American Photographic Society

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IN THE MATTER OF AMERICAN PHOTOGRAPHIC SOCIETY ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\OHSSION ACT Docket 6810. Comp~ai.l/t, May 1957-Decisio-n, Oct. , 195" Consent order requiring a company in Pasadena, Calif.--engaged in selling photograph albums together with certificates for photographs to be taken at independent affiliated studios through salesmen calling upon mothers of newborn children whose names they obtained from newspapers, hospitals etc. to cease representing falsely that the persons solicited were spec:ially selected and would receive free two albums, the larger of which alone was worth more than the total price paid; and that they had studios all m" the country to take the pictures; and to cease representing falsely that it was a society or foundation or an institute engaged in research, through in connection use of its corporate name and of the word "Foundation" therewith, and of the corporate name "Advertising-Research Institute. Edward F. Dmons Esq. and Garland S. Ferguson Esq., for the Commission.

Respondents, pro se.

INITIAL DECISION BY R.OBEHT L. PIPER, lI:Meaning EXAl\IINER The. Federal Trade Commission issued its complaint against the above-named respondents on JURY 29, 1957, charging them with having violated the Federal Trade Commission Act by making false and misleading representations concerning the selection of customers, the worth or value of their product, photographic albums, the ofiering of "free" a.lbums, the availability of photographers honoring respondents' certificates, and characterizing their businesses as a a society of photographers and an institute engaged in advertising research. Respondents entered into an agreement, dated August 7 1957, containing a consent order to cease and desist, disposing of all the. issues in this proceeding without hearing, which agreement has been duJy approved by the Director of the Burea.n of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in Recordance with Section 3.25 of the Rules of Practice of the Commission.

R.respondents, pursuant to the aforesaid agreement, have admitted agreed that an of the jurisdictional allegations of the complaint and the record may be taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreeall further proce- ment further provides that respondents waive AMERICAN PHOTOGRAPHIC SOCIETY ET AL. 525 524 Order dural 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 ,,'ith 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 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 respondents that they have 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 fun 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 agreement is hereby accepted and ordered filed upon this decision and said agreement becoming part the Commission s 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. R.respondents American Photographic Society and Advertisingesearch Institute are corporations existing and doing business under and by virtue of the laws of the State of California, with their principal place of business located at 77 North R.raymond Avenue Pasadena, California. R.respondents Donald D. Moore and Alice S. :Moore are officers of both corporate respondents. They formulate direct and control the policies, acts and practices of said corporate respondents. Respondent John B. Isgrig is an officer of corporate respondent, Advertising-Research Institute, and he assists the other individual respondents in formulating and directing the policies ac.ts and practices of Advertising-Research Institute. 2. The Federal Trade Commission has jurisdiction of the subject. matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDER It is oTde'l'ed That respondents American Photographic Society, a corporation, and Advertising-Research Institute, a corporation, and their officers; Donald D. ~100re and Alice S. ~100re, individually 526 FEDERAL TRADE COMMISSION DECISIONS ' Decision 54 F.

and as officers of said corporations, and John B. Isgrig, individually and as an officer of respondent Advertising-Research Institute and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of photograph albums or certificates for photographs, in commerce, as "commerce is defined by the Federal Trade Commission Act, do forthwith cease and desist from: 1. R,representing, directly or by implication: (a) That the persons to whom they sell their albums have been especially selected;

(b) That their albums are given free or without cost; (c) That their albums are worth or are of a value in excess of the price at which said albums are usually and customarily sold at retail.

2. l\fisrepresenting the availability and location of photographers who will honor certificates issued by respondents or that photographers who will honor such certificates will be available in any city or locality.

3. Using the corporate name "American Photographic Society " or any other name of similar import or the word "Foundation" to designate, describe or refer to respondents' business or otherwise representing that their business is a society of photographers. 4. Using the corporate name "Advertising-R.eBearch Institute" or any other name of similar import to designate or refer to respondents' business or otherwise representing that their business is an institute or is engaged in advertising research. DECISION OF THE COMl\lission AND ORDER TO Fll..E REPORT OF CO~:lPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did, on the 31st day of October, 1957, become the decision of the Commission; and, accordingly :

It is 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. OWENS, INC. 527 Decision