Clark H. Geppert

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Ix THE j\IATTER OF CLARK II. GEPPERT ET AL. TK\DISG AS DKcN STUDIOS COXSEXT onder, ETC. , 1)/ REGAr.. TO TITE ,ALLEGED Vlcd_-\TTOX OF THE FEDERAL TIL.\DE CO::DIISSIOX ACT Docket C-iri. Complaint, Nay lD!q-Dccisirm. JIGY 2G. l.9rq Conspnt 01'1(1' l"€Cjuiring Des ::loil1('..,. 1011(\. retailers of ('llmcnts, pbotogrnph developing' , etc., to cease repre'!enting falsely, in liwgnzine ath"ertising, that they were offering trallsistor radios or other gifts. to 1)('r,,011S lHllH1ing ont 20 get acquainted coupons " to friends, when tile purported "gifts" ";ere delivered only after the ::0 coupons distributed 'I.;ere used by recipients in the purchase of respondents' sen-kes and product.':; and that. they would .selI a snapshot enlargement in a "l\ovietone" frnme for 4!Jf, when the eulal'gen10m offer was a decepti\'c method of imlncing persons to send in their hair aml eye color and thus ennble reSlJOlHlcnts to include an unordered color photograph with the enlargement and charge $3. 37 for the combination. CO:J\IPLAIXT Pursuant. to the provisions of t1w e(lernl 'Trade Commissi(Jll \ct and by virtue of the authority.y vested in it uy sa.id A_ , the Federal Trade Commission hflving reason to believe t11nt Clark H. Geppert Byron Geppert Hnd Ficlelis Geppert, inc1iyic1uary and as copa-rtners trading as Dean Studios, hereinafter referred to as rcsponc1ellts han 313-121--70--8 Complaint 65 F.

violated the provisions of said Act., and it appea.ring to the Commission that a proceeding by it in respect thereof would be in the public intercst\ hereby issues its complaint stating its charges in that respect as follo"s:

'RAGRAPH 1. Hespondents Clark H. Geppert, Byron Geppert, and Fidelis Geppert are individuals and copartners trading as Dean Studios, with their principal offce and place of business located at 913 vValnut Street, in the city of Des Moines, State of Io"a. Respondents have cooperated n.ncl acted together in the performance. of the acts and practices hereinafter set forth.

\R. 2. Respondents are 11m\', and for some time last past have been engaged in the sale anddistributjon of cameras, photographic supplies and accessories, photograph developing, enlarging and tinting, camera repairing and other products and services at retail to the purchasing public.

PAR. 3. In the course and conduct of their mail-order business, respondents now cause, and for some time last past have caused, their products, "hen sold, to be shipped from their place of business in the State of Iowa to purchasers thereof located in various other States of the L:nitcd States and the District of Columbia, and maintain Rllcl at all times mentioned herein have maintained, a substantial course of trade in their said products, in commerce, as "commerce is defined in the Federal Trade Commission Aet. PAR. 4. In the course and conduct of their business as aforesaid and for the purpose of inducing tho sale of their photographic services and products, respondents have made certain statements and representa. tions in advertisements appearing in magazines and periodicals or national circulation.

Typical and illustrative of said statements and representations, but not aJl inclusive thereof, are t.he following: New General Electric PORTABLE RADIO Picture NO COST Radio To get acqu:11ntcd, I'l send you this precision made 7 transistor "gem of the vest pocket" portable radio. This powerful G. E. Miniature Portable comes in handsome lcl1snble jc\velry box, complete ",-ith carry case, earphone and battery. Simply hand out or mail only twenty get acquainted coupons FREI to friends or relatives and help us get that many new customers as Vel' our premium letter. . ,. ':' PLe,1se send me your faYorit snapshot, photo or Kodflk picture wh u writing for .lour G.E. radio. 'Ye wil make you a beautiful 5 :x 7 inch enlargement iu a ::lovietoue" frame and you can tell friends about our hand colored enlargements when handing out the coupons. Send today and pay postman only forty-nine cents and a few cents for our C. D. service plus postage on arrival. Your original returned. Also include the color of hair and eyes with each pict1le so DEA)l STUDIOS 747 745 Complaint I can give you our bargain offer on a second enlargement hand colored oils for greater beauty, sparkle and life. Limit of 2 to anyone person. Send today for your 20 FREE coupons to hand out and please enclose your name address and favorite snapshot. Our supply of G, E. radios is limited * * Offers on similar terms and conditions are made for miniature dogs, Polaroid cameras, and Bulova radios.

