Ruben Shaffer Trading as B & W Sales Company

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IN THE MATTER OF RUBEN SHAFFER Tl ADING AS B & W SALES COMPANY CONSE);T ORDER, ETC., IX REGARD '1' 0 THE ALLEGED Vlor ATIOX OF ' FEDERAL TRADE COl\DIlSSlON ACT Docket 6251. Complaint, Nov. S, 1.954-Decision, Feb. , 1955 Consent order requiring a seller in Baltimore, Md., to cease supplying others with push cards, etc., and sellng; or otherwise disposing of any merchandise, including Scotch Roolers, aluminum tumblers, chairs, and cameras, by means of a game of chance.

Before 11h. William L. Pack hearing examiner" Mr. J. W. Brookfield, Jr. for the Commission. C03IPLAIXT 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, having reason to believe that Ruben Shaffer, an individual trading as B & 'V Sales Company;)', hereinafter referred to as respondent, has violated the provisions of said Act., and it. appearing to t.he Commission that a proceeding by it. in respect thereof would be in the public interest, hereby issues its complaint st.ating its cha.rgcs in that respect as follows:

P AHAGRArll 1. Respondent R,uben Shaft'er is an indivichml trading and doing business as B & 'V Sales Company with his omee and principlel place of business located at 113 'West Fayette Street in the city of Baltimore, )Iaryland. Respondent. is now, and for more than six months last past has been, engaged in the sale and distribution of various articles of merchandise, including but not limited to Scotch 1\.:oolers, aluminum tumblers, c1utirs, and cameras and llas c,aused said merchandise, when sold, to be transported from his place of business in Baltimore Iaryland, to purchasers thereof located in the various States of the United States other than in Maryland, and in the District of Columbia.

There is now and has been for more than six months last past a substantial course of trade by respondent in slich merehnndise in commerce, as "commerce" is defined in the Federal Trade Commission Act, between and among the various States of the "Gnited States and in the District of Columbia.

PAn. 2. In the course and conduct of his business, as described in B. '" W. SALES CO. 721 720 Complaint Paragraph 1 hereof, respondent, in soliciting the sale of and in selling and distributing his merchandise, furnishes and has furnished various plans of merchandising "which involve the operation of games of chance, gift enterprises or lottery schemes when said merchandise is, sold and distributed to the purchasing and consuming public. Among the methods and sales plans adopted and used by respondent, and which is typical of the practices of respondent, is the following: Respondent distributes, and has distributed, to members of the public, certain literature and instructions, including, among other things push cards, order blanks and circulars which include thereon ilustrations and descriptions of said merchandise. Said circulars explain respondent' s plan of sellng and distributing his merchandise and of allotting it as premiums or prizes to the operators of said push cards; and as prizes to members of the purchasing and consuming public who purchase chances or pushes OIl said cards. One of respondent' s said push cards bears 35 feminine names with ruled columns on the back of said cards for writing in the name of the purchaser of the push corresponding to the feminine name selected. Said push card has 35 partially perforated discs. Each of said discs bears one of the names corresponding to one of those on the list. Concealed within each disc is a number which is disclosed only when the customer or purchaser pushes or separates a disc from the eard. The push card also has a larger or master seal or disc and concealed within the master seal onc of the names appearing on the discs. The person selecting t.he llame corresponding with th one under the master seal receives his choice of one of four articles of merchandise. The push card bears the following legend or instructions :

A:\IE L"NDER SEAL REOJiJIVES CHOICJ, OF OXE GIFT Scotch Kooler Set 'Of 8 Aluminum Tumblers Aluminum Folding Chair Spal'tus Synchronized Box Camera os. 1 to 44 (Here TOTAL Pay as Drawn :\Iaster $12.

os. Over 44 Seal) Pay Only 44C ('Cuder which appear 35 discs hereinabove referred to) 722 FEDERAL T'TRADE COMMISSION DECISIONS Complaint 51 F. T. C.

Sales of respondent's merchandise by means or said push cards are made in accordance with the above-described legend or instructions. 'Vhethcl' a purchaser receives an article of merchandise or receives nothing for the amount of money paid and the amowlt to be paid .for a chance to receive any or the merchandise arc thus determined wholly by lot or chance. All of the articles of merchandise have a value substantially greater than the price to be paid for anyone of the chances or pushes.

