Marquette Corporation

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IN THE IAITER OF MARQCETTE CORPORATION CONSENT ORDER , ETC. : IX REGAlm TO THE ALLEGED VIOL-\Tlo OF THE J"EDERAJ. TRADE co nIISSION ACT Docket 0-11'2. Complaint, Apr. 1962-Deciliion, Apr. , 1962 Consent order requiring a :l1inneapolis, Minn., manufacturer of home food freezers to cease making unwarranted claims, purportedly based on statistics of tbe Department of Agriculture and the Bureau of Labor Statistics, that a family could sa,e money on food purchases by using a fl':czer: and representing falsely that the compressors in their freezers were bacl ed by an unconditional lifetime replacement guarantee, and, through use of the name Blue Ribbon Freezer-Food Institute, that it was a non-profit organization. CUUPLAINT 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 t.hat :Marquette Corporation, a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Corrunission that a proceeding by it in respect thereof woujd be in the public interest he.reby issues its complaint, stating its charges in that respect follows:

PARAGRAPH 1. Respondent Marquette Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal offce and place of business located at 307 E. Hennepin Avenue, Minneapolis 14, :Minn. PAR. 2. Respondent is now, and for some time last. past has been engaged in the manufacture, advertising, offering for sale, sale and distribution of home food freezers and various other products to distributors and retailers for resale to the public. PAR. 3. In the course and conduct of its business, respondent now causes, and for some time last past has caused, its freezers, when sold to be shipped from its factories or plants in the State of Iiunesota to purchasers the-reof Jocated in various other states of the United States, and maintains, and a.tall times mentioned he-re.in has main- CcIARQUETTE CORP. 721 720 Complaint tained, a subst.antial course of trade in said products in commerce, as commerce" is defined in the Federal Trade Commission Act. PAR. 4. Respondent is now, and at all times mentioned herein has been, in substantia.! competition in commerce with other corporations firms, and individuals engaged in the sale and distribution of freezers. PAR. 5. In the course &nd conduct of its business respondent, by the use of advertisenlents in magazines of national circulation, trade publications, and by use of various point-of -sale promotional materials, which it leases to distributors and retailers of its freezers and to seners of freezer-food plans, has made certain representations with reference to its freezers of which the following are typical: liere s what YOU OAK SAVE EACH :MONTH ON OOD PCRCHASES . . . (chart showing savings per month for familes of from 1 to 7 persons). "'Rased on average per capita consumption of foods suitable for freezing purchased in quantity during lower priced "in season" months. "Per capita food cansumption Dept. 'of Agriculture. "Seasonal price fiuctuation Bureau Labor Statistics.

A family of 4 call save $310.32 a year! Extended Compressor Replacement Contract For Operating LIFETIME Of Appliances.

Lifetime Compressor Contract.

Blue Ribbon Freczer- ood Institute.

PAR. G. Respondent, by means of the aforesaid adverhsements and promotional materials, has represented, directly or by implication: (1) That a, savings chart included in point-of-sale promotional materials was compiled or prepared by the Department of Agriculture and/or the Bureau of Labor Statistics, or from information supplied by them.

(2) That information compiled or supplied by the Deplutment of AgTlculture and/or the Bureau of Labor Statistics establishes that a family of four can save $310.32 a year on food purchases by use of a freezer.

(3) That the compressors in respondent's freezers are backed by an unconditional replacement contract for the lifetime of the appliances and that when the operation of such compressors becomes impaired they will be replaced without charge. (4) Through use of the name I3ue Ribbon Freezer-Food Institute that it is an institute, or a non-profit organization. PAR. 7. Said representat.ions are false, misleading and deceptive. In truth and in fact:

(1) The savings chart included in point-of-sale promotional material was not compiled or prepared by the Department of Agriculture 722 FEDERAL TRADE LV1ISSIO DECISIONS Decision and Order 60 F.

and/or the Bureau of Labor Statistics, or from information supplied by them.

(2) Information compiled or supplied by the Department of Agriculture and/or the Bureau of Labor Statistics does not establish that a fanlily of four can save $310.32 a year on food purchases by use of a freezer.

