Velox Service, Inc.

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

IN THE :MATTER VELOX SERVICE, INC., ET AL.

CONSENT ORDER, ETC., IN HEGAHD TO THE ALLEGED VIOLATION OF THE l"EDEHAL TRADE CO)fl\nSSION ACT Docket 6622. Complaint, A'ny. 195G-Decision, Sept. 10, 1957 Consent order requiring a New York City family enterprise, doing business under many trade names, to cease misrepresenting in advertising the quality, properties, regular prices, etc. , of a wiele \'Rriety of merchandise it sold by mail order, and representing falsely that it operated its own factories; and dismissing, as not sustained by the evidence, charges relating to the use of the terms "Completely shock resistant" and " anti magnetic" with respect to watches, and the terms "importer" and "wholesaler. ~f1' . Te1' al A. 0 1Yl an for the Commission. M'I' . George Landes'Inan of New York, N. , for respondents. INITIAL DECISION BY FRANK HIER, HEARING EXAl\IINEH Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on August 28, 1956, issued and subsequently served its complaint in this proceeding against respondents Velox Service, Inc., a corporation existing and doing business under and by virtue of the laws of the State of New York; Caesar Torelli and Nelson Torelli, individually and as president, and vice president and secretary-treasurer, respectively, of the corporate respondent; and Charles Torelli, Hilda Torelli, Alice Jean Torelli and ~larie A. Thoresen, individually. The office and principal place of business of each of the respondents is located at 352 Fourth A venue, New York New York.

After several hearings, at which considerable evidence in support of the complaint was introduced in the record, there was submitted to the 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 a1l 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 c.conclusions of law; and waiye aU of the rights they may have to ehal1enge or contest the valichty of the order to cease and desist entered in ac.corclance with this agreement. Such agreement further Order 54 F.

provides that it disposes of all of this proceeding as to all parties except those charges relating to the misuse of the terms "Completely shock resistant" and "anti magnetic:' with respect to watches and the terms "importer" and "whole.saler:' with respect to respondents business status which counsel supporting the complaint states he lac.ks evidence to prove; that the record on ,,-hic.h this initial decision and the decision of the Commission shall be based shall consist solely of the c.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 procee.ding by the Commission without further notice to respondents~ and, when so entered, it shall have. the same forc.e 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 c.complaint may be used in construing the terms of the order. The hearing examiner having c.considered the agreement and proposed order, and being of the opinion that they provide the best and most appropriate basis for settlement and disposition of this proceeding~ the agreement is he,reby accepted, the following jurisdictional findings made, and the following order issued. 1. Respondent Velox Service, Inc., is a corporation existing and doina business under the la\ys of the State of New York, "with its office and principal place of business located at 352 Fourth A venue; New Y ork~ New York. Respondents Caesar. Torelli and Nelson Torelli are individuals and are respectively, president, and vice president and secretary-treasurer of the said c.corporate respondent, and respondents Charles Torelli, I-lilda Torelli: Alice .J ean Torelli and :l\Iarie A. Thoresen are individuals. The office and principal place of business of the individual respondents is the same as that of the corporate respondent.

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.

OHDEH It is ordered That responde,nts Ve1ox Service, Inc., a corporation and its officers: and Caesar Torelli and :Kelson Torelli, as individuals and as officers of said corporate respondent, and Charles Torelli I-Tilda Torelli: Alice .Jean '1'o1'elli, and JHnrie A. Thoresen ~ as incli- VELOX SERVICE , INC. ET AL. 307 305 Order viduals, or any of the aforesaid individuals as individuals, or as copartners trading and doing business as Thoresen s Direct Sales Consumers :;\Iart, The International Binocular Company, Thoresen The IIonor Company, the Rocket ,Vholesale Company, :.\Ioto-~Iatic Company, Trans-Kleer Co., or under any other trade name and respondents ' agents, representatives, and employees, directly or through any corporate or other device, in the advertising for sale offering for sale, sale or distribution of binoculars, watches, dolls plastic storm windows, automobile seat covers or other articles of general merchandise, in commerce as "commerce" is defined in the ederal Trade Commission Act, do forthwith cease and desist from directly or indirectly, representing either through words or pictorial depictions that:

1. (a) A higher proportion of the. air-to-glass lens surfaces of binoclllars or other optical instrl1l11ents are coated or treated to increase the passage of light through the lens than are in fact so cOftted or treated.

