Puzzlers Research Bureau, Inc.

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IN THE MATTER .oF PUZZLERS RESEARCH BUREAU, INC., ET AL.

CONSE T ORDER, ETC., IN REGARD TO TH ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 0-611. Compla-int, Oct. 1963-Decision, Oct. , 1963 Consent order requiring New York City llistribntors of contest: aids to the public to cease representing falsely in pamphlets, brochures and other advertising matter that tlJey could increase cnstomen: solving effectiveness at least 500%", that "Winners' lists arc studded with names of ani' subscribers, etc. when they failed to advise customers that the rules of such contests commonly provide that all 8,ynrcl-wiJlning entries must be the original creation of the person submitting them and that certifcation is required that he had no assistance.

COl\IPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority.y vested in it by sa.id Act, the Federal Trade Commission, having reason to believe tllat Puzzlers Researcll Bureau, Inc., a corporation, and tTules Leopold and 1Iinna Leopold individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of sa.icl Act, and it appearing to the Commission t.hat. 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: PAIL GRAPH 1. Respondent: Puzzlers R.escarch Bureau, Inc. , is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Nc". York, with its principal offce and place of business located at 8 Vest 40th Street in the city of X ew York, State of New York.

Respondents Jules Leopold and )finna Leopold are offccrs of the corporate respondent. They formuJale, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter se.t forth. Their address is the same a,s that of the corporate respondent.

, ,:. 1072 FEDERAL TRADE CO fMISSION DF:CISIOKS Complaint 63 F.

PAIL 2. Respondents are now, and ror s01he time last past have been, engaged in the advertising, offering ror sale, sale and distribution of contest aids to the pnblic.

PAR. 3. In the course and conduct or their business, respondents now cause, and ror some time last past hate caused, their said products when sold, to be shipped from their place of business hl the State or Xcw York to purchasers thereof located in various other States of the United States, and maintain, and at an times mentioned herein have maintained, a substantial course of trade in .said products in commerce, as "commerce" is defined in the Federal Trade Commission A.ct.

PAR. 4. In the course and conduct or their aforesaid business and for the purpose of induc.ing the purchase of their contest aids, the respondents have made numerous statements in pamphlets, brochures and other advertising matter sent through the l1flils to. the public. Typicil1 and illustrative of the aforesaid statements are the following:

You can save at least 100 haul's in solvillg time, By rcducing drudgery, increase our soh'ing effectiyene:,s at least 500%. Winners ' lists are stuc1c1ec1 with names of our subscribe!'. T\ycnty- fh-e year.': of intensi\-c experience are banI tu Dcat. 1\fo1'eove1' , when lists of winners in various contests arc published in various media, respondents immediately contact such winners and offer assistance by means of worc11ists comparison answers and rules interpretation, for jmpending contests.

PAH. 5. The rule of an such contests prm-ide, as a rule, that all prize or award-"\dnning cnt1'ie8 must be - the original crcatioll of the person submitting the entrjes and, as set forth in said rule2, 110 award or prize is a,yarded to an entrant until propel' certification and proof have been submitted that such person was not aS2istecl in ny manner or by anyone in the preparation or composition of his or her entry.

At no time and in no rnanner do respondents notify or a(htheir customers or prospective customers of these facts. Therefore ,1nc1said statements, representations and offers are false, misleading deceptive.

PAR. 6. In the conduct of their business, at' all times mentioned he1'ein, respondents have been in substantial eompctition, in commerce, with corporations, firms and individuals in the sale of contest aids of the same general kind anel nature as that sold by respondents.

P1;ZZLEHS RE.SEARCH BUREAU, L , Err AI.. 1073 Ion Decis.ion and Order PAR. 7. The use by respondents of the aforcsaid false, misleading and deceptive statements, representations and practices 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' contest aids by reason of said erroneous and mistaken belief.

PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, were and are 111 to the prejudice and injury of the public and of respondents: competitors and constituted, and now cons6tute, unfair 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 AXD ORDER The Commission having heretofore determined to issue its compla.int charging the respondents named in the caption hereof with violation of thc Federal Trades Commission Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commissioner intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, and admission by respondents of aU the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the Jaw has been violated as set forth in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent, Puzzlers Research Bureau, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of ew York with its offce and principal place of business located at 8 ,Vest 40th Street in the city of Kew York State of ew York.

Respondents Jules Leopold and Minna Leopold are offcers of said corporation, and their address is the same as that of said corporation. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

\ 1074 FEDERAL TRADE CO LY.ISSION DECISIO Syllabus 63 1-' ORDER It i8 ordered That respondents Puzzlers Research Bureau, Inc. , a corporation, and its offcers, and Jules Leopold and Minna Leopold individually and as offcers of said corporation, and respondents agents, representatives and employees, directly or through any cm.porate or other device, in connection with the offering for sale, sale or distribution of contest aids or other mateda.ls or services designed to assist entrants in competitive contests in commerce, as "commerce: is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Failing to disclose in a clear and conspicuous manner in all advertising and promotional material, that the use of such contest aids, materials, or services, as entries in competitive contests may subject such entries to invalidation under' contest Tules and practices which require all entries to be the original creation of the entrant;

2. Representing that such contest aids, materials, or services may be used as entries in competitive contests where inconsistent with the rules of such contests.

It i8 further ordered That the respondents herein shall, 1;within sixty (60) days after senice 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 this order.