads are imported. Respondents place no other marks on their imported sewing machine heads or on complete sewing machines, showing foreign origin, or otherwise inform the public that the heads are imported, before they are offered for sale to the public.

Findings 49 F.T.C.

Par. 4. When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public, and such articles are not marked, or are not adequately marked, showing that they are of foreign origin, or if marked, and the markings are covered or otherwise concealed, such purchasing public understands and believes such articles to be wholly of domestic origin. There is among the members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machines. Par. 5. The failure of respondents to adequately disclose on the sewing machine heads that they are manufactured in Japan has the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product is of domestic origin and to cause substantial numbers of the purchasing public to purchase sewing machines, of which said heads are a part, because of said erroneous and mistaken belief. As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been and is being done to competition in commerce. Par. 6. Respondents use the words “Universal” and “Majestic” and other well known domestic names as trade or brand names for their sewing machine heads and complete sewing machines, which words are printed or embossed on the front horizontal arm of the head in large, conspicuous letters and use said trade or brand names in their advertising matter. The words “Universal” and “Majestic” and the other well known domestic names are the names, or parts of the names of, or used as trade names, marks or brands by one or more business organizations transacting and doing business in the United States, which are and have been well and favorably known to the purchasing public and which are and have been well and long established in various industries.

Par. 7. By using trade or brand names such as “Universal” and “Majestic” and other well known domestic names, respondents represent, directly or by implication, that their product is manufactured by, or connected in some way with, the well and favorably known American firm or firms with which said names have long been associated, which is contrary to the fact.

Par. 8. There is a preference among members of the purchasing public for products manufactured by well and favorably known and long established concerns whose identity is connected with the words “Universal” and “Majestic” and other well known domestic names. DEL MAR SEWING MACHINE CO. 1265 1257 Findings The use of said trade or brand names by respondents on their sewing machines and heads enhances the belief on the part of the public that the said sewing machines are of domestic origin. Par. 9. Respondents, in their advertising, make the following statements:

CLEARANCE SALE! WHILE THEY LAST! REBUILT PORTABLE ELECTRIC SEWING MACHINES SINGERS WHITES DOMESTICS NEW HOMES $25.00 New Motor . New Foot Control! New Case! . New Wiring and Plugs! 5-Year Parts Guarantee! Hurry! Only a few machines left to clear out at this price. First come—first served. Sorry, cash and carry only! Open Monday Eve. ’Till 9 DEL MAR SEWING MACHINE Co.

Sales and Service Authorized Necchi Dealer 3280 Mission Street Near Valencia. MI. 7-5143 By and through the use of the afore-mentioned statements, respondents represented, directly or by implication, that they were making a bona fide offer to sell Singer, White, Domestic and New Home rebuilt portable electric sewing machines for the sum of $25.00 and that said machines were being offered during a clearance sale at a reduced price and for a limited time only.

The aforesaid representations were false, misleading and deceptive. In truth and in fact the offer to sell rebuilt Singer, White, Domestic and New Home Sewing Machines for $25.00 was not a genuine or bona fide offer, but was made for the purpose of obtaining leads as to persons interested in purchasing sewing machines. After obtaining such leads, respondents make no effort to sell the sewing machines advertised but attempt to sell different and more expensive sewing machines, particularly machines of which heads made in Japan are apart. Respondents’ alleged clearance sales were not clearance sales at a reduced price for a limited time only, but actually were continuous offers over long periods of time and the price set out in their advertisements was the usual and customary price at which said rebuilt sewing machines were offered for sale. Conclusion 49 F.T.C.

Par. 10. Respondents, in their advertising, make further statements, such as the following:

(Picturization of portable electric sewing machine) (Electric Sewing machines $169.50) By and through the use of the aformentioned statements, respondents represented, directly or by implication, that their portable electric sewing machines were customarily sold to members of the purchasing public for the sum of $169.50. In truth and in fact, the sum of $169.50 is a wholly fictitious price and greatly in excess of the amount usually and ordinarily charged for said sewing machines by respondent, Par. 11. The use by respondents of the foregoing 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 all such statements and representations were and are true and to induce the purchase of substantial quantities of said sewing machines as a result of this erroneous and mistaken belief. Par. 12. Respondents, in the course and conduct of their business, are in substantial competition in commerce with the sellers of domestic sewing machines and also sellers of imported sewing machines, some of whom adequately disclose to the public that their machines or parts thereof are of foreign origin.

Par. 18. The failure of respondents to adequately disclose on the sewing machine heads that they are manufactured in Japan and also the use of trade or brand names such as “Universal” and “Majestic” and other prominent domestic names have the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product is of domestic origin and is manufactured by the well and favorably known firm or firms with which said trade or brand names have long been associated and to induce members of the purchasing public to purchase sewing machines, of which said heads are a part, because of this erroneous and mistaken belief.

As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been and is being done to competition in commerce. CONCLUSION The aforesaid acts and practices of respondents, as herein found, are all to the prejudice and injury of the public and of respondents’ DEL MAR SEWING MACHINE CO. 1267 1257 Order competitors, and constitute unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST It is ordered, That the respondents, Anthony Oliverio and Lena Oliverio, individually and as copartners doing business as Del Mar Sewing Machine Company, or trading under any other name, and their representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of sewing machine heads or sewing machines in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Offering for sale, selling or distributing foreign-made sewing machine heads, or sewing machines of which foreign-made heads are a part, without clearly and conspicuously disclosing on the heads the country of origin thereof.

2. Using the words “Universal” or “Majestic,” or any simulations thereof, as brand or trade names to designate, describe or refer to their sewing machines or sewing machine heads; or representing, through the use of any other words or in any other manner, that their sewing machines or sewing machine heads are made by anyone other than the actual manufacturer.

3. Representing, directly or by implication, that certain amounts are the prices of their sewing machines when such amounts are in excess of the prices at which their said sewing machines are ordinarily sold in the usual and regular course of business. 4. Representing that certain sewing machines are offered for sale, when such offer is not a bona fide offer to sell the machines so offered. 5. Representing, directly or by implication, that the price at which any of respondents’ products are offered for sale is a reduced price, or for a limited time only, or offered only during a clearance sale, when such price is, in fact, the customary price at which said products are regularly offered for sale.

It is further ordered, That the respondents, Anthony Oliverio and Lena Oliverio, copartners doing business as Del Mar Sewing Machine Company, shall within sixty 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 this order.

Order 49 F.T.C.

[S] Joun M. Fiver [S] AwrHony Oxrverto AND Lena OLIvVERIO DEPALOI and NICCO, John ANTHONY OLIVERIO and M. fFillippi, 3295 Mission LENA OLIVERIO, copart- Street, San Francisco, Cali- ners doing business as DEL fornia. MAR SEWING MACHINE COMPANY, 3230 Mission Street, San Francisco, California.

Attorney for Respondents. Respondents.

DercemBer 18, 1952 Decemper 18, 1952 The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered: entered of record on this the 2nd day of April, 1953.

JOSEPH GLUCK & CO., INC., ET AL. 1269 Sylabus