Bill Jordan trading as Modern Studios

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

IN THE J\1ATI'ER OF BILL JORDAN TRADING AS :MODERN STUDIOS CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\fl\:lission ACT Docket 8383. ColllJ)laint, May 4, 1961-Decision, Sept. , 1961 Gonsentorder r('quiring an individual in Dallas, Tex., engaged in the sale of photographs, particularly to mothers of new babies, to cease failing to honor his so-called "free portrait gift" offer; delivering finished pictures which were inferior to samples displayed; failing to deliver additional pictures or making only partial delivery of orders paid for, and delaying deliveries unduly; and failing to re-photograph children whose parents were dissatisfied, or to refund money paid in advance, in accordance with offer. COMPLAINT 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 Bill Jordan, an individual trading as l\10dern Studios, hereinafter referred to as respondent, has violated the provisions of snic1 Act, and it Rppearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Bill Jordan is an individual trading as J\10dern Studios, with his principal office and place of business located at 2209 Cedar Springs Road in the City of Dallas, State of Texas.

PAR. 2. Respondent is now, and for some time last past has been engage,d in the advertising, offering for sale, sale and distribution of photographs to the public. In the course Rnd conduct. of his business as aforesaid, respondent now causes, and for some time last pnst has caused, his said photographs, "hen sold, to be shipped from his place of business in the State of Texas to purchasers thereof located in various other states of the United States, and maintains, and at all times . , 544 FEDERAL TRADE COl\imission DECISIONS Complaint 59 F.

mentioned herein has maintained, a substantial course of trade in said photographs in commerce, as "commerce" is defu1ed in the Federal Trade Commission Act.

PAR. 3. In the course and conduct of his business, as aforesaid respondent has been in substantial competition, in comnlerce, with corporations, firms and individuals in the sale of photographs of the sa-me general kind and nature as those offered by the respondent. PAR. 4. Respondent's method of interesting members of the public in the purchase of his photographs has been by having an agent deliver to the mothers of recently born children, a certificate ostensibly entitling the parent to have photographs taken of her child and receive a 4" x 6" picture of the child without any charge. The purpose in offering the gift is to create an opportunity for respondenes salesmen to sen a number of additional pictures to the parent, at price., A typical certificate reads as follows: THIS FREE PORTRAIT GIFT.

Cradle Car presents to you and your child one large 4 x (; Photograph as our gift to you on this memorable occasion. Precious little ones deserve Precious photographs. MODERN STUDIOS, Masters of the Guild will capture fo,rever your baby at its loveliest in a life-like portrait. Sittings taken in ,the comfort of your horne, by appointment only.

A PHOTOGRAPH TO BE TREASURED ALWAYS ::\10DERN STUDIOS NO COST OR NEW ORLEANS, LA. OBLIGATIO~ ALLo"r NO Il\1I~' ATORS BE SURE IT' S l\l- In response to inquiries induced by such advertisements, respondent or his employees, agents or representatives call upon members of the public and prospective purchasers initinting such inquiries, display samples of attractively colored and finished pictures and make various ora.1 represent.ations concerning the quality of finished pictures that respondent win furnish for a price, the time in which finished pictures will be delivered and respondents method of effecting purchasers satisfaction if finished pictures of their children are unsatisfactory purehasers.

PAR. 5. Through the use of the aforesaid advertisements, statell1ents and representations set out and referred to in PA.R.AGRAPH FOUR , above, respondent hns represented and nm\- represents, directly and by implication, to the purchasing public, that: MODERN STUDIOS 545 543 Complaint 1. Respondent would give a free picture to the parent of a child who was photographed by respondent.

2. Pictures to be made of children photographed by respondent would be equal in appearance, quality and workmanship to samples displayed to parents.

3. If parents were dissatisfied with the appearance, quality or workmanship of delivered pictures of their children, respondent would take additional photographs and make additional pictures or reflmd advance payments made therefor.

4. Pictures of children photographed by respondent would be delivered soon after respondent had photographed a child, or by a certain time.

