The L. R. Oatey Company et al.

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which they have complied with the order to cease and desist. Ix THE 1IATI"EH OF THEL. R.OATEYCOMPA:"YET AI.

CONSBRT ORDER, ETC., IN H.EGARD TO THE ALLEGED VIOL,\TION OF TII FEDERAL TRADE C01oDIISSlON ACT Docket C-l1,l. Complaint, May 1962-Decisfo' , May 21" 1962 Consent order requiring Cleveland, Ohio, distributors to cease representing falsely in price lists, circulars, ami otherwise, that certain of their wire solders contained new and special metals and ndditives ,,,hieh made them more effective than competing products, and tlmt their plastic metal mender Bond-'lite " was non-toxic acid would 110t cause itching; find requiring them to label containers of the "llond-THe" cream bardener nnd putty with conspicuous warning of dangers in their use. C01\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal THE L. R. OATEY CO. ET AL. 1643 164 Complaint Trade Commission, having reason to believe that The L. R. ,oatey Company, a corporation, and Robert L. ,oatey and Alan R. Oatey, individual11y and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing 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, The L. R. ,oatey Company, is a corporation, organized, existing and doing business under and by virtue of the laws of the State of ,ohio, ,rith its principal offce and place of business loeated at 4700 ,Yest 160th Street, in the city of Cleveland State of ,ohio.

Respondents Robert L. ,oatey aud Alan R. ,oatey are offcers of the corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for some t.ime last past have been engaged in the advertising, offering for sale, sale and distribution of among other things, wire solders desi J11ated #50 and #40 to manufacturers for their use and to jobbers for resale to plumbers, and a plastic metal mender desig11ated "Bond-Titc" to jobbers and Lgents for resale to antoboc1y repair shops.

PAn. 8. In the course and conduct of their business, respondents now cftuse, and for some time last past have clLused, their said products when sold, to be shipped from their place 01 business in the State of Ohio to purchasers thereof located in various other States of the United States and in the District of Columbia, and maintain, and at all times mentioned herein have maintained, a subst.ant.ial course of tra,de in sflid products in commerce, as "commerce" is defined in the Federal Trade Comlnission Act.

\R. 4. In the course and conduct of their business, and for the purpose of jnducing the, sale of theit T\'ire solders designated #50 and ,#40, respondents have made certf1in st.atements and representations in price lists and circulars, and by other media, of which the following arc typical:

SPECIAL SOLDER (Contains :\iiracle Metals) No. 50 (Better than other 50/50 solders) Ko. 40 (Detter than other 40/60 solders) Oatey #50 wire solder"' Better Than Any Other 50/50 Solder. . . especially formulated with new miracle metals containing silver additives. . . "Also available in #40 Solder.

Xew #50 wire sold r "Better than other 50/50 Solders" * . '" especially formulated with new miracle metals containing special additives. 1644 FEDERAL TRADE COl\ISSION DECISIONS Complaint 60 F.

A. solder product * * * called Oatey Ko. 50 solder * * :I it is formulated with metals containing silver additives, and offers the "same advantages as given by regular 50/50 solder.

PAn. 5. By and through the use of the aforesaid statements and representations, and others of similar import but not specifically set forth herein, respondents represented directly or by implication: That their wire solders designated #50 and :i40 contain new and spcci Ll metals and additives ancl therefore, are more effective than other 50/50 and 40/60 solders, respectively. 'I. 6. The aforesaid statements and representations Wer8j and are false, misleading and deceptive. In truth and in fact: Their wire solders designated #50 and #"-1- do not contain 118"- lnc1 special metals and addit.iycs which make them more effective than 50/50 and 40/60 solders, respectively.

PAn. 7. In the course and conduct of their business, and lor the purpose of inducing the sale of their plastic metal mender designated Bond-Tile, respondents have made cert Lin statements and repre tations in advertisements in magazines of national circulation, in pamphlets and caUllogue sheets aed on labels, and by other media, of which the Iollowing are typical:

Sale Harmless NOll-Toxic 1\OK-TOXIC CREAM IL\.HDlD?'tFJR Gee, How I used to hate those rongh hands if I hall to Imt up \,,'ith itchillg skill * * "' of those other plnstic fillers. ' Xon- toxic. Things sure have changed 'round here since I've used Bowl-Tite Plastic Filer. I've * " , , eliminat.ed ** 'i' itching skin. PAR. 8. By and t.through the use of the nJoresaic1 statements and representations: and others of similar import hut not speeifical1y set forth herein, respondents represented, directly or by implicatioll: (1) That the creCdTl hardener is non-toxic.. (2) That the plastic metalmenc1E:r will not cause itching and is nontoxic, safe and harmless.

