Enterprise Stores, Inc.

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

In THe Marrer or ENTERPRISE STORES, INC., ET AL.

‘ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8028. Complaint, June 27, 1960—Decision, Oct. 5, 1962 ‘Order requiring the Boston operators of chains of department stores selling electrical appliances and other merchandise to the public, to cease their practice of using amounts designated as “list”, ‘“‘mfr’s list’, “orig. list”, and “reg.”, together with lesser amounts in their advertising, representing falsely thereby that the higher amounts were the usual retail prices in their trade areas and that the difference represented a saving to the purchaser. 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 Enterprise Stores, Inc., a Massachusetts corporation, J. M. Fields of Orlando, Inc., a Delaware corporation, J. M. Fields of Worcester, Inc., a Massachusetts corporation, J. M. Fields of Holyoke, Inc., a Massachusetts corporation, J. M. Fields of Tampa, Inc., a Delaware corporation, J. M. Fields of Hartford, Inc., a Massachusetts corporation, J. M. 728-122-6561 Complaint 61 F.T.C..

Fields of Rochester, Inc., 2 Massachusetts corporation, and Frank G. Feldman, Frank M. Beckerman and Hyman S. Glass, individually and as officers of said corporations, 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:

ParacrapH 1. Respondents Enterprise Stores, Inc., J. M. Fields of Worcester, Inc., J. M. Fields of Holyoke, Inc., J. M. Fields of Hartford, Inc., and J. M. Fields of Rochester, Inc., are corporations. organized, existing and doing business under and by virtue of the laws of the State of Massachusetts. Respondents J. M. Fields of Orlando, Inc., and J. M. Fields of Tampa, Inc., are corporations organized, existing and doing business under and by virtue of the laws of the State of Delaware. The corporate respondents maintain their principal office and place of business at 1050 Commonwealth Avenue, Boston, Mass.

The individual respondents Frank G. Feldman, Frank M. Beckerman and Hyman S. Glass are officers of the corporate respondents. They formulate, direct and control the acts and practices of the corporate respondents including the acts and practices hereinafter set forth. Their principal place of business is the same as that of the corporate respondent.

Par. 2. Respondents are now and for some time last past have been engaged in operating chains of department stores and in the advertising, offering for sale, sale and distribution of electrical appliances and other merchandise to the public.

Par. 8. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said merchandise when sold to be shipped from their place of business in the states wherein their stores are located to purchasers thereof located in various other states of the United States and maintained, and at all times mentioned herein have maintained, a substantial course of trade in said merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 4. Respondents, for the purpose of inducing the purchase of their products, have engaged in the practice of using certain amounts designated as “list”, “manufacturer’s list” and “original list” together with lesser amounts in their advertising in connection with certain of their merchandise. Typical but not all inclusive of which are the following statements:

ENTERPRISE STORES, INC., ET AL. 951 949 Complaint The Wagner Stereo Hi-Fi $117 wfr’s list $199, Admiral 21’’ Console TV Reg. 529.95 $299 Cooker Fryer Save 12.07 6.88 list 19.95 Save 15.07 on 6 foot 7 inch PLAYGYMS * * * 19.87 list price 34.94 RCA WHIRLPOOL WASHER orig. list $259.95 $99.

Par. 5. Through the use in their advertising, as aforesaid, of the amounts in connection with the words “mfr’s list,” “orig. list,” “list price” and “list” respondents represent that said amounts were and are the prices at which the merchandise referred to was usually and customarily sold in their trade area. Through the use of said amounts and lesser amounts respondents represent that the difference between the said amounts represented a savings to a purchaser from the price at which said merchandise was usually and customarily sold in said trade area.

Through the use in their advertising, as aforesaid, of various amounts in connection with the words “reg.” price respondents represented that said amounts were the prices at which they usually and customarily sold the merchandise referred to in their recent regular course of business, and, through the use of said amounts and the lesser amounts, that the difference between said amounts and the lesser amounts represented savings from the price at which the merchandise referred to had been sold by respondents in the recent regular course of their business.

