Natelson' Inc.

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

IN THE MATTER OF NATELSON' INC. ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION , THE WOOL PRODUCTS LABELING THE FUR PRODUCTS LABELING AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1141. Complaint Nov. 1966-Demsion, Nov. , 1966 Consent order requiring three retailers of 'women s wear in Omaha and Lincoln, Nebr. , to cease falsely advertising, deceptively invoicing, and misbranding their wool, fur, and textile fiber products, and unlawfully removing or mutiating required labels.

COMPLAINT Pursuant to the provisions af the Federal Trade Commission Act, the Fur Products Labeling Act, the W oal Products Labeling Act of 1939 and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Natelson s Inc. :\Tatelson s Crossroads, Inc., and Natelson s Gateway, Inc., corporations, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling Act, the Wool Products Labeling Act of 1939 and the Textile Fiber Pi'oducts Identification 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 Natelson s Inc., is a corporation organized, existing and doing business under and by virtue of the laws af the State of Nebraska. Its offce :md principal place business is located at 1517 Douglas, Omaha, Nebraska. Said corporate respondent operates women s wear retail outlets. Respondent Katelson s Crossroads, Inc., is a corporation organized, existing and doing business under and by virtue of the laws NATELSON S INC., ET AL. 1417 1416 Complaint of the State of Nebraska. Its offce and principal place of business is located at 72nd Street and Dodge, Omaha, Nebraska. Respondent NateJson s Gateway, Inc... is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska. Its offce and principal place of business is located at 60th and " 0" Streets, Lincoln, Nebraska. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are now engaged in the introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and have sold, advertised, offered for sale, transported and distributed fur products which have been made in whole 01' in part of furs which have been shipped and received in commerce, as the terms "commerce fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said fur products were misbranded in that they were not labeled as required under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

Among such misbranded fur products, but not limited thereto were fur products without labels and fur producb with label, which failed:

1. To show the true animal name of the fur used in any such fur product.

2. To disclose that the fur contained in the fur products was bleached, dyed, 01' otherwise artificially colored, when such was the fact.

3. To show the country of ongm of the. imported furs contained in the fur products.

PAR. 4. Certain of said fur products were misbranded in violation of the FUl Products LabeJjng Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) The term "natural" was not used on labels to describe fur products which were not pointed, bleached, dyed, tip-dyed, 01' otherwise artifically colored, in violation of Rule 19 (g) of said Rules and Regulations.

(b) The disclosure that fur products were compm'ed in whole or in substantial part of paws, tails, beJles, sides, flanks, give. ears, throats, heads, scrap pieces or waste fur, where required Complaint 70' F. was not set forth on labels, in violation of Rule 20 of said Rules and Regulations.

(c) Required item numbers were hot set forth on labels, in violation of Rule 40 of said Rules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required by Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed:

1. To show the true animal name of the fur used in the fur product.

2. To disclose that the fur contained in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact.

PAR. 6. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) Information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth on invoices in abbreviated form, in violation of Rule 4 of said Rules and Regulations. (b) The term "natural" was not used on invoices to describe fur products which were not pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

PAR. 7. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that certain advertisements intended to aid, promote and assist directly or indirectly, in the sale and offering for sale of such fur products were not in accordance with the provisions of Section 5 (a) of the said Act.

Among and included in the aforesaid advertisements, but not limited thereto, were advertisements of respondents which appeared in issues of the Sunday World Herald, a newspaper published in the city of Omaha, State of Nebraska. Among such false and deceptive advertisements, but not limited thereto, were advertisements which failed to show that the fur contained in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact. NATELSON' S INC., ET AL. 1419 1416 Complaint PAR. 8. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondents falsely and deceptively advertised fur products in violation of the Fur Products Labeling Act in that the said fur products were not advertised in accordance with the Rules and Regulations promulgated thereunder in that the term "natural" was not used to describe fur products which were not pointed bleached, dyed, tip-dyed or otherwise artificially colored in violation of Rule 19 (g) of the said Rules and Regulations. PAR. 9. In advertising fur products for sale, as aforesaid, respondents made pricing claims and representations of the types covered by subsections (a), (b), (c), and (d) or Rule 44 of the Regulations under the Fur Products Labeling Act. Repondents in making such claims and representations failed to maintain full and adequate records disclosing the facts upon which such pricing claims and representations were based, in violation of Rule 44(e) of the said Rules and Regulations.

PAR. 10. Respondents, in violation of Section 3 (d) of the Fur Products Labeling Act, have removed and mutilated and have caused and participated in the removal and mutilation of, prior to the time fur products subject to the provisions of said Act were sold and delivered to the ultimate consumer, labels required by the Fur Products Labeling Act to be affxed to such products without substituting therefor labels conforming to Section 4 of said Act and in the manner prescribed by Section 3 (e) of said Act.

