Thomas Harris McDonald

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

IN THE MATTER OF THOMAS HARRIS McDONALD TRADING AS McDONALD & SON GOLF COMPANY CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 0-1094. Complaint, Aug. 1966-Decision, Aug. , 1966 Consent 'der requiring a Batavia, 111., reconditioner of used golf bans, to cease failng to disclose on the golf bans themselves or on the wrappers or boxes that they are previously used golf bans which have been washed or repainted.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by the said Act the Federal Trade Commission, having reason to believe that Thomas Harris McDonald, an individual trading as McDonald & Son Golf Company, hereinafter referred to as respondent, has violated the provisions of the 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:

PARAGRAPH 1. Respondent Thomas Harris McDonald is an individual trading as McDonald & Son Golf Company with his offce and principal place of business at 103 Island Avenue, Batavia, Illinois.

PAR. 2. Respondent is now, and for some time last past has been, engaged in the offering for sale, sale and distribution of previously used, rewashed and repainted golf balls to retailers and dealers for resale to the public.

PAR. 3. In the course and conduct of his business, respondent now causes, and for some time last past has caused, his said products, when sold, to be shipped and transported from his place of business in the State of Ilinois to purchasers thereof located in various other States of the United States and maintains, and at an times mentioned herein has maintained, a substantial course of trade in said products in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of his business, respondent rewashes and repaints, or causes to be rewashed and repainted golf balls which have been previously used. .

Decision and Order 70 F.

Respondent does not disclose either on the bali itself, on the wrapper or on the box in which the balls are packed, or in any other manner, that said golf balls are previously used baUs which have been rewashed or repainted.

When such previously used golf baUs are rewashed or repainted, in the absence of any disclosure to the contrary, or in the absence of an adequate disclosure, such golf balls are understood to be and are readily accepted by the public as new bans, a fact of which the Commission takes offcial notice. PAR. 5. By failng to disclose the fact as set forth in Paragraph Four, respondent places in the hands of uninformed, unwary, and unscrupulous dealers means and instrumentaliies whereby they may mislead and deceive the public as to the nature and condition of the said golf balls.

PAR. 6. In the conduct of his business, at an times mentioned herein, respondent has been in substantial competition, in commerce, with corporations, firms and individuals in the sale of products of the same general kind and nature as those sold by respondent.

PAR. 7. The failure of the respondent to disclose on the golf bau itself, on the wrapper or on the box in which they are packed or in any other manner, that they are previously used baUs which have been rewashed or repainted has had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said golf bans were, and are, new in their entirety and into the purchase of substantial quantities of respondent's products by reason of said erroneous and mistaken belief.

PAR. 8. The aforesaid acts and practices of respondent, as herein alleged, were and are, aU to the prejudice and injury of the public and of the 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 of the Federal Trade Commission Act. DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Deceptive Practices proposed to present to the Commission for its consideration and which, if issued by the Commission, would MCDONALD & SON GOLF CO. 509 507 Decision and Order charge respondent with violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of a1l the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondent that the law has been violated as alleged in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe that the respondent has violated the Federal Trade Commission Act, and having determined that complaint should issue stating its charges in that respect, hereby issues its complaint, accepts said agreement makes the following jurisdictional findings, and enters the following order:

1. Respondent Thomas Harris McDonald is an individual trading as McDonald & Son Golf Company with his offce and principal place of business at 103 Island Avenue, Batavia, IJ1inois. 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 is ordered That the respondent, Thomas Harris McDonald an individual trading and doing business as McDonald & Son Golf Company, or under any other trade name or names, and respondent' s representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of used, rewashed or repainted golf balls in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Failing clearly to disclose on the boxes in which respondent' s rewashed or repainted golf balls are packaged, on the wrapper and on said golf balls themselves, that they are previously used balls which have been rewashed or repainted: Provided, however That disclosure need not be made on the golf balls themselves if respondent establishes that the disclosure on the boxes and/or wrappers is such that retail customers, at the point of sale, are informed that the golf balls are previously used and have been rewashed or repainted. Complaint 70 F. T.

2. Placing any means of instrumentality in the hands of others whereby they may mislead the public as to the prior use and rewashed or repainted nature of their golf bans. It is further ordered That the respondent herein shan, 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 and form in which he has complied with this order.