(b) The power of binoculars or other optical instruments is greater than the actual power thereof.

( c) Leather carrying cases for binoculars or other optical instruments or similar kinds of products are of a finer or more valuable grade, quality, design or workmanship than they are in fact. (d) ,Vatches or watch cases are moisture resistant when such is not the fact.

(e) A ",vatch movement containing less than 7 jewels, each of which serves a mechanical purpose as a frictional bearing is a jewelled movement.

(f) The finish of watch cases or jewelry is of a designated karat fineness of gold unless the gold contained therein is in fact of the stated karat. fineness or that said finish is rolled gold plate unless applied in the manner and to the thickness charaderishc of gold plate or otherwise representing that said finish is other than what it is in fact.

(g) Dolls or similar products are made of a material having a skin-like texture and softness unless such is the fact or otherwise misrepresenting the characteristics and composition of such material. (h) Doll clothing or similar proc1acts is of a finer or more vahlable grade, quality, design or iyorkmnnship than it is in fact. (i) The fain"ie, thread or other materials used in the manufacture of automobile seat covers or similar kinds of products are of a grade weight, composition or othenyise different from that actually used therein.

(j) Order 54 F.

Automobile seat covers or similar kinds of products will not tear or will wear for a longer period of time under normal usage than is the fact.

(k) The fabric of automobile seat covers or the fabric contained in other products has been preshrunk or preshrunk by a particular process or will not shrink more than a designated amount when such is not the fact.

(1) Plastic storm windows or other products will withstand blows or forces of greater violence than they will in fact so withstand. (m) The material for plastic storm windows or other products was developed by a desi~lated person, firm or corporation which did not in fact develop said product or that said product was developed for the use of governmental or private organization when such is not the fact.

(n) Binoculars or other optical instruments have a prismatic optical system or any other kind of optical system unless such optical system is actually used in the construction thereof. 2. (a) The price at which the aforesaid or other articles of merchandise are advertised for sale, offered for sale or sold by respondents is a reduced price unless such price is in fact a reduction from the price at which respondents have advertised, offered or sold said articles of merchandise in the recent regular course of their business. (b) The aforesaid or other articles of merchandise advertised offered or sold by respondents have a retail se.lling price in excess of the retail selling price of similar articles of merchandise of like grade, qua.lity, design and workm.anship advertised for sale, offered for sale and regularly selling or having been sold contemporaneously, in the same general trade area as that supplied by respondents, by other persons, firms, or corporations engaged in the same kind of business.

(c) The price at which the aforesaid or other articles of merchandise are advertised, offered, or sold by respondents affords a saving to the purchaser 'There said price constitutes respondents regular retail selling price.

3. (a) R.respondents own, operate. or control a factory, plant or manufacturing establishment wherein are manufactured the articles of merchandise advertised for sale, or sold by them unless and until respondents shall in fact own, operate or control such a manufacturing establishment, or that the nature. of respondents business operations are other than what they are in fact. 1 t is !u1,thel' ordered That the complaint be, and the same hereby , dismissed as to those charges relating to the misuse of the terms VELOX SERVICE, INC. ET AL. 309 305 Decision Completely shock resistant" and "anti magnetic" with respect to watches and the terms "importer" and "wholesaler" with respect to respondents' business status.

DECISION OF THE COl\Il\fISSION AND ORDER TO FILE REPORT OF COMPLIANCE The hearing examiner, on July 1, 1957, having filed an initial decision in this proceeding, accepting an agreement containing an order to cease and desist executed by the respondents and counsel supporting the complaint, and the Commission, on August 22, 1957 having issued its order extending, until further order by it, the date on which said initial decision would otherwise become the decision of the Commission; and The Commission having now determined that the initial decision is adequate and appropriate in all respects to dispose of this proceeding :

1 t is 01'de1' That the aforesaid initial decision be, and it hereby. , adopted as the decision of the Commission. 1 t is fw,thel' O1'de1' That the respondents, Velox Service, Inc., a corporation, and Caesar Torelli and Nelson Torelli, individually and as officers of said corporation, and Charles Torelli, Hilda Torelli Alice Jean Torelli, and ~1arie A. Thoresen, 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 contained in said initial decision.

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Decision 54 F.