W. B. Snook Mfg. Co., Inc.

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Ix THE 1\IATTER OF W. B. SKOOK MFG. CO. , ET AL. COXSEKT onDEH , ETC. , IN REGARD TO THE ALLEGED nOLATIOX OF THE FEDER,\L TRADE co::n:rSSlON AC'l' Docket 0-632. Complaint, Dec. 1968-Decision, Dee, 18, 1963 Consent order requiring Palo Alto, Calif. , manufacturers of silver recovery units to cease representing falsely in advertising brochures and other pro. motional material that their "Rotex model X-4" silver recovery unit would under all cull(J.itions of operation recover 95 percent or more of the silver released into X-ray or film clearing or fixing solutions. :IPLAIXT 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 the W. B. Snook Mfg. Co., Inc., a corporation, and .Walter B. Snook, individually and as an oiIcer 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:

P ARAGRAPII 1. Respondent ,V. E. Snook Mfg. Co" Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its principal offce and in the city of ploC8 of business located at 751 Loma Verde Avenue, Palo Alto. Stale of California.

Respondent \Valter B. Snook is an offcer of the corporate respondenl He formulotes, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set. forth. His address is the same as that of the corporate respondent. W. B. SXOOK MFG. CO, ) I:\C. ET AL 1943 1942 Complaint PAR. 2. Respondents arc now, and for some time last past have been engaged in the manufacturing, advertising, offering for sale, sale and distribution of "Rotex" silver recovery units to distributors, retailers and others for resale to, and directly to, hospitals, medical and industrial X-ray and photographic processors, and others. PAR. 3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said prod. ucts, when sold, to be shipped from their place of business in the State of California to purchasers thereof located in various other States of the l:united States, and maintain, and at all times mentioned herein havo maintained, a substantial course of trade in said products in commerce, as "commerce" is defined in the Federa,l Trade Commission Act.

PAR. 4. In the course and conduct of their business, and for the purpose of inducing t.he purchase of their products, respondents have made statements and representations in a.dvertisiJ1g brochures and ot.her promotional material with respect to the effciency of aiIi' recovery of their products.

Typical and ilustrative of the aforesaid statements and representations, but not all inclusive thereof, are the following: The ROT:BX wil recover over 95% of the silver released into solution by the processed film SAVES 95% of silver in solution.

'l' he X-4 is basically for the manual developing process, It may be insertf'd in the tank during noll-operating hours or in a tailng tank at any time. It has a high current density for rapid "ilver recovery and wil take out 95'7 of tbe silver from one gallon in approxjmately an hour. PAR. 5. By and through the use of the above-quoted statements and representations, and others of similar import not specifically set out herein, respondents represent, directly or by implication, that their Hotex model X-4 silver recovery unit will under all conditions of operation recover 95ro or more of the silver released into X-ray or film clearing or fixing solutions.

PAR. 6. In truth and in fact, respondents' Rotex model X-4 silver recovery unit will not under all conditions of operation recover 85 % or more of the silver released into X-ray or film clearing or fixing solutions. It will recover substantially Jess than 95;Yo when operated in connection 'ivith automatic processing equipment. Therefore, the statements and representations as set fort.h in Paragraphs Four and Five hereof \were, and are, false, misleading and decepllve, 1944 FEDERAL TRADE cm\ :\nSSION DECISIONS Decision and Orclei' 63 F.

PAN. 7. By the aforesaid practices, respondents pJa,ce in the hands of orhcrs means and instrumentalities by and through which they may mislead purchasers of respondents: products as to the effciency of si1yE'1' recovery of their products \R. S. In the conduct of their business, at all times mentioned herein, respondent.s have been in substantial competition ill commerce with corporations, firms and individuals in the sale of silver recovery units of the same general kind and nature as those sold by respondents. \R. 9. The use by respondents of the aforesaid false, misleading allcl deceptive statements and representations has had, and now has t.he cnptlcity find tendency to mis)ead purchasers into the erroneous and mistaken belief thn.t sajd statements and representations were nd nrB true and into the purchase of substantial quantities of re sponclents' products b y reason of said erroneous and mistaken belief. -\R, 10. The aforesaid acts and practices of respondents, a,s herein alleged, 'Y('l'O and are an to tho prejudice and injury of the public and or respondents' competitors and constjt,lltect and now constitute, unfair methods of competition in c.commerce and unfait and deceptive acts and practices in commerce, in violation of Section 5 of the Federal TnlClr Commission Ad.

DECISION A D ORDER Tho Commission having heretofore determined to issue its complaint clwl'ging the respondents named :in the caption hereof with violation or the Federal Trade Commission Act, and the respondents having bee11 served with notice of said determinntion and with a copy of the ,complaint the Commission intended to issue, together 1\tth a, proposed 1'01'11 of order; and The respondents flnd counsel for the Commission having thereafter executed an a.agreement conta.ining a consent order, an achnission by respondents or all the jurisdictional facts set forth in the complaint to issue, herein, a, statement that the signing of said agreement is for settle.rnent purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such COffphint, and waivers and provisions as required by the Commission rnles: and Commission, having considered t.he agreement, hereby accepts same, issues it.s compalint in the form contempln.ted by said agreel1e.!'.t, makes the following jurisdictional findings, and enters the following- oller:

1, Respondent "iV. B. Snook :Yffg. Co. Inc. , is a, corporation orgnni c:ec1, existing and doing business under and by virtue of the laws ,v. n. SXOOK IFG. CO, ) INC.) ET AL. 1945 1942 Order of the State of California, with its offce and principal place of business located at 751 Loma Verde Avenue, in the city of Palo Alto State of California.

Respondent "Walter B. Snook is an offcer of said corporation and his 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.

OImER It is ordered That respondents, "IV. B. Snook Mfg. Co., Inc., a corporation, and its offcers, and lI' alter B. Snook, individually and as an offcer of said corporation, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection Ivith the oftering for sale, sale or distribution of silver recovery units, or any other products, in commerce.e, as "cOlIlmerce:) is de.finec1 in the :Federal Trade Commission Act, do forthwith cease and desist from:

1. R,representing, c1directly or by implication, that their Rotex model X-- silver recovery llnit or any other silver recovery unit of similar construction irrespective of its designation, Ivill recoyer any stated percentage 01' amount of silver released into X-ray or filnl clearing or fixing solntions, unless (1) the stated percentage 01' amount docs in fact reflect the percent.age or amount of silyer actually recoverable b ' the unit and (2) there is clear disclosure of the required eonc1itions of operation, including the type of processing equipment: 1\whether automatic or manual, with which the unit is to be used to ac.hieve such percentage or a.mount of recovery.

2, l\lisrcpresenLing: in lly manner, the amount or percentage of silver that t.their sil\-er TeCO\ ery units will recover from X ray or film clearing or fixing solutions.

3. I)lacing any means or instrumentalities in the hands of others whereby they may mislead and deceive purchasers of respondents: protlucts as to the efIcie.ncy of silver recovery of their products, It is lu,/,that orde'ied That the respondents herein shaJ1 , \\'within sixty.y (60) clays deter service upon them of this order, .fle ,,-ith the Commission a report. in \TIiting' setting forth in detail the manner and form in \which they have complied with this order. 1946 FEDERAL TRADE CO:\L\nSSIO DECISIOXS Complaint 63 F.