Will-Weld Manufacturing Company

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IN THE MATTER OF WILL-WELD MANUFACTURING COMPANY ET AL.

Docket 592f2. Complaint, Sept. 11, 1951-order, Nov. 24, 1954 .order setting aside cease and desist order issued Mar, 13, 1952, 48 F. T. C. 965, and dismissing complaint for the reason that said order went further than necessary to apprise users of potential dangers involved in the use of respondents' welding machines and also required respondents to make con. siderably more disclosures as to such dangers than other sellers of siroilar products were required to make; the matter being settled by respondents subsequent execution of an informal stipulation and agreement to cease and (1desist.

Before lVr. TV ebster Ballinqer hearing examiner. .lb. JohnlV. Russell for the Commission. OPINION OF Tile CQ1'DHSSIOX Pel' CURIA":

The Commission on September 11 , 1951, issued its complaint against the respondents charging them with the usc of unfair and deceptive acts and practices in connection with the advertising and sale of unassembled home welding machines. Respondents filed their answer denying the material allegations of the complaint. Thereafter a hearing was held in '" ashington, D. before a hearing examiner of the Commission at which five pieces of advertising materi,LJ used by the respondents were introduced in evidence and the testimony of an electrical safety engineer employed by the National Bureau of Standards was taken. Respondents were not represented at this hearing and they did not exercise their right to request a hearing for the purpose of taking testimony in opposition to the complaint. The hearing examiner on December 29 1951, filed his initial decision ;n which he found the facts to be substantially as alleged in the complaint and ordered the respondents to cease and desist from: (1) Representing, directly or indirectly, that their electric home welding machine, made by the assembling of the various parts sold by them for a complete machine, will operate consistently and safely on the electric circuit ordinarily found in a home with a 30 ampere :fuse.

(2) Selling or offering for sale their electric home welding machine without, in large type appearing in all literature relating thereto expressly informing the purchaser or purchasers that their home welding machine cannot be safcly connected with the electric current . Order 5I F. T. C. ordinarily found in a home by an ampere fuse in excess of 15 amperes and that the use or a larger ruse may cause an overloading or the electric circuit and produce a dangerous fire-hazard condition. Respondents filed a notice of their intention to appeal from this decision of the hearing examiner but the appeal was not perfected. The Commission on March 13, 1952, adopted the hearing examiner decision as its decision.

IJpon our own motion we have reconsidered our decision in this matter. ",Ve have also considered our action in other matters involving similar advertising representations. It now appears that the order goes further in its requirements than is necessary to adequately apprise users and prospective users as to the potential dangers invo case requires the respondents to make considerably more disclosures with respect to the dangers involved in the use of their welding machines than we have required other sellers of similar products to make. Subsequent negotiations between the Commission s Bureau of Cunsultation and the respondents have resulted in the execution by the respondents of an informal stipulation as to the facts and agreement to cease and desist in which the respondents agree to cease and desist from offering ror sale or selling ror home use their welding machine, assembled from the various part.s sold by them for a complete machine:

(1) 'Without making in all their advertising a clear and affrmative disclosure as to the proper wiring and fusing of the circuit on which the machine is used; and (2) Unless on said welder, or accompanying there is a notice as to the proper wiring and fusing of the circuit on which the ma,chine is used, together with a clear "'Yarning " or "Caution" that failure to follow this direction may create a dangerous fire hazard. It is OUY opinion that this stipulation and agreement to cease and desist is adequate and appropriate to prevent a continuation or resumption of the unfair and deceptive acts and practices in which the respondents were found to have engaged and that it would be in the public interest to reopen this proceeding, vacate and set aside the order to cease and desist, and dismiss the complaint without prejudice. An order to that effect wil bc entered.

ORDER REOPEXING l'IWCEEDIXG\ VACATING AND SETTING ASIDE ORDER TO CEASE TD m SIST .AXD DIS::USSING COJIl)LAINT 1,VITHOUT PRE,TCTIICE The Commission, on its own motion, having reconsidered its deci. sion of March 13, 1952, in this matter, and having determined, for WILL-WELD :\'WFACTURL'G CO. ET AL. 491 489 Order t.he reasons appearing in t.he accompanying opinion, that this proceeding should be reopened; that the order to cease and desist should be vacated and set asidc; and that the complaint should be dismissed without prejudice:

It is ordered That this proceeding be, and it hereby is, reopened. It i8 further ordered That the order to cease and desist entered herein on 1farch 13, 1952,' be, and it hereby is, vacated and set aside. It is further ordered That the complaint herein be, and it hereby is dismissed without prejudice to the right of the Commission to institute further proceedings should the facts warrant such action. 1 See 48 F. T. C. 965.

Morlified Order 51 F. T. O.