Richard Gurney

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Tx THE MATTER OF RICHARD GliR;\EY ET AL.

TRADING AS PIOJ'iEER TIUSIN1css SERVICE CO;-SENT ORDER, ETC. , IN Rl';GARD TO THE ALLEGED VIOLATION OF THE FEDERAL TIV'.DE CO:YDItSSION ACT Docket 7341. Complaint, lJee. 2V 1958- JJ6(;i.sion May 1959 Consent order t"equiring a Council Bluffs, Iowa, real estate firm to cease making deceptive claims, in advertising and by their agents, to induce owners to list properties for sale with them and to increase their asking prices, thus assuring larger advance fees, by such representations as in the order below set forth.

for the Mr. John W. BnwkfiBld, Jr. and j'W1'. Berryman- Det'vis Commission.

Mr. Don H. Jecclcson and Mr. Rohe1' C. IIcilhoj, of Council Bluffs, la" for respondents.

INITIAL DECISION BY WAWER R. JOHNSON, HEARING EXAMINER In the complaint dated December 29, 1958, the respondents are charged with violating the provisions of the Federal Trade Commission Act.

On March 5, 1959, the respondents and their attorneys entered into an agreement with counsel in support of the complaint for a consent order.

under the agreement, the respondents admit the ,jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cease and desist order there set forth may be entered without further notice and have the same force and effect as if entered after a full hearing, and the document includcs a waiver by the respondents of al1 rights to challenge or contest the validity of the order issuing in accordance therewith, The agreement further recites that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the Jaw as aHeged in the complaint. The hearing examiner finds that the content of the agreement mcets all of the requirements of 25 (b) of the Rules of the Commission.

The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposi- PIONEER BUSINESS SERVICE 1815 18H Order bon of this proceeding as to all of the parties, the agreement is hereby accepted and it is ordered that the agreement shall not become a part of the offcial record of the proceeding unless and until it becomes a part of the decision of the Commission. The following jurisdictional findings are made and the following order issued.

1. Respondents Richard Gurney and :Vlcrle E. Wood are individuals and copartners trading as Pioneer Business Service, with their offce and principal place of business located at 30'/0 Pearl Street, in the city of Council Bluffs, State of Iowa. 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 Richard Gurney and Merle E. VV ood, individually and as copartners trading- as Pioneer Business Service, or under any other trade name or names, and respondents representatives, agents and employees, directly or ihrough any corporate or other device, in connection with the offering for sale or sale of advertising in any advertising media, or of other services and facilities in connection with the offering for sale selling, buying or exchanging of business or any other kind of property, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that: 1. Respondents h"ve available ready buyers for properties sought to be listed;

2. The property listed with or "advertised by respondents will be sold within a short period of time or at all; :;. The property is underpriced by the owner or that the asking price should be increased or that respondents can or will sell the property at the increased price;

4. Respondents will finance or assist in the financing of the purchase of the listed property;

5. The listing or advance fee paid to respondents wil be refunded if the property is not sold;

6. Respondents wi1 advertise the property of a prospective seller by any means that is not in accordanee with the facts; 7. Respondents' services wi1 culminate in the sale of the listed property.

!/ Deeision 55 F.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE The Commission having considered thc initial decision of the hearing examiner wherein he accepted an agreement containing a consent order to cease and desist executed by the respondent and counsel in support of the complaint, service of which initial decision was completed on April1G, 1959; and It appearing that the inilial decision may bc deficient in that it fails to incorporate the substance of certain pertinent provisions of the agreement of the parties;

It is onlcred That said initial decision be, and it hereby is amended by inserting between the second and third paragraphs thereof the following paragraph;

Under the agreement, the respondents admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cease and desist order there set forth may be entered without further notice and have the same force and effect as if entered after a full hearing, and the document includes a waiver by the respondents of all rights to challenge or contest the validity of the order issuing in accordance therewith. The agreement further recites that it is for settlement purposes only and does not constitute an admission by the respundents that they have violated the law as alleged in the complaint. 'is fUTtheT onle1' That the initial decision as so modified shall, on the 19th cia)' of :vr ay 1959 , become the decision of the Commission.

It is f1C,.that O?'dcred That the respondents, Richard Gnrney ancl Merle E. Wood, shall, within sixty (GO) clays after service upon them of this order, fte with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with the order contained in said initial decision. , : .

CARA VEL PRODUCTS , LTD., ET AL, 1817 Decision