Lucien Piccard Watch Corp.

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IN THE j\1A TTER OF LlTOIEN PICCARD WATCH OORP. ET AL.

CONSEN'!' ORDER , ETC. , IN REGARD TO THE ALLEGED VIDL.4.TION OF THE J1'EDERAL TRDF. C03IMISSION ACT Docket 0-762. C01nplaint, J'u.ne 196 Decision, Ju.ne 1964 Consent order requiring Kew York City distributors to retailers of watches which they assemhled from Swiss movements and domestic cases, to cease representing falsely in brochures disseminated to retailers and in advertise. ments in magazines and newspapers that certain of its watches were "shock. proof" ; and representing falsely Oil letterheads, watch boxes and inserts 313-121- 70-- 1050 FEDERAL TRADE COMMISSION DECISIO:\S Complaint 65 F.

therein, advertisenwnts. brochures, ad,ertising mats and promotional material furnished retailers, that it was a Swiss company, founded in Switzerland, owned a factor in Switzerland and had been in business there since 1837, and that its watches were designed and created in Switzerland.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federa! Trade Commission, having reason to belicyc that Luc.ien Picc:l Watch Corp. , a corporation, and Abraham Blumstein and Stank)' Blumstein, individually and as offcers of saiel 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 follmvs: \RAGRAPH 1. R.respondent Lucien Piccard 'Vatch Corp. is a eorporation organized, existing and doing business under and by virtue of the Jaws of the State of New York, with its principal offce and place of business located at 550 Fifth Avenue in the City of N ewY ork State of New York.

Respondents Abraham Blumstein and Stinlc)' Blumstein are offcers of the corporate respondent. They forrnulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent.

PAR. 2. Respondent.s are nmv, and for some time last past have been ngaged in the advCl tising, offering for sale, sale and distribution of watches to retailers for resale to the public. PAR. 3. In the course and conduct of their business, respondents now cause, a,nd for some time last past have ca,used, their said watches when sold, to be shipped from their place of business in the State of N ew York to .purchasers thereof located in various other States of the United States, and maintain, and at all times mentioned herein have maintained, a substantial course of trade in said watches in commerce, as "commerce ' is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of their business, respondents have engaged in the practice of disseminating to retailers and others brochllres and have, placed a.advertisements in ncwspa,pers and magazines, -in Ifhich certain of their watches are described as being shockproof"

Through the use of the aforesaid statement and representation respondents represent. directly or by implication, that the enrt.ire watch is protected against damage from any type or amount of shock. ..

LUCIEN PICCARD .WATCH CORP. ET AL. 1051 1(H9 Complaint PAR. 5. In truth and in fact, the entire watch is not protected against damage from any type or amount of shock. Therefore, the statement nel representation as set forth in Paragraph Four hereof was and is false, n1misleading and deceptive.

PAR. 6. In the course and conduot of their business, respondents have made statements and representations regarding the origin of their business and watches and the scope and age of their business, on letterheads, watch boxes and ,watch box inserts, in advertisements inserted in newspapers and magazines, and in brochures, advertising mats and other advertising and promotional material fUl'i shed to retailers and others.

Typical and illnstrative of such statements and representations, bnt not all inclusive thereof, are the following: Lucien Piccard FONDEE 1837 SUISSE Suisse Lucien Piccard A :'fost Distinguished Name in Watchmaking Since 1837 Leader in Fashion Horlogerie D' Art Et De Precision 109 Rue De Leopold Robert La Chaux De onds (Suisse) Fondee 1837 Only the internationally-known genius of Lucien Piccard could create the world' thinnest automatic watch with sweep second hand! Since 1837, Lucien Piccard Originals have been recognized throughout the world for creative originality and technical achievement.

(Illustration of a large building on which appears a sign reading "LUCIEN PICCARD" ; under this ilustration appears the word "Switzerland" Lucien Piccard Watch Corp. 550 Fifth Avenue :New York 36, New York Factories in New Jersey and .switzerland Lucien Piccard Since 1837 Hor1ogerie D'Art Et De Precision Leader in Fashion 'Vithout question today-and since 1837-Lucien Piccard is renowned as one the wCtrld' s finest timepieces! Lucien PiCCD-rd Since 1837 the most distinguished name in watchmaking. PAR. 7. By and through the use of the aforesaid statements and representations, and others of similar import not expressly set forth herein, respondents have represented and now represent, directly or by implication, that:

(a) The Lucien Piccard 'Wateh Corp. or its predecessor in interest was founded or established in Switzerland.

(b) The Lucien Piccard ' Watch Corp. is a Swiss company or is " branch of or is otherwise affliated with a Swiss COlnpallY. , , 1052 FEDERAL 1'TRADE COMMISSION DECISIONS Complaint 65 F.

(c) The Lucien ,Piecard Watch Corp. owns or controls a ractory in Switzerland.

(d) The Lucien Piccard Watch Corp. or its predeceesor in interest has been in business since 1837.

(e) Lucien Piccard watches are designed, , created and manuractured in Switzerland.