PAR. 11. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce under the Federal Trade Commission Act.

PAR. 12. Subsequent to the effective date of the Textile Fiber Products Identification Act on March 3, 1960, respondents have been and are now engaged in the introduction, delivery for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce and in the importation into the United States, of textie fiber products; and have sold, offered for sale, advertised, delivered transported and caused to be transported, textile fiber products which have been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported and Complaint 70 F. T.

caused to be transported, after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as the terms "commerce" and " textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 13. Certain of said textile fiber products were misbranded within the intent and meaning of Section 4 (a) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise identified as to the name or amount of constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products which were falsely and deceptively advertised by means of advertisements which appeared in newspapers of interstate circulation, in that certain of said advertisements contained statements which represented, either directly or by implication, that said products were composed wholly or substantially of a fiber, when, in truth and in fact, said product was not composed wholly or substantially of said fiber. PAR. 14. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified with the information required under Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act.

PAR. 15. Certain of said textile fiber products were falsely and deceptively advertised in that respondents, in making disclosures OJ' implications as to the fiber content of such textile fiber products in written advertisements used to aid, promote and assist directly or indirectly in the sale or offering for sale of said products, failed to set forth the required information as to fiber content as specified by Section 4 (c) of the Textie Fiber Products Identification Act and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such textile fiber products, but not limited thereto, were articles of wearing apparel which were falsely and deceptively advertised by respondents, in newspapers of interstate circulation distributed throughout the t' united States, in that the true generic names of the fibers in such products were not set forth. PAR. 16. By means of the aforesaid advertisements and others of similar import and meaning not specifcally referred to herein NATELSON' S INC" ET AL. 1421 1416 Complaint respondents falsely and deceptively advertised textile fiber products in violation of the Textile Fiber Products Identification Act in that said textile fiber products were not advertised in accordance with the Rules and Regulations promulgated thereunder in tne following respects:

(a) Fiber trademarks were used in advertising textile fiber products, namely, ladies' undergarments, without a full disclosure of the fiber content information required by the said Act and the Rules and Regulations thereunder in at least one instance in said advertisement, in violation of Rule 41 (a) of the aforesaid Rules and Regulations.

(b) Fiber trademarks were used in advertising textile fiber products, namely ladies ' undergarments, containing more than one fiber and such fiber trademarks did not appear in tne require,l fiber content information in immediate proximity and conjunction with the generic names of the fibers in plainly legible type or let.tering of equal size and conspicuousness, in violation of Rule 41 (b) of the aforesaid Rules and Regulations. PAR. 17. Respondents, in violation d Secticr; 5 (a) of the Textile Fiber Products Identification Act have ,emoved and mutilated and have caused and participated in the removal and mutilation , prior to the time textile fiber products subject t.o the provisions of the Textile Fiber Products Identification Act were sold and delivered to the ultimate consumer, labels required by the Textile Fiber Products Identification Act to be affxed to such prod. ucts, without substituting therefor labels conforming to Section 4 of said Act and in the manner prescribed by Section 5 (b) of said Act.

PAR, 18. The acts and practices of respondents as set forth above were, and are, in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act.

PAR. 19. Respondents, subsequent to the effective date of the Wool Products Labeling Act of 1939, and with the intent of violating the provisions of the said Act, after shipment to them in commerce of such products, have, in violation of Section 5 of said Act, caused or participated in the removal and mutilation of the stamp, tag, label or other identification required by said Act to be affxed to wool products subject to the provisions of such Act, Decision and Order 70 F.

prior to the time such wool products were sold and delivered to the ultimate consumer, without substituting therefor labels conforming to Section 4 (a) (2) of said Act. PAR. 20. The acts and practices of the respondents as set forth above were, and are, in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and constituted and now constitute unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Texties and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act, the Fur Products Labeling Act, the Textile Fiber Prodnets Identification Act and the Wool Products Labeling Act of 1939; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement purposes only and does not constitute an admission by the respondents that the Jaw 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 respondents have violated the said Acts, 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 Natelson s Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska, with its principal offce and place of business located at 1517 Douglas, Omaha, Nebraska, Respondent Natelson s Crossroads, Inc. , is a corporation organized, existing and doing business under and by virtue of the NATELSON' S INC., ET AL. 1423 1416 Order laws of the State of Nebraska, with its principal offce and place of business located at 72nd Street and Dodge, Omaha., Nebraska. Respondent Natelson s Gateway, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska, with its principal offce and place of business located at 60th and " 0" Streets, Lincoln, Nebraska. 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 Natelson, Inc., Natelson Crossroads, Inc. , and Natelson s Gateway, Inc., corporations, Rnd respondents ' offcers, representabves, agents and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the sale, advertising, offering for sale, transportation or distribution of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms commerce " Hfnr" and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. J.Iisbranding fur products by:

