Fawcett Publications, Inc.

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11\-' 'l' Ile J\IATTER OF FAWCETT P17BLICATIOi-S, INC., ET AL.

CONSENT ORDER, ETC., IX IllGARD TO THE ALLEGED VIOLATION OF THE FEDER"\L TR"\DE CO:TLMISSION ACT Docket 8187. Compla.int, Nov. 1960-Decision, May, 1961 Consent order requiring a New York City publisher to cease sellng reprints books from which portions of the text were deleted or for which new titles were substituted without making conspicuous disclosure when such was the case.

CO:DIl' LAIXT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the. authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Fawcett Publications, Inc., a corporation, ancl \Vilfrecl Fa,vcett and Gordon Fawcett, individually and as oficel's of said corporation, herein. alter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it Complaint 58 F.

respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: RAGRAPJI 1. R.esponclent Fawcett Publications, Inc., is a cor poration organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal place of business located at 67 ,Vest Hth Street, in the City of K ew York Kew York.

Respondents ,Vilfred Fawcett and Gordon Fawcett are individuals and offcers of said corporate respondent. and have their offce and place of business at the same a,dclress. These-individual respondents have dominant control of the advertising policies and business activities of said corporate respondent, and all of the respondents have cooperated with each other and have acted together doing the acts and things hereinafter alleged.

FAll. 2. Respondents arc no", and for more than h'\o years last past have been, engaged in calling and distributing books and causing said books, "\\"hen sold, to be transported from their place of business in the State of N ely York to purchasers thereof located in the various States of the United States and in the District of Columbia. Respondents mainta, , and at. all times mentioned herein have nmintained a substantial course of trade in said books, in commerce, as "commerce s defined in the Federal Trade Commission Act, among and between the various States of the United States and in the District of Columbia.

PAR. 3. Among the books sold by respondents, as aforesaid, are reprints of books frolll ,,-which portions of the text have been de leted. In some cases respondents do not disclose the fact that their books are abridged, while in other cases they disclose the fact of such abridgment. by printing the word "Abridged" in sma.ll, in. conspicuous letters on the front covers of sajd books. PAR. 4. The said disclosure on t.he front cover of respondents' said books that such books are abridged does not constitute adequate notice of such abridgment in that such disclosure is not noticeable to the average purchaser and is not displayed in such a manner or position to readily attract the attention of prospective purchasers. PAn. 5. R.respondents ha,ve also disseminated advertising material concerning said abridged books which contains no disclosure that the books a.re abridged, and also have published and disseminated ad vertising material concerning books for which they have substituted new or alternate titles for the original titles, without disclosing such change of title.

PAn. 6. In the course and conduct of said business, respondents have been, and are, in substantial competition in commerce with other corporations and with individuals, partnerships and others engaged in the sale of books.

FAWCETT PUBLICATIONS , INC., ET AL. 763 761 Decision PAR. 7. The respondents' said acts and practices further serve to place in the hands of dealers a means and instrumentality whereby such persoJJs may mislead the purchasing public with regard the abridgment and prior publication of the contents of respondents books.

PAR. 8. The failure of respondents to make adequate disclosure that certain of their books are abridgments and that books to which they have given new titles are not different from the books of which they are reprints has had, and now has, the tendency and capacity to lead a substantial portion of the purchasing public into the mistaken and erroneous belief that said books are complete and unabridged, or are new and original publications, and to induce a substantial portion of said public to purchase respondents' said books, in commerce, because of said erroneous and mistaken belief. As a result thereof, trade lias been, and is being unfairly diverted from their competitors in commerce and substantial injury has been and is being, done to competition in commerce. PAR. 0. The aforesaid acts and practices of respondents are all to the prejudice and injury of the public and of respondents' competitors and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

