Albert Bell'S Midwest Appliance Co

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IN. THE MATTER OF ...

ALBERT BELL’S MIDWEST APPLIANCE CO., ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-1586. Complaint, May 22, 1 969—Decision, May 22, 1969 Consent. order requiring a .Kansas City, Mo., retailer of home appliances .to cease using deceptive pricing and .savings claims and failing to disclose the total purchase price and other interest and service charges. COMPLAINT Pursuant 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 Albert Bell’s Midwest. Appliance Co., a corporation, and Albert Bell and Harold A. Bell, individually and as officers of said corporation, hereinafter: referred to as. respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof. would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1, Albert Beli’s Midwest Appliance Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Missouri, with its principal office and place of business located at 3300 Troost Avenue, in the city of Kansas City, State of Missouri. Respondents Albert Bell and Harold A. Bell are individuals and officers of the corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent. Par. 2. Respondents are now, and for some time last past have been, engaged in the advertising, offering for sale, sale and distribution of various items of home appliances, including household furniture, television and stereo sets to the public. Par. 3. In the course and conduct of their business as aforesaid, 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 Missouri to purchasers thereof located in various other States of the United States, and maintain, and ALBERT BELL’S MIDWEST APPLIANCE CO., ET AL. 929 928 Complaint at all times mentioned ‘herein have 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 their aforesaid business, and for the purpose of inducing the purchase of their products, the respondents have ‘made, and-are now making, numerous statements and: representations in advertisements inserted: in -newspapers with respect to price, savings and lay-away or anelaimed merchandise.

“Typical and illustrative of said statements and representations, but not all inclusive thereof, are the following: 1. Magic Chef Gas Range $188 ....: . Save $41."

Hotpoint Refrigerators ‘Your Choice $246 eae Save $51.

* ik * ‘| * . * - _s Save 35% on Food. ‘Freezers 7 Choose from Gibson @ Hotpoint 15 Cu. ft. Chest or Upright ..... $179.

* * * * * * * 2. SACRIFICED.....

UNCLAIMED MERCHANDISE LAYAWAYS Being Sold For Balance Due....

Just Take Over Payments 30 %—50%—10% OFF le neee RCA VICTOR STEREO Balance Due..... $117.

Par. 5. By and through the use of the above-quoted statements and representations, and others of similar import and meaning but not expressly set out herein, the respondents have represented, and are now representing, directly or by implication, that: 1. Purchasers of respondents’ merchandise are afforded a stated dollar amount or percentage of savings from respondents’ regular selling price of said merchandise. 2. Through the use of statements, “Unclaimed merchandise,” “layaways being sold for balance due * * * $117,” “Just take over payments,” “30%-50%-70% OFF,” and statements of similar import, that unclaimed merchandise was partially paid Complaint 15 F.T.C.

for by a previous purchaser and left in lay-away and is being offered for the unpaid balance of the purchase price, thereby affording savings of 30-70% to purchasers on said merchandise. Par. 6. In truth and in fact: _.

1. Purchasers of respondents’ merchandise are not afforded a stated dollar amount or percentage of savings from respondents’ regular selling price of said merchandise. In fact, respondents do not have a regular selling price, but the price at which respondents’ merchandise is sold varies from purchaser to purchaser depending upon the resistance of the prospective purchaser. | 2. The advertised articles, in a substantial number of instances, are not unclaimed merchandise, partially paid for by a previous purchaser and left in lay-away and are not being offered for the unpaid balance of the purchase price, and the represented savings of 30-70% are not afforded to purchasers. In fact, said merchandise consists mostly of slow-moving merchandise from the general stock and is priced without regard for the balance due. Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof were and are false, misleading and deceptive.

Par. 7. In the further course and conduct of their business, respondents and their salesmen or representatives have engaged in the following additional unfair and false, misleading and deceptive acts and practices:

In a substantial number of instances and in the usual course of business, respondents and their salesmen or representatives fail to disclose the exact amount of the total purchase price of merchandise, including all interest, credit, insurance, service or other handling charges, at the time the contract for the sale of such merchandise is executed by the purchaser or purchasers. Therefore, the acts and practices as set forth in Paragraph Seven hereof were and are unfair and false, misleading and deceptive acts and practices.

