Leo Lisker

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

IN THE MA'ITR OF LEO LISKER TRADING AS ANTWERP DISTRIBUTORS ETC.

CONSENT Oliver, ETC., IN REGAR TO THE ALLEGED VIOLATION OF THE FEDEIB.L TR- DE CO)BnSSION ACT Docket 0-"164. Complaint, June 18, 1964-Decision, June, 1964 Consent order requiring an individual in New York City, engaged in the sale and distribution to retailers of set and unset diamonds which he imported or obtained froll other New York City importers and wholesalers, to cease representing falsely in ad,ertising and other promotional material and by use of bis trade Dame that his company was organized and did business under the laws of Belgium and that he operated its New York branch and maintained an offce in Antwerp from which be sold diamonds direct to retailers without incurring shipping costs or middleman s profit. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and bT virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Leo Lisker, an individual, trading as Antwerp Distributors, and as Antwerp Distributors of Be.lgimn, hereinafter referred to as respondent, 1ms violated the provisions of said Act and it appearing to the COl1unission that a proceeding by it in respect thereof -would be in the public interest, hereby issue.s its complaint stating its charges in that re,spect as follows: \R.:\GR.&.PH 1. Respondent Leo LiskeI' is an individual trading as Antwerp Distributors and as i'-\ntwerp Distributors of Belgimn with his principal offce and place of business located at 30 IYest 47th Street in the city of K ew Yark, State af New Yark. A."ITWERP DISTRIBUTORS, ETC. 1087 JOSG Complaint PAR. 2. Antwerp Distributors is the trade name registered by respondent Leo Lisker in the State of New York. Respondent is now and for some time last past has been, engaged in the offering for sale sale and distribution of set and unset diamonds to retailers and others located throughout the United States. Respondent obtains the majority of such diamonds from importers and wholes",lers located in the city of New York; and the balance respondent imports himself or obtains frOTIl other sources.

iR. 3. In the course and conduct of his business, respondent causes and for some time last past has caused, said set and unset diamonds when sold, to be shipped from his aforesaid place of business in the State of New York to retailers thereof located in various other States of the Dnited States and in the District of Columbia, and maintains and at an times mentioned herein has maintained, a substantial course is defined inof trade in said dimnonds in commerce, as "commerce" the Federal Trade Commission Act.

PAR. 4. In the COllTSe and conduct of respondent' s business, and for the, purpose of inducing the sale of said diamonds, respondent has made numerous statements and representations with respect to the location and nationalit.y of respondent's business and the savings available.. Such statements and representations have been made in advertisements sent through the ma.ils to prospective customers and in other kinds of promotional material. Among and typical of the statements and representations contained in such advertisements, but not all inclusive thereof, are the following:

MONEY SAVING 'lps T3ke advantage of the Ted carpet treatment you receive when you deal with Antwerp Distributors in I\ew York. Let us show you how you can eliminate -Ebipping expemes and unpleasant complications. You wil be pJ".ased with our rapid and reliable delivery, '" '" ,.

Tbe New York Offce of Ant\verp Distributors bas been established to offer the most convenient and economical way fur you to select and huy the quality diamonds you need. By dealing with the ew York Offce of this internationally res:; ,ccted firm, you save tbe time and money you d normaliy spend corresponding with Europe s diamond centers. You eliminate the middleman and his share -Di our profits, avoid prepayment of imlJorted merchandise and cut through annoying red tape. Antwerp Distributors offers an outstanding selection of diamonds in a wide variety of grades and prices. '" ". * nry DIRECT THROUGH antwerp distributors NEVl YORK OFFICE TWIDRP OF1:ICE 78 Pflikaanstraat 30 West 47th St.

New York 36, N. Ant,,'erp, Belgium . . . . .. . .

Complaint 65 F.

During this Holiday Season you won t have to share your profit with a middleman. You won t have to put up with unreliable deliveries. You won t have to lose sales because of time consuming, long distance correspondence with over seas diamond centers. You won t because you can buy direct from the European market when you buy from Antwerp Distributors in New York. And you buy best when you buy direct. buy from Antwerp Distributors in New York. BOW?-By sellng direct. Antwerp Distributors of New York is the New World offce of the internationally respected firm, Antwerp Distributors of Belgium.

Want to save money? Want to pocket what you usually pay to a middleman?.

If this is what you want, then Antwerp Distributors of New York is the firm you are looking for. For Antwerp Distributors of N.Y. is the New World offce of the internationally respected European firm of Antwerp Distributors of Belgium.

PAl(. 5. Through the use of the trade name Antwerp Distributors of Belgium and through the use of the aforesaid statements and representations, and others similar thereto but not specifically set forth herein, respondent hlis represented, directly or by implication, that: (a) Antwerp Distributors of Belgium is a company organized existing and doing business under the laws of Belgium. (b) Antwerp Distributors is the New York offce of a Belgian company.

