Infraglass Heater Company, Inc., et al.

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IN THE MATTER OF INFRA GLASS HEATEH COMPANY , I!\C., ET AL. CONSENT UlmER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF TJ-n: FF.DEHAL TRADE COMMISSION ACT Docket. 7080, CO/Jplaint, Mm 4, 1958- IJeci8ioll flily 1058 Consent order requiring- Pontiac, Mich., distributors of electric heaters to cease representing falsely in ' writtt' D guarantees inserted with their products and in nc\Vspapcrs and magazines of general circulation, that they guaranteed their products for normal usage for five years when, in a vast number of instances, they refused to replace, repair, or make adjustments for breakngc or defects growing out of normal use of the heaters. !vf1. Alvin D. Edelson for the Commission. Respondents, for themselves.

INITIAL DECISION BY LOREN H. LAUGHLIN , HEARING EXAMI:-ER The Federal Tracie Commission (sometimes also hereinafter referred to as the Commission) issued its complaint herein charging the above-named respondents with having violated the provisions of the Federal Trade Commission Act in certain particulars.

On May 8, 1958, there was submitted to the undersigned hearing examiner of the Commission for his consideration and approval an "Agreement Containing Consent Order to Cease and Desist " which had been entered into by and between respondents and the attorney for the Commission, under elate of May , 1958, subject to the approval of the Bureau of Litigation of the Commission, which had subsequently duly approved the same. On due consideration of such agreement, the hearing examiner finds that said agreement, both in form and in content, is in accord with S3. 25 of the Commission s Hules of Practice for Adjudicative Proceedings, and that by said agreement the parties have specifically agreed to the following matters: 1. Respondent Infraglass Heater Company, Inc., is a corporation organized and existing under and by virtue of the la\vs of the State of Michigan with its offce and principal place of business located at 350 South Sanford Street, Pontiac, Mich. The individual respondents Donald J. Heckmann, Henry Schuricht and l'lartin Goldman are president, vice president and treasurer, respectively, of the corporate respondent and maintain IKFRAGLASS HEATER COMPA:\Y, INC., ET AL. 125 124 Decision business addresses at the same address as the corporate respondent. 2. Pursuant to the provisions of the Federal Trade Commission Act, the Commission, on March 4, 1958, issued its complaint in this proceeding against respondents, and a true copy was thereafter duly served on respondents.

3. Respondents admit all the .iurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of .iurisdictional facts had been duly made in accordance with such allcgations.

4. It is rccommcnded that the complaint be dismissed as to vVhizzer Industries, Inc. , a corporation, Deitrich Kohlsaat, individually and as an offcer of Whizzer Industries, Inc. , and Henry Schuricht and :Hartin Goldman in their capacity as offcers of Whizzer Industries, Inc. , for reasons set forth in the affdavit attached herewith. If this recommendation is adopted, the agreement then 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 agreement.

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

7. This agreement shall not become a part of the official record unless and until it hecomes a part of the decision of the Commission. 8. This agreement is for settement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint. 9. The follmving order to cease and desist may be entcrcd in this proceeding by the Commission without further notice respondents. When so entered it shall have the same force and effect as if entered after a full hearing. It may be altered, modified or set aside in the manner provided for other orders. Upon due consideration of the complaint filed herein and the said "Agreement Containing Consent Order to Cease and Desist" and the affdavit attached thereto, said agreement is hereby approved and accepted and it and the said affdavit are ordered filed if and when said agreement shall have become a part of the Commission s decision. The hearing examiner finds from 126 FEDERAL TRADI'; COMMISSION DECISIONS Order 55 F.

the complaint and the said agreement and the affdavit attached thereto that the Commission has jurisdiction of the subject matter of this proceeding and of the persons of each of the respondents herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act against each of the respondents, both generally and in each of the particulars alleged therein; that this proceeding is in the interest of the public; that the recommendation in paragraph 4 of the agreement that the complaint be dismissed as to respondents Whizzer Industries. Inc. , a corporation, Deitrich Kohlsaat, individually, and as an offcer of \Vhizzer Industries, Inc., and Henry Schuricht and Martin Goldman in their capacity as offcers of Whizze!" Industries, Inc., is approved anrl adopted whereby the follo\ving DreIer as proposed in said agreement is appropriate for the just disposition of all of the issues in this proceeding as to all of the parties hereto; and that said order, therefore, should be and hereby is enterect as follo\vs:

ORDER It is ordered That respondents, InfragJass Heater Company, Inc. , a corporation, and its offcers, and Donald J. Heckmann Henry Schuricht and JVIartin Goldman, individually and as ofJcers of the corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device in connection with the offering for sale, sale or distribution of electric heaters 01' other merchandise in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or by implication, that their electric; heaters, or any other merchandise, is guaranteed when any provision of the guarantee is not fully complied with. 2. Representing, directly or by implication, that their electric heaters, or other merchandise, is guaranteed when there are any conditions or limitations in connection \viih such guarantee, unless such conditions and limitations are clearly set forth, It is further onlcred That the complaint herein, insofar as it relates to respond nts Whizzer Industries, Inc. , a corporation, Dietrich Kohlsaat, individually and as an officer of Whizzer Industries Inc. , and Henry Schurieht and Martin Goldman, in their capacities as offcers of Whizzer Industries, Inc., be and the same hereby , dismissed without prej udice to the right of the Commission to take such action in the future as the facts may then warrant. INFRAGLASS HEATER COMPANY, INC., ET AL. 127 124 Decision DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section ,;. 21 of the Commission 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 o1'de?' That respondents Infraglass Heater Company, Inc. , a corporation, and Donald J. Heckman, Henry Schuricht, and Martin Goldman, individually, and as offcers of said corporation, shall, within sixty (GO) 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.

128 FE:DERAL TRADE COMMISSION DECISIONS Decision 55 F.