Par. 8. In the course and conduct of their aforesaid business, and at all times mentioned herein, respondents have been, and now are, in substantial competition, in commerce, with corporations, firms and individuals in the sale of various items of home appliances, including household furniture, television and stereo _ sets, of the same general kind and nature as that sold by respondents.

Par. 9. The use by respondents of the aforesaid false, mis- ALBERT BELL’S MIDWEST APPLIANCE ©O., ET AL. 931 928 Decision. and Order leading 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 true and into’ the purchase of substantial quantities of respondents’ products by reason of said erroneous and mistaken belief. - Par. 10. 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. a . 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 Deceptive Practices. 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; 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 settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in § 2.34(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Albert Bell’s Midwest Appliance Co. is a cor- 932 FEDERAL TRADE COMMISSION DECISIONS : Decision and Order 15 E.T.C.

poration organized, existing and doing business under and. by virtue of the laws.of the State of Missouri, with its office and principal place of business located. at 3300 Troost Avenue, Kansas - City, Missouri. .

- Respondents . Albert Bell and- Harold A. Bell are officers of said corporation and their address is the same as that.of said corporation.

2. The Federal. Trade Commission has jurisdiction of the sub- ‘ject: matter: of this: proceeding and. of the respondents, and: the proceeding i is in the public interest. : ORDER It is ordered, That vespondetits ‘Albert Bell’s Midwest Appliance Co., a corporation, and its officers, and Albert Bell and Harold A. Bell, individually and as officers of said corporation, and respondents’. representatives, agents and employees, diréctly or through any corporate or other device, in connection with the ‘advertising, offering for sale, sale or distribution of household furniture, television, stereo sets or other home appliances ‘or prod- “ucts, in commerce, as “commerce” is’ defined in ‘the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing, directly or by implication, that any savings, or stated amount or percentage of savings, are afforded to purchasers of respondents’ merchandise unless the price at which such merchandise is offered constitutes a significant reduction, and a reduction equal to any amount or percentage, stated or otherwise, from an established selling price at which such merchandise has been sold in substantial quantities by respondents in the recent regular course of their business.

_ 2. Falsely representing, in any manner, that savings are available to purchasers or prospective purchasers of respondents’ merchandise; or misrepresenting, in any manner, the amount of savings available to purchasers or prospective purchasers of respondents’ merchandise. 3. Representing, directly or by implication, that merchandise is offered for sale for the unpaid balance of the purchase _ price or for taking over the payments or on any other terms or conditions as. unclaimed or lay-away merchandise or for any other reason unless such merchandise is of the represented kind and status and its purchase affords the BERNARD SPIVACK & CO., INC., ET AL: 933 928 ° © Complaint purchaser all of the.reductions in price and advantages claimed for it. :

4, Failing to disclose the exact amount of the total purchase price of merchandise and’ all interest, credit, insurance, service or other charges in writing at the time the ‘contract for the sale‘of such merchandise is executed by | the purchaser or purchasers.