(c) Respondent maintains an offce at 78 Pelikaanstraat, Antwerp, Belgium, in which respondent conducts a substantial anlount. of business.

(d) Respondent sells and distributes from the European diamond market direct to retailers located in the United States without the use of any importer, wholesaler or other middleman. (e) No shipping expenses are incurred in connection with the importation of respondent' s diamonds into the United States of America; and the resulting savings are passed on to respondenes customers. (f) Xo importer, wholesaler or other middleman earns or makes a profit on respondent' s diamonds; and the resulting sav_ings ate passed on to respondent' s customers.

PAn. 6. In truth and in fact:

(a) Antwerp Distributors of Belgium is not a company organized existing and doing business under the laws of Belgium. In fact, such trade name is fictitious as such company does not exist. (b) Antwerp Distributors is not the New York offce of a Belgian company.

(c) Respondent does not maintain an offce at 78 PeJikaanstraat Antwerp, Belgium in which respondent conducts asubstantial amount of business.

TWERP DISTRIBUTORS, ETC. 1089 1086 Decision and Order (d) Respondent does not sell or distribute from the European diamond market direct to retailers located in the United States without the use of any importer, wholesaler or other middleman. (e) Shipping expenses are incurred in connection with the importation of respondent's diamonds into the Dnited States of Americ,,; and the savings claimed by respondent are not passed on to respondent's customers.

(f) An importer, wholesaler or other middlemau does earn or make a profit on respondent's diamonds; and the savings claimed by respondent are not passed on to respondent's customers. Said statements and representrutions were, and are, therefore, false misleading and deceptive.

PAR. 7. In the course and conduct of his business, and at all times mentioned herein, re.spondent has been in substantial competition in commerce, with corporations, firms and individuals engaged in the sale of set and unsct dimnonds of the same general kind and nature as those sold by respondent.

PAR. 8. The use by the respondent of the aforesaid 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 tme and into the purchase of substantial quantities of respondent's diamonds by reason of said erroneous and mistaken belief.

PAR. 9. The aforesaid acts and practices of the respondent, as herein alleged, were and are all to the prejudice and injury of the public and of respondent's competitors 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(a) (1) of the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation of the Federal Trade Commission Act, and the respondent 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 respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for y, Decision and Order 65 F.

settlement purposes only and does not constitute an admission by rer spondent that the law has been violated as set forth in such complaint and waivers and provisions as required by the C01nmission 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 Leo Liskcr is an individual trading as Antwerp Distributors and as Antwerp Distributors of Belgium with his prllcipal offce and place of business located at 30 ,Ycst 47th Street, in the 6ty of N ew York, State of ew York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It ordered That respondent Leo Lisker, an individual, trading as Antwerp Distributors, and as Antwerp Distributors of Belgium and respondent's representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of set or unset diamonds in commerce as "commerce" is defined in the Federal Trade COlll1ission Act, do forthwith cease and desist from:

1. Using the ,vorels "of Belgium" or any other T\ord or words of similar import or meaning as part of respondent's trade or business name.

2. Representing, directly or by implication, that respondent is a Belgium or European business, firm or company; or misrepresenting, in any manner, the nationality or location of respondent' s business.

3. Representing, directly or by implication, that respondent has an offce in Antwerp, Belgiil1 or at any other location or place outside of the United States of America; provided, however, that it shall be a defense in any enforcement proceeding instituted for violation hereof for respondent to establish affrmatively that respondent owns, operates or controls an office at such location or place wherein a substantial amount of respondent's business is conducted.

4. Representing, directly or by implication, that respondent sells or distributes from the European diamond market direct to retailers located in the United States or that respondent eliminates any importer, wholesaler, or other middleman from such transactions.

, K. RUBBER WELDERS , INC. , ET AL. 1091 1086 Syllabus 5. Using the words " * * .. eliminate shipping expenses or any other word or words of similar import or meanig; advertising or in any other manner; or representing, directly or by implication, that purchasers from respondent save the amount of tl,e shipping expenses incurred in connection with the importatiun of such diamonds.

6. Using the words ". . . eliminate the middleman and his share of your profits * * *" 01' any other words or word of similar import or meaning, in advertising or in any other manner; or representing, directly or by implication, that purchasers from respondent save the amount of profits made 01' earned by any importer, wholesaler or other middleman.

7. Falsely representing, directly or by implication, that any savings are available to purchasers of such diamonds; or misrep. resenting, in any manner, directly 01' by implication, any sadngs available to purchasers of such diamonds.

It i8 further ordered That the respondent herein shall, within sixty (60) days after service upon him of this order, file with the Commission a report in writing setting forth in detail the manner