(3) The lifetime compressor replacement contract is not unconditional and compressors whose operation becomes impaircd wil not be replaced without charge at all times during the lifetime of the appliance.

(4) Respondent is not an organization for the promotion of learning, philosophy, the arts, science, research, or the like. It is a corporation engaged in business for a profit and, therefore, is not an institute or a non profit organization.

PAR. 8. By the aforesaid practices respondent has placed, and is placing in the hands of distributors and retailers means and instrumentalities by and through which they may mislead the purchasing public into the belief that the aforesaid representations are true. PAn. g. The use by respondent of the aforesaid false, misleading and deceptive representations and practices has had, and now has the capacity and tendency to mislead members of the purchasing public into the errone011S and mistaken belief that said representations were, and are true, and into the purchase of substantial qUG,entities of respollc1enes product by reason of said erroneous and mistaken belief.

PAR. 10. The aforesaid acts and practices of respondent, as herein alleged, were and are all to the prejudice and injury of the public and of respondent' s competitors and constituted and now constitute unfair methods of competition in commerce and unfair and deceptive acts (1) of the and practices in commerce in violation of Section 5 (a) Federal Trade Commission Act.

DECISlO AND ORDER The Commission having heretofore deterlnined to issue its complaint charging the respondent named in the caption hereof with violation of the Federal Trade Commission Act, and the respondent having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondent and counsel for the ComJuission having thereafter executed an agrcement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint MARQL"ETTE CORP. 723 720 Decision and Order to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as set forth in such complaint, and waivers and provisions as required by the Commission rules; and The Commission, having considered the agreement, hereby accepts same, issues its cOlnplaint in the form c01ntelnplated by said agreement makes the following jurisdictional findings, and enters the following order:

1. Respondent Marquette Corporation is a corporation 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 307 E. Hennepin Avenue, in the city of Minneapolis, State of Iinnesota. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

onder It is ordered That respondent JIul'quctte Corporation, a corpora tion, and its offcers, agents, representatives and employees, directly or through any corporate ,or other device in connection with the offering lor sa.le, sa.le or distribution of freezers in commerce, as "commerce:' is defined in the Federal Trade Commission Act, forthwith crase and desist from:

1. Representing directly Or by implication that any data or promotional material vms compiled or prepared by, or prepared from information supplied by, the Gnited States Department of J,.grieulture Bureau of Labor Statistics or any other department or agency of the Cniteel St.tes Government; or otherwise misrepresenting the source of any such data or material.

2. Representing directly or by implication that information compiled Or supplied by the LTniteel States DepaJiment of Agriculture Bureau of Labor Statistics or any other department or agency of the Vnitecl States Government establishes that a family of four can sate S310. , or that any family can save any specific amount, a year on food purchases by the use of a. frem-;cr; or othenyise representing that any savings, or savings in any amount, have been established in any manner or are supported by any data. unless such representations have been authoritatively estllblished or are supported by such data. 3. 'Using the ,vord "institute" to designate, describe or refer to respondent s business or representing that it is any type of non-proi-t organization.

719-603-64--7 724 FEDERAL TRADE COMMISSIOK DECISIOKS Complaint 60 F.

4. Placing in the hands of others the means and instrumentalities whereby they may mislead or deceive the public in the manner or as to the things herein prohibited and from continuing to permit others to use any advertising or promotional material, owned by it or over which it has control, which may mislead or deceive the public in the manner or as to the things herein prohibited. It i8 JUTth.er ordered That respondent :\Iarquette Corporation, a corporation, and its offc.ers, agents, representatives and employees directly or through any corporate or other device in connection with the offering for sale, sale or distribution of freezers or any other products in commerce as "commerce" is defined in the Federal Trade Commission Act, forthwith cease and desist from: Representing directly or by implication that any such products or any palis thereof are guaranteed in any manner unless the nature and extent of the guarantee and the manner in ""hieh the guarantor will perform thereunder are clearly and conspicuously disclosed in immediate conjunction with any such representation. It iSj'UTth67 ordered That the respondent herein shall, "..within sixty (60) days after service upon it of this order, file with the Commission a report in 1writing setting forth in detail the manner nnd form in which it has complied with this order.