Par. 6. The aforesaid statements and representations were false, misleading and deceptive. In truth and in fact, the amounts set out in connection with the words “mfr’s list,” “orig. list,” “list price” and “ist” were in excess of the prices at which the article of merchandise referred to was usually and customarily sold in respondents’ trade area and the differences between such amounts and the lesser amounts did not represent savings from prices at which the merchandise had been usually and customarily sold in respondents’ trade area. Initial Decision 61 F.T.C.

The amounts set out in connection with the words “reg.” price were in excess of the prices at which the articles of merchandise referred to had been sold by respondents in the recent regular course of their business and the differences between the said amount and the lesser amount did not represent savings from the prices at which the merchandise had been sold by respondents in the recent regular course of their business.

Par. 7. In the conduct of their business at all times mentioned herein, respondents have been in substantial competition in commerce with corporations, firms and individuals in the sale of merchandise of the same general kind and nature as that sold by respondents. Par. 8. The use by respondents of the aforesaid false, misleading and deceptive statements and representations has had, and now has, 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 into the purchase of substantial quantities of respondents’ merchandise by reason of said erroneous and mistaken belief. As a consequence thereof, substantial trade in commerce has been, and is being, unfairly diverted to respondents from their competitors and substantial injury has thereby been, and is being, done to competition in commerce. Par. 9. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and of respondents’ competitors and constituted, and now 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.

Mr. Harry E'. Middleton, Jr., of Washington, D.C., supporting the complaint.

Nathanson & Rudofsky, Mr. Arthur D, Aliman, of Boston, Mass., for respondents.

Inirtau Decision sy Herman Tocker, Heartnc Examiner All the respondents were charged with violations of the Federal Trade Commission Act, consisting of alleged misrepresentations in connection with the offering for sale of goods sold in the stores of the corporate respondents. They answered, denying generally the allegations contained in the complaint and alleging further that advertisements such as were the subject thereof were being used by their com-: petitors in the trade areas in which they used such advertising, and that the public had not been misled or deceived thereby. . ENTERPRISE STORES, INC., ET AL. 953 949 Initial Decision Some time after the filing of these pleadings, an agreement was made whereby the various businesses involved in this proceeding were taken over by a purchasing corporation acting on behalf of Food Fair Stores, Inc., a company operating a chain of supermarkets along the Eastern seaboard. In connection with this transaction and as a result of it, all the corporate respondents, except Enterprise Stores, Inc. (whose name had been changed to Enterprise-J. M. Fields, Inc.), were to be liquidated and dissolved. The proceeds of the various transfers, to the extent that any were not paid over directly to the individuals interested therein, were paid to Enterprise-J. M. Fields, Inc. This was to marshal the assets until such time as they could conveniently and advantageously be reduced to cash or other distributable form for payment over to the persons entitled thereto. The process of liquidation and marshaling of assets involved changes of corporate names as follows:

Enterprise Stores, Inc., to Enterprise-J. M. Fields, Inc. J. M. Fields of Tampa, Inc.,to Walcott. of Tampa, Inc. J.M. Fields of Orlando, Inc., to Walcott of Orlando, Inc. J. M. Fields of Worcester, Inc., to Walcott of Worcester, Inc. J. M. Fields of Holyoke, Inc., to Walcott of Holyoke, Inc. J. M. Fields of Rochester, Inc., to Walcott of Rochester, Inc. J. M. Fields of Hartford, Inc., to Walcott of Hartford, Inc. Satisfactory evidence has been filed herein showing (a) that Walcott of Orlando, Inc., and Walcott of Tampa, Inc., have been dissolved and (b) that dissolution proceedings are pending and may be completed for all other corporate respondents except Enterprise-J. M. Fields, Inc., by the time this decision is filed. If such dissolutions are not completed by then, they should be completed within a short time thereafter.

