Sydco Industries, Inc.

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I N THE MATTER OF SYDCa INDUSTRIES, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7030. Complaint, Jan. 1J,., 1958-Decision, Oct. , 1958 Consent order requiring a jobber in New York City of small household electrical appliances including percolators, blenders, and fryer-cookers, to cease representing falsely in advertising matter, on labels, price tags and imprinted cartons for purchasers' use in retail sale, that exaggerated and fictitious prices were the usual retail selling prices; through use of the Good Housekeeping seal, that certain of their appliances had been approved or guaranteed by Good Housekeeping Magazine; through prominent use of the names "General Electric" and "Westinghouse " that certain of their products were manufactured by those companies; that their said appliances had been advertised in Life Magazine; and that their percolators and blenders were trimmed in 24 karat "Warranted Gold Plate.

Mr. A'fnes W. JiJ'ill'iams supporting the complaint. JWr. l'do?'Tis Rosenzweig, 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 Sydco Industries, Inc., a corporation, Morton Springer, Sam Springer, and Syd Springer, 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 household electrical applicances, including percolators, blenders and fryercookers.

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 complClined about. The agreement has been approved by the director and acting assistant director of the Bureau of Litigation.

The pertinent provisions of said agreement are as follo,vs: 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 Order 55 F.

the decision of the Commission; the record herein shall consist 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 lavl; respondents waive further procedural steps before the hearing examiner and the COlnmission 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 law 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 t.he public interest., hereby accepts such agreement, makes the following j urisdidional findings, and issues the following order:

JURISDICTIONAL FINDINGS 1. Respondent Sydco Industries, 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 622 Broadway, New York, N.

2. Respondents Morton Springer, Sam Springer, and Syd Springer are individuals and officers of the said corporate respondent, serving respectively as president, vice president 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 Sydco Industries, Inc. , a corporation, and its officers, and l\10rton Springer, Sam Springer, and Syd Springer, 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 household electrical appliances including percolators, blenders and fryer-cook- SYDCO INDUSTRIES, INC., ET AL. 609 607 Order ers, or any other products in commerce, as "com1l1erce" 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 their merchandise has been advertised in Good Housekeeping Magazine; or has been advertised in any other 111agazine or publication, unless such is the fact. (c) That merchandise is gold plated, unless it has a surface plating of gold or gold alloy applied by a mechanical process provided, ho\vever, 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 Good Housekeeping seal of approval in connection with their merchandise; or representing in any manner that their merchandise has been awarded said seal of approval, or that their merchandise has been approved by any other group or organization, unless such is the fact, provided, however, that this prohibition shall not be construed as prohibiting a truthful statement that a part of an article of merchandise has been approved by a group or organization, when such part is clearly and conspicuously identified.

3. Using the name of any company in connection 'with merchandise ,which has not been n1anufactured in its entirety by said company; or representing, directly or indirectly, that merchandise not manufactured in its entirety by a specified company, was so manufact.ured, provided, however, that this prohibition shall not be construed as prohibiting 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.

4. Furnishing means or instrumentalities to retailers, distributors or others by or through 'which they may mislead the public with respect to any of the matter set out in paragraphs 1 , 2, and 3 above.

Decision 55 F.

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 18th day of October 1958 become the decision of the Commission; and, accordingly, It is ordered 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.

CHINOOK PACKING COMPANY ET AL. 611 Complaint