World Sewing Center, Inc.

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IN THE :M:Ar.rer OF vVORLD SE,VING CENTER, INC., d/b/a ALL STATES SE,VING CENTER. ET AL.

ORDER , ETC., IX REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE C03Ii\nSSION ACT Docket 8746. Complaint Sept. 29 196" Decision, June, 1968* Order requiring a Dorchester, Mass. , distributor of new and used sewing machines to cease using bait. adverti:o:ing, false pricing and savings claims, misrepresenting its machines as distress merchandise, and using deceptive guarantees, CO::\IPLAINT Pursuant to the pro,-isions of the Federal Trade Commission Act and by virtue of the a l1thority vested in it by said Act, the Federal Trade Commission, having reason to believe that ""\Vorld Sewing Center, Inc., a corporation, trading as All States Sewing Center anc~ Ernest Rose, individually and as an officer of sftid corporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it' appearing to the Commission that a proceeding by in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: "Final order was modified Allg, 13 , 1965, 74 F, C, 60;1. :;: :;: :;:

1008 FEDERAL TRADE CO:\Il\lission DECISIONS Complaint \73 F. T. C. PARAGRAPH 1. Respondent ,YorId Sewing Center, Inc., is a corporation organized existing and doing business under and by virtue of the lays of the State of .Massachusetts, with its principal office and place of business located at 992 Blue Hill ..:-\.Tenue in the city of Dorchester State of )Iassachusetts. Said corporate respondent also trades as All States Sewing Center.

Respondent Ernest Rose is an officer of the corporate respondent. lie formulates directs and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent. PAR. 2. Respondents are now, and for some time last past have been engaged in the advertising, orl'ering for sa Ie, sale and distribution of new and used sewing machines to the. public. PAR. 3. In the course. and conduct of their business, respondents nm" en use, and for some time last past have caused, their said .prodnets, when sold, to be shipped from their place of business in the State. of J\Iassachusetts to purchasers thereof located in various other States of the United States and maintain, and at all times mentioned herein ha ye maintained, a substantial course of trade in said products in commerce~ as ;;commerce ~~ is defined in the Federal Trade Commission \ct.

m. 4. In the. course and conduct of their aforesaid business, and for the purpose of inducing the public. to purchase their said sewing machines, the respondents have made. numerous statements and representations in nchertisements inserted in newspapers, by means of radio and television broadcasts and through other advertising media \I, ith respect to the source, the sale price, the regular or original price the numbers aynilable, the condition nnd the performance characteristics of the aclYertisecl se,,-ing machines. Typical and illustrative of the aforesaid statements and representations but not all incl usi ,-e thereof, are the follmying: oj: * '" )Iorse porta,ble electric sewing machines that. "ere originally offered for as much as $99-now sale priced at. just $23.50. * * * The macbines are brand new nineteen sixty fours that were sold to All States by a distributor who needed the cash in order to pay for his incoming shipments of nineteen sixty fives. * 100 machines were delivered to All States last week-and this week, tb.e last of the lot. 86 more machines that you can own for $23.50 each-are scheduled for deli Yenoj: oj:

