Howe Sewing Centers, Inc.

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IN THE MATTER OF HOWE SEWING CENTERS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7156. Co111,pla,i;'1,t, May 1958-Decision, Oct. , 1958 Consent order requiring sellers in St. Paul, Minn., to cease using bait advertising to sell rebuilt sewing machines and vacuum cleaners, representing falsely that such products were guarantee€d in writing, and representing fictitiously high prices as regular retail prices. M'J' . Chal'les W. O' Connell supporting the complaint. Mr. Jack L. Prescott of Minneapolis, Minn., for respondents. INITIAL DECISION BY JOHN B. POINDEXTER HEARING EXAMINER On May 26, 1958, the Federal Trade Commission issued a complaint alleging that Howe Sewing Centers, Inc. , a corporation, Royal Appliance Stores, Inc., a corporation, Joseph B. Peters, Jack L. Prescott, Thomas S. Peters, and Emogene Peters individually and as officers of said corporations, had violated the provisions of the Federal Trade Commission Act by making false and misleading representations by. means of radio broadcasts advertisements in newspapers and statements on postcards sent through the United States mails, in connection with the sale and distribution of sewing machines and vaCUUlll cleaners. After issuance and service of the complaint, the respondents Howe Sewing Centers, Inc., Royal Appliance Stores, Inc., Joseph B. Peters, individually and as an officer of said corporations and Jack L. Prescott Thomas S. Peters, and Emogene Peters individually, hereinafter referred to as respondents, their attorney and counsel supporting the complaint, entered into an agreement for a consent order. It was agreed that the complaint be dismissed as to Jack L. Prescott, Thomas S. Peters and Emogene Peters as officers of said corporations since neither is an officer of either of said corporations.

The pertinent provisions of said agreement are as follows: Respondents admit 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 the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part 'I;

HOWE SEWING CENTERS, INC., ET AL. 539 538 Order shall consist the decision of the Commission; the record herein solely of the complaint and the agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of law; respondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in other orders; respondents the manner provided by statute for waive any right to challenge or contest the validity of the order entered in accordance with the agreement and the signing of said agreen1ent is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

The undersigned hearing examiner having considered the agreeopinion that the ac- ment and proposed order and being of the ceptance thereof will be in the public interest, hereby accepts jurisdictional findings, and such agreement, makes the following issues the following order:

JURISDICTIONAL FINDINGS 1. Respondents Howe Sewing Centers, Inc., and Royal Appliance Stores, Inc., are corporations organized, existing and doing business under and by virtue of the laws of the State of Minnesota, with their office and place of business located at 2705 Highway 55, St. Paul, Minn. The former address of said corporate respondents was 919 Rice Street, St. Paul, Minn. 2. The office and place of business of Joseph B. Peters, presently secretary and treasurer of said corporations, and Emogene Peters are the same as that of the corporate respondents. The present business address of Jack L. Prescott is 3402 University address of respondent A venue SE, Minneapolis, Minn., and the Thomas S. Peters is 1075 Glenhill Road, St. Paul, ~1:inn. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER , Inc. , a It is oTdwred That respondents Howe Sewing Centers , Inc. , a corporation, and its officers, and Royal Appliance Stores individually corporation, and its officers, and Joseph B. Peters, and as an officer of said corporations, Jack L. Prescott, Thomas , individually, and respondents S. Peters, and Emogene Peters through any representatives, agents and employees, directly or Decision 55 F.

corporate or other device, in connection with the offering for sale, sale or distribution of sewing machines and vacuum cleaners or other merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or indirectly: 1. That certain merchandise is offered for sale when such offer is not a bona fide offer to sell the merchandise so offered. 2. That any 111erchandise sold or offered for sale by respondents is guaranteed unless guarantees are furnished and unless the nature and extent of the guarantee and the manner in which respondents will perform thereunder are clearly set forth in the guarantee and in the advertising.

3. That any amount is respondents ' retail price of merchandise when such amount is in excess of the price at which such merchandise is regularly and usally sold by respondents at retail. It is further on/ereel That the complaint herein be dismissed as to Jack L. Prescott Thomas S. Peters, and Emogene Peters as officers of said corporations.

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 8th day of October 1958 , become the decision of the Commission; and, accordingly:

It is ordered That the respondents Howe Sewing Centers, Inc. a corporation and its officers, and Royal Appliance Stores, Inc. a corporation, and its officers, and Joseph B. Peters, individually and as an offieer of said corporations, Jack L. Prescott, Thomas S. Peters, and Emogene Peters, individually, 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 cease and desist.

/ ROYAL JEWELRY CO. 541 Findings