Dodge Incorporated

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IN THE :MATTER OF DODGE INCORPORATED ET AL.

T ORDER, ETC. , IN REG -\RD TO THl' ALLEGED VlOLATION 01" THB FEDERAL TRADE coj\nnSSlON ACT Dooket 6438. Complaint, Nol'. " , 19.'5-Deoisioll . Apr. 4, 1956 Consent order requiring a Chicago manufactl1el' to cease falsely representing trophies. awards, and miscellaneous synthetic je,velry with simulated sHyer lettering as genuine onyx or marble through describing them as "Rio Onyx and " farbJette engraved, '" '" in Silvel' " in tRtalog-s and advertising material furnished to dealers and by them ,vide1y (1iBtl'ibllted to prospective pnrcJmsel's.

Before Mr, Robert L. PipeT hearing examiner. Mr. Terral A. Jordan for the Commission. Lord, Bi,'sell Brook. of Chicago, 111. for respondents. C01\IPLAINT 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 Dodge Inc.orporated, a corporation and Ray E. Dodge and T. J. ICuhn, individually and as offcers of said c.orporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest: hereby issue!:; its complaint and stating its charges in that respect as follows: PARAGRAPH 1. Re.pondent Dodge Incorporated is a c.orporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 702-706 North Hudson Avenue. Chicago. 11linoi,. Respondents Ray E. Dodge and .T. .T. Kuhn are respe('tively President and Vice-President of the corporate respondent. The individual respondents, acting in cooperat.ion \\ith each other, formulate, direct and control all of the policies anll acts of saiel corporation. The address of said indiyic1ual ref:ponc1ents is the same as that of the corporate respondent, PAR. 2. Respondents arc now and have been for more than one year last past, engflged in the manufacture, sale nnd distribution OT trophies, cups, plaques, medals: jewelry. and gift items, in C.OI1merce: among and bet\veen the varjolls States of the United States and in the District of Colnmbin, Hespondcnts maintain, and tlt 1060 FEDERAL TRADE COMMISSIO:\ DECISIONS Complaint 52 F. T. C. all times mentioned herein have maintained, a substantial course of trade in said articles, in commerce, among nd between the various States of the United States.

PAR. 3. In the course and conduct of their business as aforesaid, respondents are now a,nd ior more than one year last past have been engaged in the manufacture, sale and distribution of the aforesaid articles under the name of the said corporate respondent and under the trade name, 1.:1\vrenee JIanufactul'ing Company. Sale of said articles by the respondents are to retailers and dealers for resale to the purchasing public.

PAR. 4. To facilitate and assist in the sale of the saiel articles to the purchasing public respondents supply to said retailers and dealers a variety of catalogs, leaflets and other advertising material. Said advertising material is widely distributed by said retailers and dealers to prospecti VB purchasers of the merchandise advertised and offered for sale therein. Said fichertising material contains numerous false, misleading and deceptiyc representations respecting the quality, composition and characteristics of the merchandise offered for sale t-herein.

Typical and illustrative of said representations are the following: 1. La,vrence ::Ianufactul'ng Company, Golden Anow Awards far Champions Imported Pedrara Onyx Black and Gold Italian Marble and Rio Onyx.

. Latest Styles Feature "Rio Onyx" the newest trend in modern design depicting real Brazilan Green Onyx.

3. RIO ONYX (this representation is made in immerliatc conjunction with pictorial depictions of trophies, a wards etc., which appear to be made in part of an onyx-like material).

4. Series CS5C3 feature Marblette bases and are available in a choice of Ivory and "Onyx Red" color.

5. Genuine Black l\arblette.

6. The R5lC, RR51C, and R52C series of awards embody Diamond Black Engraving columns. VV'hen engraved the lettering shows through in Silver against an Ebony Black Background.

PAR. 5. Through the use of the foregoing represent.ations respondents represent that certain of the aforesaid articles are made in part of genuine Onyx; that certain of the aforcsa.id articles arc made in part of genuine marble; and that the lettering in certain of the a.fore aid article is made of silver metal. -\R. 6. Such representations are false, Inislcading and deceptive. In truth and in fact the material described by respondents in their aforesa,id advertising material as "Hio Onyx" and "j\farblette" is DODGE INCORPORATED ET Ah 1061 1059 Decision not genuine onyx and marble, respectively, but such material is of synthetic composition simulating genuine onyx or marble. Furthermore, the lettering on certain of aforesaid articles is not made of silver metal but is done in such a manner as to simulate letters made of silver.

PAR. 7. By selling and distribu6ng to retailers and dealers said catalogs and ldvcrtising material as aforesaid, respondents furnish to such retailers and dealers the means and instrumentalities through and by which they may misle,ad and deceive the purchasing public as to the qmdity, composition and characteristics of the said articles offered for sale therein.

