Otarion, Inc.

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

In THe Marrer oF OTARION, INC., ET AL.

ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SEC. 3 OF : THE CLAYTON ACT Docket 6624. Complaint, Sept. 11, 1956—Decision, Mar. 14, 1957 Consent order requiring a large manufacturer of hearing aid instruments at Dobbs Ferry, N.Y., with approximately 120 distributors located throughout the United States, to cease violating Sec. 3 of the Clayton Act by requiring its distributors not to handle competing products. Mr. Edward 8. Ragsdale and Mr. Kent P. Kratz for the Commission.

Benjamin, Galton & Robbins, by Mr. David 8. Galton, of New York, N.Y., for respondents.

' Inrrtan Decision By Franx Hirr, Heartne Examiner Pursuant to the provisions of Section 3 of an Act of Congress approved October 15, 1914, entitled “An Act to Supplement Existing Laws Against Unlawful Restraints and Monopolies, and for other Purposes,” commonly known as the Clayton Act, the Federal Trade Commission, on September 11, 1956, issued. and subsequently served its complaint in this proceeding against respondents Otarion, Inc., and Leland E. Rosemond, individually and as officer of said corporation, with their office and principal place of business located at 185-7 Ashford Avenue, Dobbs Ferry, New York. Respondent’s hearing aid instruments are nationally advertised, enjoy wide. sales throughout. the various states of the United States and respondent corporation is one of the large manufacturers and distributors of hearing aid instruments in the hearing aid industry. , On. J anuary 30, 1957, there was submitted to the undersigned hearing examiner an agreement between respondents and counsel supporting the complaint providing for the entry of a consent order. By the terms of said agreement, respondents admit all the jurisdictional facts alleged.in the complaint and agree that the record may be taken.as, if findings of jurisdictional facts had. been duly made in accordance with such allegations. By such agreement, respondents waive any further procedural steps before the hearing examiner and the Commission; waive the making of findings of fact and conclusions of law; and waive all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in OTARION, INC., ET AL. 781 780 Order accordance with this agreement. Such agreement further provides that it disposes of all of this proceeding as to all parties; that the record on which this initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement; that the latter shall not become a part of the official record unless and until it becomes a part of the decision of the Commission; that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and that the following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondents, and, when so entered, it 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.

The hearing examiner having considered the agreement and proposed order, and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued.

Respondent Otarion, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 185-7 Ashford Avenue, Dobbs Ferry, New York. Respondent Leland E. Rosemond is an individual and is President-Treasurer and principal stockholder of respondent corporation with his office and principal place of business the same as that of the corporate respondent. 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 Otarion, Inc., a corporation, its officers, agents, representatives and employees, and individual respondent Leland E. Rosemond, individually and as an officer of respondent corporation, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of hearing aids or other similar or related products in commerce, as “commerce,” is defined in the Clayton Act, do forthwith cease and desist from:

1. Selling or making any contract or agreement for sale of any such products on the condition, agreement, or understanding that the purchaser thereof shall not use or deal in, or sell, hearing aids 782 FEDERAL. TRADE COMMISSION DECISIONS Decision 53 FVT.C.

or other similar or related products supplied by any competitor or competitors of respondents;

.2, Enforcing or continuing in operation, or effect, any condition, agreement, or understanding in, or in connection with, any existing contract of sale, which condition, agreement, or understanding is to the effect that the purchaser of said products shall not use or deal in hearing aids or other similar or related products supplied by any competitor or competitors of the respondents. 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 14th day of March, 1957, become the decision of the Commission; and, accordingly:

It ts ordered, That the respondents herein 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. DANIEL H. SOBO, ET AL. 783 Decision