'" '" oj: La~t "eek they ,,-ere able to make a special purchase of discontinued 1964 models that were offered to you for only $23.50. * * * The first lot of 100 ::: ... ... ...:::::: : ::: ... :$:...!: ... ... ... ... ALL STATES SEWING CENTER ET AL. 1009 1007 Complaint machines were quickly snatched up at this incredible low price. * * * And this week, All States was able to get 86 more ma(:hines-the last of the lot. It seems that a fussy inspector on the assembly line has been rejecting new machines right and left because of tiny scratches, and a full freight car load had accumulated. ... As always the alert All States buyer snapped up the entire lot at a fabulous low price! . . . And now you can own a l\1orseelectric portable sewing machine-regularly $79-for only $23.50. ... * * The makers of famous "Morse" electric portable sewing machines * * * no longer sell demonstrators in their own sales outlets around the country * so, All States successfully bid on the entire lot-a 6-month accumulation-and can now offer you a positively incredible value never before possible ... tbe big surprise is that the machine we speak of is a model 2600 . * * originally record breaking low price$88.50-yours now while quantities last, for tbe $22.50 ! * * * Their reputation for buying right and pa~sing the saying~ along to their customers reached way out to .a mid,,'estern dealer who complained to factory salesmen that he was overstocked * * ... the salesmen suggested a call to All States here in Boston * * * the All Stat.es buyer who took the call sized up the situation and flew right out with cash in hand. * P. He bought the deal- 20~ on the dollar s entire stock of famous ~Iorse electric sewing machines for of their normal retail value. ::: You can own a brand new ~Iorse electric portable se,ving- machine, a $79.50 value-for the incredibly low price of just $23.50.

* * * A famous ),Iorse portable electric sewing machine that can be yours 110'" for only $19! * ::: * This se,,-iug machine bargain of all bargains can be offered to you exclusively by All States right now simply because of their coa~t to coast reputation of buying in quantities at the lowest discount prices * * * Therefore. ,,-hen ,a well kno,,-n Southwestern dealer oyerbought and needed cash qnicl;;:l~-, they immediately called All States ,,-110 in turn mcHle an offer that \vas accepted on an entire trailer trucldoac1. * * * :I"- Brand Xe"- 1965 Automatic Morse Zig-Zag Sewing ~I.machine, Limited(1 Time Offer.

Pay Only $8-:1:.50, X 0 ~Ioney Do,,- Pn~- Only $1, 2::1 'Weekly.

c1ecora te, fancy Simply by turning the dial you can zig-zag, darn, monogram stitcl1 , applique, c1e:':ign, buttonhole, quilt and embroidery. :2 Year Parts Guarantee.

1010 FEDERAL TRADE COl\.JMISSION DECISIONS Complaint 173 F. PAR. 5. By and through the use of the above-quoted statements and representations, and others of similar import and nleaning but not specifically set out herein, the respondents represent, and have represented, directly or by implication, that.: 1. Said machines are distress merchandise purchased from dealers hI financial difficulty, or purchased in ear load lots or other large qua,entities, or are factory rejects, or had been used as demonstration machines in factory outlets, and that for the foregoing and other reasons, respondents are enabled to sell and are offering for sale sewing machines at substantial savings to the public; 2. The higher stated price amounts set out in the said advertisements, and others not quoted herein, in connection with the terms Originally, Regularly," and other terms of similar import and meaning, ",were the prices at which the advertised merchandise was sold or offered for sale by respondents in good faith for a reasonably substantial period of time in the recent, regular course of their business and that purchasers thereof save the difference between respondents' advertised selling price and the corresponding higher price; 3. The higher stated price amounts set out in the said ad vertisements, and others not quoted herein, in connection "with the term Ya,l11e" and other terms of similar import and meaning, ,were not appreeiably ill excess of the highest price at "which substantial sales of such mei'chandise have been made in the recent regular course business in the trade area \vhere such representations were made, and that purchasers save the dift'erence between respondents' ad ,- ertised selling prices and eorresponding higher prices; 4. They are making bona fide offers to senne\" sewing machines for $19. , $23. , $34.50 and various other price amounts not set fOlih herein, and used sewing machines for $18. 88 and $22.50 and nll'ious other price amounts not set forth herein;

5. Said products are unconclitional1y guaranteed for two years and for various other periods of time as to parts. PAR. 6. In truth and in fact:

1. Respondents do not purchase distressed merchandise from dealers in financial difficulty, or purchase sewing machines in car load lots or other large quantities, or purchase se",ing machines ",which are factory rejects or have been used for demonstration in factory outlets, and respondents aloe not thereby enabled to sell or to offer for sale said maehines at substantial savings to the public; 2. The higher stated price amolmts set out in the said advertisements and others not quoted herein, in connection "with the terms " Originally, Regularly," and other terms of similar import and meaning, .