1. Failing to affx labels to f11 products showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 2. Failing to set forth the term "natural" as part of the information required to be disclosed on labels under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

3. Failing to disclose on labels that fur products are composed in whole or in substantial part of paws, tails bellies, sides, flanks, gills, ears, throats, heads, scrap pieces 01' waste fur.

4. Failing to set forth on labels the item number or mark assigned to each such fur product.

B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices, as the term "invoice Order 70 F. T.

is defined in the Fur Products Labeling Ad, showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. 2. Setting forth information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form.

3. Failing to set forth the term "natural" as part of the information required to be disclosed on invoices under the Fur Products Labeling Ad and Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed. or otherwise artificially colored.

C. Falsely or deceptively advertising fur products through the use of any arh-ertisement, representation, public announcement or notice ,which is intended to aid, promote or assist, directly 01' indirectly, in the sale, or offering for sale oJ any fur product, ond which:

1. Fails to set forth in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5 (a) of the Fur Products Labeling Act.

2. Fails to set forth the term "natural" as part of the information required to be disclosed in advertisement under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe fur products which arc not pointed, bleacher1, dyed, tip-dyed or otherwise artificially colored, D. Making claims and representations of the types covered by subsections (a), (b), (c), and (d) of Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based.

It is turf he? ordend That respondents Natelson s, Ine" Natelson s Crossroads, Inc., and Natelson s Gatev/3Y, Inc. , corporations and respondents' offcers representative agents and mployecs directly 01' through any corporate or other device, do forthwith cease and desist from:

A. Mutilating or causing or participating in the mutila- NATELSON S INC., ET AL. 1425 1416 Order tion of, prior to the time any fur product subject to the provisions of the Fur Products Labeling Act is sold and delivered to the ultimate consumer, any label required by the said Act to be affxed to such fur product.

B. Removing or causing or participating in the removal , prior to the time any fur product subject to the provisions of the Fur Products Labeling Act is sold and delivered to the ultimate consumer, any label required by the said Act to be affxed to such fur product, without substituting therefor a label conforming to Section 4 of said Act and Rules and Regulations promulgated thereunder, and in the manner prescribed by Section 3 (e) of said Act.

It is fn?'het oTCleTed That respondents Natelson, Inc., Natelson s Crossroads, Inc., and Natelson f; Gateway, Inc., corporations and respondent' s offcers, representatives, agents and employees directly or through any corporate or other device, in connection with the introduction, delivery for introduction, sale, advertising, or offering for sale, in commerce, or the transportation 01' causing to be transported in commerce, or the importation into the United States of any textile fiber product; or in connection with the sale offering for sale, advertising, delivery, transportation or causing to be transported, of any textile fiber product, which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, rlelivery, transportation, or causing to be transported, after ship11.cnt in commerce, of any textile fiber product, whether in its original state or contained in other textile fiber products, as the terms "commerce" and 'itextile fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from: A. Misbranding textile fiber products by: 1. Falsely or deceptively stamping, t.agging, labeling, invoicing, advertising or otherwise j dentifying such products as to the name 01' amount of constituent fibers contained therein.

2. Failing to affx labels to such textie fiber products sho\ving in a clear) legible and conspicuous manner each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act.

B. Falsely and deeept.ively advertising textile fiber products by :

1. Making any representations by disclosure or by Order 70 F.

implication of the fiber contents of any textie fiber product in any written advertisement which is used to aid, promote, or assist directly or indirectly in the sale or offering for sale of such textile fiber product unless the same information required to be shown on the stamp, tag, label or other means of identification under Section 4 (b) (1) and (2) of the Textile Fiber Products Identification Act is contained in the said advertisement except that the percentages of the fibers present in the textile fiber product need not be stated. 2. Using a fiber trademark in advertisements without a full disclosure of the required content information in at least one instance in the said advertisement. 3. Using a fiber trademark in advertising textile fiber products containing more than one fiber without such fiber trademark appearing in the required fiber content information in immediate pyoximity and conjunction with the generic name of the fiber in plainly legible type or lettering of equal size and conspicuousness. It .;S f"rthel' ordered That respondents Katelson, Inc., Natelson s Crossroads, Inc, and Katelson s Gateway, Inc. corporations and respondents' offcers, agents, representatives and employees directly or through any corporate or other device, do forthwith cease and desist from:

A. Mutilating, 01' causing or participating in the mutilation of, the stamp, tag, label or other identification required by the Textile Fiber Products Identification Act to be affxed to any textile fiber product, after such textie fiber produc,t has been shipped in commerce and prior to the time such textile fiber product is sold and de1ivcred to the ultimate consumer.

