William H. Fenner

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

IN THE MATTER OF vVILLIAM H. FENNER DOING BUSINESS AS CENTRAL CAREER SERVICE CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:UUISSION ACT Docket 8384, Complaint, Mav 4, 1961-Decision, Sept. 20, 1961 Consent order requiring a Duluth, l\Jinn., seller of a correspondence course on civil service preparation to cease representing falsely in advertising and through salesmen that a person completing his course was qualified for and assured of a U.S. Civil Service position and in the area of his choice, that such openings were available, that he would notify the student of examinations to be held, that the time in which his course could be purchased was limited, etc, CO:\IPLl\.lnt 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 'Villiam H. Fenner an individual trading and doing business as Central Career Service hereinafter referred to as respondent, hns violated the provisions of 548 FEDERAL TRADE COMl\lission DECISIONS Complaint 59 F, said Act, and it appearing to the Commission that a proceeding by in respect thereof would be in the public interest, hereby issues its complaint stating its charges as foJ1ows:

PARAGRAPH 1. R.respondent vVilliam H. Fenner is an individual trading and doing business as Central Caree.r Service, with his office and principal place of business located at 602 North 56th Avenue \Vest, Duluth, 1\1innesota.

PAR. 2. Respondent is now, and for some time last past has been engaged in the sale and distribution of a course of study and instruction purporting to prepare the purchasers thereof for examinations for various Civil Service positions in the United States Government which said course is pursued by correspondence through the United States mails. R.respondent, in the course and conduct of his said busi- Hess, causes said course of study and instruction to be shipped from the state of his supplier to, into, and through various other states of the United States to purchasers thereof loc.ated in states other than the state in which said shipments ariginate and thereby maintains a course of trade in said course in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 3. In the course and conduct of his business. as aforesaid. respondent has been, and now is, in direct and substantial competition with individuals, firms and corporations engaged in the sale, in commerce, of courses of instruction by correspondence similar to. that sold by respondent.

PAR. 4. R.respondent's method of doing business is large.ly through direct mail solicitations and newspaper advertising foJ1awed by personal solicitation by respondent or his agents, representatives 0.1' employees, who deliver a sales talk and undertake to. consummate a sale of said course of study and instructian.

PAR. 5. In the course and conduct of his business, as aforesaid respondent has made and is continuing to make, many statements as to e.mployment, qualifications, necessity of his course, type af positions open, the locality of such open position, the availability of his course. to purchasers and other statements in connection with his sa.id course af study and instruction. Said statements are c.antained in or appear on cards, letters, circulars and oq1er advertising material mailed or published by respondent or his agents, representatives or employees and in sales talks of his agents, representatives and employees to prospective purchasers of said course. Through and by memlS af the said statements respondent represented, directly or indirectly: 1. That respondent is offering employment. 2. That completion of respondent' s course of study and instruction will fully qua.lify the student for positions with United States Civil CENTRAL CAREER SERVICE 549 547 Complaint Service, including livestock inspector, meat inspector, custom inspector, border patrolman, and many others.

3. That there are openings for employment with the Government for the various positions set out in respondent's advertising or desired by prospective purchasers and that such openings are in the vrospective purchasers' home locality.

4. That the respondent will notify the student "\vhen nnd where the Civil Service exnminations for positions desired by the student would be held.

5. That the time within which said course may be purchased is limited.

6. That completion of respondents said course assures or guarantees the persons taking it of United States Civil Service positions. PAR. 6. All of said statements and representations were and are false, misleading and deceptive. In truth and in fact: 1. Respondent is not offering employment, but is solely engaged in selling his course of instruction.

2. Completion of respondents course will not qualify the stude. for the positions in United States Civil Service set out in respondent' advertising as the course does not cover specific positions. ~ioreover experience and physical qualifications are necessary in order to obtain some of said positions.

3. There are no vacancies for many of the positions represented respondent to be open to the prospective purchaser and such positions as may be open are, in most instances, not in the home locality of the student.

4. The respondent does not notify the student when and where. Civil Service examinations for the position he desires are to be held. 5. There is no limit to the time in which a person may purchase the respondent' s said course of study.

