B & C Distributors Co.

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

IN THE MATTER OF B & C DISTRIBUTORS CO. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT , Nov. , 1958 Docket 7077. Co-mplaint, Feb. 28, 1958-Decisioll- Consent order requiring two associated distributors of radio and television tubes, principally tD jobbers, to disclose clearly on cartons, in advertising, invoicing and shipping memoranda, when the tubes they sold were used pull-outs, factory rejects, or J AN surplus. The proceeding as to the remaining individual respondent was disposed of by order with the same provisions on Dec. 13, 1958, p. 866 herein. MT. Kent P. KTatz for the Commission. BTenman and Susser by MT. Herbert Susse1' of Paterson, N. for all respondents except Edward Chernela. INITIAL DECISION AS TO ALL RESPONDENTS EXCEPT EDWARD CHERNELA BY J. EARL Cox, HEARING EXAMINER The complaint charges respondents with failure to disclose the true nature of the used, pullout, factory reject and J AN surplus radio and television tubes which they sell and distribute in commerce, thereby misleading and deceiving the public into the erroneous belief that such tubes are unused, new, and first quality tubes, in violation of the provisions of the Federal Trade Commission Act.

After the issuance of the complaint, all respondents except Edward Chernela, their counsel, and counsel supporting the complaint 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 transmitted to the hearing examiner for consideration. C Distributors Co. The agreement identifies respondents B & and Revere Labs., Inc., as New Jersey corporations, with their office and principal place of business located at 840 Main Street Paterson, N. , and individual respondents Philip L. Bornstein respectively, of and Celia Bornstein as president and secretary, each of said corporations, and having the same address, The agreement provides, among other things, that respondents admit all the jurisdictional facts alleged in the complaint, and agree that the record may be taken as if findings of jurisdictional Order 55 F.

facts had been duly made in accordance with such allegations; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement; that the agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission; that the complaint may be used in construing the terms of the order agreed upon, which may altered, modified or set aside in the manner provided for other orders; that the agreement is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint; and that the order set forth in the agreement and hereinafter included in this decision shall have the same force and effect as if entered after a full hearing.

Respondents waive any further procedural steps before the hearing examiner and the Commission, the making of findings of fact or conclusions of law, and all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agre~ment. The order agreed upon fully disposes of all the issues raised in the complaint as to the respondents signatory to said agreement, and adequately prohibits as to them the acts and practices charged as being in violation of the Federal Trade Cori1mission Act. Accordingly, the hearing examiner accepts the agreement containing consent order to cease and desist as part of the record upon which this decision is based.

After consideration of the entire record herein, the hearing examiner finds this proceeding to be in the public interest. Therefore, It is ordel'ed That respondents B & C Distributors Co. a corporation, Revere Labs., Inc., a corporation, and their officers and Philip L. Bornstein and Celia Bornstein, individually and as officers of said corporations, 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 television or radio tubes in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Selling, offering for sale, or distributing used, pullouts, factory rejects or JAN surplus radio or television tubes without clearly disclosing on the tubes or on individual cartons in which each tube is packaged when sold this way, and in advertising, B & C DISTRIBUTORS CO., ET AL. 743 741 Decision invoices and shipping memoranda that they are used, pullouts factory rejects, or J AN surplus tubes as the case may be; 2. Selling, offering for sale, or distributing any radio or television tube which is not new or first quality without clearly and conspicuously disclosing that fact on the tube or the individual carton in which such tube is packaged when sold this way, and in advertising, invoices and shipping memoranda. 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 18th day of November 1958, become the decision of the Commission; and, accordingly:

It is ordered That respondents B & C Distributors Co., corporation, Revere Labs. , Inc. , a corporation, and their officers and Philip L. Bornstein and Celia Bornstein, individually and as officers of said corporations, 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. Decision 55 F.