PAR. 6. The aforesaid statements and repre.sentations were and are false, misleading and deceptive. In truth and in fact: 1. In many instances respondent has failed to give and deliver to parents free pictures of their children photographed as a result of parents' response to respondent' s so-ca.lled "free portrait gift" offer. 2. Pictures made of children photographed by respondent were not equal in appearance, quality or workmanship to samples displayed to parents.

3. In many instances respoJHlent has failed to delin'r additional pictures of children which pnrents had ordered and paid or partially paid for, or has made only partial delivery of orders; and the time of delivery in many other instances has been several months later than the promised or implied time of delivery.

4. Respondent has failed to re-photograph children whose parents were dissatisfied with delivered pictures for which the parents had paid, or to refund monies paid by parents in advance for pictures which they found unsatisfactory when delivered and which parents there.after notified respondent were not satisfactory. PAR. 7. The use by respondent of the aforesaid false., misleading and deceptive statements, re.presentations and practices has had, and now has, the cnpac.it.y and tendency to mislead members of the purchasing public into the erroneous nnd mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of responclenfs product by reason of said erroneous and mistaken belief. As a consequence thereof, substantial trade in commerce has been, and is being, unfairly diverted to respondent from his competitors and substantial injury has thereby been, and js being, done to competition in commerce.

\n. 8. The aforesaid acts and practices of respondent., as herein alleged, were and are all to the prejudice and injury of the public and fair and deceptive acts and pract.ices anc1unfa.il' methods of competiof respondent's competitors and constituted, and now constitute, un- G98-,jno-6c1- :~G 546 FEDERAL TRADE COMivIISSION DECISIONS Order 59 F.

tion, in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION A::\'"D ORDER This matter having come on to be heard by the Commission upon a record consisting of the Commission s complaint charging the respondent named in the. caption hereof with violation of the Federal ..;.:'trade Commission Act and an agreement. by and between respondent and counsel supporting the. complaint, \which agreement contains an order to cease and desist, an admission by the respondent of all the jurisdictional facts alleged in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that he has violated the law as alleged in the complaint, and waivers and provisions as required by the Commission s rules; and The Commission having considered the agreement nnd order contained therein and being of the opinion that the agreement provides an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings are made, and the following order is entered. 1. Respondent, Bill Jordan, is an individual trading as ~lodern Studios, with his principal office and place of business located at 3325 N. Fitzhugh, in the City of Dallas, State of Texas 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is jn the public interest.

ORDER It is ordered That respondent Bill Jordan, an individual trading as l\10dern Studios, or under any other name, and respondent's representatives, agents or employees, directly or through any corporate or other device, in connection ,,'ith the offering for sale, sale or distribution of photographs in commerce, as " commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist: 1. Representing, directly or indirectly, tha.t respondent ",ill give to the parent of a child, or to any other person solicited, a free picture of a child or other subject to be photographed by respondent, unless such picture is in fnc.t delivered find furnished without chaTge. 2. Representing, directly or indirectly, that pictures to be delivered to pflrents or other persons solicited will be equal in appearance, quality or workmanship to samples displayed, unless the pjctures deLvereel fire in fact eqmd in appearance, quality or ,yorkmnnship to such samples; or otherwise misrepresenting the appearance, quality or workmanship of photographs to be delivered.

,). , CENTRAL CAREER SERVICE 547 547 Complaint 3. Ftilizing any s~des plan or method ,which involves the use or display of sample pictures of a kind or quality superior to those which the respondent actually delivers.

4. Representing, directly or indirectly, that in the event of customer dissatisfaction with delivered pictures respondent will make a refund or that he will rephotograph a subject, unless, when notified of dissatisfaction, he makes such refund or tnkes additional photographs ::tnd delivers pictures satisfactory to the purchaser; or misrepresenting in any way the manner in which he win perform in the event of customer dissatisfaction with delivered pictures. 5. Failing to deliver or ship pictures to customers within the period or time specified by respondent to such customers, or misrepresenting in any manner the time within which merchandise wi)) be delivered or shipped.

6. Failing to deliver any pictures for which delivery has been promised, It is fu1'ther ordered That the respondent herein shall, within sixty (60) cbys after serviee upon him of this order, file with the Commission a report in "n'iting setting forth in detail the manne.r find form in \Vhi~.h he has complied with this order.