6. Completion of respondent' s said course does not assure or guarantee United States Civil Service positions. P..Ut. 7. The use by respondent. of the aforesaid false, misleading and deceptive statements and re,presentations has had, and now has the tendency find c1tpacity to confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such statements are true and to induce them to purchase respondent' s course of study on account thereof. As a direct result of the practices of respondent, as aforesaid, substantial trade is, and has been, unfairly (liverted to respondent from his competitors n.nd injury has been, and is being, done. to competition in eomn1erce. PAR. 8. The aforesaid acts and practices of respondent, as herein alleged, are all to the prejudice and injury of the public and of respondents competitors and constitute unfair and deceptive acts and 550 FEDERAL TRADE COM~lission DECISIONS Decision 59 F.

practices find unfair methods of competition, in COl11111eree: within the intent and meaning of the Federal Trade Conllnission Act. 111 T. TV illianl A. Somers for the. Commission; M'J'. Alton J. Olson Duluth, ~linn., for respondent. INITIAL DECISION BY ABNER E. LIPSCOMB, HEAillXG EXAl\IINER The complaint herein was issued on l\lay 4, 1961, charging Respondent with violation of the Federal Trade Commission Act by the dissemination of false, misleading and deceptive statements and representations, through direct mail solicitation and ne.wspaper advertising followed by personal solicitation, with respect to his eol're.spondence course of study and instruction. Thereafter, on August 2, 1961, Respondent, his counsel, and counsel supporting the complaint entered into an Agreement Containing Consent. Order To Cease And Desist: which ',RS approyed by the Director and Chief of Division of the Commission s Bureau of Deceptive Practices, nnd thereafter, on August 8, 1961, submitted to the flearing Examiner for consideration.

The agreement identifies Respondent ,Yilliam . H. Fenner as :111 individual doing business ns Central Career Service, "it.ll his oilier. and place of business locntecl at 602 North 56t.h Avenue 'Vest., Duluth ~lj n 11 esota.

Respondent admits all the jurisdictional facts aJ1eged in the complaint, and agrees that the record may be taken as if findings of jurisdictional facts had been duly made in aecordance with such a1Jegati ons.

R.respondent waives any further procedure before the IIe~ring Exnmine.r and the Commission; the making of findings of fact and conclusions of law; and all of the rights he may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. An prui.ies agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as contained in the agreement when it shall have become a part of the decision of the COlnmission shall have the same force and effect as if entered after a full hearing, and mn,y be altered, modified or set aside in the manner provided for other orders; that the complaint herein may be used in construing the terms of said order; and that the agreement is for settlemel1t. purposes only and does not constitute an admission by the Respondent that he has violated the law as alleged in the. eompln Int. CENTRAL CA~EER SERVICE 551 547 Decision After consideration of the allegations of the complaint and the provisions of the agreement and the proposed order, the Hearing Examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the aforesaid agreement, the Hearing Examiner accepts the Agreement Containing Consent Order To Cease And Desist; finds that the Commission has jurisdiction over the Respondent and over his acts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore it is o7Ylered That Respondent ",ViJlimn 1-1. Fenner, individual1ly and doing business under the name of Central Career Service, or under any other name, and his representatives, agents and employees directly or through any corporate or other device, in connection with the ofiering for sale, sale and distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act, of courses of study and instruction, do forthwith cease and desist from representing, directly or by implication, that:

1. Respondent ofl'ers employment when, in fact, employment is not offered;

2. Completion of respondent' s course of study will qualify persons for United States Civil Service Positions; 3. Any position in the United States Civil Service is open, unless such be a fact at the time the representation is made; 4. Any position in the United States Civil Service is open in any particular locality or section of the United States, unless such be a fact at the time the representation is made; 5. Respondent notifies the student when and where Civil Service examinations "ill be held;

6. Respondent's offer of sa.Je of his course of study is limited as to time;

7. Completion of respondent' s course of study assures or guarantees the person completing it a position in the United States Civil Service. nECISIOX OF THE COl\Il\IISSION AND ORDER TO FILE REPORT OF COl\II)LIANCE Pursuant. to Se,ction 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shan, on the 20th day of September 1961 , bec.ome the decision of the Commission; and, accordingly :

it is ordered That the above-named respondent shall, within sixty (60) days after servic.e upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has eomplied with the order to cease and desist. , . , Complaint 59 F.