1. G. Chemical Corp.

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

IN THE MATTER OF 1. G. CHEMICAL CORP., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FF.DERAL TRADJ: COMMISSION ACT Dockd 7277. CO/lplaint, Oct. 14, lrJ51:-necisiolt, A))r. :28 , 1959 sent order requiring- New York City distributors to cease representing' falsely in advcl'ti ing that their " Green Plasma" chemical dye for Jawnswhich sunli ght would bleach and rain wash out--had been tested and approved by the Cnitcd Stales Government and llsed on the United States Capitol and "\'white House lawns to restore and maintain a grcen color; that only occasional sjlrinklings with the preparation would keep a lawn green all year; thrt it was a new scientific d:scovery, in scarce supply, a plant food and fertilizer; and that prospective purchasers would receive a free trial of the product.

M1' Gnr/nnrl S. Ferguson supporting the complaint. AIT. Milton A. Bass of Bn"s ,end Friend of New York for respondents.

INITIAL DECISION BY JOSEPH CALLAWAY, HEARING EXAMIKER The Federal Trade Commission issued its complaint on October 14 1a58 charging the above-named respondents with violation of the Federal Tn de Commission Act by making deceptive and misleading statements with respect to their product Green Plasma " a chemical preparation for lawns. After being served with the complaint respondents entered into an agreement, dated Febnwry 17, 1959 , containing a consent order to cease and desist, disposing of all the issues in this proceeding, which agreement has been duly approved by the director and assistant director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordaI1:e with Section ;;. 25 of the Rules of Practice of the Commission.

Hespondents, pursuant to the aforesaid ag-reement, have admilled all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of .i urisdicbonal facts had been made duly in accordance with such allegations. Said agreement further provides that respondents waive all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclu- I. G. CHEMICAL CORP., ET AI.. 1711 1710 Order sions of law and the right to challenge or contest the validity of the order to cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, that the agreement shall not become a part of the offcial record unless and until it becomes a part of the decision of the Commission that said agreement is for settement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint, that said order to cease and desist shall have the same force and effect as if entered after , or set aside in thea full hearing and may be altered, modified manner provided for other orders, and that the complaint may be used in construing the terms of the order. This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order, and it appearing that the order and agreement covcr all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered filed upon this decision and said agreement becoming part of the Commission s decision pursuant to Sections 3.21 and 3. 25 of the Rules of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order;

1. Respondent 1. G. Chemical Corp., is a corporation existing and doing business under and by virtue of the laws of the State of New York, with j ls offce and principal place of business located at 9 East 45th Street, New York, K. 2. Individual respondents David Ratke, Herman Liebenson and Monroe Caine are offcers of said corporate respondent. They formulate, direct and control the practices of the corporate respondent. Their address is the same as that of the corporate respondent.

3. The Federal Trade Commission has jurisdiction of the subj ect matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action under the Federal Trade Commission Act. This proceeding is in the public interest. ORDER It is ordered That respondents 1. G. Chemica! Corp. , a corporation, and its offcers, and David Ratke, Herman Liebenson, and Monroe Caine, individually and as offcers of said corpora- , di- tion, and respondents' agents, representatives and employees Decision 55 F.

rectly or through any corporate or other device, in connection with the offering for sale, sale or distribution of their product Green Plasma, or any other products of substantially the same composition in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing directly or b)" implication: 1. That said product has been tested or approved by the Gnited States Government.

2. That said product has been used on the lawns of the United States Capitol or the White House to restore or maintain a green color.

3. That any number of applications of said product less than that generally required, will keep lawns green for 365 days of the year or for any other period of time. 1. That respondents' product is a new scientific discovery. 5. That respondents' product is available to purchasers in limited amounts, or is limited in certain areas, or that the Rupply of ingredients which comprise respondents' product is scarce. 6. That respondents' product brings hack or restores the original color to faded or brown grass, or that it is a plant food or an effective fertilizer.

7. That prospective purchasers receive a free trial of respondents' said product.

8. That said product gives or imparts a grecn color to faded or brown lawns unless it is clearly and conspicuously revealed that said product is a dye and that the color wil bleach out sunlight and will be washed out by rain and that, in order that the lawn \vill have a green appearance, frequent applications of the product are necessary.

DECISION OF THE COMMISSIOK AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 23d day of April 1959 , become the decision of the Commission; and, accordingly:

It is onlered That the respondents herein shall within sixty (60) days after service llpon 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.

FLEISHER FUR COMPA"Y 1713 Decision