Glacier Publishing International, Inc.

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IN Tile fatter OF GLACIEH PUBLISHING I TER ATIO , INC., ET AI, CONSENT ORDER ; ETC. IN REGARD TO THE ALLEGED VIOLATION OF TI-U': FEDERAL TRADE COJDUSSlOX ACT Docket C-538. Complaint, Aug. 1963-Decision, Aug. , 1963 Consent order requiring New York City publishers of pocket-size paper covered books, to cease misrepresenting the contents or utilty of their said paperbacks by such practices as stating on the outside front cover of their Car Buycrs Pdcing Guide, "* :I .. GIVES 'nHJ FACTS". );E"\V CAR "' HOLES.ALr.J AXD RETAIL PHICES". etc" and on the COH' r of the Appliance Buyers Pricing Guide BEST BDYS-DEALEIlS' COSTS" and in the introduction "* ,;, " Best buy. ba ell on extensiyc COI):l111t'l' usage and testing reports. . etc. , wnen the aforesaid new car wholesale prices were inaccurate and fictitious and the test reports alluded to in the "Appliance Buyers Pricing Guide" were Donexistent. CO:MPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested jn it by said Act, the Federal Trade Commission, having reason to believe that Glacier Publishing Internationnl, Inc., a corporation, Glacier Publishing Corporation a corpora.tion Timothy Birnbaum and Peter F. :.IcGniJ'c, indiyic1l1all:-" and as offcers of each of said corporations, and Henry Scharf, indi- ,,,dually, hereinafter referred to as respondents, have violated the provisions 'Of said Act, and it appearing to the Commission that a proceeding by it. in respe,ct thereto would be in the public interest hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Gbcier I\lblishing Corporation is a corporation organized, existing and doing business under and by . . . . .

GL.ACIER PUBLlSJn 'G llTERXATIONAL C" ET AL. 433 Complaintvirtue432of the laws of the State of New York, and is a wholly owned subsidiary of Glacier Publishing International, Inc., a corporation orgl11ized, existing and doing business under and by virtue of the laws of the State of Delaware. Individual respondents Timothy Birnbaum and Peter F. McGuire are offcers of each of said corporations, and together with respondent Henry Scharf formulate, direct and control the acts, practices and policies of the corporate respondents. Individual and corporate respondents have maintained their principal office and place of business at 26 Broadway, in the City of New York, State of N ew York.

PAR. 2. Respondents have been engaged in the publication, advertising, offering for sale, sale and distribution of pocket-size paper covered books, sometimes hereinafter referred to as paperbacks. Said publications have been marketed nationally through a distributor and have been retailed at bookstores, drugstores, newsstands in railway and bus stations and at other retail outlets, to members of the public.

PAR. 3. In the course and conduct of their business, respondents have caused said paperbacks, when sold, to be shipped from their place of business in the State of N ew York to the purchasers thereof located in various other States of the United States, and at all times mentioned herein have maintained a substantial course of trade in said paperbacks in commerce as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4,. In the course and conduct of their business, and for the purpose of inducing the sale of said paperbacks, respondents have made numerous statements and representations on the covers and in the introduction to said paperbacks with respect to the contents and utility of said paperbacks and with respect to the tests and surveys conducted to support information contained in said paperbacks. Among and typical of said statements and representations, but not all inclusive thereof, are the following:

(a) On the outside front cover of the Car Buyers Pricing Guide OFFICIAL SPRING. 1961 $1.00 WHOLESALE AND RETAIL PRIm,S OF ALL '61 CARS OFFICIAL CAR BGYERS PRICI",G GGIDE GIVES THE FACTS NEW CAR WHOLESALE AND RETAIL PRICES' car buyers pricing guide;

and on the ba.ck outside cover of saidlJaperback , . . .

434 FEDERAL TRiDE COI\n1ISS'ION DECISIOXS Complaint 63I"

THE 1961 CAR BUYERS GUIDE brings you all the facts and prices on all the cars: . . .

If you re planning to buy or sell a car, new or used, foreign or domestic, you can drive Ii better bargain with this book, because OFFICIAL CAR BUYERS PRICING GUIDE w!l . . . Tell you just what it costs your dealer to get your new car. . . (b) On the front outside cover of the Appliance Buyers Pricing Guide BEST BUYS. DEALERS' COSTS 1961 EDITION $1.00 OFFICIAL 61 APPLIANCE BUYERS PRICING GUIDE Wholesale and retail prices of all major appliances plus your BEST BUYS. . . and jn the IXTRODFGTIOX TO APPLIANCE In:..Tlers PRICING G"GIDE; In addition to listing all the appliances (alphabetically by manufacturer), each category has one manufacturer with an asterisk (*) next to his name. This is considered the Best Buy, based on extensive consumer usage and testing reports PAR. 5. Through the usc of the aforesaid statements and representations and others similar thereto, but not specifically set forth respondents have represented, directly or indirectly: (a) That the new car wholesale prices contained in respondents' Car Buyers Pricing Guide are authentic prices actually used by the automobile manufacturers to bilJ automobiles that are sold by said manufacturers to new car dealers; and that such prices could be used by prospcctive purchasers of ncw cars to determine the dealer cost of ncw automobiles and thereby improve their bargaining position when negotiating with new car dealers towards the purchase of a new car.

(b) That the "Best Buy" recommcndations contained in respondents AppEanee Buycrs Pricing Guide" arb based upon test report resulting from independent consumer surveys and extensive indepcndent. tests conducted by respondents or others under the direction of the respondents.