As part of the transfer, Food Fair Stores, Inc., or subsidiaries thereof, have become entitled to use the trade name “J. M. Fields” in connection with the operation of some of their stores. A motion was filed on behalf of the corporate respondents for an order dismissing the complaint herein. Although counsel supporting the complaint originally opposed the motion, he withdrew his opposition. In view of the fact that all the corporate respondents except Enterprise-J. M. Fields. Inc., have been or are being dissolved, and Enterprise-J. M. Fields, Inc., is not engaged, and will not in the future be engaged, in the business involved in this proceeding, the motion on behalf of the corporate respondents will be granted. The individual respondents have now withdrawn the answer filed on their behalf. This proceeding may therefore be decided on the Initial Decision 61 F.T.C.

basis of the complaint herein insofar as such individual respondents are concerned.

The following are my FINDINGS OF FACT 1. Respondents Frank G. Feldman, Frank M. Beckerman and Hyman S. Glass formulated, directed and controlled the acts and practices hereinafter set forth. Their principal place of business was 1050 Commonwealth Avenue, Boston, Massachusetts. 2. For some time last past they were engaged in operating chains of department stores and in advertising, offering for sale, sale and distribution of electrical appliances and other merchandise to the public.

3. In the course and conduct of their business, they caused their merchandise when sold to be shipped from their places of business in the states wherein their stores were located to purchasers thereof located in various other states of the United States and maintained, and at all times mentioned herein have maintained, a substantial course of trade in said merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act.

4, For the purpose of inducing the purchase of their products, they have engaged in the practice of using certain amounts designated as “ist,” “manufacturer’s list” and ‘ ‘original list” together with lesser amounts in their advertising in connection with certain of their merchandise.

