Concord Radio Corporation

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

IN THE MATTER OF CONCORD RADIO CORPORATION ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7097. Complaint, Mat. 27, 1958-Decision, Dec. 2, 1958 Consent order requiring two affiliated mail order distributors of electronic equipment in New York City to cease advertising falsely as "BRAND NEW" television and radio tubes which contained used envelopes or shells, and to make adequate disclosure on cartons, tubes, invoices, or shipping memoranda when such tubes were Government surplus or contained used parts.

Mr. Harold A. Kennedy and Mr. Thomas F. Howder for the Commission.

TTause, Saltzl1Lan, LesseT Pell?nan New York, N. , by MT. Daniel D. Tl'cause for respondents. INITIAL DECISION BY EARL J. KOLB, HEARING EXAMINER The complaint in this proceeding issued March 27, 1958, charges the respondents with violation of the Federal Trade Commission Act in the sale and distribution of television and radio tubes parts and other electronic equipment by mail order and otherwise. Respondent Concord Radio Corporation is a corporation organized and existing under the laws of the State of New York with its office and place of business located at 45 Warren Street New York, N. Y.

Respondent William Abramowitz, individually and as an officer of said corporation, maintains his office at the same address as the corporate respondent. Said individual respondent also does business under the name of Fay- Bill Distributing Co. sole proprietorship, at 418 Broome Street New York, N. Y. Respondent Theodore Black, individually and as an officer of Concord Radio Corporation, had his office at the same address as the corporate respondent.

After the issuance of the complaint, said respondents entered into an agreement containing consent order to cease and desist with counsel in support of the complaint disposing of all the issues as to all parties in this proceeding, except the charges relating to the advertising of their products as "first quality and the failure to disclose that some of their products are factory Decision 55 F.

seconds or rejects for the reason that on the basis of the now available evidence it appears that these charges cannot be sustained.

Attached to and made a part of said agreement was an affidavit of respondent Theodore Black to the effect that he was a former officer and director of said corporation, but severed his connection with said corporation in November 1957, having resigned as said officer and director, and since that time has had nothing to with the formulation, direction or control of its policies, practices or acts. The agreement contemplates dismissal of the complaint as to respondent Theodore Black, and the term "respondents as used hereinafter will not include this individual. Said agreement was duly approved by the director and assistant director of the Bureau of Litigation. It was expressly provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the law alleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional facts alleged in the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. By said agreement, the respondents expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement.

Respondents further agreed that the order to cease and desist issued in accordance with said agreement, shall have .the same force and effect as if made after a full hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that said order may altered, modified or set aside in the manner prescribed by the statute for orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered filed upon CONCORD RADIO CORPORATION ET AL. 801 799 Decision becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and, in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, that this proceeding is in the interest of the public, and issues the following order:

ORDER It is onlered That Concord Radio Corporation, a corporation and its officers, and William Abramowitz, individually and an officer of said corporation, and as an individual doing business as Fay-Bill Distributing Co., or under any other name, and their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of receiving tubes and cathode-ray or picture tubes in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthv/ith cease and desist from:

1. Representing directly or by implic.ation that said products are new or brand new unless such is the fact; 2. Failing to disclose in advertising, on invoices or packing slips, on the cartons in which the products are packaged and on the products themselves that they are J AN, VT, or other government surplus, or that they contain a used part or parts when such is the fact.

It is .further onlered That the complaint herein be, and the same is, dismissed as to respondent Theodore Bla~k and as the charge relating to the sale of used and factory seconds or rejects as "first quality" tubes and the failure to reveal said fact.

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 2cl day of December 1958, become the decision of the Commission; and, accordingly:

It is ordered That Concord Radio Corporation, a corporation and William Abramo\vitz, individually and as an officer of said Bill Distributing Co. shallcorporation and doing business as Fay- Decision 55 F.

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.

ZOYSIA FARM NURSERIES, INC., ET AL. 803 Decision