PAR. 5. Through the use of the aforesaid statements and others similar thereto, but. not included herein, respondents represented, directly or by implication:

1. That they were making a bona fide oiTer of a transist.or radio, a gift of 11 miniature dog, 11 Polaroid camera, a Bulova radio, or other articles of merchanaise, for the sole consideration of handing out or mailing twcnty coupons.

2. That they ,were making a bona fide offer to sell a 5 x 7 inch enlargcmcnt of a snapshot in a. " 'IovipJone ' frame for only 49 and a fc," cents for c. d. service plus postage, and that to those purchasers of said snapshot enlargements who sent in t.he color of their hair and eyes, respondents would submit an offer setting forth the price, terms and conditions for the purchase of a color photograph. PAR. 6. In truth and in fact:

1. Said offers are not bona fide offers of gifts for the sale consideration of handing out or mailing t"entry coupons, but are made for the purpose of obtaining purchasers for respondents' services and products. Persons responding to respondents' advertising are sent further advertising and explanatory material, together with twenty coupons. These coupons must be distributed to t"euty persons who must use them in purchasing respondents' services and products. It is only when these coupons are thus distributed and used by the recipients that the transistor radio, Polaroid camera, Bulova radio, or other articles of merchandise arc delivered by respondents. 2. The offer of an enlargement of a 5 x 7 inch snapshot in a ":MovietOlle frame for only forty-nine cents and a few cents for c. d. maiJ service plus postage is not a genuine and bona fide offer, but said offer is a deceptive method of inducing innocent, unwary and unsuspecting members of the purchasjng public to send along with their order for said 5 x 7 inch enlargement information relating to the color of their hair and eyes: which.h enables the respondents to forward an unordered color pl10tograph along with said 5 x 7 inch enlargement and to charge purchasers thereof a total price of $3.37 c. d. for said combination 5 x 7 inch enlargement and unordered color photograph, rather than the 491 anticipated by the purchaser. Respondents further have thereby resorted to and engaged ill the deceptive and misleading practice of shipping additional lTJGl'chanc1ise to individuals by d. mail without having received an order tllerefor. Deeision an'cj Ordcr, F.

Therefore, the advertisements and representations referred to in Pa.ragraphs Four a.nd Five were and are exaggerated, false, misleading and deceptive.

PAR. 7. In the conduct of their business, at all times mentioned herein, respondents 1uLYe been in substantial competitiOll, in commerce with corporations, firms and individuals in the sale of photographic equipment and services of the same general kind and nature as that sold by respondents.

PAR. 8. The use by respondents of the aforesaid false, misleading (l,nd deceptive statements, representations and practices has had, flnc1 now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belid that said statements and representations were and are trlle and into the purchase. of substantial quantities of respondents' products by reason of said erroneous and mistaken belief.

PAR. 9. The aforesaid acts and practices of respondellts as herein alleged, were and a,re all to the prejudice and injury of the public and of respondents' competitors and constituted and now constitute unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violat.ion of Section 5 of the Federal Trade Commission Act.

DECISION AXD ORDER The COD1mit:sion having heretofore determined to issue its complaint chaTging the respondents named in the caption hereof "irh violation of the Federa! Trade Commission --\.ct, and the respondents having been served with notice of said determination and "ith a copy of the complaint the Commission intended(l 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 fftcts set forth in the complaint to i sue herein, a statement that the signing of said agreement is for settlement purposes only and docs not constitute an admission by respondents that the la,w has been violated as set forth in such complaint: and y,aiyel's and provisions as required by the Commission r'.lles; and The Commission, having consi(lerec1 the agreement, hereby accept same, issues its complaint in the fonn contemplated by said agreement, makes the follo"Ylng jurischctional findings, and enters the fo Hawing order:

1. I\respondents, Clark H. Geppe,. , Byron Geppert, and Fidelie Geppert are incliyiduals and eo partners trading as De,an Studios, "jth DEAN STUDIOS 749 745 Deci1:ion and Order their principal offce and place of business located at 913 ,Yalnut Street ill the city of Des :\foines, State of 10"a. 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.

