Cadillac Publishing Co., Inc.

Text (OCR of the scan at left; may contain errors)

428 FEDERAL TRADE CO:-IMISSION DECISIO:NS Order 51 F. T. C.

I" THE :viatter OF CADILLAC PUBLISHING C011PA INC. ET AL.

Docket 5.)'0. Complaint, June 30, 1948-Decision, Oct. , 1954 Order dismissing complaint charging misleading and decepti,e use of the world! free" in COllnection with the sale and distribution of books, for the reason that the COilmission changed its policy respecting nse in ndwrtising of tbe word "free " subsequent to issuance of the comv1aint. 311'. Jesse D. I( ash for the Commission. Mr. Horace J. Donnelly, Jr. of "\Vashington, D. C., for respondents. ORDER DIs: nSSI G COl\:1:rLAIXT This matter came on to be heard by the Commission upon respondents' motion to dismiss the complaint and answer thereto of cOllnsel supporting the complaint opposing the motion. The complaint herein, which ,,,as issued on June 30, 1948, charges the respondent.s with misleading and deceptive use of the word ;' free ill connection with the sale and distribution of books. No hearjngs have been held in this nmtter because of the pendency of other proceedings inyolving similar charges. Subsequent to the issuance of the complaint, the Commission changed its position with respect to the use, in advertising, of the word "free. ': As announced by the Commission in the. matter of \Y alter T. Black, Inc., Docket K o. 5571 (September 1, 1953), henceforth, the use of the wonl "free" or other words of similar import or meaning, in advertising or in other offers to the public, to designate or describe an article of merchandise ,viii be considered to be unfair and deceptive only (1) when all of the conditions, obligations, or other prerequisites to the receipt and retention of the "free" article of merchandise are not clearly and conspicuously explained 01' set forth at the outset so as to leave no reasonable probability that the terms of the advertisement or offer might be misunderstood; or (2) when, \with respect to the article of merchandise required to be purchased in order to obtain the "free" article, the offerer either increases the ordinary and usual price, reduces the qualit.y, or reduces the quantity or size of such article of merchandise. The Commission having duly considered respondents' motion to dismiss the complaint, ans\ler thereto, and the record herein, and being of the opinion that respondents ' use of the ,yorc1 "free ' in the manner alleged1 in the complaint cannot be considered as unfair or- CADILLAC PUBLISHING CO. , INC. , ET AL. 429 428 Order deceptive under its present policy on this subject, and that, therefore the comphtint should be dismissed:

1 t i8 ordered that respondents' motion to dismiss the complaint be and it hereby is, granted.

It is further ordered that the complaint herein be, and it hereby is dismissed.

! 430 FEDEEAL TRADE CO:\I nssroN DECISIO Complaint Gl F. , C.