ALL STATES SE\VING CENTER ET AL. 1011 1007 ,Complain t ",ere not the prices at ,which the advertised merchandise was sold or offered for sale by respondents in good faith for a reasonably substantial period of time in the recent regular course of their business, and purchasers thereof do not sate the difference between respondents advertised selling price and the corresponding higher price; 3. The higher prices set out in said advertisements in connection with the term "Value " and other terms of similar import and meaning, were appreciably in excess of the highest price at which substantial sales of such merchandise have. been made in the recent regular COU1'8e of business in the trade area where such representations were made, and purchasers do not save the difference betw~een respondents achertisec1 selling prices and the corresponding higher prices; maehines for $19.00, 4. The advertised offers to sell new sewing $23. ;30, $3+. , and various other price. mnounts not herein set forth and used se,,"ing machines for 818. 88 and 822.50 and various other price amounts not herein set forth, are not bona fide offers, but are made for the purpose of obtaining leads to prospective purchasers or se"ing maehines. After obtaining such leads, respondents' salesmen call at the homes of such prospective pure-hasers, and at such times and places, said salesmen disparnge the advertised sewing machine by act or 'YOl'clS or both, nnd attempt to sell and do sell different andmol'G exp2nsive smving machines.

Respondents' plan or method of compensation of such salesmen does not provide for the pn~"ment of such salesmen in consideration of the sale of the advertised machine other than the payment of a minimal amount as a cle1in)l'~" and instruction fee upon sale and subsequent delivery of the flcherti:-:;ed machine, but does provide for the payment of substantial commissions to such salesmen upon the sale of a more expensive machine.

Such method of compensation has the effect of discouraging the salesmen from selling the advertised machine, or penalizing the salesmen upon the sale of the advertised machine by the requirement of deli '"erv thereof bv such salesmen for a nominal fee at a time subsequent to the time at ,yhieh such sale is made. 5. Respondents: se,ying: machines, or the parts thereof, are not unconditionally guaranteed without conditions or limitations for a period of two years or yarious other periods of time. Such guarantee as may be prm"ided is subject to the payment or service charges and numerous other terms, conditions Rnd1imitations, and rails to set forth the nature and extent of tl~e guarantee, the identity of the guarantor and the manner in which the guarantor would perform thereunder. Ini tial Decision 73 C.. Therefore, the. statements and representations as set forth in Paragraphs Four and Five hereof, "'ere and are. false, misleading and deceptive.

PAR. 7. In the conduct of their business, and at all times mentioned herein, respondents have been in substantial competition, in COlmnerce with corporations, firms and individuals in the sale of se\\'ing machines of the same general kind and nature as those sold by the respondents.

PAR. 8. The use by respondents 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 \\'ere and are true and into the purchase of substantial quantities of respondents' product. by reason of said erroneous and mistaken belief.

PAR. 9. The aforesaid acts and practices of respondents, as herein alleged, \\'ere 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 ;) of the Federal Trade Commission Act.