It is further ordered, ‘That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is further ordered, That the respondents herein shall, within sixty (60)5 1 2 4 2 3 823 1149 86 50 64.813705 days5 1 2 4 2 4 933 1149 140 40 94.727264 after5 1 2 4 2 5 1055 1157 138 32 94.727264 services 1 2 4 2 6 1216 1165 96 35 96.275536 upon5 1 2 4 2 7 1327 1156 108 35 96.275536 them5 1 2 4 2 8 1459 1158 40 36 96.756721 of5 1 2 4 2 9 1521 1158 75 33 96.110672 this5 1 2 4 2 10 1620 1154 116 55 96.683708 order,5 1 2 4 2 11 1760 1148 59 53 96.894928 files 1 2 4 2 12 1843 1158 89 33 96.774239 with4 1 2 4 3 0 607 1196 1325 71 -1 5 1 2 4 3 1 607 1204 62 33 96.651291 thes 1 2 4 3 2 693 1201 237 45 95.632423 Commissions 1 2 4 3 3 955 1216 22 23 96.972557 a5 1 2 4 3 4 1000 1196 126 71 96.351715 reports 1 2 4 3 5 1149 1207 38 32 96.122658 in5 1 2 4 3 6 1211 1208 151 45 96.307999 writings 1 2 4 3 7 1386 1199 136 49 96.521454 settings 1 2 4 3 8 1545 1206 103 35 96.776077 forth5 1 2 4 3 9 1673 1208 38 33 96.468674 in5 1 2 4 3 10 1736 1199 110 43 96.328384 details 1 2 4 3 11 1870 1208 62 45 96.909370 thea 1 2 4 4 0 607 1244 1320 77 -1 5 1 2 4 4 1 607 1265 151 33 96.732765 manners 1 2 4 4 2 770 1256 79 40 96.590500 ands 1 2 4 4 3 870 1256 97 50 96.322655 forms 1 2 4 4 4 988 1256 49 35 95.259682 in.5 1 2 4 4 5 1041 1248 125 59 95.729576 which5 1 2 4 4 6 1186 1258 88 54 96.954315 they5 1 2 4 4 7 1294 1258 92 59 96.810684 have5 1 2 4 4 8 1408 1257 178 64 93.341629 complied5 1 2 4 4 9 1603 1255 90 52 96.962837 with5 1 2 4 4 10 1714 1259 77 33 96.425247 this5 1 2 4 4 11 1810 1244 117 74 96.695549 order.2 1 3 0 0 0 795 1435 942 142 -1 3 1 3 1 0 0 795 1435 942 142 -1 4 1 3 1 1 0 1070 1435 398 34 -1 5 1 3 1 1 1 1070 1435 47 33 96.663612 IN5 1 3 1 1 2 1142 1443 76 24 96.526573 THES 1 3 1 1 3 1244 1435 156 34 96.222374 MATTERS 1 3 1 1 4 1424 1443 44 25 96.975693 OF4 1 3 1 2 0 795 1535 942 42 -1 5 1 3 1 2 1 795 1535 233 32 93.090836 BERNARD5 1 3 1 2 2 1054 1536 207 33 91.558884 SPIVACK5 1 3 1 2 3 1285 1538 31 31 92.201851 &5 1 3 1 2 4 1342 1538 80 39 45.728550 Go.,5 1 3 1 2 5 1449 1538 104 38 89.999687 INC.,5 1 3 1 2 6 1580 1539 157 31 42.544762 ET.AL.2 1 4 0 0 0 605 1640 1321 131 -1 3 1 4 1 0 0 605 1640 1321 131 -1 4 1 4 1 1 0 605 1640 1321 36 -1 5 1 4 1 1 1 605 1640 174 26 95.814262 CONSENTS 1 4 1 1 2 793 1641 122 34 93.215614 ORDER,5 1 4 1 1 3 931 1642 90 34 92.025558 ETC.,5 1 4 1 1 4 1037 1644 44 24 96.905251 IN5 1 4 1 1 5 1096 1644 139 25 96.546143 REGARDS 1 4 1 1 6 1249 1645 44 25 96.167229 TO5 1 4 1 1 7 1308 1646 76 25 96.456528 THES 1 4 1 1 8 1399 1646 162 25 96.469162 ALLEGED5 1 4 1 1 9 1576 1642 197 29 96.297195 VIOLATIONS 1 4 1 1 10 1790 