Sears, Roebuck and Co.

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IN THE MATTER OF SEARS, ROEBUCK AND CO.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION Of' THE FEDERAL TRADE COMMISSION ACT lJocket 70Ri. CO?i1p/oiut, Mell' .4, 1,958-Dccisi(!H , J111)j 2.4, 1958 Consent order requiring a general rneJ' handjse sales corporation to cease representing falsely through its door-la-door salesmen, furnishc"d by it with a "canned sales talk" and sales kit, that such salesmen were publicity agents promoting a " Family Educational Plo;;lam " seeking to enlist Cooperative Sponsors" to whom thc:y were making a special offer of its 20-volume "American People s Encyclopedia" and its l(j-volume " The Children s Hour " at reduced prices, together with a lO-year research service and a coffee table; and that the ofrer was Jimited to the single interview.

Mr. Terml A. Jonlun for the Commission. ML J. F. Cle(f, of Chicago, Ill. , for respondent. INITIAl" DECISION BY ABNER E. LIPSCOMB, HEARING EXAMINER The complaint herein was issued on March /1 , 1958, charging Respondent with violation of the Federal Trade Commission Act through the use by its salesmen of false, misleading and deceptive statements and representations in offering for sale anu selling Respondent's merchandise, including sets of books designated as the American People s Encyclopedia and as The Children lIour.

Thereafter, on May 20, 1958, Respondent, its counsel, ami counsel supporting the complaint herein entered into an Agreement Containing Consent Order to Cease and Desist, ,which was approved by the director and an assistant director of the Commission s Bureau of Litigation, and thereafter submitted to the hearing examiner for consideration.

The agreement identifies Respondent Sears, Roebuck and Co. as a New York corporation, with its offce and principal place of business located at 925 South Homan A venue, Chicago 7, Ill. 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.

Respondent waives any further procedure before the hearing examiner and the Commission; the making of findings of fact or FEDERAL TRADE COMMISSION DECISIO!-S Decision 55 F.

conclusions of law; and all of the rights it may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. All parties agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as coniained in the agreement, when it shall have become a part of the decision of the Commission, shall have the same force and effect as if entered after a full hearing, and may be altcrcd, modified or set aside in the manner provided for other orders; that the complaint herein may be used in construing the terms of said order; and that the agreement is for settement purposes only, and does not constitute an admission by the Respondent that it has violated the law as alleged in the complaint. Having considered the allegations of the complaint and the provisions of the agreement and the proposed order, the hearing examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance \with the terms of the aforesaid agreement, the hearing examiner accepts the Agreement Containing Consent Order to Cease and Desist; finds that the Commission has jurisdiction over the Respondent and over its acts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore It is OJdel'ed That the respondent Scars, Hoebuck and Co. , a corporation, and its offcers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of books or other articles of merchandise when sold in combination therewith, in commerce, as " COmlllerCC" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or indirectly, that: 1. Respondent's agents, representatives or employees representing it ill the sale of said books or merchandise have any status other than that which they have in fact. 2. Purchasers of said books or merchandise will receive an organized course of instruction in any subject or subjects unless such is the fact.

3. Respondent's principal purpose is to enlist persons to publicize said books or merchandise when respondent' s principal purpose is to sell said books or merchandise. 4. Any offer to sell said books or merchandise to a designated SEARS, ROEBUCK AND CO. 149 147 Decision group or class of buyers is special to or restricted to such buyers when such offer is made generally to all purchasers at the same price and on the same terms and conditions. 5. Any offer of premiums or benefits made to a designated group or class of buyers of said books or merchandise is special to or restricted to such buyers when such offer is made generally to all purchasers.

6. Said books or merchandise are offered at reduced prices or at any specified amount of savings from respondent' s usual and customary selling prices when the prices and terms at which they are offered for sale and sold constitute respondent's usual and customary selling prices and terms for such books or merchandise.

7. Any offer to sell said books or merchandise is limited or otherwise restricted as t.o time or availability unless such is the fact.

DECISION OF THE CQ11MISSION AXD ORDER TO FILE RF,PORT OF COMPLIANCE Pursuant to Section 3. 21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 24th day of July 1958 , become the decision of the Commission; and, accordingly:

It is onle1'Cl That respondent Sears, Roebuck and Co. , a corporation, shall, within sixty (60) days after service upon it of this order, TIe 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 55 F.