Muntz TV, Inc.

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

IN THE MATTER OF MUNTZ TV, INC., ET AL.

COKSENT ORDER, ETC. , IN REGARD TO THF. ALLEGED VIOLATIQK THE FEDERAL ,TRADE COMMJSSlON ACT Docket 6.928. CUJ!plu,int, Nou, 1957-lJecisiU1l, Jrdy, 1958 Consent order requiring' a Chicago seller to ceuse exag-gerating, in newspaper advertising and by markings on sets and otherwise, the size of the picture tubes of television sets, and representing falsely that TV sets were sold directly to the consumer from "factory outlets. INITIAL DECISION AS TO EARL W. MUNTZ , INDIVIDUALLY Before John B. PoindeJ.;ter Hearing Examiner. M,.. Miehuel. J. Vitule and lVh-. Thomus Z. Ziebm. th supporting the complaint.

M,. . Emil N. Levin of Chicago, Ill. , for respondent Earl W. Muntz.

On November 6, 1957 the Federal Trade Commission issued a complaint charging Muntz TV , Inc. , a corporation, and Earl W. IVluntz, individually and as an offcer of said corporation with having violated the provisions of the Federal Trade Commission Act by the dissemination in commerce of advertisements and statements exaggerating the size of the picture tubes in the television receiven5 manufactured by said respondent corporation and misrepresenting that the receivers \ven sold directly to the consumer Jrom the factory.

After issuance and service of the complaint, each respondent answered, and the individual respondent Earl "V. lVluntz also filed a motion requesting that the complaint as to him be dismissed. This motion was denied by the Hearing Examiner. Thereafter the respondent Muntz TV, Inc., its counsel, and counsel supporting the complaint, entered into an agreement for a consent order. Accordingly, upon the basis uf such agreement, the undersigned hearing Examiner, on April 18, 1958, issued an Initial Decision with respect to the respondent Muntz TV, Inc., dismissing the complaint as to the respondent Earl Muntz in his capacity as an officer of Muntz TV , Inc. , inasmuch as Mr. Muntz \vas no longer an offcer of the said corporate respondent Muntz TV , Inc. , but leaving the complaint pending 1 Re pondent corporation accepted the same c. onsent dtlement on June 18 , HJ58 , 54 F. 1825.

Decision 55 F.

against the respondent Earl W. Muntz in his individual capacity. The individual respondent Earl W. Muntz, his counsel and counsel supporting the complaint, have now entered into an agreement for a consent order, dated May 5 , 1958. The order disposes of the matters complai,,,d about with respect to the remaining respondent, Earl \V. luntz, in his indiviclmd capacity. The agreement has been approved by the director and assistant director of the Bureau of Litigation.

The pertinent provisions of ::,aid agreement atc as follows: The individual respondent Earl \V. j,iuntz admits 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 full hearing and th€ said agreement shall not become a part of the offcial record of the proceeding unless and' until it becomes a part of the decision of ihe Commission; the record herein shall consist solely of the complaint and the agreement; the individually'respondent Earl \V. :Vruntz waives the requirement that the decision must contain a statement of findings of fact and conclusions of law; said individual rct:.pol1dent waives further procedural steps before the hearing examiner and the Comlnission and the Dreier may be altered, modified, or set aside in the manner provided hy statute for other orders; said individu:l1 respondent also waives any right to challenge or contest the validity of the order in accorcbncc with the agreement and the signing of said agrGem.ent is for sett1c1nent purposes only and docs not constitute :In admission by the individual respondent that he has violated the law as alleged in the complaint. Upon consideration of the a11cgations of the complaint, and the provisions of the Rgrcement and the proposed order, the hearing examiner is of the opinion that such Ord2l" constitutes a proper disposition of this proceeding insofar as it re1ales to Earl Muntz, as an individual. Accordingly, the hearing exmniner finds that the acceptance of such agreement will be in the public interest and hereby accepts such agreement, makes the following jurisdictional findings and issues the following order; JURISDICTIONAL FINDINGS 1. The individual respondent Earl W. Muntz resides at 67 East Cedar Street, Chicago, Ill, and was president of the corporate respondent until J,muary 30 , 1957 , but is no longer an oflcer of said corporation; that, during the period he was president he , policies, and prac-formulated, directed, and controlled the acts MUNTZ TV, INC., ET AL. 119 117 Decision tices of said corporate respondent, and the respondent Ear! W. Muntc was an offcer of the corporate respondent during the time the acts and practices sct forth in the complaint are alleged to have occurred.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the individual respondent Earl W. Muntz, and the proceeding- is in the public interest. ORDER It is ordered That respondent Ear! W. Muntz an individual and re2ponclent' s repre8cntatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of television receiving sets in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist fronl: 1. Using any figure or measurement to designate or describe directly or by implication, the size of the picture tube with which television receiving sets ClJ:€ equipped which is greaterthan the horizontal measurement of the vic\vab1e area of the tube on single plane basis, unless it is conspicuously disclosed in immediate connection therewith that said figure or measure 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 measuren1ent;

2. Authorizing or permitting others to represent or placing into the hands of others means and instrunwntalities v,hereby they may represent, directly or hy implication, that the retailers selling respondents television sets are factory outlets or have any relationship to respondent other than that of buyers from respondent.

DECISION OF THE CO:\IMISSION AND ORDER TO FILE REPORT OF COMPLIAKCE Pursuant to Section :L21 of the Commis3ion s Rules of Practice, the initial decision of the hearing examiner shall, on the 15th day of July 1958, become the decision of the Commission; and, accordingly;

It is onle1wl That respondent Earl W. Muntz, as an individual shall within sixty (GO) days after service upon him of this order file ,,'ith the Commission a report in writing setting forth in detail the manner and form in which he has complied with the order to cease and desist.

120 FEDBRAL TRADE COMMISSIOK nBCISIONS Decision 55 F.