Busch & Sons Jewelers, Inc.

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IN THE MATTER OF BUSCH & SONS JEWELERS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7199. Complaint, July 1958-Decision, Nov. 18, 1958 Consent order requiring two associated jewelry retailers, one with two stores located in Newark and Summit, N. , respectively, and the other with two in Dallas and Abilene, Tex", to cease representing falsely in advertising in newspapers that they offered for sale smuggled diamonds purchased from the Government at 15 % above the price paid, including individual diamonds of weights set forth in the three-column list in the advertisements; facts being the diamonds bought from the Government were a bulk lot and no particular amount was paid for any particular diamond, and many of the individual diamonds of the weights set out were not included in the lot purchased from the Government. Mr. S. F. House for the Commission. No appearance for respondents.

INITIAL DECISION BY WILLIAM L. PACK , HEARING EXAMINER The complaint in this matter charges the respondents with making certain misrepresentations in connection with the sale diamonds to the public. An agreement has now been entered into by respondents and counsel supporting the complaint which provides, among other things, that 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 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 sanle force and effect as if entered after a full hearing, respondents specifically \vaiving 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 may 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 respondents that they have violated the law as alleged in the complaint. Order 55 F.

The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional finds made and the following order issued:

1. Respondent Busch & Sons Jewelers, Inc., is a corporation organized, existing, and doing business under and by virtue the laws of the State of New Jersey, with its office and principal place of business located at 875 Broad Street, Newark, N. Respondent Busch & Sons of Texas, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Texas, with its office and principal place of business located at 1707 Main Street, Dallas, Tex. Individual respondents George J. Busch, Jr., and Raymond F. Sargent are officers of both corporations. Their address is 875 Broad Street, Newark, N.

2. 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 Busch & Sons Jewelers, Inc. a corporation, Busch & Sons of Texas, Inc. , a corporation, and their officers and George J. Busch, Jr., and Raymond F. Sargent individually and as officers of said corporations, and respondents agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of diamonds or other articles of merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication:

1. That merchandise offered for sale has been purchased by respondents at a certain E',tated pnce or for certain stated amounts, unless such is the fact.

2. That any specific article of merchandise offered for sale was acquired by respondents as a result of a certain described purchase or from a certain stated source, unless such:t is the fact. 3. That merchandise is offered for sale at a certain stated percentage or amount above the purchase price, unless such is the fact.

BUSCH & SONS JEWELERS, INC., ET AL. 751 749 De-cision 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 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.

Decision 55 F.