1646 45 25 96.277420 OF5 1 4 1 1 11 1850 1647 76 24 96.277420 THEA 1 4 1 2 0 606 1690 1320 32 -1 5 1 4 1 2 1 606 1690 161 26 96.242554 FEDERAL5 1 4 1 2 2 796 1692 115 25 96.401169 TRADES 1 4 1 2 3 942 1693 239 26 94.656815 COMMISSIONS 1 4 1 2 4 1212 1695 78 25 96.520065 ANDS 1 4 1 2 5 1320 1696 76 24 96.668846 THES 1 4 1 2 6 1426 1696 72 25 96.465706 FURS 1 4 1 2 7 1527 1696 184 26 95.610008 PRODUCTS5 1 4 1 2 8 1741 1696 185 26 95.610008 LABELING4 1 4 1 3 0 1218 1746 91 25 -1 5 1 4 1 3 1 1218 1746 91 25 96.172157 ACTS2 1 5 0 0 0 717 1836 1094 38 -1 3 1 5 1 0 0 717 1836 1094 38 -1 4 1 5 1 1 0 717 1836 1094 38 -1 5 1 5 1 1 1 717 1836 115 27 89.704926 Dockets 1 5 1 1 2 845 1837 125 27 84.316032 C-1537.5 1 5 1 1 3 985 1839 180 32 95.530907 Complaint,5 1 5 1 1 4 1177 1840 74 32 96.121506 May5 1 5 1 1 5 1264 1844 44 28 92.887566 22,5 1 5 1 1 6 1341 1842 241 31 90.971100 1969—Decision,5 1 5 1 1 7 1594 1842 74 31 96.609467 May5 1 5 1 1 8 1681 1845 44 29 96.609467 22,5 1 5 1 1 9 1739 1845 72 23 96.935173 19692 1 6 0 0 0 603 1902 1321 122 -1 3 1 6 1 0 0 603 1902 1321 122 -1 4 1 6 1 1 0 603 1902 1320 39 -1 5 1 6 1 1 1 603 1902 131 28 95.671707 Consents 1 6 1 1 2 763 1904 89 27 96.330498 orders 1 6 1 1 3 881 1906 156 34 96.254646 requiring5 1 6 1 1 4 1068 1915 19 18 95.293953 a5 1 6 1 1 5 1117 1907 140 34 95.293953 Chicago,5 1 6 1 1 6 1289 1909 54 32 15.665314 Ill,5 1 6 1 1 7 1374 1910 232 26 96.477249 manufacturers 1 6 1 1 8 1636 1911 34 25 96.540489 of5 1 6 1 1 9 1699 1911 53 26 95.278152 furs 1 6 1 1 10 1783 1910 140 27 95.278152 trimmed4 1 6 1 2 0 677 1946 1247 39 -1 5 1 6 1 2 1 677 1946 104 27 96.731911 ladies’5 1 6 1 2 2 797 1950 156 30 96.691177 garments5 1 6 1 2 3 970 1952 31 23 96.221680 to5 1 6 1 2 4 1017 1957 86 19 93.300293 ceases 1 6 1 2 5 1120 1950 218 34 91.881783 misbranding,5 1 6 1 2 6 1356 1952 112 32 96.618797 falsely5 1 6 1 2 7 1484 1953 159 32 96.301468 invoicing,5 1 6 1 2 8 1663 1952 58 27 96.531265 ands 1 6 1 2 9 1740 1953 184 32 96.373940 deceptively4 1 6 1 3 0 675 1991 503 33 -1 5 1 6 1 3 1 675 1991 221 32 95.909325 guaranteeing5 1 6 1 3 2 909 1991 40 26 95.909325 its5 1 6 1 3 3 961 1992 54 26 95.986122 furs 1 6 1 3 4 1028 1992 150 32 95.732231 products.2 1 7 0 0 0 1149 2085 227 34 -1 3 1 7 1 0 0 1149 2085 227 34 -1 4 1 7 1 1 0 1149 2085 227 34 -1 5 1 7 1 1 1 1149 2085 227 34 96.126503 COMPLAINT2 1 8 0 0 0 583 2156 1374 550 -1 3 1 8 1 0 0 583 2156 1374 550 -1 4 1 8 1 1 0 646 2156 1275 46 -1 5 1 8 1 1 1 646 2156 182 34 96.123108 Pursuant5 1 8 1 1 2 850 2159 37 32 96.123108 to5 1 8 1 1 3 909 2159 62 33 96.378952 thes 1 8 1 1 4 994 2160 203 39 96.378952 provisions5 1 8 1 1 5 1221 2162 41 32 96.360359 