B. Removing or causing or participating in the removal of the stamp, tag, label oj' other identification required by the Textile Fiber Products Identification Act to be affxed to any textile fiber product, after such textile fiber product has been shipped in commerce and prior to the time such textile fiber product is sold and deliver'eo to the ultimate consume!', without substituting therefor labels conforming to Section 4 of said .Act and the Rules and Regulations promulgated thereunder and in the manner prescribed by Section 5 (b) of said Act.

It is further ordered That respondents Natelson, Inc. YOUNGSTOWN AWNING AND WINDOW CO. ET AL. 1427 1416 Complaint Natelson s Crossroads, Inc., and Natelson s Gateway, Inc., corporations, and respondents' offcers, agents, representatives and employees, directly or through any corporate or other tlevice, do forthwith cease and desist from:

A. Mutilating, 01' causing or participating in the mutilation of, the stamp, tag, label 01' other identification required by the Wool Products Labeling Act of 1939 to be affxed to wool products subj ect to the provisions of such Act, prior to the time any wool product subject to the provisions of said Act is sold and delivered to the ultimate consumer. B. Removing, or causing or participating in the removal , the stamp, tag, label or other identification required by the Wool Products Labeling Act of 1939 to be affxed to wool products subject to the provisions of such Act, prior to the time any wool product subject to the provisions of said Act is sold and delivered to the ultimate consumer, without substituting therefor labels conforming to Section 4(a) (2) of said Act.

It is Iw.the'/ 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. IN THE MATTER OF SCOTT MANUFACTURI:-G AND INSTALLATION COM- PANY, INC., TRADING AS YOUNGSTOWN AWNING AND WINDOW COMPANY ET AL.

CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-ln':. C01npa11lt, I.Vo1'embcr 2S, 19C!!-Decisioll, No,Jembo" , 1%6 Consent order requiring a Creve Caenr, rvIo., home improvement firm to cease using false pricing, savings, and quality claims and other misrepresen tations to sell its residential siding and other products. COMPLAINT Pmsuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Scott Complaint 70 F. T, Manufacturing and Installation Company, Inc. , a corporation trading as Youngstown Awning and Window Company, and Joe H. Scott, individually and as an offcer of said corporation, have violated the provisions of said Act, and it a9pearing 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. Scott Manufacturing and Installation Company, Inc. , is a corporation organjzed, existing and doing business under and by virtue of the laws of the State of Missouri, with its principal offce and place of business locateo at Creve Coeur MilJ Road in the city of Creve Coeur, State of MissoUli. Said corporate respondent also trades as Youngstown Awning and Window Company.

Joe H, Scott is an individual and an offcer of saio corporation. He formulates, directs and controls the acts and practices of said corporation incl uding those hereinafter set forth. His business address is the same as that of the said corporation. PAR. 2. Respondents are now, and for some time last past have been, engaged in the advertising, of Ie ring for sale, sale ano distribution of various items of home improvements, including residen. tial siding, storm windows and awnings to the purchasing public. PAR. 3. In the course ano conduct of their business, respondents now cause, and for some time last past have caused, their said products, when sold, to be shipped from their place of business in the State of MisSOUli to purchasers thereof located in other States of the L'united States, and maintain, and at alj times mentioned herein have maintained, a substantial count€ 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 their business, and for the purpose of inducing the pUlchase of their products, respondents have, by promotional material and direct oral solicitations made by respondents or their salesmen or representatives, represented directly or by implication, that:

1. Homes of prospective purchasers had been specialJy selected as model homes for the installation of respondents' siding; after installation such homes would be used as points of reference, for demonstration and advertising pUlposes by respondents; and, as a result of allowing their homes to be used as models, purchasers would be granted reduced prices or would receive allowances, discounts or commissions.

YOUNGS1' OWN AWNING AND WINDOW CO. ET AL. 1429 1427 Complaint 2. Respondents' products are being offered for sale at spe" ial or reduced prices, and that savings are thereby afforded purchasers from respondents' regular selling prices. 3. Respondents' products wil never require painting or repairing.