5. Through the use in their advertising, as aforesaid, of the amounts in connection with the words “mfr’s list,” “orig. list,” “list price” and “list,” they represented that said amounts were the prices at which the merchandise referred to was usually and customarily sold in their trade areas. Through the use of said amounts and lesser amounts they represented that the difference between the said amounts represented a savings to a purchaser from the price at which said merchandise was usually and customarily sold in said trade areas. 6. Through the use in their advertising, as aforesaid, of various amounts in connection with the words “reg.’ price they represented that. said amounts were the prices at which they usually and customarily sold the merchandise referred to in their recent regular course of business, and, through the use of said amounts and the lesser amounts, that. the differences between said amounts and the lesser amounts represented savings from the prices at which the merchandise referred to rat been sold by them in the recent regular course of their business. . The aforesaid statements and representations were false, misleading and deceptive. In truth and in fact, the amounts set out in con- ENTERPRISE STORES, INC., ET AL. 955 9495 1 1 1 2 2 1104 536 102 25 96.306747 Initials 1 1 1 2 3 1222 537 137 24 96.317932 Decision2 1 2 0 0 0 568 607 1317 1608 -1 3 1 2 1 0 0 571 607 1314 296 -1 4 1 2 1 1 0 571 607 1312 44 -1 5 1 2 1 1 1 571 607 137 33 96.573288 nection5 1 2 1 1 2 724 608 84 43 96.529831 with5 1 2 1 1 3 823 608 58 33 96.855576 thes 1 2 1 1 4 896 609 111 32 92.805168 words5 1 2 1 1 5 1023 609 118 32 90.467712 “mfr’s5 1 2 1 1 6 1154 609 90 41 96.586517 list,”5 1 2 1 1 7 1259 609 105 41 95.497360 “orig.5 1 2 1 1 8 1378 608 89 42 95.410202 list,”5 1 2 1 1 9 1483 609 79 32 96.671265 “lists 1 2 1 1 10 1574 609 113 41 96.481056 price”5 1 2 1 1 11 1703 609 68 32 96.428665 ands 1 2 1 1 12 1785 608 98 32 16.474342 “list”4 1 2 1 2 0 575 653 1308 48 -1 5 1 2 1 2 1 575 669 87 21 96.765915 were5 1 2 1 2 2 679 659 37 32 96.970604 in5 1 2 1 2 3 734 669 111 22 96.983864 excess5 1 2 1 2 4 863 658 39 32 96.779404 of5 1 2 1 2 5 917 659 60 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4 5 10 1495 1617 166 41 96.363228 purchases 1 2 4 5 11 1675 1616 38 31 93.301765 of5 1 2 4 5 12 1728 1616 151 31 92.172348 substan-4 1 2 4 6 0 568 1665 1311 44 -1 5 1 2 4 6 1 568 1668 63 31 96.131821 tials 1 2 4 6 2 648 1668 182 41 96.180344 quantities5 1 2 4 6 3 849 1668 38 32 96.746353 of5 1 2 4 6 4 905 1668 90 32 95.984711 theirs 1 2 4 6 5 1010 1668 234 31 96.648201 merchandise5 1 2 4 6 6 1262 1668 44 41 96.854858 by5 1 2 4 6 7 1324 1678 118 21 95.772964 reasons 1 2 4 6 8 1462 1667 37 31 96.728439 of5 1 2 4 6 9 1519 1667 74 31 95.796776 said5 1 2 4 6 10 1612 1677 178 21 96.154716 erroneous5 1 2 4 6 11 1811 1665 68 33 96.153755 anda 1 2 4 7 0 568 1716 1309 43 -1 5 1 2 4 7 1 568 1719 167 32 95.488373 mistaken5 1 2 4 7 2 751 1719 112 32 95.243019 belief.5 1 2 4 7 3 903 1719 