of5 1 8 1 1 6 1283 2163 61 32 96.360359 thes 1 8 1 1 7 1358 2163 160 39 96.636093 Federal5 1 8 1 1 8 1543 2163 117 33 96.125282 Trades 1 8 1 1 9 1684 2164 237 33 96.123611 Commission4 1 8 1 2 0 598 2206 1324 47 -1 5 1 8 1 2 1 598 2206 70 33 94.973846 Acts 1 8 1 2 2 692 2208 70 32 94.973846 ands 1 8 1 2 3 787 2208 61 33 96.584717 thes 1 8 1 2 4 874 2209 75 33 96.360794 Furs 1 8 1 2 5 974 2210 176 34 96.462219 Products5 1 8 1 2 6 1177 2212 172 40 96.777550 Labeling5 1 8 1 2 7 1375 2214 79 38 96.231018 Act,5 1 8 1 2 8 1481 2214 72 32 96.077316 ands 1 8 1 2 9 1579 2214 46 39 96.805901 by5 1 8 1 2 10 1650 2214 119 33 96.680771 virtues 1 8 1 2 11 1795 2215 40 32 96.680771 of5 1 8 1 2 12 1861 2214 61 33 96.779121 thea 1 8 1 3 0 583 2257 1336 46 -1 5 1 8 1 3 1 583 2257 200 41 39.446228 authority5 1 8 1 3 2 796 2260 122 33 96.531059 vested5 1 8 1 3 3 932 2261 38 32 96.888283 in5 1 8 1 3 4 985 2261 30 32 96.657326 it5 1 8 1 3 5 1027 2262 49 39 97.015434 by5 1 8 1 3 6 1089 2262 78 32 96.088852 said5 1 8 1 3 7 1182 2262 99 40 96.749825 Acts,5 1 8 1 3 8 1296 2264 62 32 96.050888 thes 1 8 1 3 9 1373 2264 150 32 96.306046 Federal5 1 8 1 3 10 1538 2265 117 32 96.306046 Trades 1 8 1 3 11 1671 2265 248 38 96.660027 Commission,4 1 8 1 4 0 596 2307 1325 47 -1 5 1 8 1 4 1 596 2307 136 41 96.296494 having5 1 8 1 4 2 750 2319 136 23 96.429398 reasons 1 8 1 4 3 913 2312 38 31 96.971413 to5 1 8 1 4 4 979 2312 134 33 96.269905 believes 1 8 1 4 5 1140 2313 82 33 96.391846 that5 1 8 1 4 6 1249 2314 164 33 91.643250 Bernard5 1 8 1 4 7 1442 2314 155 40 91.643250 Spivack5 1 8 1 4 8 1626 2316 29 32 91.791138 &5 1 8 1 4 9 1685 2316 69 38 91.462273 Co.,5 1 8 1 4 10 1786 2316 83 38 41.324711 Inc,5 1 8 1 4 11 1899 2325 22 23 96.925125 a4 1 8 1 5 0 595 2360 1362 45 -1 5 1 8 1 5 1 595 2360 238 40 96.442184 corporation,5 1 8 1 5 2 856 2362 70 32 96.664238 ands 1 8 1 5 3 948 2362 164 33 93.303192 Bernard5 1 8 1 5 4 1134 2364 164 40 93.152199 Spivack,5 1 8 1 5 5 1321 2365 235 39 96.360359 individually5 1 8 1 5 6 1578 2367 71 32 96.476418 ands 1 8 1 5 7 1671 2376 39 23 96.656166 as5 1 8 1 5 8 1731 2376 47 22 95.076202 an5 1 8 1 5 9 1801 2367 118 31 91.837463 officers 1 8 1 5 10 1955 2403 2 2 18.768234 _4 1 8 1 6 0 595 2409 1324 48 -1 5 1 8 1 6 1 595 2409 40 32 96.695534 of5 1 8 1 6 2 655 2410 77 33 96.728073 said5 1 8 1 6 3 751 2412 239 39 96.693596 corporation,5 1 8 1 6 4 1012 2413 224 34 95.809509 hereinafter5 1 8 1 6 5 1257 2416 164 32 94.996399 referred5 1 8 1 6 6 1441 2418 37 30 96.949593 to5 1 8 1 6 7 1498 2427 44 30 96.773689 as5 1 8 1 6 8 1560 2417 247 38 95.956284 respondents,5 1 8 1 6 9 1828 2417 91 32 96.774750 have4 1 8 1 7 0 595 