P AU. D. The aforesaid statements flllc1 represeniations were and are false, misleading and deceptive. In truth and in fact: (1) The cream ha.rdcner is not non-toxic and may cause itching or sl\jn irritation as it conhLins benzoyl peroxide, I"which is a primary irritant anc1scnsitizer to the skin.

(2) The cream hardener must be combined with the pntty to make the plastic metal rnel1ler and when this is done the product re,sulting therefrom may Cflnse itching or skin irritation a.nd is not non-toxic safe and harmless under an conditions of use. THE L. R. OATEY CO. ET AL. 1645 1642 Decision and Order PAR. 10. The label on the respondents' croam hardener contains only a cautionary statement as to the f!amnmbi1ity of the product. Howover, the benzoyl peroxide contained in the cream hardener may through prolonged or repeated contact w- ith thc skin irritate 01' sensitize the skin and, therefore, in case of contact should be flushed from the skin. ' Because it contains benzoyl peroxide, the cream hardener is toxic if taken internally and, therefore, should he kept out of reach of children. The label on the respondents' cream hardener is misleading in tlmt. it fails to reveal these material facts with respect t.o the conse,quences which may result from the use of said pl' oduct ns directed on the Jabel for the putty and ivith respect to conditiolls oJ storage of the ercam hardener. The label on the respondents' putty is misleading in that it fails to reveal the material fact that after it is rnixed with the cream hardener the product resulting therefrom may through prolonged or repeated contact with the. skin irritate or sensitize the skill and, therefore, in case of contact should be f1llshecl -from the skin. PAR. 11. In the conduct of their business, and at all times mentioned herein, responc1e,nts have been in substantial competition, in comUlcrce wit.h corporations, firms and individuals in t.he sale of solders and plastic metal menders of the same general kind and nature as those sold by the respondents.

PAR. 12. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and pra,cticcs a,nd failure to WflTJl the purchasing public on the lr.bels of the products composing the plastic mender designated "Bond-Tite" of the dangers attendant to the use or the products have had, and now h LVe, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations 'were and are true, and that there is no danger ill use of the products composing the met.al mender designated "Boncl-Tite \ and into the purchase of substantial quantities of respondents' products by reason of said erroneous and mistaken beliefs.

\.R. 13. The aforesaid acts and practice.s of respondents, as herein aJlegecl were, and flre, all to the prejudice and injury of the public and of the respondents' competitors and const.ituted, and now constitute unfair met.hods of competition ill commerce and ullI-air rmd deceptive acts and practices ill COinmerce, in violation of Section i5(a) (1) of the Federal Trade Commission Act.

DECISION AXD onder The Commission having heretofore determined to issue its C01nplaint charging the respondents na.med in the caption hereof wit.h 1646 FEDERAL TRADE COlVnIISSIOX DECISIONS Decision and Order 60 F.

violation of the Federal Trade Commission Act, and the respondents 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 respondents and cOlmsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement t.hat the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents 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 complaint in the form contf;mplatec1 by saiel agreement, makes the following jurisdictional findings, and enters the following order:

1. R.esponclent, The L. R. Oatey Company, is a corporation organized, existing and doing business under and by virtue of the laws of thc State of Ohio, with its offee and principal place of business located at 4700 'West 160th Street in the cit.y of Cleveland, State of Ohio.

Respondents Robert L. Oatey and Alan R. Oatey are offcers of said corporation and their address is the sanle as that of said corporation.

2. The Federal Trade Comnlission h ts jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondent, The L, R. Oat.ey Company, 01 corpomtion, and it.s offcers, O1nd respondents Robert L, OO1tey and Alan R. Oatey, individually and as offcers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale sa.le or distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act, of solders, or a plastic metal mender designated "Bond-Tite " or a,ny other product of similar composition or possessing substantially similar properties, under whatever name sold, do forthwith ce01SC O1nd desist from: 1. Representing, directly or by implic01tion, th01t any of their solders contain a metal or an additive which is new, special or unique or which m01kes the solder more effective than other solders. 2. Representing, directly or by implication: MILFUR . IKC.) ET AI.. 1647 1642 Complaint (a.) That the cream ha.rdener is non-toxic or will not cause itching or skin irritation.

(b) That the plastic metal mender is non-toxic) safe or harmless or ",vill not cause itching or skin irritation. 3. Using a label on the container for the cream hardener ' which does not set forth in a clear and conspicuous manner the following statements.

CAUTION: Keep away from heat or fiame. Keep Gut of reach of c.hildren. If taken internally, induce vomiting; eommlt physician. A void prolonged or repeated contac.t with skin. In case of contact flush skin with water.

4. 1; sing a la,bel on the container for the putty which does not set forth in a cleaT and conspicuous manner the following statement: CAUTION: After mixing with cream hardener, avoid prolongcd or repeated contact with skin. In case of contact, flush skin 'with water.

It is JUTther ordered. That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.