l1h. John lV. Brookfield, .11'. supporting the complaint. De Witt, Nast Diskin of New York, N. Y., respondents. ITIAL DEGISIO BY J OI-IN B. PorXDEXTER, IIEARING EXA)IINER On November 28, 1060 the Federal Trade Commission issued a complaint charging that the above-named respondents had violated the provisions of the Federal Trade Commission Act. The complaint alleged that respondents had not adequately disclosed the fact that their books are abridgments or newly- titled reprints. the above-named After issuance and service of the complaint, respondents, their counsel, and counsel supporting the complaint entered into an agreement for a consent order. The agreement has been approved by the Director, the Associate Director and the Assistant Director tlle Bureau of Litigation. The pertinent provisions of said agreement are as follows: Respondents admit 011 jurisdictional facts; thc complaint may be used in construing the t.terms of the order; the order shall have the same force and effect as if entered aft.er a full hearing and the said agreement shall not become a part of the offcial record of the proceeding , , , (( Order 58 F.

unless and until it becomes a part of the decision of the Commissian; the record herein shah consist solely of the complaint and the a.agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of la,,,; respondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in the manner provided by statute for other orders; respondents waive any right to chaHenge or contest the validity of the order entered in accordance with the agreement and the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

The undersigned he-D-ring examiner having considered the agreement and proposed order, hereby accepts such agreement, makes the following jurisdictional findings, and issues the following order: JURISDICTIONAL FINDINGS 1. Respondent Fa\ycett Publications, Inc., is a, corporation existing rmc1 doing business under a.nd by virtue of the laws of the State of Delaware, with its oflce and principal place of business located at 67 ,Vest 44th Street, in the City of Xew York, State of )Tew York. 2. Individual respondents ' Wilfred Fawcctt and Gordon Fawcett are offcers of said corporate respondent and have their offce and phce of business at the same address.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding a.nd of the respondents hereinabove named and the proceeding is in the public interest. ORDER It 1'- ordered That respondents Fawcett Publications, Inc., a corpon tion, and its offcers, a,nd respondents ,Vilfred Fawcett and Gordon Fa\\cett, individually and as offcers of said corporation and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with t.he offering for sale, sale and distribution of hooks in commerce, as "commerce" is defined in the Federal Trade Commission -,'-'let, do forthwith eeasc. and desist from:

1. OUE'Ting for sale or sel1illg any abridged copy of a book unless one of the following ,yards al1Tidgec1" abridgment" condensed" or "c.ondensation, or some other word or phrnse stating with equal conspicuous clarity t.hat said book js abridged, appears in clear, type upon the front cover 2nrl upon the title pege of the book ,, CALIFOR,\TIA :FLOHAL MA UF)\CTeRIXG co. ET AL. 765 7Gl Syllabus either in immediate connection "\Ylth the title or in another position adapted to attrnct, readily the attention of a prospective purchaser. 2. l;sing or substitut.ing a new tit.le for, or in place of, the original titlo of r! reprinted book, unless ft statement which reveals the original title of the book and that it has been published previously under such title appears in clear J1d conspicllolls type upon the front coyer and upon the t.title page of the book, either in immediate connection 'Ylth the title or in another position adapted to attract readily the attention of a pl'ospectlYc purchaser. 3. Disse,minating advertising pertaining to any abridged copy of a book or to fi hook reprint having a substitute title, unless such advertising (Esc1oses the fact of abridgment or contains a statement revealing the original title and that the book has been previously published thel'EUlHJel' , or both. rls the ease may be, in clear. con spicuous t.ype either in immediate, connection with the t.title under which tJw book is sold or in anot.her position acbpt.ec1 to att.ract readily the attention of a. prospective purchaser. DECISlCX OF TILE ccnnfTSS1CX A:!D Order TO PILE REPonT OF CO::IPLL\XGB Pm' SUfm1: to Section 3.21 of the Commission s Rules of Practice t.he initjrll decision of the hearing examiner shan on the 16th day of :JIay 1DG 1 , become the decision of the Commission; and, accordino' )v:

It is OI'dcted That the respondents herein shall within sixty (60) days aiter service upon them of this order, me with the Commission a. report. in "writing setting forth in detail the manner and form in which tlwy have complied with the order to cease and dcsi.'3t.