PAR. 8. In truth and in ract:

(a ) Neither the Lucien Piccard 'Vatch Corp. nor its predecessor in interest was rounded or establiehed in Switzerland. (b) The Lucien Piccard 'ViJtch Corp. is not a Swiss company nor is it a branch or or other,wiee affliated with a Swiss company. (c) The Lucien Piccard Watch Corp. does not own or control a ractory in Switzerland.

( d) Neither the Lucien Piccard 'Watch Corp. nor its prcdeceesor in interest has been in business since 1837. (e) Lucien ,Piccard watches are not designed, created or manuraelured in Switzerland.

The Lucien Piccard 'Watch Corp. was chartercd in the St.ate or J\Tew York in 1945 as A. Blumstein, Inc., a.nd its present name was adopt.ed in 1955. Its predecessor in interest. was established by Abraham Blumstein and another as a partnership in the State or II ew York in 1926. Respondents import. their wateh movements rrom Switzerland and assemble ,them in domestie cases at. their places or business in the Unit.ed St.ates. Alt.hough some or t.these import.ed movement.s are purchased by respondents rrom a Swiss company which was rounded in 1837, this company is wholly unrelated ,to and independent. rrom respondents.

Therefore, the statmnents and representations as set forth in PtlI'Qgraphs Six and Seven hereof were and ate false, misleading an.d decept.ive.

PAR. 9. By and through t.he use or the aroresaid practices, respondents place in the hands of retailers and others the means and instrumentalities by and through which they may mislead and deceive the public as to the shock resista.nt character of their watches and as to the origin of their business and watches and the scope and age of their business.

PAR. 10. In the conduct of their business at all times mentioned herein, respondents have been in substantlaJ competition, in COlnmercc \with corporations firms and individuals in the srJe of ,vatches of the same general kind and nature as those solel by respondents. PAR. 11. The use by respondents or the aroresaid false, misleading and deceptive statements, representations and practices has had, and LUCIEN PICCARD WATCH CORP. ET AL. 1053 1()9 Decision and Ordier now has, the capacity and tendency to mislead members of the pnrchasing public into the erroneous and mistaken beEd that said statements and representations were and are true and into the purchase of substantial quantities of respondents' watches by reason of said erroneous and mistaken bc1icf.

PAR. 12. The aforesaid acts and practices of respondents, as herein alleged, were and are an to the prejudice and injury of the public and of respondents' cOlnpetitors and constituted, and now constitute . 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 A:\ ORDER 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 served with notice of said determination and with a 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 an the jurisdictional1 facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does no eonstitu an admission by respondents that the 1aw has been vio1wted as set forth in such complaint, and waivers and provisions as required by the Commissionru1es; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agree. ment, makes the following jurisdictional1 findings, and enters the fo1lowing order:

1. Respondent Lucien Piccard Watch Corp., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 550 Fifth Avenue, in the city of New York, State of New York.

Respondents Abraham B1umstein and Stanley Blumstein 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 or this proceeding and of the resnondents and the nToreedinr: is in the pnblie interest.

1054 FEDER/...L 'I'HADE CO:\L\IISSIOX DECISIOXS Dedsion and Order ORDER It is ordered That respondents Lucien Piccard ,Vateh Corp. a corporation, and its offcers, and Abraham Blumstein and Stanley Blumstein individually and as offcers of said corporation, and respondents' agents, representatives and employees, clirectly or through any corporate or other device, in connection with the offering for sale, sale and distribution of watches, or any other products, in commerce, as commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or by implication, that: (a) Their watches are "shockproof"

(b) The Lucien Piccard 'Vatch Corp. or its predecessor in interest was founded or established in Switzerland. (c) The Lucien Piccard ' Watch Corp. is a Swiss company or is a branch of or is otherwise affliated with a Swiss company.

(d) The Lucien Piccard 'Vateh Corp. owns or controls a factory in Switzerland.

(e) The Lucien Piccard ,Vatch Corp. or its predecessor in interest has been in business since 1837.

(f) Respondents' watches or parts thereof are designed created or manufactured in Switzerland, or any other foreign country; Provided, however That it shall be a defense in any enforcement proceeding instituted for violation hereof for respondents to affrmatively establish that such watches or parts were in fact designed, created or manl1 Eactl1red i.n Swi.tzerland or such other foreign country as may have been represented by respondents.

2. Misrepresenting, in any manner, the shock resistant characteristics of respondents' watches; the date or place of organiza. tion or foundation of respondents' business; the- lcngth of time respOlidents have been in business; the factories or other business facility.ies owned, operated or controlled by respondents; the nationality or affliations of respondent.s' business; or the place of design, creation or manufacture of respondents' watches. 3. Furnishing or othenvise placing in the hanels of retailers or others the means or instrumentalities by or through which they may mislead or deceive the public in the manner or as to the things hereinabove prohibited.

It is fllrther 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 and form in which they have complied with this order. HUECK' , INC., ET AL. 1055 Complaint