J. Jacob Shannon & Company
Volume 55 · 55 F.T.C. 1897
deceptive advertisingpricing comparisonsmail order direct sales
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J. Jacob Shannon & Company, 55 F.T.C. 1897 (1959). Consumer Law Library, https://consumerlawlibrary.org/decisions/v055-0328
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IN THE MATTER OF J. JACOB SHANNON & COMPANY CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMJSSION ACT Docket 7327. C01nplai-nt, Dec. 1958-Decision, June, 19.59 Consent order requiring" a mail order merchandi:;cr in Philadelphia, Pa. , to cease advertising fictitious exaggerated amounts as "Reg. " prices for purportedly reduced items.
Mr. Harold A. Kennedy for the Commission. Mr' . Oscar Brown of Philadelphia, Pa., for respondent. INITIAL DECISION BY EVERETT F. HAYCRAFT, HEARING EXAMINER On December 9 , 1958, the Federal Trade Commission issued its complaint against the above-named respondent, charging it with the use of unfair and deceptive acts and practices and unfair methods of competition in the sale of miscellaneous merchandise in commerce in violation of the provisions of the Federal Trade Commission Act.
On April 7, 1959, the respondent, by its duly authorized ollcer and by its attorney, entered into an agreement for consent order with counsel supporting the complaint in accordance with Section 25 (a) of the Rules of Practice and Procedure of the Commission which agreement has been duly approved by the Bureau of Litigation. The hearing examiner finds that the content of the said agreement meets all the requirements of section 3. 25 (b) of said rules. It is noted that this agreement is for settement purposes only and does not constitute an admission by the respondent that it has violated the law as alleged in the complaint. This proceeding having now come on for final consideration by the hearing examiner on the complaint and the aforesaid agreement for consent order, and it appearing that said agreement provides for an appropriate disposition of this proceeding, the aforesaid agreement is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Section 3.21 of the Rules of Practice; and in consonance with the terms of said agreement, the hearing examiner makes the following jurisdictional findings and order: 1898 FEDERAL TRADE CO:\MISSION DECISIONS Decision 55 F.
1. Respondent J. Jacob Shannon & Company is a corporation existing- and doing business under and by virtue of the laws of the State of Pennsylvania, with its offce and principal place of business located at 216 North Twenty-Second Street, in the city of Philadelphia, State of Pennsylvania. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of acUon against said respondent under the Federal Trade Commission Act, and this proceeding is in the interest of the public. ORDER It is ordered That respondent J. Jacob Shannon & Company, a corporation, and its offcers, and respondent's representatives agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:
1. Representing-, directly or by implication, that respondent' rcgu1ar or usual price of any product is any amount which is in excess of the price at which respondent has usually and customarily sold such IHoduct in the recent regular course of business;
2. Representing, directly or by implication, that the value of any product is any amount which is in excess of the price at which such product is usually and customarily sold in the trade area, or areas, where the statement is made. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Hules of Practice, the initial decision of the hearing examiner shall, on the 6th day of June 1959 , become the decision of the Commission; and, accordingly:
It is or-dered That the respondent herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. SILF SKIN, INC. , E'f AL. 1899 Decision