2461 1323 48 -1 5 1 8 1 7 1 595 2461 154 33 96.784988 violated5 1 8 1 7 2 763 2462 62 32 96.409706 thes 1 8 1 7 3 839 2464 204 37 96.397575 provisions5 1 8 1 7 4 1058 2465 40 32 96.925491 of5 1 8 1 7 5 1113 2465 77 32 95.927979 said5 1 8 1 7 6 1206 2466 89 33 96.954895 Acts5 1 8 1 7 7 1310 2467 71 32 96.591530 ands 1 8 1 7 8 1396 2467 61 33 96.110703 thes 1 8 1 7 9 1474 2467 109 33 96.903862 Rules5 1 8 1 7 10 1597 2467 71 42 96.892349 ands 1 8 1 7 11 1685 2467 233 39 96.678619 Regulations4 1 8 1 8 0 595 2512 1322 45 -1 5 1 8 1 8 1 595 2512 249 39 96.519836 promulgated5 1 8 1 8 2 860 2514 113 32 95.993629 under5 1 8 1 8 3 988 2515 61 32 95.993629 thes 1 8 1 8 4 1066 2515 75 33 96.210052 Furs 1 8 1 8 5 1157 2516 176 34 96.411507 Products5 1 8 1 8 6 1350 2518 172 39 96.224144 Labeling5 1 8 1 8 7 1538 2518 79 39 96.709091 Act,5 1 8 1 8 8 1635 2518 71 33 96.866898 ands 1 8 1 8 9 1722 2518 29 32 93.261932 it5 1 8 1 8 10 1768 2528 149 29 92.672012 appear-4 1 8 1 9 0 594 2561 1323 47 -1 5 1 8 1 9 1 594 2561 64 40 96.896378 ings 1 8 1 9 2 674 2563 38 32 96.169182 to5 1 8 1 9 3 730 2563 61 32 96.513824 thes 1 8 1 9 4 810 2564 237 34 96.496971 Commissions 1 8 1 9 5 1067 2566 81 32 96.413010 that5 1 8 1 9 6 1167 2577 22 22 96.682587 a5 1 8 1 9 7 1208 2568 216 40 96.110764 proceedings 1 8 1 9 8 1442 2569 47 39 97.010696 by5 1 8 1 9 9 1508 2569 30 32 96.127327 it5 1 8 1 9 10 1558 2569 37 32 96.976181 in5 1 8 1 9 11 1615 2569 139 39 96.958694 respects 1 8 1 9 12 1774 2569 143 32 96.730652 thereof4 1 8 1 10 0 595 2613 1321 46 -1 5 1 8 1 10 1 595 2613 115 32 96.356842 would5 1 8 1 10 2 725 2614 43 31 96.881432 be5 1 8 1 10 3 782 2614 37 32 96.951302 in5 1 8 1 10 4 835 2614 60 33 96.694809 thes 1 8 1 10 5 910 2615 119 39 96.782501 public5 1 8 1 10 6 1045 2617 161 39 95.765526 interest,5 1 8 1 10 7 1223 2618 134 39 96.548187 hereby5 1 8 1 10 8 1373 2620 114 32 96.629753 issues5 1 8 1 10 9 1504 2620 47 32 96.466148 its5 1 8 1 10 10 1568 2620 194 39 96.613289 complaints 1 8 1 10 11 1778 2620 138 38 96.579376 stating4 1 8 1 11 0 593 2662 729 44 -1 5 1 8 1 11 1 593 2662 48 33 96.541687 its5 1 8 1 11 2 655 2663 150 40 96.567856 charges5 1 8 1 11 3 818 2665 36 32 96.703430 in5 1 8 1 11 4 868 2665 82 33 96.723511 that5 1 8 1 11 5 962 2669 141 37 96.712669 respects 1 8 1 11 6 1117 2678 41 22 96.875916 as5 1 8 1 11 7 1171 2669 151 32 96.390755 follows: Complaint 15 F.T.C, PARAGRAPH 1. Respondent Bernard Spivack.& Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois. __ Respondent Bernard Spivack is an officer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of the said corporate respondent including -those hereinafter set forth.

