The Fry King Corporation

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IN THE MATTER OF Tile FRY KING COHPORATJOJ\ ET AL.

CONSENT ORDER, ETC., IN REGARD TO THl' ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIOK ACT Docket 7U2.9. Complaint, Jun. 14, 19,58-Dec'isiOJi !llly, 1.958 Consent order requiring New York City manufacturers of small household electrical appliances, including deep fat fryer-cookers and fry pan skillets, to ('ease representing falsely in advertising and upon cartons packaging the appliances, which wen,. disseminated to purchasers for use in retail sale, that an exaggerated and fictitious price was the usual retail price; that c( retail1 of t.their appliances had been approved or guaranteed by Good Housekeeping magazine; and, through prominent use of the word "\Vcstinghouse " that their appliances were manufactured by Westinghouse Electric Corporation.

Al1'/,' W. Williams, f.. sq. for the Commission. oui8 Drell, Esq. of New York City, for respondents. INITIAL DECISION BY HOBERT L. PIPER, HEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on January 14, 1958 , charging them with having violated the Federal Trade Commission Act by fictitioLls pricing and falsely representing that their products have been approved by Good Housekeeping magazine and manufactured by the Westinghouse Eledric Corporation. Respondents entered into an agreement, dated March 20 , 1958, containing a consent order to cease and desist, disposing of all the issues in this proceeding without hearing, which agreement has been duly approved by the director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideratitle in accordance with Section 3. 25 of the Rules of Practice of the Commission.

Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreement further provides that respondents waive all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions of Jaw and the right to challenge or contest the validity 114 FEDERAL TRADE COMMISSIO DECISIONS Order 55 F.

of the order to cease and desist. entered in accordance with 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 offcial record unless and until it becomes a part of the decision of the Commission that said agreement is for settement purposes only and docs 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 full hearing and may be altered, modified or set aside in the manner provided for other orders, and that the c0111plaint may be used in construing the terms of the order. This proceeding having nmv 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 of the Commission s decision pursuant to Sections 3. and 3. 25 of the Rules of Practice, and the hearing examiner accordingly makes the follmving findings, for jurisdiciional purposes, and order:

). Respondent The Fry King Corporation is a corporation existi)-lg and formerly doing- business under and by virtue of the laws of the State of 1\ew York, with its offce and principal place of business formerly located at 110 East 129th Street, in the city of New York. An assignment for the benefit of its creditors was made by the corporate respondent prior to the issuance of the complaint in the premises.

Respondents :\lax Fain and Isaac Stein book are individuals and offcers of the corporate respondent, serving respectively as president and secretary, '.with their offce and principal place of business located at the same place as that of corporate respondent. 2. The Federal Trade Commission has jurisdiction of the subjeet-matter of this proceeding and of the respondents hereinabove nan1ed. 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 i8 or-dered That respondents, The Fry King Corporation, a corporation, and its offcers, and Max Fain and Isaac Steinbook THE FRY KING CORPORATION ET AL. 115 113 Order individually and as officers of said corporation, and respondents agents, representatives and employees, directly or through any corporate or other device, in connection vi'ith the offering for sale, sale or distribution of fryer-cookers and skillets or any other products in commerce, as "commerce " is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or indirectly: (a) That any amount is the retail price of merchandise when such amount is in excess of the price at which such merchandise is usually and regularly sold at retail; (b) That their merchandise has been advertised in Life Magazine or Good Housekeeping IHagazine; or has been advertised in any other rnagazine or publication, unless such is the fact; 2. Using the name of mly company in connection with merchandise which has not been manufactured in its entirety by said company; or representing, c1directly or indirectly, that merchandise not manufactured in its entirety by a specified company was so manufactured, provided, ho\vever, that this prohibition shall not be construed as prohibiting a truthful statement that a part of an article of merchandise has been manufactured by a specified company when such part is clearly and conspicuously identified; 3. .Csing the Good Housekeeping seal of approval in connection with their merchandise; or representing in any manner that their menhandise has been awarded said seal of approval; or that their merchandise has been approved by any other group or organization, unless such is the fact, provided, however, that this prohibition shall not be construed as prohibiting a truthful statement that a part of an artic1c of merchandise has been approved by a group or organization, \\Then such part is clearly and conspicuously identified.

DECISION OF THE COMTvlISSIOI\ AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Hules of Practice the initial decision of the hearing examiner shall, on the 12th day of July 1958, become the decision of the Commission; and accordingly:

It is ordered That respondents, The Fry King Corporation, a corporation, and its offcers, and Max Fain and Isaac Steinbook individually and as offcers of said corporation, shall, within sixty (60) days after service upon them of this order, fie with 116 FEDERAL TRADE COIlIMISSJON DECISIONS Decision 55 F.

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.

'VruNTZ TV, INC., ET AL. 117 Decision