50 31 95.551628 As5 1 2 4 7 4 970 1730 19 20 95.419357 a5 1 2 4 7 5 1007 1729 222 30 95.419357 consequences 1 2 4 7 6 1243 1718 145 40 96.012970 thereof,5 1 2 4 7 7 1405 1717 201 32 96.500725 substantial5 1 2 4 7 8 1624 1717 97 32 96.851097 trades 1 2 4 7 9 1738 1716 36 32 93.232452 in5 1 2 4 7 10 1791 1728 86 21 93.058792 com-4 1 2 4 8 0 568 1767 1310 43 -1 5 1 2 4 8 1 568 1779 108 21 96.533730 merce5 1 2 4 8 2 685 1770 61 31 96.534325 has5 1 2 4 8 3 755 1770 93 39 96.646378 been,5 1 2 4 8 4 859 1770 66 31 95.198135 ands 1 2 4 8 5 934 1769 114 32 95.198135 would5 1 2 4 8 6 1057 1770 49 39 96.449348 be,5 1 2 4 8 7 1117 1769 156 41 96.319702 unfairly5 1 2 4 8 8 1285 1769 154 31 96.369194 diverted5 1 2 4 8 9 1449 1769 92 31 96.065613 from5 1 2 4 8 10 1552 1767 89 33 96.500862 theirs 1 2 4 8 11 1652 1767 226 42 96.452675 competitors,4 1 2 4 9 0 573 1818 1306 42 -1 5 1 2 4 9 1 573 1818 67 33 96.521301 ands 1 2 4 9 2 658 1819 202 32 96.489059 substantial5 1 2 4 9 3 877 1819 117 41 96.410622 injury5 1 2 4 9 4 1012 1820 61 31 96.571114 has5 1 2 4 9 5 1089 1818 140 42 96.922729 thereby5 1 2 4 9 6 1247 1819 94 41 96.987274 been,5 1 2 4 9 7 1357 1818 67 32 96.433502 ands 1 2 4 9 8 1441 1818 113 32 96.382774 would5 1 2 4 9 9 1570 1818 50 40 96.796867 be,5 1 2 4 9 10 1639 1818 86 49 96.993538 done5 1 2 4 9 11 1741 1822 35 26 93.123116 to5 1 2 4 9 12 1793 1827 86 21 93.123116 com-4 1 2 4 10 0 571 1869 398 42 -1 5 1 2 4 10 1 571 1869 166 42 96.729210 petitions 1 2 4 10 2 732 1881 33 21 96.041771 in5 1 2 4 10 3 779 1881 190 21 96.718529 commerce.3 1 2 5 0 0 569 1887 1313 269 -1 4 1 2 5 1 0 613 1887 1269 74 -1 5 1 2 5 1 1 613 1922 48 29 95.061951 11.5 1 2 5 1 2 684 1920 74 32 95.962044 Thes 1 2 5 1 3 778 1920 171 32 95.845642 aforesaid5 1 2 5 1 4 970 1924 70 28 95.845642 acts5 1 2 5 1 5 1060 1920 67 32 96.509811 ands 1 2 5 1 6 1146 1919 164 42 96.509811 practices5 1 2 5 1 7 1328 1930 87 21 96.695068 were5 1 2 5 1 8 1432 1919 68 32 95.884369 ands 1 2 5 1 9 1520 1918 111 32 95.740189 would5 1 2 5 1 10 1649 1887 41 63 96.447464 be5 1 2 5 1 11 1708 1917 46 32 96.421021 all5 1 2 5 1 12 1771 1921 35 28 96.284767 to5 1 2 5 1 13 1824 1917 58 31 96.500664 thea 1 2 5 2 0 571 1966 1309 47 -1 5 1 2 5 2 1 571 1971 175 42 96.766396 prejudice5 1 2 5 2 2 760 1971 88 32 96.175629 ands 1 2 5 2 3 840 1971 117 41 96.668854 injury5 1 2 5 2 4 971 1971 39 31 96.938568 of5 1 2 5 2 5 1021 1971 59 31 96.915497 thes 1 2 5 2 6 1092 1969 116 42 96.930824 public5 1 2 5 2 7 1222 1970 66 32 96.268890 ands 1 2 5 2 8 1303 1970 38 32 96.786644 of5 1 2 5 2 9 1355 1969 217 41 96.591301 competitors5 1 2 5 2 10 1585 1968 68 32 96.777344 ands 1 2 5 2 11 1666 1966 214 41 96.054810 constituted,4 1 2 5 3 0 572 2016 1309 46 -1 5 1 2 5 3 1 572 2022 67 32 96.315033 ands 1 2 5 3 2 652 2033 76 21 96.315033 now5 1 2 5 3 3 742 2021 190 41 96.458755 constitute,5 1 2 5 3 4 945 2020 120 33 95.753746 unfair5 1 2 5 3 5 1078 2020 67 33 95.753746 ands 1 2 5 3 6 1159 2019 173 43 96.834206 deceptive5 1 2 5 3 7 1345 2023 69 37 96.966675 