JI7' F7' ank P. Dunn supporting the complaint. 3I7'. James S. B ag'nell for respondents. INITIAL DECISION BY . :NDREW C. GOODI-IOPE, HEARING EX.UIINER APRIL 11 , 10 G 8 ST.-\TE~IENT OF PROCEEDINGS The Federal Trade Commission on September 29, 1967, issued its complaint charging the respondents \\'ith unfair methods of competition in commerce, and unfair and deceptive acts and practices in commerce, in violation of Section ;) of the Federal Trade Commission Act. Respondents, follo\\-ing an informal prehearing conference on )Iarch 11 , 1968, filed an amended ans\\'er on )Iareh 12 , 1968, admitting all material allegations of the complaint to be true. The Federal Trade Commission s Rules of Practice for Adjudicative Proceedings, Section 3. , subparagraph (2) states: If allega.tiol1s of GOHlp7alrnt are admitted. If the respondent elects not to contest the allegations of fact set forth in the complaint, his answer shall consist of a stateme.nt that he admits all of the material allegations to be true. ALL STATES SEWING CENTER ET AL. 1013 1007 Initial Decision Such an ans,ver shall constitute a waiver of hearings as to the facts alleged in the complaint and together with the complaint will provide a record basis on which the hearing examiner shall file an initial decision containing appropriate findings and conclusions and an appropriate order disposing of the proceeding. In such an answer~ the re~ spondent may, how8Te1\ reserve the right to submit proposed findings and conclusions under S 3AG and the right to appeal the initial decision to the Commission under S 3.52. Respondents in this proceeding waive the. right to submit proposed iindings and conclusions and the right to ft appeal the initial decision to the Commission (Tr. 3). FINDINGS OF FACT 1. Respondent ,YorIel Sewing Center, Inc., is a corporation organized, existing and doing business under and by virtue or the laws or the. State or ~Iassachusetts, with its principal office and place of business located at 0D:2 Blue Hill Avenue in the city or Dorchester, State or :Jlassachnsetts. Said corporate respondent also trades as All States Se,ving Center.

Respondent Ernest. Rose is an officer or the corporate respondent. He formulates, directs and controls the acts a,ncl practices of the corporate, respondent, including the acts and practices hereinafter set forth. I-lis address is the same as that of the corporate respondent. 2. Respollclents are 11m\", and for some time last past have been. engaged in the ad ,-ertising, offering for sale, sale and distribution of new and used se\,ing machines to the public.

3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said products yhen sold ~ to be shipped from their place of business in the State of l\lassachusetts to purchasers thereof located in various other States 01 the United States, and maintain, and at all times mentioned herein 11in-e maintained. a substantial course of trade in said products in commerce, as "commerce ~: is defined in the Federal Trade Commission Act. -t. In the course anclconcluct of their aforesaid business, and for the purpose of inducing the public to purchase their said sewing machines the respondents ha \-e made numerous statements and representations in advertisements inserted in ne,yspapers, by means of radio and television broadcasts and through other advertising media, with respect to the source., the sale. price, the regular or original price, the numbers :ava.ilable, the condition and the performance characteristics of the. fI~c1vert.isec1 sewing machines.

..........:: ..........................::.,.......,.................... ..... .......... .......... ..... .......... .....::.:::..... ..... ..... ,;,.......... ............... ,;.,;. ..... ..... ,;......:;. . ..... ..... ................................::::;. :;...... 1014 FEDERAL TRADE CO:Ml\nSSIO~ DECISIONS Initial Decision ,73 Typical and illustrative of the aforesaid statements and representations, but not all inclusive thereof, are the following: :Morse portable electric sewing machines that were originally offerell for as much as $9D-Now sale priced at just $23,50 * * :I: The machines are brand new nineteen sixty fours that were sold to All States by a distributor who needed the cash in order to pay for his incoming shipments of nineteen sixty fives. 100 machines were delivered to All States last week-and this week. tbe last of the lot, 86 more machines that you can own for $23.50 each-are scheduled for delivery * oj:

Last week they were able to make a special purchase of discontinued 1964 models that were offered to you for only $23.50 the first lot of 100 machines were quickly snatched up at this incredible low price * and this week, All States was able to get 86 more machines-the last of the lot. It seems that a fussy inspector 011 the assembly line has beeIl rejecting new machines right and left because of tiny scratches, and a full freight car load had accumulated ..... as always, the alert All States buyer snapped up the entire lot at a fabulous low price! And now you can own a Morse electric portable sewing machine--regularly $79-for only $23.50. The makers of famous "Morse" electric portable sewing macbines no longer sell demonstrators in their own sales outlets around the country so, All States successfully bid on the entire lot-a 6-month accumulation-and can now offer you a positively incredible value never before possible * * the big surprise is that the machine we speak of is a model 2600 '" ole * originally $88.50-yours now while quantities last, for the record breaking low price of $22.50 ! :I:

Their reputation for buying right and passing tbe savings along to their customers reached way out to a midwestern dealer who complained to factory :-alesmen that he was overstocked The salesmen suggested a call to All States here in Boston ..... :I: * The All States buyer who took the call sized up tbe situation and flew right out with cash in hand. '" ..... * P. he bought the dealer s entire stocl\: of famous Morse electric sewing machines for 20~ on thedollar of their normal retail value. * * * You can own a brand new Morse electric portable sewing machine, a $79.50 value-for the incredibly low price of just $23.50.

..... ..... A famous :Morse portable electric sewing machine that can be yours now for only $19! This sewing machine bargain of all bargains can offered to you exclusively by All States right now simply because of their coast to coast reputation of buying in quantities at the lowest discount prices therefore, when a well known southwestern dealer overbought and needed cash quickly, they immediately called All States, who in turn made an offer that was accepted on an entire trailer truckload.

:I:

: .,.

ALL STATES SEWI~G CENTER ET AL. 1015 1007 Ini tial Decision Brand new 1965 automatic Morse zig-zag sewing machine. Limited time offer.

Pay only $34.50.

No money down.

Pay only $1.25 weekly.

Simply by turning the dial you can zig-zag, darn, monogram, decorate, fancy stitch, applique, design, buttonhole, quilt and embroidery. 2 year parts guarantee.

5. By and through the use of the above-quoted statements and representations, and others of similar import and meaning but not specifically set out herein, the respondents represent, and have represented, directly or by implication, that:

1. Said machines are distress merchandise purchased from dealers in financial difficulty, or purchased in car load lots or other large quantities, or are factory rej acts, or had been used as demonstration machines in factory outlets, and that for the foregoing and other re. sons, respondents are enabled to sell and are offering for sale. sewing maehines at substantial savings to the public; 2. The higher stated price amounts set out in the said advertisements, and others not quoted herein, in conneet.ion with the terms Originally, Regularly,:' and other terms of similar import and meaning, ,,-ere the prices at ,,-which the advertised merchandise was sold or offered for sale by respondents in good faith for a reasonably substantial period of time in the recent, regular course of their business and that purchasers thereof save the difference bet-ween respondents' adve-rtised selling price and the corresponding higher price; 3. The higher stated price amounts set out in the said advertisements, and others not quoted herein, in connection with the term Value:' and other terms of similar import and meaning, were not appreciably in excess of the highest price at "which substa,ntial sales of such merchandise have been made in the recent req:ular course of business in the trade area ,,-here such representations ,were made, and that purehasel's save the difference between respondents' advertised selling prices and eorrespondinghigher prices; 4. They are making bona fide offers to sell new sewing machines for $19. , $23. , $34.50 and various other-r price amounts not set forth herein, and used sewing machines for $18. 88 and $22, 50 and various other price amounts not set forth herein; 5. Said products are unconditionally guaranteed for byo years and for various other periods of time as to parts. 6. In truth and in fact:

1016 FEDERAL TRADE COMNIISSION DECISIONS Initial Decision 1i3 F. 1. Respondents do not. purchase distressed merchandise from dealers in fulancial difficulty, or purchase sewing machines in ear load lots or other large quantities, or purchase sewing 111'achines which are factory rejects or have bee.n used for de.monstration in factory outlets, and respondents are not thereby enabled to sell or to offer for sale said machines at substantial savings to the public; 2. ,The higher stated price amounts set out in the said advertisements 'and others not quoted herein, in connection with the terms Originally, Regularly," and other terms of similar import and meaning, were not the prices at which the advertised merchandise was sold or offered for sale by respondents in good faith for a reasonably substantial period of time in the recent regular course of their business, and purchasers thereof do not sate the difference between respondents' advertised selling price and the corresponding higher price;

