Century Products Works, Inc.

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IN THE !\latter OF CENTURY PRODUCTS vVORKS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6840. Com.pla1 , July 1957-Decision, Dec. 10 1957 Consent order requiring two associated corporations in Bronx, N. Y. the manufacturer and sole distributor, respectively, of irons, cooker-fryers, and skilletcasseroles-to cease representing fictitious and exaggerated prices as the usual retail prices and representing falsely that certain of their products had been approved by Good Housekeeping magazine and advertised therein, in advertising material prepared for their purchasers for use in the resale of their products, in newspapers, on attached tags and labels, and on the cartons in ,,'hieh the products were displayed and sold. 1..11'. Terral A. Jordan for the Commission. All'. Benjamin H. Fn~ed. of Fried & Fried, of New York, N. , for respondents.

INITIAL DECISION BY LOREN H. LA UGHLIN, HEARING EXAMINER The Federa.) Trade Commission (sometimes also hereinafter referred to as the Commission) issued its complaint herein charging the abovenamed respondents Century Products vVorks, Inc.. , a corporation Century Enterprises, I 11e. , a corporation, and Ned ?\1. GrossbeTg, :Morris Brandler, and Sam Klein, individually and as officers of said corporations, with having violated the provisions of the Federal Trade Commission Act in certain particulars. The respondents were duly served with process and in due course filed their answer. The initial hearing was canceled pending negotiations of counsel for a consent agreement.

On October 21 , 1957, there was submitted to the undersigned hearing examiner of the Commission for his consideration and approval an " which Agreement Conta.ining Consent Order to Cease and Desist had been entered into by and between said respondents and by their attorney and Terral A. Jordan, counsel supporting the complaint under date of October 9 , 1957, and subject to the approval of the Bureau of Litigation of the Commission. Such agreement had been thereafter duly approved by that Bureau.

On due consideration of the said "Agreement Containing Consent Order to Cease and Desist " the hearing examiner finds that sa, agreement, both in form and in content, is in accord with section 3. of the Commission s rules of practice for adjudicative proceedings and that by said agreement the patties have speeifical1y agreed that: Decision 54 F.

1. Respondents Century Products Works, Inc., and Century Enterprises, Inc. , are corporations existing and doing business under and virtue of the laws of the State of New York. Respondent Ned 1V1. Grossberg is an individual and is vice president of Century Products Works Inc. and president of said Century Enterprises, Inc. Respondent l\tlorris BrandleI' is an individual and is secretary and treasurer of said Century Products 'Vorks, Inc. , and vice president of said Century Enterprises, Inc. Respondent Sam Klein is an individual and is president of Century Products 'Yorks, Inc., and secretary and treasurer of said Century Enterprises, Inc. The office and prin('.ipal place of business of the respondents is located at 2911 "Vbite Plains Road, in the City of Bronx, State of New York. 2. Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on July 15, 1957, issued its complaint in this proceeding against respondents, and a true copy was thereafter duly served on each respondent.

3. 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.

4. This agreement disposes of all of this proceeding as to all parties.. 5. Respondents waive:

a. Any further procedural steps before the hearing examiner and the Commission;

b. The making of findings of fact or conclusions of law; and c. 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 agreemen t.

6. The record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement.

7. This agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission. 8. This agree,ment is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the c.complaint.

Upon due consideration of the complaint filed herein, and the said Agreement Containing Consent Order to Cease and Desist " the latter is hereby approved, accepted and ordered filed, the same not to become it part of the record herein, unless and until it becomes part of the clec.ision of the Commission. The hearing examiner finds from the complaint and the said "Agreement Containing Consent Order to , CENTURY PRODUCTS WORKS, INC., ET AL. 711 709 Decision Cease and Desist " that the Commission has jurisdiction of the subject matter of this proceeding and of the person of the respondents herein; that the complaint states a legal ca.use for complaint under the Federal Trade Commission Act both generally and in each of the particular charges a.alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agreement is a.appropriate for the full disposition of all the issues in this proceeding, such order to become final only if and when it becomes the order of the Commission; and that said order, therefore, should be and hereby is, entered as follo\vs:

ORDER It is onlered That respondents Century Products 'Norks, Inc. , and Century Enterprises, Inc. , corporations, and their officers, and Ned 1v1. Grossberg, lYIorris Bnmdler, and Sam Klein, individually and as officers of each of said corporations, and respondents' agents, representatives, and employees, dir~ctly or through any corporate or other c1eviee, in connection with the ofrering for sale, sale, and distribution of electrical.l appliances, including irons, cooker-fryers, a.nd skillet-casse- Toles, or other articles of merchandise, in commerce, as "commerce is defined in the Federal Trade Commission Act, do fortlnvith cease and desist from:

1. Representing directly or indirectly:

a. That any stated price which is in excess of the price at which such products are regularly and usually sold at retail, is the retail price of such products.

b. That respondents' said products have been advertised in Good Housekeeping magazine or any other publication or approved or guaranteed by Good Housekeeping magazine or any other person, firm, or corporation, when such is not the fact.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to seetion 3.21 of the Commission s rules of practice, the initial decision of the hearing examiner shall on the 10th day of December 1957, become the decision of the Commission; and, accordingly: It is ordaed That respondents Century Products 'Yorks, Inc. , and Gentury Enterprises, Inc. , corporations, and their officers, and Ned 1\1. Grossberg, :Morris Brandler, and Sam Klein, individually and as officers of each of said corporations, 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. Decision 54 F.T.C.