acts5 1 2 5 3 8 1427 2019 67 32 96.677963 ands 1 2 5 3 9 1506 2018 164 43 96.484947 practices5 1 2 5 3 10 1684 2018 67 32 96.603264 ands 1 2 5 3 11 1763 2016 118 34 96.317146 unfair4 1 2 5 4 0 569 2067 1313 47 -1 5 1 2 5 4 1 569 2073 156 32 96.641029 methods5 1 2 5 4 2 743 2072 39 32 96.902657 of5 1 2 5 4 3 800 2072 219 42 95.619606 competitions 1 2 5 4 4 1039 2071 37 32 96.442665 in5 1 2 5 4 5 1096 2082 181 21 96.694595 commerce5 1 2 5 4 6 1295 2070 120 31 96.441727 within5 1 2 5 4 7 1434 2070 57 31 96.718834 thes 1 2 5 4 8 1508 2069 111 32 96.510330 intents 1 2 5 4 9 1637 2068 67 32 96.765991 ands 1 2 5 4 10 1723 2067 159 42 96.803139 meaning4 1 2 5 5 0 571 2121 710 35 -1 5 1 2 5 5 1 571 2124 40 32 96.914406 of5 1 2 5 5 2 619 2124 59 32 96.523453 thes 1 2 5 5 3 688 2123 145 32 96.405594 Federal5 1 2 5 5 4 845 2123 114 32 96.405594 Trades 1 2 5 5 5 970 2121 225 34 96.409569 Commissions 1 2 5 5 6 1204 2121 77 32 95.718475 Act.3 1 2 6 0 0 613 2172 766 43 -1 4 1 2 6 1 0 613 2172 766 43 -1 5 1 2 6 1 1 613 2175 105 31 96.448013 From5 1 2 6 1 2 727 2174 59 32 96.116234 thes 1 2 6 1 3 796 2173 190 42 96.725777 foregoing,5 1 2 6 1 4 997 2173 59 32 96.992058 thes 1 2 6 1 5 1066 2172 181 41 93.267166 following5 1 2 6 1 6 1257 2182 122 30 89.297005 aremy2 1 3 0 0 0 1108 2256 235 23 -1 3 1 3 1 0 0 1108 2256 235 23 -1 4 1 3 1 1 0 1108 2256 235 23 -1 5 1 3 1 1 1 1108 2256 235 23 96.421188 CONCLUSIONS2 1 4 0 0 0 566 2309 1315 449 -1 3 1 4 1 0 0 566 2309 1314 98 -1 4 1 4 1 1 0 614 2309 1266 44 -1 5 1 4 1 1 1 614 2319 28 29 94.540878 1.5 1 4 1 1 2 665 2316 73 32 96.788994 Thes 1 4 1 1 3 757 2316 145 32 93.281021 Federal5 1 4 1 1 4 920 2314 114 33 81.287933 Trada5 1 4 1 1 5 1055 2313 225 34 96.182404 Commissions 1 4 1 1 6 1300 2313 61 32 95.925293 has5 1 4 1 1 7 1379 2311 218 42 96.324745 jurisdictions 1 4 1 1 8 1617 2311 38 32 96.959679 of5 1 4 1 1 9 1673 2311 59 32 96.786858 thes 1 4 1 1 10 1751 2309 129 42 96.503822 subject4 1 4 1 2 0 566 2364 759 43 -1 5 1 4 1 2 1 566 2370 129 29 95.214706 matters 1 4 1 2 2 705 2367 68 32 96.057114 ands 1 4 1 2 3 782 2366 39 32 96.722984 of5 1 4 1 2 4 831 2366 59 32 96.862602 thes 1 4 1 2 5 898 2376 140 30 96.873993 persons5 1 4 1 2 6 1048 2364 37 33 96.678024 of5 1 4 1 2 7 1096 2364 229 43 96.471069 respondents.3 1 4 2 0 0 611 2414 788 44 -1 4 1 4 2 1 0 611 2414 788 44 -1 5 1 4 2 1 1 611 2419 30 31 94.028793 2.5 1 4 2 1 2 664 2417 84 33 95.887924 This5 1 4 2 1 3 758 2415 205 43 96.321213 proceedings 1 4 2 1 4 973 2415 29 33 96.830971 is5 1 4 2 1 5 1012 2415 37 32 96.830971 in5 1 4 2 1 6 1057 2415 59 33 96.948601 thes 1 4 2 1 7 1126 2414 116 42 96.350098 public5 1 4 2 1 8 1252 2414 147 32 96.838707 interest.3 1 4 3 0 0 568 2460 1313 298 -1 4 1 4 3 1 0 613 2460 1266 46 -1 5 1 4 3 1 1 613 2470 28 30 94.519897 3.5 1 4 3 1 2 664 2468 73 32 96.378929 Thes 1 4 3 1 3 750 2478 57 21 96.211746 uses 1 4 3 1 4 820 2467 39 32 95.576683 of5 1 4 3 1 5 872 2478 19 20 96.393143 a5 1 4 3 1 6 903 2465 284 32 21.509827 manufacturer's5 1 4 3 1 7 1199 2463 179 