E. Regensburg & Sons

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In the Matrer or E. REGENSBURG & SONS ALSO TRADING AS S. FERNAN- DEZ & CO. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6854. Complaint, July 26, 1957—Decision, Jan. 15, 1958 Consent order requiring cigar manufacturers in New York City to cease using on cigar boxes a “guarantee” stamp so closely resembling the official customs stamp in lettering, design, and placement on boxes as to lead customers to believe that they were buying cigars made under Government bond.

Afr. C. W. O'Connell for the Commission.

Paskus, Gordon & Hyman by Mr. Charles H. Lieb, of New York, N.Y., for respondents.

Init1au Decision py Joun B. Pornpexter, Hearing Exaner The complaint in this proceeding charges that the respondents, EE. Regensburg & Sons, a corporation, trading and doing business under its own name and as S. Fernandez & Co. and Edward J. Regensburg, Charles P. Regensburg, Edward B. Regensburg, and Jeannette Regensburg, individually and as ofiicers of said corporation, hereinafter called respondents, have violated the provisions of the Federal Trade Commission Act by making misleading representations by affixing a stamp to each of the boxes containing their cigars which simulates the United States customs stamp requir ed by the Tariff Act of 1930.

After issuance and service of the complaint, the respondents, their counsel, and counsel supporting the complaint entered ito an agreement. for a consent order. VYhe order disposes of all of the inatters complained about. The agreement has been approved by the director and the assistant director of the Bureau of Litigation. The material provisions of said agreement are as follows: Respondents admit all jurisdictional facts the complaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a ha hearing and the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaimt and the agreement: respondents waive the requirement that the decision must contain a statement of findings of fact and conclusion of law; re- E. REGENSBURG & SONS ET AL. 925 924 Order — spondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement; and the signing of 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.

The hearing examiner having considered the agreement and proposed order and being of the opinion that the acceptance thereof will be in the public interest, hereby accepts such agreement, makes the following jurisdictional findings, and issues the following order: JURISDICTION AL FINDINGS 1. Respondent E. Regensburg & Sons is a corporation existing and doing business under and by virture of the laws of the State of New York, with its office and principal place of business recites at 468 Fourth Avenue, New York, N.Y. Respondent Edward Regensburg is president and treasurer of said corporation, Reepon ent Charles P. Regensburg is vice president in charge of sales of said corporation, respondent Edward B. Regensburg is vice president in charge of manufacturing of said corporation and respondent. Jeannette I Xegensburg is secretary of said corporation. 9, 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 [t ts ordered, That E. Regensburg & Sons, a corporation, trading and doing business under its own name and as S. Fernandez & Co., and its ofiicers, and Edward J. Regensburg, Charles P. Regensburg, Edward 3. Regensburg, and Jeannette Regensburg, individually and as officers of said corporation, and their agents, representatives, and employees, directiy or through any corporate or other device, in connection with offering for sale, sale, or distribution of cigars in comimerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist. from:

Usnig any stamp which either by reason of its appearance, its placement on containers of cigars. or by a combination of both effects, simulates the United States customs stamp required by the Tariff Act. of 1930 and the regulations thereunder to be aflixed to boxes containing cigars manufactured in bond.

Decision 54 F.T.C.

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 15th day of January 1958, 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. BON TON FINDINGS 927 Decision