4. The color of the respondents' products wil remain unchanged and will last a lifetime.

5. Respondents' products are everlasting and are made of indestructible materials.

6. Storms, hail and other elements will not damage the respondents' products.

7. Respondents' products wil reduce monthly heat bills by at least 25 percent.

8. Respondents' products and installations are " unconditionally guaranteed" in every respect without condition 01' limitation for an unlimited period of time.

PAR. 5. In truth and in fact:

1. Homes of prospective purchasers are not specially selected as model homes for installations of respondents' siding; after installations such homes are not used for demonstration and advertising pmposes by respondents; and purchasers, as a result of allowing their homes to be used as modcls, are not granted reduced prices nor did they receive allowances, discounts or commissions. 2. Respondents' products are not being offered for sale at special or reduced prices and savings are not granted respondents customers because of a reduction from respondents' regular selling price. In fact, respondents do not have a regular selling price but the price at which respondents' products are sold vary from customer to customer depending on the resistance of the prospecti ve purchaser.

3. Products sold by respondents will require painting and repairing.

4. The color of respondents' products wil change and will not last a lifetime.

5. The respondents' products are not everlasting and can be des troyed.

6. Storms, hail and other elements will damage respondents products.

7. The respondents' products will not afford a savings of 25 percent 01' more on the monthly fuel bin of each purchaser. 8, Respondents' products and installations are not unconditionally guaranteed in every respect without conditions or limitations Decision and Order 70 F. T. for an unlimited period of time. Such guarantee as may be provided is subject to numerous terms, conditions and Jimitations and fails to set forth the nature and extent of the guarantee, the identity of the guarantor and the manner in which the guarantor would perform thereunder.

Therefore, the statements and representations as set forth in Paragraph Four hereof were and are false, misleading and deceptive.

PAR. 6. In the conduct of their business and at all times ment.ioned herein, respondents have been in substantial competition in commerce, with corporations, firms and individuals in the sale of various items of home improvements, including residential siding, storm windows and awnings, of the same general kind and nature as that sold by respondents.

PAR. 7. The use by the respondents of the aforesaid false, misleading and deceptive statements, representations and practices 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 true and into the purchase of substantial quantities of respondents' products by reason of said erroneous and mistaken belief. PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, were and are 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 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 pmctices of the respondents named in the caption hereof, and the respol'dents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Deceptive Pmcticcs proposed to present to the Commission for its consider' ation and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement purposes only and does not YOUNGSTOWN AWNING AND WINDOW CO. ET AL. 1431 1427 Order constitute an admission by the respondents 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 respondents have violated the Federal Tmde 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 Scott Manufacturing and Installation Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Missouri, with its offce and principal place of business located at Creve Coeur Mill Road in the city of Creve Coeur, State of Missouri and trading as Youngstown Awning and Window Company.

Respondent Joe H. Scott is an individual and an offcer of said corporation and his address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subj ect matter of this p1'ceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Scott Manufacturing and Installation Company, Inc., a corporation, trading and doing business as Youngstown Awning and Window Company or under any other name or names, and its offcers, and Joe H. Scott, individually and as an offcer of said corporation, and respondents' representatives, agents, and employees, directly or th1'ugh any Corporate or other device, in connection with the advertising, offering for sale, sale or distribution of residential siding or similar products, in commerce, as I'commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing, directly or by implication: A. That the home of any of respondents' customers or prospective customers, has been selected to be used or wi1 be used as a model home, or otherwise, for advertising purposes.

B. That any allowance, discount or commission is granted by respondents to purchasers in return for permitting the premises on which respondents' products are Order 70 F. T.

installed to be used for model homes or demonstration purposes.

C. That any price for respondents' products is a special or reduced price, unless such price constitutes a significant reduction from an established selling price at which such products have been sold in substantial quantities by respondents in the recent regular course of their business, or misrepresenting in any manner the savings available to purchasers.

D. That products sold by respondents wil never require painting or repair.

E. That the colors in which respondents' products are furnished wil remain unchanged or wil last a lifetime. F. That respondents' products are everlasting or are made of indestructible materials.

G. That storms, hail or other elements wil not damage respondents' products.

H. That any percentage or any amount of saving on heating bils wil result from the use of respondents products: PTOvided, however That it shall be a defense in any enforcement proceeding instituted hereunder for respondents to establish that each purchaser will in fact realize savings in the amounts or percentage represented.

1. That any of respondents ' products or installations are guaranteed unless the nature and extent of the guarantee, the identity of the guarantor, and the manner in which the guarantor wil perform thereunder are clearly and conspicuously disclosed.

II. :visrepresenting in any manner the effcacy, durability or effciency of respondents' products.

It is further ordered That the respondents herein shan, 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. LINCOLN RUG & CARPET MART, INC., ET AL 1433 Complaint