Respondents are manufacturers of . ‘fur trimmed ladies’ garments with their office and principal place of business located at 330 South Franklin Street, Chicago, Illinois. , Par. 2, Respondents are now and for some time last past have been engaged in the introduction into commerce, and in the manufacture for ‘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 manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or 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. 8. Certain of said fur products were misbranded in that they were falsely and deceptively labeled to show that fur contained therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 4(1) of the Fur Products Labeling Act. Par. 4. 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 with labels which failed to disclose that the fur contained in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact. PAR. 5. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations. Among such misbranded fur products, but not limited thereto, were fur products where the required item numbers were not set forth on labels, in violation of Rule 40 of said Rules and Regulations.

Par. 6. Certain of said fur products were falsely and decep- BERNARD SPIVACK & CO., INC., ET AL. 935 933 : . Decision and Order tively 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, was a fur product covered by an invoice which failed:

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

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

Par. 7. 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: 1: 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. 2. Required item numbers were not set forth ‘on invoices; in violation of Rule 40 of said Rules and Regulations. Par. 8. Respondents furnished false guarantees that certain of their fur products were not misbranded, falsely invoiced or falsely advertised: when respondents in furnishing such guarantees had reason to believe that fur products so falsely guaranteed would be introduced, sold, transported or distributed in commerce, in violation of Section 10(b) of the Fur Products Labeling Act.

Par. 9. The aforesaid acts and practices of respondents, as set forth above, are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce under 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 Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, Decision and Order 15 F.T.C.

‘would. charge respondents with violation of the Federal Trade ‘Commission Act and.the Fur Products Labeling 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 settlement: purposes. only and does not constitute an admission by respondents that the law has been, violated.as alleged in such.complaint, and waivers, and other. provisions ‘as required by. the Commission’s Rules; . and: The Commission having thereafter considered the matter and having" determined. that it had reason -to believe that the respondents -have violated the said Acts, and that. .complaint should issue stating its:charges in that respect,,and having thereupon..accepted the executed consent agreement..and placed such agreement on the public.record for a period of thirty (30) days, now. in further conformity with .the.procedure prescribed in §. 2.34(b): of its Rules, the Commission. hereby issues its tomplaint, makes the following jurisdictional findings, and. enters the-following order:.

‘1. Respondent Bernard ‘Spivack & Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 330 South Franklin Street, Chicago, Tilinois.

Respondent Bernard Spivack is an officer of said corporation and his address is the same as that of said corporation. 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 Bernard Spivack & Co., Inc., a corporation, and its officers, and Bernard Spivack, individually and as an officer of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, or manufacture for 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 manufacture for sale, sale, advertising, offering for sale, transportation or distribution of any fur product BERNARD SPIVACK & CO., INC., ET AL. 937 933 Decision and Order which is made in whole or in part of fur which has been shipped and received in commerce, as the terms “commerce,” “fur” and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Misbranding fur products by:

1. Representing, directly or by implication, on :labels that the fur contained in any such fur product is natural when the fur contained therein is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored. - 2. Failing to affix labels to fur 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. 8. Failing to set forth on labels the item numbers or marks assigned to fur products.

B. Falsely or deceptively i invoicing fur products by: 1. Failing to furnish invoices, as the term “invoice” is defined in the Fur Products Labeling Act, 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 on invoices under Section 5(b)(1) of the Fur Products Labeling Act and the Rules and Regulations in abbreviated form. 8. Failing to set forth on invoices the item numbers or marks assigned to fur products. It is further ordered, That respondents Bernard Spivack & Co., Ine., a corporation, and its officers, and Bernard Spivack, individually and as an officer of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any fur product is not misbranded, falsely invoiced or falsely advertised when the respondents have reason to believe that such fur product may be introduced, sold, transported or distributed in commerce. It is further ordered, That the respondent. corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is further 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. Complaint 15 E.T.C.