PAn. G. In truth and in fact:

(a) The new car wholesale prices contained in respondent.s Car Buyers Prjeing G1.ic1e n a.re not authentic prices actually use,cl by the antoI1obile manufaeturcrs to bill automobiles that are sold by said manufacturers to new car dealers. Such new car wholesale prices as are contained in said paperback are substantially inaccurate and fictitious a.nd could not be used by prospective purc11Rsers to determine the GLACIER PUBLISHING INTEHNATIONAL, INC. , ET AL. 435 Decision and' Order432dealer cost of new automobiles or to improve their bargaining position when negotiating with new car dealers towards the purchase of a new car.

(b) The "Best Buy" recommendations contained in respondents Appliance Buyers Pricing Guide" are not based upon test reports resulting from independent consumer surveys and extensive independent tests conducted by respondents or others under the direction of the respondents. Sa,icl test reports a.re nonexistent aud no independent consumer surveys or extensive independent tests have been conducted by respondents or others under the direction of the respondents.

Said statements and representations were, therefore, false, misleading and deceptive.

PAR. 7. By the aforesaid practices, respondents have furnished or otherwise placed in the hands of retailers, directly or indirectly, the means and instrnmentalities by and through which they may mislead the public as to the contents and utility of said paperbacks and as to the tests and surveys conducted to support information contained in said paperbacks.

PAR. 8. In the conduct of their business, at alj times mentioned herein, respondents have been in substantial competition, in commerce with corporations, firms and individnals in the sale of paperbacks. PAIL 9. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had, and nOlv has, the c.apac.ity and tendency to mislead members of the purchasing publjc into the erroneous and mistaken belief that said statements and reprcsentatjons were and arc true and into the purchase of substantial quantities of respondents' product by reason of said erroneous and mistaken belief.

PAIL 10. 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, un. fa.ir methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the capdon hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Deceptive Prac- 436 FEDERAL TRADE CO!\D.ISS'IOX DECISIO Decision and Order 63 F.

tices proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The respondents and counsel 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 aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondents that the law has been violated as alleged in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe that the respondents have violated the Federal Trade Commission Act, and having determined that complaint should issue stating its charges in that respect hereby issues its complaint, accepts said agreement, makes the following jurisdictional findings and enters the following order: 1. Respondent Glacier Publishing International, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, and has maintained its principal offce and place of business at 26 Broadway, in the city of New York State of New York.

Respondent Glacier Publishing Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Xew York, and has maintained its principal offoo and place of business at 26 Broadway, in the city of New York, State of New York.

Respondents Timothy Birnbaum and Peter F. McGuire are offcers of each of said corporations. They, together with respondent Henry Scharf, an individual, have the same address as that of said corporations.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proooeding is in the public interest.

ORDER It is ordered That respondents Glacier Publishing International Inc., a corporation, and its offcers, Glacier Publishing Corporation a corporation, and its offoors, Timothy Birnbaum and Peter F. McGuire, individually, and as offccrs of each of said corporations and Henry Scharf, individually, and respondents' representatives agents and employees, directly or through any corporate or other device, in connection with the publication, offering for sale, sale, or distribution of the paperbacks "Car Buyers Pricing Guide" and "Ap- GL.-\Cler prBLISHTNG I TER TATIOXAL) INC. ) ET AL. 437 43:2 Dedsion and Order pliallce Buyers Pricing Guide" or any other publications, in C01nmerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. R.representing, directly or by implication, through the nse of the ,yorcb ;;OFFICL\L ':' ::' ':: XEW CAR WHOLES_ -\LE * , * PHlCE.: , or any other word or words of similar import and mean. ing, on thc front outside cover of the paperback "Car Buyers Pricing Guide, or in any other manner, that said paperback contains authentic prices actually used by automobile manufacturers to bill automobiles that arc sold by such manufacturers to new ca.,I' dealers.

2. Representing, directly or by implication, through the use of the words " " * * you can drive a better bargain with this book, because OFFICIAL CAR BUYERS PRICING GUIE will: * * * Tell you just what it costs your dealer to get your new car * * *", or ny other word or words of similar import and meaning, on the back outside cover of the paperback "Car Buycrs Pricing Guide or in any other manner, that prospective purchasers 'Of new cars can improve their bargaining position when negotiating with nmv car dealers towards the purchase of a new car through the nse of the llew car "wholesale" prices contained in said paperback. :3. :Misrepresenting, in any manner, directly or by implication the contents or utility of any of said papcrbacks or any other publication.

4. Heprcsenting, directly or by implication, that respondents or others under the direction of respondents have conducted any tests 01' surveys when neither respondents nor others under the direction 'Of respondents have conducted any tests or surveys. 5. )'Iisrepresenting, in any manner, directly or by implication the results of any tests ot surveys.

6. Furnishing or otherwise placing in the hands of retailers of said paperbacks or any other publications, directly or indirectly, the means and instrumentalities by and through which they may lnislead or clecei\-c the public in the manner or as to the things hereinabove prohibited.

I t is further ordered That each of the respondents herein shall within sixty (60) days after service upon them of this order, file with tbe Commission a report in writing setting forth in detail the manner and form in which they have complied with this order. 780- (118- G8- :!D , 438 FEDERAL TRu\DE CO:-lMJSSTOK DECISIOXS Comp13int 63 F.