Sam Schneider

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In tye Marver or SAM SCHNEIDER ET AL. DOING BUSINESS AS CONTINENTAL SALES & SEWING MACHINE COMPANY CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7405. Complaint, Feb. 13, 1959—Decision, July 9, 1939 ‘Consent order requiring Brooklyn, N.Y., distributors of vacuum cleaners and sewing machines to cease representing fictitious and excessive amounts as regular retail prices in advertising and in instruction booklets, and to cease advertising their products falsely as covered by “Lifetime Service Insurance Policy,” ‘“Tswenty-Five Year Guarantee Bond,” etc. Mr. Michael J. Vitale for the Commission. Mr. Sidney Kane, of New York, N.Y., for respondents. ‘Inrrrau Decision py Evererr F. Haycorarr, Heartne Examiner On February 13, 1959, the Federal Trade Commission issued its complaint against the above-named respondents charging them with violating the provisions of the Federal Trade Commission Act in connection with the sale of vacuum cleaners and sewing machines. On May 11, 1959, the respondents and their attorney and counsel supporting the complaint entered into an agreement containing con- ‘sent order to cease and desist in accordance with Section 3.25(a) of the Rules of Practice and Procedure of the Commission. Under the foregoing 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 shall have the same force and effect. as if entered after a full hearing. The agreement includes a ‘waiver by the respondents of all rights to challenge or contest the CONTINENTAL SALES & SEWING MACHINE CO. 37 36 Order validity of the order issuing in accordance therewith; and recites that, the said agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission, and that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the Jaw as alleged in the complaint. The hearing examiner finds that the content of the said agreement meets all the requirements of Section 8.25(b) of the Rules of Practice. 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 as to all parties, 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:

1. Respondents, Sam Schneider and Dorothy Schneider, are copartners trading and doing business as Continental Sales & Sewing Machine Company, with their office and principal place of business located at 74 Throop Avenue, Brooklyn, New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act, and this proceeding is in the imterest. of the public.

ORDER /t is ordered, That respondents Sam Schneider and Dorothy Schneider, individually and as co-partners, trading and doing business as Continental Sales & Sewing Machine Company, or trading and doing business under any other name or names, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of vacuum cleaners. sewing machines or any other 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: (a) That any price is the usual and regular retail price of merchandise when it is in excess of the price at which said merchandise is usually and regularly sold at. retail in the normal course of business ;

(b) That any merchandise sold or offered for sale is guaranteed, Decision 56 F.T.C.

unless the nature and extent of the guarantee and the manner in which the guarantor will perform thereunder are clearly and conspicuously disclosed ;

(c) That any product is guaranteed when a service charge is made in connection therewith unless such fact and the amount of such charge is clearly set forth;

(d) That any merchandise sold or offered for sale is covered by any kind of a service insurance policy or bond. 2. Placing in the hands of others, means or instrumentalities which may be used to misrepresent the regular and usual retail prices of merchandise.

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 9th day of July, 1959, become the decision of the Commission; and, accordingly: It is ordered, That the 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.