ORDER It is ordered That respondents Clark H. Geppert, Byron Geppert and Fide1is Geppert, individually a.nd as copartners, trading as Dean Studios, or trading under any other name or names, and their agents representatives ancl employees, directly or through any corporate.e or other device, in connection with the offering for sale, sale or distribution of cameras, photographic supplies and accessories, photograph developing, enlarging and tinting, camera reprdring, or other products or services in commerce, as "commerce" is defined in the Federal Trade Commission Act, do fortlndth cease and desist from: 1. Representing, directly or by implication, that Transistor Radios Iiniature Dogs, Polaroid Cameras, Bulova Radios or any other articles of me,rchandise arc givell at no cost or at nominal cost in return for handing out or lnailing 20 or any other small number of con pons or the performance of an)' other act or sen ice, "without clearly and conspicuously revealing in immediate connection therewith all of the obligations, duties and requirements necessary to the receipt and retention or said articles of merchandise;

2. r sing in any lllfnne.r, a sales plan, scheme or device wherein false, misleading or deceptive statements or representations are made in order to obtain leads 01' prospects for t.he sale of merchandise or services;

3. Representing, directly or indirectly, that any products or services are offered for sale "When such offer is not a bona. fide offer to sell said products or sel'dces, as is and as represent.ed and for the price and OIl the terms and conditions stated. 4. Shipping or sending any unordered or lmallthorized merchandise by c. d. mail or attempting in any manner to collect for any unordered or U11fluthorized merchandise or to secure or require the return thereof.

It is fLl'ther oJ'Ie;' That the respondents herein shall, within sixty (nO) days after service upon them of this order, file \\'ith the Comlnissian a re,port in writing setting forth in data.il the manner and form in \,which they have complied with this order. 750 FEDERAL TRADE COMMISSION DECISIOKS Order H5 F.'J' Ix THE )1./ TTEIt OF R. I- MACY & CO., INC.

ORDER1 ETC., IN P..GARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COJIl\HSSION ACT j)f)cl,et 7'86' Complaint 11Jr. lY60 Decision, JIay;:"' 1%. 2\loc1ifiecl order-follo\ving the Second Circuit' s decree, 326 F. 2d 44G-modifying and enforcing the Commission s desist order of May 15. 1062, 60 F. C. 1249, requiring a large i\ e\v York City department store to cease soliciting and receiving payment from any supplier for institutional advertising when it knew, or should have known, that proportionally equal payments ,"ere not made available to other customers competing with the resp01Hlent. :Momnl'D ORDER To CEASE AND DESIST Respondent having filed in the United States Court of Appeals for the Second Circuit a petition to review and set aside the order to cease and desist issued herein on l\fay 15, 1962; and the court on January 16, 1964, having filed its opinion and entered judgment and on February 14, 1964, having entered its final decree modifying and as modified, affrming and enforcing said order to cease and desist; and the time allowed for filing a petition for certiorari having expired and no sllch petition having been filed;

LV me, therefore, -i -i8 hereby ordered That the aforesaid order to cease and desist be, and it hereby is, modified, in accordance \\-ith the said fiual decree 'Of the court of appeals, to read as follows: It i8 ordered That respondent, R H. Macy & Co., Inc., a corporation, its offcers, employees, agents and representatives, directly or through any corporatc or other device, in 01' in connection with the purchase of depa.rtmcnt store products in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Receiving, or soliciting and receiving, payment from any vendor for institutional advertising when respondent knows, or should knmv, that such payment is not affrmatively offered or 'Otherwise made anilable by such vendor on proportionally equal terms to all of its other customers competing with respondent in the sale and distribution of the vendor s products. , ,, FINGERHVT MANUFACTURING CO. ET AL. 751 Complaint