The Maryland Aluminum Sales Company et al.

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

IN THE :MATTER OF THE MARYLA D ALUMIKUM SALES COMPANY ET AL. CO:N SENT ORDER , ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COME'IISSION ACT Docket G'- Oomplaint, Ma.r. 1964-Declsion Mar. , 1964 Cor;sent order requiring Baltimore sellers to the public of home improvement materials, including storm-screen windows and doors, to cease-in statements by themselves and their salesmen and by newspaper advertising Rnd other media-making " bait" offers to obtain leads to interested prospects, and representing falsely that aluminum \vindows and doors were on sale at a special reduced price for a limited time only. , j 1376 FEDERAL TRADE Cml'MISSION DECISIOXS Complaint 64 F T.

COMPLAI Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, tbe Federa! Trade Commission, having reason to beheve that The YIaryhncJ Aluminum Sales Company, a corporation, and yfilton l1abovsky :mcJ Jerome Rabovsky, individually and as offcers of said corporation hereinafter-r 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 pubhc interest, hereby issues its complaint stating its charges in that respect as fan ows : PARAGRAPH 1. Respondent The Maryland Aluminum Sales Company, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Maryland, with its principal offce and place of business located at 2313 Homewood Ave. in the city of Baltimore, State of Maryland.

Respondents Milton Rabovsky and Jerome Rabovsky are ote' ers of the corporate respondent. They fonnuJate, direct, and contr,)l the acts and practices of the corporate respondent, including the act;; flnc1 practices hereinafter set forth. Their address is the same as tll:) of the corporate respondent.

PAR. 2. Respondent.s are now, and for some time last. past havebcCll engaged in the advert.ising offering for sale, sale and clistributiml of screen windo't/t' l.ndhome improvement materials, including stormdoors, to the public.

PAR. 3. In the course and cond uet of their business, respondents now cause, and for some t.ime last past. have cause. their said prod: ids when sold, to be shipped from their place of business in the- St:H:e of Maryland to purchasers thereof located in various other States of the United States, and maintain, and at an t.times mentioned.d hic.rein have ma.intained, a substantial course of trade in sajd prodlL ts in Comme"TCe, as "comnlcrce" is defined in the Federal Trade Commi;3sion Act.

PAR. 4. In the course and conduct of their business, and for the pur. pose of inducing the purchase of their prodllots, the respondents' ;leir salesmen and representatives have made certain statements and n presentations with respect thereto in advertisements inserted in newspapers, and by ot.her media, of which the following are typical: THE MARYLAND ALUl\UNU1I SALES CO. ET AL. 1377 1375 Complaint SPECIAL THREE DAY SALE Eight count' Picture 3 Separate inserts (2 glass, 1 screen) Aluminum Combination Screen Storm Windows eight X 0 size restriction except picture windows screen storm windows Plus OKE FREE combinatioll screen-storm door $96.

inswllation inc1acted Additional windows $9.55 each Buy Now! Buy Five_--_--____--This Week! get Aluminum storm windows 2 glass, one screen.

5 for $54. Any size except rpicturesoparatewindow.inserts Additional windows $9.

IKSTALLA1' ION IKOLUDED 1378 FEDERAL TRADE CO"IMISSIOX DECISIONS Complaint 64 F.

Don t Wait :

Summerize Your Home ow! Amazing Pre-Season Prices Now! Limited time! (Picture SPECIAL OFFER! FULL Trial'LE-')ILT of stormeight 8: Aluminum Combination screen SCREEN:\ & STOR'! windows) WI'\DOWS Extruded Aluminum installation included Weather Stripped $76. any size except Finger tip control picture windows 3 Separate inserts (Picture of a storm-screen Self storing door) SPECIAL! This genuine Alcoa Aluminum Storm and Screen Door $16. 66 with the purchase of these 8 storm windo,vs, installation included.

Picture of 7 t()rm- ':rreen window.' This low Limited offer price includes installa tiOD 7 TRIPLE TRACK WINDOWS . Genuine . Aluminum Aluminum Triple Storm Door Track ALL 7 J.' (Picture of only . Draft Free storm door) 16. $64.