PAR. 8. In the course and conduct of their business respondents are in direct and substantial competiHon with other corporations firms and individuals engaged in the Rale and distribution in commerce of trophies, cups, plaqucs, medals, jewelry and gift it.ems. PAR. 9. The djstribution in commerce of respondents said ad vertising material has had and now has thc tendency and capacity to and does mislead a substantial portion of the purchasing public into erroneous and mist.taken beliefs respecting the qllaJity, composition and characteristics of said trophies, cups, plaques, medals jewelry and gift Hems and into the purchase of substantial quantities of such articles because of such erroneous and mistaken beliefs. As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been done to competition in commerce. PAR. 10. The aforesaid acts and practices of the respondents as herein alleged, are all to the prejudice and injury of the pnblie 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.

INITIAL DECISION BY ROBEHT L. PU' , HL\RING EXAMINER The Federal Trade Commission issued its complaint against the. above-named respondents on November 7, 1955, c1Hll'gjng them with having violated the Federal Trade Commission Act. After being served with said complaint, respondents appeared by counsel and entered into an agreement, dated January 31 , 1956 , containing a consent order to cease and desist, disposing of all the issues in this proceeding without hearing. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordance with Section 3.25 of the Rnles of Practice of the Commission. 1062 FEDERAL TRADE CO),IMISSIOX DECISIOXS Decision 52 F.

Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jnrisclictional facts had been duly made in accordance with such allegations. Said agreement further provides that respondent.s waive all further procedural steps before the hearing examiner or t.he Commission including the making of findings of filet or conclusions of 1n wand the right to challenge or eon test the validity of the order 10 cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, that the agreement shall not. becOIne a part of the offcial record unless and until it becomes n part of the decision of the Commission, that said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violatell the law as alJegec1 .1n the complaint, that said order to cease and desist shall have the same force and effect as if ent.ered after a full hearing and may be aJtcrecL modified or set aside in the manner provided for other orders and ihat the complaint may be used in construing the terms of the order.

The proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order and it appearing that the order and agreement cover all of the allegations of the complaint a.nd provide for appropriate disposition of this proceeding, the same are hereby accepted and ordered filed upon becoming part of the Commission s decision pursuant to Sections 3.21 and 3.25 of the R.ules of Practice, and the hearing examiner accordingly makes the following findings for j urisclictional purposes, and order: 1. R.respondent Dodge Incorporated is a, corporation organizeo existing and doing business under and by "irtne of the In ws of the State of illinois, with its offce and principal place of business located at 702-706 :North Hudson A venue, in the City of Chicago State of Illinois. Respondents Ray E. Dodge and J. .T. Kuhn are individuals and arc respectively president and vice president of the said corporate respondent. The address of the said individual respondents is the same as that of t.he corporate respondent. 2, The Federal Trade Commision has jurisdiction of till subject matter of this proceeding ,and of the, respondents hereinabove named. The complaint states a cause of action against. said respondents under the Federal Trade Commission Act. an(l this proceeding is in the interest of the public. DODGE INCORPORATED ET AL. 1063 1.059 Order ORDER It is ordered That respondents, Dodge Incorporated, a corpora tion, and its offcers, and Ray E. Dodge and J. J. Kuhn, individually and as offcers of sajd corporation, and respondents' agents, representatives and employees, directly or through a.ny corporate or other device, in the offering for sale, sale or distribution of trophies cups, plaque,g, and gift items, in eommeree, as "commerce? is defined in the Federal Trade Commission Act., do forthwith cease and desist from:

1. Using the "words "Hio Onyx" 01' ally ot.her word or lrords implying genuine onyx to describe the aforesaid or other articles not made of genuine onyx, provided, however, that nothing contained herejn shall prevent representations, not implying genuineness, that the aforesaid articles have the color of onyx; 2. Using the "lord H Iarblette" or any other w01'l or words implying genuine marble to describe the aforesaid or Rny other articles not made of genuine marble without revealing the fact that such articles are not made of genuine marble;

3. Using the word "Silver" or other words implying pre,cious metals to describe lettering not made of silver or precious metals on the aforesaid or other articles, provided, hOVlever, that nothing contained hE'Tein shall prevent representations that the lettering on the aforesaid or such other articles has the color (11' silver or other precious metals.

DECISION OF Tile COl\Il\JSSlON AND ORDER TO FILE REPORT OF CO:::IPLIAXCE Pursuant to Section 3.21 of the Commission s R.ules of Practice the initial decision of the he,aring examiner sha.ll, on the 4th da,y , a.c- of April, 1956, become the decision of the Commission; and cordingly :

It i8 ordered That respondents Dodge Incorporated a corporation, and Ray E. Dodge and J. J. Kuhn, individually and as offcers of said corporation, shall, within sixty (60) days after service upon t.hem of this order, file wit.h the Commission a report writing setting forth in detail the manner and form in which they have complied with the order to cease and desist. 1064 FEDERAL TRADE CO D.nSSIOK DECl8WXS Complaint 52' P. T. C.