Respondent furnishes and has furnished various other push cards accompanied by order blanks, inst.ructions and other printeel matter for use in the sale and distribution of his merchandise by means of games of chance, gift enterprises or lottery schemes. The sales plans or methods involved in the sale of an 01 said merchandise bv means of said other push cards is the same as that hereinabove described, varying only in detail as to the merchandise distributed and the prices of chances and the number of chances on each card. Pi\R. 3. The persons to whom respondent furnishes and has furnished said push cards use the s,une in selling and distributing respondent' merchandise in accordance. "\with the aforesaid sales plans. Respondent thus supplies to and phces in the hands of others the means of conducting games of chance, giit. enterprises or lottory schemes in the sale of his merchandise in accordance with the sales phm hereinabove set forth. The llse by respondent of sajd sales plans or methods in the sale of his merchandise and the sale of said merchandise by and through the use thereof and 0)' the aid of said sales plans or methods is a practice which is COnITal"' to an established public policy of the Government. of the United States.

PAR. 4. The sale of merc.handise to the purchasing public in the manner above alleged involves a game of chance or the sale of a chance to procure one of the said articles of merchandise at a price much less than the normal retail price thereof. iany persons are attracted by said sales plans or methods used by respondent and the e.1ement of chance involved therein and thercby are induced to buy and sell respondent's merchandise..

The use by respondent. of a sales plan or method involving distribution of merchandise by means of ehance, lottery or gift entcrprise is contrary to the public interest ancl constitutes an unfair act and practice in commerce within the intent and meaning of the Federal Trade Commission Act.

PAIL 5. The aforesaid acts and practices of J'cspondent, as herein allecycd are all to the udice and in ury of the public and constituteunf bir acts and,practices in commerce within the intent and meaning of the Federal Trade Commission Act.

B. & W. SALE'S CO. 723 720 Order DECISION OF THE COl\nIISSIO 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 Compliance, dated February 8 , 1955, the initial decision in the instant. matter or heariug examiner ,Villiam L. Pack, as set out as follows, became on that date the decision of the Commission.

INITIAL DECISION BY 'VILLIA::f L. PACK , IIE.:\RIXG EXAl\fIKER The complaint in this matter charges respondent with violation or the Federal Trade Commission Act through the use of lottery methods ;in the sale and distribution or his merchandise. A stipulation hns now been entered into by respondent and counsel supporting the complaint which provides, among other things, that respondent nc1rnits all of the jurisdictional allegations in the complaint; that the filing of an answer to the complaint is waived, and that the compla.int and stipulation shall constitute the entire record in the proceeding; that the inclusion of findings of fact and conclusions or law in the decision disposing of this matter is "waived, together with any further procedural steps before the hearing e:examiner and the Commission to which respondent may be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if made after a full hearing, presentation of evidence, and findings and conclusions thcl'eon respondent specifically waiving any and all right, power and privilege to challenge or contest the validity of such order; that the complaint may be used in construing the terms or the order; and that the order may be altered, modified or set aside in the manner provided by statute for other ordors of the Commission.

It appearing that the proceeding .is in the public interest, the stipnlation is hereby accepted ancl made a part of the record and the following order issued:

ORDER It is ordered That respondent. Ruben Shaffer, an individual trading under the trade name 13 & "\V Sales Company, or under any other name or names, and his representatives, agents and employees, (11rectly' or through any corporatc or other device, in connection with the offering for sale, sale or distribution of scotch koolers, aluminum tumblers, chairs, cameras or other articles or merchandise in commerce 724 FEDERAL TRADE CO!'LVlISSION DECISIONS Order 131 F. as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desjst from:

1. Supplying to or placing in the hands of others push cards or other lottery devices, either with merchandise Or separately, which said push cards or other lottery devices are designed or intended to be used in the sale or distribution of merchandise to the public by means of a game of chance, gift enterprise or lottery scheme. 2. Sellng or otherwise disposing of any merchandise by means of a game of chance, gift enterprise or lottery scheme. ORDER TO FILE REPORT OF CQ)IPLIAKCE 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 sctting 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 February 8, 1955j. RA-PID-GRO CORP. ET AL. 725 Complaint