La Belle Silver Company, Inc.

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

IN THE l\IA TTER OF LA BELLE SILVER Camp ANY, INC., ET AL.

CONSENT ORDER, ETC.. IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 70S1. ComlJlaint, Jan. 14, 1958-Decision, Oct. H. 1958 Consent order requiring a manufacturer of small electrical appliances in Glendale, L. , N. , to cease representing- false~y in advertising matter and on labels, price tags, and cartons disseminated for use in the retail sale of its percolators and blenders, that grossly exaggerated prices were the retail felling prices, th::-.t certain of their percolators were trimmed in 24 karat "Warranted Gold Plate " and-through prominent use of the words "General Electric that its said products were manufactured by the General Electric Company.

A n~es Tifl. TFilliarns supporting the complaint. Lillian L. Poses of New York, N. , for respondents. INITIAL DECISION BY JOHN B. POINDEXTER HEARING EXAMINER On January 14, 1958, the Federal Trade Commission issued a complaint alleging that La Belle Silver Company, Inc., a corporation Simon Cantor Armand Weinberger Eugene Singer, and Harry 01'01, individually and as officers of said corporation, hereinafter referred to as respondents, had violated the provisions of the Federal Trade Commission Act by making false, misleading and deceptive statements and representations concerning their products, small electrical appliances, including percolators and blenders, ",which they manufacture and offer for sale. After issuance and service of the complaint, the respondents their counsel, and counsel supporting the complaint entered into an agreement for a consent order. The order disposes of the matters complained about. The agreement has been approved by the director and assistant director of the Bureau of Litigation. 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 of the decision of the Commission; the record herein shall consist solely of the LA BELLE SILVER COMPANY, INC., ET AL. 555 554 Order complaint and the agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of la-w; respondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement and the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the la\v as alleged in the complaint.

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

JURISDICTIONAL FINDINGS 1. Respondent La Belle Silver Company, Inc., is a corporation existing and doing .business under and by virtue of the laws of the State of New York, with its office and principal place of business located at Cooper A venue and 80th Street, Glendale, Long Island, N.

2. Respondents Simon Cantor Armand Weinberger Eugene Singer, and Harry Orol are individuals and officers of the said corporate respondent, serving respectively as president, vice president, treasurer and secretary, with their office and principal place of business located at the same place as that of the corporate respondent.

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 It is ordered That respondents, La Belle Silver Company, Inc. a corporation, and its officers, and Simon Cantor, Armand Weinberger, Eugene Singer, and Harry Orol individually and as officers of said corporation, and respondents' agents representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of small electrical appliances, including percolators or blenders, or any other products, in commerce as "commerce Decision 55 F.

is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or indirectly: (a) That any stated price, which is in excess of the price at which such products are regularly and usually sold at retail, is the retail price of such products.

(b) That merchandise is gold plated, unless it has a surface plating of gold or gold alloy applied by a mechanical process provided, however, that a product or part thereof, on which there has been affixed by an electrolytic process a coating of gold, or a gold alloy of not less than 10 karat fineness, the minimum thickness of which is equivalent to seven one-millionths of an inch of fine gold, may be marked or described as gold electroplate or gold electroplated.

2. Using the name of any company in connection with merchandise which has not been manufactured in its entirety by said company; or representing, directly or indirectly; that merchandise not manufactured in its entirety by a specified company, \vas so manufactured, provided, however, that this prohibition shall not be construed as preventing a truthful statement that a part of an article of merchandise has been manufactured by a specific company when such part is clearly and conspicuously identified. 3. Furnishing means or instrumentalities to retailers, distributors or others by or through \which they may mislead the public with respect to any of the matters set out in the paragraphs above. DECISION OF THE COM MISSION 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 14th day of October 1958, become the decision of the Commission; and, accordingly:

It is oTClered That the respondents herein 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.

RICH' , INC. 557 Decision