Otarion, Inc.

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IN THE l\fA TTER OF OTARION, INC., ET AL.

CONSENT OHDEH, ETC., IN HEGAHD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\BIISSION ACT Docket /5" Complaint, Apr. 3, 1957-Decisf.on, Sept. , 1957 Consent order requiring a manufacturer of hearing aid instruments, parts, and accessories in Dobbs Fel'l'Y, N. Y., and its franchise distributor in the District of Columbia, to cease representing falsely in advertisements in newspapers, magazines, circulars, etc., furnished by said manufacturer to its distributors in the form of mats, that their "Listener" hearing aid was cordless, C'oulc1 not be seen, required nothing in either ear, and was completely contained in anu could not be distinguished from ordinary eyeglasses.

1111'. Ii ent P. I( ratz. for the Commission. Benia777. , Galton Robbins of New York, N. , for respondents. INITIAL DECISIO~ BY FRANK I-IIER, I-IEARIKG EXAMINER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on April 3 , 1957, issued and subsequently served its complaint in this proceeding against respondents Otarion, Inc., a corporation existing and doing business under and by virtue of the laws of the State. of New Yor1\:, Leland E. Rosernonc1 individually and as president-treasurer of Otarion, Inc., Rosemond I-Iearing Aid Company, Inc., a corporation existing and doing business under and by virtue of the. 1a \IS of the District of Columbia and ,Yard T. Rosemond, individually and as president of Rosemond l-Iem'ing Aid Company, Inc. The office.e and princ.ipal place of business of respondents Otnrion, Inc. and Leland E. Rosemond is located at 185-7 Ashford Avenue, Dobbs Ferry, New York, and that of respondents Rosemond Hearing Aid Company, Inc. and ,Yard T. Rose,mond is located at 1410 New York Avenue, N.,Y., ,Yashington, D.

On August 5, 1957, there was submitted to the undersigned hearing examiner an agreement between respondents and counsel supporting the complaint providing for the entry of a eonsent orde.r. B~7 the terms of said agreement, respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be take.n as if findings of jurisdictiomtl facts had ueen duly made in accordance wjth such allegations. By such agreement., respondents waive any further procedural steps before the hearing examiner and OTARION, INC. , ET AL. 383 382 Decision 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 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.

1. R,respondent Otarion, Inc. is a corporation existing and doing business under 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 president-treasurer of said corporation, with his office and principal place of business located at the same address as the corporate re- , isspondent. R.respondent Rosemond Hearing Jjd Company, Inc. a corporation existing and doing business under the la"s of the District of Columbia., with its office and principal place of business located at 1410 New York Avenue, N.,V., ,Vashington, D.C. Respondent ,Vard T. Rosemond is president of said corporation, with his office and principal place of business located at 1410 New York Avenue, N.,Y., ,Yashington, D.C. Respondent Leland E. Rosemond is the principal stockholder of the corporate respondent Otarion Inc. and respondent. ,;Void T. R.osemond is the principal stockholder of the corporate respondent R.osemond I-Iearing Aid Company, Inc. of the subject 2. The Federal Trade Commission has jurisdiction matter of this proceeding and of the respondents, and the proceeding is in the public interest.

,, , ,, 384 FEDERAL TRADE CO~DIISSION DECISIONS Decisiull 1 F. 'l' ORDER It op(lei' That respondents Otarion, Inc., a corporation, and its officers; Leland E. Rosemond, individually and as an officer Otarion, Inc. ; Rosemond I-Iearing Aid Company, Inc., a corporation fln ofilcerand its officers; ,Vard T. Hosemond, indi yidually and as of Rosemond I-Iearing Aid Company, Inc., and respondents~ agents representati-n:'s and employees, directly or through any corporate or other de,-ice, in connection \' for sale, sale or distribution of the hearing aid device known as "The tistener~' or anv other device of substantially the same construction or operation whether sold under the same or any other name, do forthw' ith cease and desist from directly or indirectly:

1. Disseminating or causing to be disseminated any advertisement by means of the United States mail or by any means in commerce as "commerce" is defined in the Fec1ern 1 Trade Commission Act, for the purpose of inducing or ,,-which is likely to induce, directly or incli reet ly, the. purchase of said product., which advertisement: (a) Hepresents, directly or by implication, that said hearing aid dexices are invisible or cannot be seen.

(b) Represents, directly or by implication, that. when ,,-hearing said device. nothing is required to be placed in the ear. (c) Represents, directly or by implication, that said de,-ice is nothing more than a pair of eyeglasses.

No cord 100% (cl) Uses the words or phrases "Xo ear button cordless" or other words or phrases of the same or similar import or meaning, unless in close connection therewith and with equal prominence it is stated that a visible plastic tube runs from the eyeglass frame to the ear.

2. Disseminating any achertisement by any means for the purpose of inducing or ,,-which is likely to induce, directly or indirectly, the purchase of respondents' product in commerce as "commerce defined in the Federal Trade Commission Act which advertisement contains any of the representations prohibited in paragraph 1 this order.

DECISION OF THE CO)DIISSION AXD ORDER TO FILE HEPOHT OF CO)IPLIAXCE 21 of the Commission s Rules of Practice, the Pursuant to Sec. 3. 21st dayinitial decision of the hearing examiner shall, on the of the Commission: nnd, ac-September lur)7 become the decision cordingly :

It -lB O1'deJ'ed. That the respondents herein shall, within sixty (60) days after service. upon them for this order, file ,,'ith the Commission a. report in "Titing setting forth in detail the manner and form in which they have c.complied "ith the order to cease and desist. THE ~IA YDA Y CORP. ET AL. 385. Decision