E. F. Drew & Co., Inc.

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

In THE MATTER OF E. F. DREW & CO., INC.

MODIFIED ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6126. Order, August 30, 1956 Order modifying, as requested by the Commission and so as to accord with the decision of the Court of Appeals for the Second Circuit of July 13, 1956, the order to cease and desist of May 5, 1955, 51 F.T.C. 1056, prohibiting representations that oleomargarine was a dairy product. Before Mr. Everett F. Haycraft, hearing examiner. Mr. Joseph Callaway for the Commission.

Mr. Samuel J. Loewenstein, of New York City, for respondent. MODIFIED ORDER TO CEASE AND DESIST This matter having been heard by the Commission on appeal from the initial decision and order of the examiner, on briefs and oral argument of counsel; and, the Commission having duly considered the record and the questions raised on appeal, and having thereafter, on the 5th day of May, 1955, rendered its decision in which it modified and as modified affirmed the findings of the examiner, the Commission issued its order modifying the initial decision and the order of the examiner, so as to conform with its decision; and, as modified, issued the order to cease and desist against respondent, its officers, agents, representatives and employees; and, Respondent having filed in the United States Court of Appeals for the Second Circuit its petition for review of and to set aside said order to cease and desist; and the Court having heard the cause on briefs and oral argument, including the request of the Commission that the Court modify the order to cease and desist by striking therefrom the following language in the proviso to Paragraph 1 thereof: “or a truthful statement that said product contains butter or any other dairy product provided the percentage thereof contained is clearly and conspicuously set forth”; and the Court having thereafter, on the 13th day of July, 1956, filed its decision in which it affirmed and sustained the findings and conclusions of the Commission, modified the aforesaid order to cease and desist as requested by the Commission and affirmed said order as modified; and The Commission being of the opinion that its aforesaid order to cease and desist, issued on May 5, 1955, should be modified so as to accord with the decision of the United States Court of Appeals for 194. FEDERAL TRADE COMMISSION DECISIONS Order £3 F.C.

the Second Circuit modifying the said order to cease and desist as aforesaid:

It is ordered, That respondent, E. F. Drew & Co., Inc., a corporation, and its officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of oleomargarine or margarine do forthwith cease and desist from, directly or indirectly: 1. Disseminating or causing to be disseminated, by means of the United States mails or by any means in commerce, as “commerce” is defined in the Federal Trade Commission Act, any advertisement which contains:

The terms “churned to delicate, sweet creamy goodness,” “country fresh,” or “* * * the same day-to-day freshness which characterizes our other dairy products,” or any other statement, word, grade designation, design, device, symbol, sound, or any combination thereof which represents or suggests that said product is a dairy product: Provided, however, that nothing contained in this order shall prevent the use in advertisements of a truthful, accurate and full statement of all of the ingredients contained in said product. 2. Disseminating or causing to be disseminated by any means for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase in commerce, as “commerce” is defined in the Federal Trade Commission Act, of said product any advertisement which contains any of the representations prohibited in Paragraph One of this order.

Commissioners Gwynne and Mason not participating. OCTA-GANE, INC., ET AL. 195 Decision