3. The higher prices set out. in said advertisements in co11l1ection with the te~'m "V value " and other terms of similar import and meaning, were appreeiably in escess of the highest price at which substantial sales of such merchandise have been made in the recent regular course of business in the trade area, where such representations were. made, and purchasers do not. save the difference between respondents advertised selling prices and the corresponding higher prices; 4. The ad,.ertised offers to sell new sewing machines for $19. $23. ~ $34. , a-nd various other price amounts not herein set forth find used f:e,ving mnehines for $18.88 and $22.50 and various other price amounts not herein set forth, are not bonn. fide offers, but. are made for the pull)ose of obtaining leads to prospective purchasers of se,ving machines. After obtaining such leads, respondents~ salesmen call at the homes of such prospective purehasers, and at such times and places, said salesmen disparage the advertised sewing machine by act or words or both, and attemnt to sell and do sell different and more expe,nsive sewing machines.

Respondents' plan or method of compensation of such salesmen does not provide for the. payment of such salesmen in consideration of the sale of the advertised machine other than the payment of a minimnl amount as a delivery and instruction fee upon sale find subsequent delivery of the advertised machine, but does pro\.ide for the payment of substantial commissions to such salesmen upon the sale of a more expensive machine.

Such method of compensation has the effect of c1iseouraging the salesman from selling the advertised machine, or penalizing the salesmen upon the sale of the advertised machine by the requirement of ALL STATES SEWING CENTER ET AL. 1017 1007 Initial Decision delivery thereof by such salesmen for a nominal fee at a time subsequent to the time at which such sale is made. 5. Respondents' sewing machines, or the parts thereof, are not unconditionally guaranteed without conditions or limitations for a period of two years or various other periods of time. Such guarantee as n1ay be provided is subject to the payn1ent of service charges and numerous other terms, conditions and limitations, 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 Findings 4 and 5 hereof were and are false, misleading and deceptive. CONCLUSIONS 1. In the conduct of their business, and at all times mentioned hei' ein, respondents have been in substantial competition, in commerce, with corporations, firms and individuals in the sale of sewing machines of the same general kind and nature as those sold by the respondents.

2. The use by respondents of the aforesaid false, Inisleadingand 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 true and into the purchase of substantial quantities of respondents' product by reason of said erroneous and mistaken belief.

3. The aforesaid acts and ' practices of respondents, as herein alleged were and ,are all to the prejudice and injury of the public and 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.

ORDER TO CEASE AND DESIST I t is onle1? That respondents, vVorld Sewing Center, Inc., a corporation, its officers and Ernest R,ose, individually and as an officer of said corporation, trading as All States Sewing Center, or under any other trade name or names, and respondents' agents, representatives and employees, directly or through any corporate or other device in connection with the advertising, offering for sale, sale or distribution of sewing Inachines, or any other products, in conllnerce, as "coln- 418-345-- 2----B 5 1018 FEDERAL 'TRADE COMMISSION DECISIONS Initial Decision 73, F. merce ~' is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or by implication, that sewing machines or other products being offered for sale are distressed merchandise purchased from dealers in financial difficulty, or purchased in car load lots or other large quantities, or are factory rejects or have been used for purposes of demonstration in factory outlets ;

2. Representing, directly or by implication, that stated quantities of sewing machines or other products have been purchased or are available for sale: P?'ovided, hO1..LJeVe1' Tllat it shall be a defense in any enforcement proceeding instituted hereunde;l' for respondents to establish that such quantities have been purchased or that such quantities are available for sale as represented; 3. :Misrepresenting, in any manner, the source, the numbers available, the condition or performance characteristics of sewing machines or any other product;