43 96.967377 suggested5 1 4 3 1 8 1388 2462 100 33 96.928986 retails 1 4 3 1 9 1500 2462 103 42 94.185616 price,5 1 4 3 1 10 1615 2473 34 21 94.185616 so5 1 4 3 1 11 1663 2473 38 21 96.937912 or5 1 4 3 1 12 1713 2460 166 42 96.958542 similarly4 1 4 3 2 0 570 2510 1310 50 -1 5 1 4 3 2 1 570 2518 208 42 96.687805 designated,5 1 4 3 2 2 796 2517 37 31 96.976654 in5 1 4 3 2 3 853 2515 211 42 96.421112 advertising5 1 4 3 2 4 1082 2515 36 32 96.421112 in5 1 4 3 2 5 1138 2525 181 22 96.839523 commerce5 1 4 3 2 6 1337 2514 97 31 96.929375 when5 1 4 3 2 7 1453 2513 81 32 96.361778 such5 1 4 3 2 8 1552 2512 93 42 96.947014 prices 1 4 3 2 9 1662 2512 29 32 96.717346 is5 1 4 3 2 10 1708 2511 118 43 96.717346 placed5 1 4 3 2 11 1843 2510 37 32 96.744164 in4 1 4 3 3 0 568 2560 1313 50 -1 5 1 4 3 3 1 568 2567 248 43 95.954582 juxtaposition5 1 4 3 3 2 837 2566 85 32 96.907104 with5 1 4 3 3 3 944 2577 20 21 96.208374 a5 1 4 3 3 4 983 2566 104 32 96.208374 lowers 1 4 3 3 5 1106 2564 102 43 96.916794 price,5 1 4 3 3 6 1230 2564 197 32 97.000679 constitutes5 1 4 3 3 7 1447 2574 44 21 96.976936 an5 1 4 3 3 8 1510 2562 120 32 96.987381 unfair5 1 4 3 3 9 1649 2573 39 20 96.935928 or5 1 4 3 3 10 1708 2560 173 42 95.971619 deceptive4 1 4 3 4 0 571 2611 1309 49 -1 5 1 4 3 4 1 571 2623 54 28 96.950661 acts 1 4 3 4 2 638 2629 39 21 96.847733 or5 1 4 3 4 3 691 2618 148 42 96.485909 practices 1 4 3 4 4 852 2617 97 32 96.526070 when5 1 4 3 4 5 963 2617 81 31 97.010727 such5 1 4 3 4 6 1058 2615 179 42 96.492920 suggested5 1 4 3 4 7 1251 2614 100 33 96.741112 retails 1 4 3 4 8 1363 2614 93 42 96.079391 prices 1 4 3 4 9 1468 2613 30 32 96.942291 is5 1 4 3 4 10 1510 2617 61 28 96.979118 not5 1 4 3 4 11 1583 2613 36 31 96.979118 in5 1 4 3 4 12 1634 2612 74 32 96.948959 facts 1 4 3 4 13 1717 2613 59 31 96.937378 thes 1 4 3 4 14 1788 2611 92 42 96.986366 price4 1 4 3 5 0 571 2660 1310 47 -1 5 1 4 3 5 1 571 2673 36 28 88.228363 at5 1 4 3 5 2 622 2669 110 32 88.228363 which5 1 4 3 5 3 745 2669 58 32 96.983376 thes 1 4 3 5 4 817 2666 234 33 96.879852 merchandise5 1 4 3 5 5 1064 2665 30 33 96.506462 is5 1 4 3 5 6 1108 2665 134 42 96.049850 usually5 1 4 3 5 7 1258 2665 68 31 96.049850 ands 1 4 3 5 8 1341 2662 217 42 96.269180 customarily5 1 4 3 5 9 1574 2662 74 33 96.824699 sold5 1 4 3 5 10 1662 2662 35 33 97.005806 in5 1 4 3 5 11 1712 2662 58 33 97.011696 thes 1 4 3 5 12 1782 2660 99 33 96.471725 trade4 1 4 3 6 0 571 2711 1308 47 -1 5 1 4 3 6 1 571 2731 85 21 95.783363 area.5 1 4 3 6 2 702 2721 72 31 96.501595 Thes 1 4 3 6 3 790 2731 58 20 96.624329 uses 1 4 3 6 4 865 2719 39 31 95.521545 of5 1 4 3 6 5 922 2718 81 32 96.964600 such5 1 4 3 6 6 1011 2707 19 55 96.925224 a5 1 4 3 6 7 1056 2716 104 42 96.415085 price,5 1 4 3 6 8 1177 2728 39 20 96.622482 or5 1 4 3 6 9 1233 2716 39 31 96.943642 of5 1 4 3 6 10 1289 2727 66 30 96.777420 any5 1 4 3 6 11 1372 2714 103 43 96.733459 price,5 1 4 3 6 12 1493 2714 146 32 96.920586 without5 1 4 3 6 13 1656 2711 223 43 96.369400 designation, Initial Decision 61 F.T.C..

