Admiral Corp.

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

In rue MatrTer or ADMIRAL CORP.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6985. Complaint, Nov. 8, 1957—Decision, Mar. 18 1958 Sonsent order requiring a manufacturer with principal office in Chicago to cease misrepresenting in advertising the size of certain of its television sets as “21 inch,” “24 inch,” etc. without clearly disclosing that the figure was the diagonal distance from opposite corners of the picture tube rather than the horizontal measurement.

Mr. William A, Somers for the Commission. Mr. William &. Baltz, of Chicago, Ill., for respondent. IniriaL Decision By Frank Hirer, Heartne Examiner Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on November 8, 1957, issued and subsequently served its complaint in this proceeding against respondent Admiral Corp., a corporation existing and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 3800 Cortland Street, Chicago, Ul.

On January 22, 1958, there was submitted to the undersigned hearing examiner an agreement between respondent and counsel supporting the complaint providing for the entry of a consent order. By the terms of said agreement, respondent admits all the jurisdictional facts alleged in the complaint and agrees that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. By such agreement, respondent waives any further procedural steps before the hearing examiner and the Commission; waives the making of findings of fact and conclusions of Jaw; and waives all of the rights it 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 ghall 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 Decision 54 F.T.C.

Commission; that the agreement is for settlement purposes only and does not constitute an admission by respondent that. it has 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 respondent, 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. Respondent Admiral Corp., is a corporation existing and doing business under the laws of the State of Delaware, with its office and principal place of business located at 3800 Cortland Street, Chicago, Il.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It ts ordered, That respondent, Admiral Corp., a corporation, and its oflicers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of its television receiving sets in commerce, as “commerce” is defined in the Federal Commission Act, do forthwith cease and desist from using any figure or measurement to designate the size of the picture tube with which its television receiving sets are equipped which is greater than the horizontal, measurenent of the viewable area of the tube on a single plane basis, unless it is conspicuously disclosed in immediate connection therewith that said figure or measurement is the diagonal measurement, when such is the fact; or an accurate specification of the viewable area of the tube, in square inches, is conspicuously disclosed in immediate connection with such figure or measurement.

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 18th day of ADMIRAL CORP. 1169 1167 Decision March 1958, become the decision of the Commission; and, accordingly : It is ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. Decision 54 F.T.C.