O. J. Mcclure

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In THE MATTER oF O. J. McCLURE TRADING AS O. J. McCLURE TALKING PICTURES ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6607. Complaint, July 31, 1956—Decision, Nov. 24, 1956 Consent order requiring a Chicago manufacturer of manually operated sound slidefilm projectors to cease disparaging his competitors’ automatic sound. slidefilm projectors by false representations, made orally and in advertising, that the competitive projectors did not actually operate automatically, were worthless and considered a failure by users, and were misrepresented and sold by firms operating a racket. Mr. Donald K. King and Mr. S. F. House for the Commission. Respondent appearing for himself.

Inrrmau Decision By Rosert L. Preer, Hearing EXAMINER The Federal Trade Commission issued its complaint against the above-named respondent on July 31, 1956, charging him with having violated the Federal Trade Commission Act by making false and misleading representations disparaging and defaming his competitors’ products. In lieu of submitting answer to the complaint,. respondent entered into an agreement, dated September 20, 1956, containing a consent order to cease and desist, disposing of all the issues in this proceeding without hearing, which agreement has been duly approved by the Director of the Bureau of Litigation. 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 Rules of Practice of the Commission.

Respondent, pursuant to the aforesaid agreement, has admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement: further provides that respondent waive all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions of law and the right to challenge or contest the validity of the order to 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 become a part of the official record O. J. McCLURE TALKING PICTURES 491 490 Order unless and until it becomes a part of the decision of the Commission, that said agreement is for settlement purposes only and does not constitute an admission by respondent that he has violated the law ‘as alleged in the complaint, that said order to cease and desist shall have the same force and effect as if entered after a full hearing and may be altered, modified or set aside in the manner provided for other orders, and that the complaint may be used in construing the terms of the order.

This 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 and provide for appropriate disposition of this proceeding, the same are hereby accepted and ordered filed upon becoming part of the Commission decision pursuant to Sections 3.21 and 3.25 of the Rules of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order:

1. Respondent is an individual trading as O. J. McClure Talking Pictures, with his office and principal place of business located at 1115 West Washington Street, in the City of Chicago, State of Tilinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDER It is ordered, That the respondent O. J. McClure, an individual trading as O. J. McClure Talking Pictures, or under any other name, his representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution, of manually operated sound slidefilm projectors in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Disparaging the efficiency of automatic sound slidefilm projectors in & manner imputing that they are worthless, unworkable, not automatic and useless.

2. Disparaging the efficiency of automatic sound slidefilm projectors in a manner casting aspersion on the integrity and honesty of the competitors manufacturing such machines. 3. Disparaging the efficiency of automatic sound slidefilm projec- Decision 53 E.T.C.

tors in a manner imputing that competitors manufacturing such machines are foisting a fraud on the public. 4, Disparaging the value of competitors’ automatic sound slidefilm projectors by oral or published statements which are false or unfair.

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 24th day of November 1956, become the decision of the Commission; and, accordingly:

‘It ts 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 setting forth in detail the manner and form in which he has complied with the order to cease and desist. FLORIDA CITRUS EXCHANGE 493 Decision