Sutson, Incorporated

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In the Matter oF SUTSON, INCORPORATED, ET AL.

ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6578. Complaint, June 27, 1956—Decision, Nov. 2, 1956 Consent order requiring New York City operators of a record-of-the-month club under the trade name of “Music Treasures of the World,” to cease . representing falsely that those who became “associate members” by pur- _ chasing a record for 10¢ might cancel their membership at any time, and to cease shipping records and attemping to collect payment after the required notification of cancellation had been given. | Mr. Michael J. Vitale for the Commission. Bergerman & Hourwich by Mr. Milton Bergerman, of New York City, for respondents.

Initia, Decision By Wititism L. Pack, Hearrna Examiner The complaint in this matter charges the respondents with certain violations of the Federal Trade Commission Act in connection with the sale of phonograph records. An agreement has now been entered into by counsel supporting the complaint and all of the respondents except Lester Leventhal which provides, among other things, that said respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is. waived, together with any further procedural steps before the hearing examiner and 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 entered after a full hearing, said respondents specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered. modified, or set aside in the manner provided for other orders of the Commission; and that the agreement is for settlement purposes only and does not constitute an admission by said respondents that they have violated the law as alleged in the complaint. With respect to respondent Lester Leventhal, the agreement recites that this respondent has not participated in formulating, directing or controlling any of the policies, acts or practices referred to in the complaint, this recital being supported by an affidavit executed SUTSON, INCORPORATED, ET AL. 447 44 Decision by respondent Milo Sutliff which is attached to and made a part of the agreement. For these reasons the agreement provides for the dismissal of the complaint as to respondent Leventhal. The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for an appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued:

1. Respondent Sutson, Incorporated, is a corporation existing and doing business under the laws of the State of New York, with its office and principal place of business at 100 Sixth Avenue, New York, New York. The corporation trades under the name Music Treasures of the World. Respondents Milo Sutliff and John Stevenson are individuals and are respectively president and vice president of the corporation.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered, That respondent Sutson, Incorporated, a corporation, and its officers, and respondents Milo Sutliff and John Stevenson, individually and as officers of said corporation, and respondents’ representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of phonograph records or any other merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing, directly or by implication, that persons may cancel membership in any organization set up by respondents if, in fact, cancellation is not always permitted. 2. Shipping merchandise and attempting to collect the price thereof, when the right of cancellation of membership has been granted, after the required notification of cancellation has been given to respondents.

It ts further ordered, That the complaint be and it hereby is dismissed as to respondent Lester Leventhal. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission’s Rules of Practice, the initial decision of the hearing examiner shall, on the 2nd day of November, 1956, become the decision of the Commission; and, accordingly:

511071—60-——30 Decisions 53 FTC.

It is ordered, That Sutson, Incorporated, a corporation, and Milo Sutliff and John Stevenson, individually and as officers of said corporation, shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.

BECKERMAN FUR CORP., ET AL. 449 Decision