constitutes an unfair or deceptive act or practice when such price is not. the usual and customary price at which the advertiser sold in the recent regular course of business.

4. Respondents have engaged in unfair or deceptive acts or practices. in commerce in violation of Section 5 of the Federal Trade Commission Act through use of such prices placed in juxtaposition in advertising with respondents’ lower current prices. 5. The use of such acts and practices has had and now has the capacity and tendency to mislead members of the purchasing public into the erroneous belief that the lower prices quoted result. in a saving in the. purchase of the advertised articles. As a consequence, substantial commerce may be diverted from competitors and thus cause them and. the public substantial injury.

It is, therefore, appropriate to enter the following ORDER It is ordered, That respondents, Frank G. Feldman, Frank M. Beckerman, and Hyman S. Glass, in connection with the offering for: sale, sale, and distribution of any merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: .

1. Representing, directly or by implication : (a) Through the use of the term “Manufacturer’s List” or: any other term of the same import, or in any other manner, that any amount is the price of merchandise in respondents’ trade areas when it is in excess of the price at which merchandise is usually and customarily sold at retail in said trade areas.

(b) That any price, when accompanied or unaccompanied by any descriptive language, was the price at which the merchandise advertised was usually and customarily sold at retail by the respondents unless such advertised merchandise: was in fact usually and customarily sold at retail at such price by the respondents in the recent past. (c) That any saving is offered in the purchase of merchandise from the respondents unless the price at which the merchandise is offered constitutes a reduction from the price at which said merchandise was usually and customarily sold by the respondents at retail or at which said merchandise was: usually and customarily sold at retail in the trade area “involved.

2. Misrepresenting, in any manner, the amount of savings avail- BEECHAM.*PRODUCTS INC. 957 949 ~ Syllabus ~ able to purchasers of respondents’ merchandise or the amount by which the prices of said merchandise have been reduced. from the prices at which it is usually and customarily sold.by the respondents at retail or in the trade area or areas where the representations are made.

It is further ordered, That the complaint herein against the corporate respondents, Enterprise Stores, Inc., a Massachusetts corporation, J. M. Fields of Orlando, Inc., a Delaware corporation, J. M. Fields of Worcester, Inc., a Massachusetts corporation, J. M. Fields of Holyoke, Inc., a Massachusetts corporation, J. M. Fields of Tampa, Inc., a Delaware corporation, J. M. Fields of Hartford, Inc., a Massachusetts corporation, and J. M. Fields of Rochester, Inc., a Massachusetts corporation, be, and the same hereby is, dismissed without prejudice to the right of the Commission to take such further action as may be warranted in the future.

Finat Orprer The Commission by its order of July 24, 1962, having placed this case on its docket for review; and The Commission now having concluded that the initial decision of the hearing examiner is appropriate in all respects to dispose of this proceeding:

It is ordered, That the intitial decision of the hearing examiner filed June 11, 1962, be, and it hereby is, adopted as the decision of the Commission.

It is further ordered, That respondents Frank G. Feldman, Frank M. Beckerman and Hyman S. Glass shall, within sixty (60) days after service upon them of this order, file with the Commission a. report, in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist. By the Commission, Commissioner Kern not participating.