. Top and Bottom \with the purchase yentilation of 7 or more installation included . E-Z slide type Storm-screen windows . Installation PAR. 5. By and through the use of the aforesaid statements and representations, and others of similar import and meaning but not specifically set out herein, and through oral statements made by their salesmen and representatives: respondents have represented, directly or by implication:

1. That they were making a bona fide oJIer to sell the aluminum triple-track storm screen windows and doors advertised at the prices set forth in the advertisements, said prices to include installation. THE l\ARYLAXD ALU:\IINU1I SALES CO. ET AL. 1379 1373 Decision and Order 2. That they "were offering the advertised products for sale at a special.l or reduced price or for a, limited time only. PAR. 6. In truth and in fact:

1. The offers set forth in Paragra ph Four above \\ere not genuine or bona fide offers but "ere made for the purpose of obtaining le,ads as to persons interested in t.he purchase of respondents' products. After obta,ining such leads, respondents or their salesmen and representatives called upon such persons at their homes or waited upon them at respondents place of business. At such t.times and places respondents and their salesmen and repre,sentatives \yould di2parage the advertised storm-screen "indmys and doors and would then attempt to sell, and did sell, different and more expensive storm-screen windows a,nd doors.

2. The advertised products \\ere not on sale at a special or reduced price or for a limited time only. In fllct, said merchandise is, ach-ertjsed regularly -at the represented prjces. Therefore, the advertisements, statement.s and representation:: referred to in Paragraph Four and Fiye, were and are false., misleading and deceptive.

\R. 7. In the conduct of thc11' b113iness, at nil times mentioned herein, respondents have been in substantial competition, in commerce, with corporations, firms and individuals in the sale of home improvement materials, including storm-screen windows and doors of the same general kind and nature as that sold by the respondents. PAR. 8. The use by respondents of the aforesaid raise, misleae1ing 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 represent.ations were and are true and into the purchase of substantial quantjties of respondents' products by reason of saiel erroneous and mistaken be.lief.

PAR. :J. The aforesaid acts anel practices of the respondent, as herein alleged, \\ere and are a11 to the prejudice and jnjury of the public and of respondents: competitors nnd constituted, and no,,, constitute, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Fedeml Trade Commission Act.

DEClSrox AXD Onder The Commission having heretofore determined to issue -its complaint charging the respondents named in the caption hereof with violation of the, Federal Trade Commission Act, and the respondents having been se.rvecl with notice of said determination and wit.h a 1380 FEDERAL TRADE CO:\;YIISsroC' DECISIONS Decision and Order 64 F.

copy of the complaint the Commission 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, an admission by respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statcment that 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 s rules; and The Commission, having considered the. agreement, hereby accepts 3ame, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent The Maryland Aluminum Sales Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of YIaryland, with its offce and principal place of business located at 2313 Horne-wood Avenue, in the city of Baltimore, State of Maryland.

Respondents JIiHon Raboysky and Jerome Raboysky are offcers of sa.id 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, a,na the proceeding is in the public interest.

ORDER It is oi'deJ'ed That respont1ents The ::Iaryland Ahnninum Sales Company, (1, corporation, and its offcers, and :Milton Rabovsky and Terome R.abovsky, individually and as offcers of said corporation and respondents' agents, representatives and employees, directly or through any corporate or ot.her device, in connection with the offering for sale, sale or distribution of storm-screen windows and doors is or any other merchandise, or services, in COmlTICrCe, as "commerce" defined in the Federal Trade Commission Act, do 1'0rtlndth cease and desist from:

1. Using in any manner, a sales pb, , scheme or device wherein false, misleading or deceptive statements or representations are made in order to obtain leacls or prospects for the sale of merchandise or SCITices.

2. Discouraging the purchase of, or dispo-Taging, any merchandise or services Iyhioh are Rc1yertised OT' offered for sale. , UNION CIRCULATION CO. ET AL. 1381 1375 Complaint 3. Representing, directly or indirectly, that any merchandise or services are oilered for sale when such offer is not a bona. fide offer to sell said merchandise or services. 4. Representing, directly or by implication, that: (a) Ierchandisc is sold at a special or reduced price when the price quoted is the regular price at which such merchandise is sold.

(b) Merchandise is being offered for a limited time when such offer is not limited as to time.

It is further ordered That the respondents herein 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 ,wd form in which they have complied with this order.