-1. Using the terms "Originally, Regularli' or any other terms or words of similar import or meaning, to refer to any amount which is in excess of the price at which sewing machines or any other product have been sold or offered for sale in good faith by respondents for a reasonably substantial period of time in the recent regular course of their business; or otherwise misrepresenting the price at which such merc.handise has been sold or offered for sale by respondents;

5. Using the term "Value " or any other terms or words of similar import or meaning, to refer to any amount which is appreciably in excess of the highest price at which substantial sales of such merchandise have boon made in the recent regular course of business in the trade area where suc.h representations are made; or otherwise l11isrepresenting the price at which such merchandise has been sold in the trade. area .where such representations are made;

6. Representing, in any manner, that by purchasing se,ying machines or any other product, customers are afforded savings amounting to the difference between respondents' stated price and any other price used for comparison with that price; ( a) U nless respondents have offered suc.h merchandise. for sale at the compared price in good faith for a reasonably substantial period of tilne: in the rec.ent regular' course of their business; or ALL STATES SEWING CENTER ET AL. 1019 1007 Initial Decision (b) Unless substantial sales of said merchandise are being made in the trade area at the compared price, or a higher pnCB; or ( c) ",Vhen value cO1llparison representation with conlparahle 11lerchandise is used, unless substantial sales of Inerchandise of like grade and quality are being made in the trade area at the compared price and it is clearly and conspicuously disclosed that the comparison is with merchandise of like grade and quality;

7. Falsely representing, in any maimer, that savings are available to purchasers or prospective purchasers of respondents sewing machines or any other product, or misrepresenting, in any manner, the amount of savings available to purchasers or prospective purchasers of respondents' sewing machines or any other product at retail;

8. Advertising or offering sewing machines or any other product for sale for the purpose of obtaining leads or prospects for the sale of different sewing machines or products at higher prices; 9. Discouraging the purchase of or disparaging in any manner any sewing machine or other product advertised; 10. Using any advertising, sales plan or procedure involving the use of false, deceptive or misleading statements or representations for the purpose of obtaining leads or prospects for the sale of other sewing machines or products;

11. Representing, directly or by implication, that any sewing machines or other products are offered for sale when such is not a bona fide offer to sell such sewing machllles or products; 12. The conduct or use of any sales plan or method of compensation for any agent, representative or employee in any manner which has the effect of discouraging them from selling the advertised sewing machine or product or penalizing them upon the sale of the advertised sewing machine or product; 13. Represen6ng, directly or by implication, that any of respondents' sewing machines or other products are guaranteed unless the nature and extent of the guarantee, the identity of the guarantor and the manner in which the guarantor will perform thereunder are clearly and conspicuously disclosed; 14. Failing to deliver a copy of this order to cease and desist to all present and future salesmen or other persons engaged in the sale of the respondents' products to purchasers; and failing to secure from each such person a signed statement acknowledging receipt of said order and 'agreeing to abide by the requirements of ,Complain t 73 F.

said order and to refrain from engaging in any of the acts or practices prohibited by said order; and for failure so to do, agreeing to dismissal or to the withholding of cOlllmissions, salaries and other remunerations, or both to dismissal and to withholding of commissions, salaries and other remunerations. FINAL ORDER No appeal from the initial decision of the hearing examiner having been filed, and the Commission having determined that the case should not be placed on its own docket lor review and that pursuant to Section 51 of the Commission s Rules of Practice (effective July 1, 1967), the initial decision should be adopted and issued as the decision of the Commission;

I t is 01'de1' That the initial decision of the hearing examiner shall on the 7th day of J line 1968, become the decision of the Commission. It is furthe1' orde1o That ,Yodd Sewing Center, Inc., a corporation, d/b/a All States Sewing Center, and Ernest Rose, individually and as an officer of said corporation, shall, within sixty (60) days after service of this order upon them, file with the Commission a report writing, signed by such respondents, setting forth in detail the manner and form of their compliance with the order to cease and desist.