Ra Yco Manufacturing Company, Inc.

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

IN THE lVIATTER OF RA YCO MANUFACTURING COMPANY, INC., ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COML\IlSSION ACT Docket 7101. Co'lIIplaint, Ma' 1958-Dec-i::;z, Scpt. 1958 Consent order requiring manufacturers in Patterson, N.J" to cease representing falsely in advertising materials furnished to retail stores for their use and in advertisements in newspapers. by radio, television, etc., that their auto seat covers and tops had been awarded the Fashion Academy seal for beauty and styling and the U.S. Testing seal for durability; that exaggerated fictitious prices were their regular prices; that their franchised retail dealers were having a "Close-Out" of 4 000 sets of seat covers at sacrifice prices; that their ready-made products were "custom fitted" for the individual buyer; and that purchasers of their convertible tops received the complete top for the advertised price, Mr. lIfichael J. Vitale for the Commission. 1111". Joseph L. l(elin of New York, N. , for respondents. INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER The complaint in this matter charges the respondents with violation of the Federal Trade Commission Act through the making of certain representations in connection with automobile seat covers and convertible tops sold by them. An agreement providing for disposition of the proceeding by means of a consent order has now been entered into by respondents Rayco l\1manufacturing Company, Inc., Joseph Weiss and Julius Stern and their attorney and counsel supporting the c.complaint. The agreement contemplates dismissal of the complaint as to respondent Burton B. Weiner, and the term "respondents" as used hereinafter will not include this individual.

The agreement provides, among other things, that all of said respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered RA YCO MANUFACTURING COMPANY, INC., ET AL. 293 292 0 rder after a full hearing, said respondents specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified, or set aside in the manner provided for other orders of the Commission; that the complaint ll1ay be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by said respondents that they have violated the law as alleged in the complaint.

The proposed order covers all of the alleged misrepresentations charged in the complaint except one, and it appears from the agreement that this charge could not be sustained. It further appears from an affidavit attached to the agreement that dismissal of the complaint as to respondent Burton B. Weiner is proper.

The agreement and proposed order are therefore accepted, the following jurisdictional findings made, and the following order issued:

1. Respondent Rayco lVIanufacturing Company, Inc. , is a corporation, organized, existing and doing business under and by virtue of the laws of the State of New Jersey with its office and principal place of business located at 220 Straight Street, Paterson, N.J. The individual respondents, Joseph Weiss and Julius Stern, are president and secretary-treasurer, respectively, of the corporate respondent, and have the same address as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the said respondents, and the proceeding is in the public interest. ORDER It is ordered That respondent Rayco Manufacturing Company, Inc., a corporation, and its officers, and Joseph Weiss and Julius Stern, individually and as officers of said 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 automobile seat covers and convertible tops, or any other merchandise, in commerce, as commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Using the Fashion Academy Seal or representing, in any manner, that any of their products had been awarded said seal or an award, by Fashion Academy upon the basis of a contest 2~4 FEDERAL TRADE COMMISSION DECISIONS Order 55 F.

ill which respondents' products, or any of them, and competitive I-'fuducts had been judged.

:~. Using the U.S. Testing Company Seal in such a manner (;t~ indicating that any of their products had been found to be of greater durability than competitive products by U. S. Testing Company, or representing in any other manner that the U.S. Testillg Company had found that their products, or any of them, were nature durable than competitive products, unless such is the fact. ~. Representing, directly or by implication: ~a) That the usual and customary retail price of any of reslJondents' products is in excess of the price at "which such products are regularly and customarily sold by respondents or their fI'anchised dealers in their usual course of business. (b) That the retail price of a product has been reduced, unless it is a reduction from the price at which this product had been regularly and customarily sold by respondents or their franchised dealers.

(c) That any of respondents' franchised dealers had 4 000 seat covers on hand at a particular time; or misrepresenting the number of seat covers, or any other product, that may be on hand at a particular time.

(d) That the purchasers of respondents' convertible tops receive a complete top for the advertised price, including rear \vindow and curtain, unless such is the fact. It 1~S jurthe1' o1'Clerecl That the complaint insofar as it relates to respondent Burton B. '~l einer and to the charge concerning the words "custom fitted, " set out in subparagraph (e) of paragraph 6, be, and the same hereby is, dismissed. 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 day of September 1958, become the decision of the Commission; and, accordingly:

It is o1'dered That respondents Rayco Nlanufacturing Company, Inc., a corporation, and Joseph Weiss and Julius Stern, individually and as officers of said corporation, shall, within sixty (60) 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.

MASTER FURRIERS, INC" ET AL. 295 Decision