T & T Chinchilla, Inc

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In true MATTER oF “T & 'T CHINCHILLA, INC., ET AL:

CONSENT ORDER, ETC., IN REGARD TF THE ALLEGED ‘VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-1791: Complaint, Sept. 8, 1970—Decision, Sept. 3, 1970 wuuecue viuc. coyuring a Council Butts, ‘Jowa, distributor oft cninecniula breeding stock to cease making exaggerated earning claiins, misrepresenting’the quality of its. stock, deceptively guaranteeing the fertility of its ‘Stock,. claiming that it has the approval of any governmental agency, and misrepresenting its services to purchasers. ComMPLAINT 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 T & T Chinchilla, Inc:, a corporation, and Norman E. Taylor, individually and as an officer 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:

Paracrari 1. Respondent T & T Chinchilla, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Iowa, with its principal office and place of business located at'16 Hillsdale Drive, Council Bluffs, Iowa. Its office and place of business were formerly located at 253 Elliott Street, Council Bluffs, Towa.

Respondent Norman E. Taylor is an individual and officer of said corporation. He formulated, directed and controlled 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 corporation. oo Par. 2. Respondents were engaged in the advertising, offering for sale, sale and distribution of chinchilla breeding stock to the public. ‘Par. 3. In the course and conduct of their aforesaid business, respondents caused their said chinchillas, when sold, to be shipped from their place of business in the State of. Iowa, to. purchasers thereof located in various other States of the United States and:at:al] times mentioned herein maintained a substantial course of. trade in comho ok Cana ee 1214 Complaint merce as “commerce” is defined in the Federal Trade Commission Acct..

Par. 4. In the course and conduct of their aforesaid business, and for the purpose of obtaining the names of prospective purchasers and inducing the purchase “of such chinchilla breeding stock, respondents made numerous statemen its and representations by means of television, in direct mail advertising and thr ‘ough oral statements and display of promotional material to prospective purchasers by their salesmen; with respect to the br eeding of chinchillas for profit without pre vious experience, the rate of reproduction of said animals, prices expected from the sale of their pelts, the potential income from raising such animals and the training assistance to be made available to purchasers. ;

Typical and illustrative of said statements and representations, but not all inclusive thereof, were the following: Put yourself in “the profit” picture Now! More and more people with little experience, are making full time money in part time Chinchilla raising.

Chinchillas are easy and inexpensive to breed and raise. ... Little space is required—basements, back rooms or special buildings. Q. What kind of experience do I need to raise chinchillas? A. None! A little common sense and our assistance in methods: and supervision during your initial few months.

" We have top quality stock available.

Conservatively speaking, our estimation of herd growth is based’ on three offspring per year, per fertile female, totaling 21 young at the end of a year from a polygamous herd of eight. There is no. reason why: a beginning rancher could not equal or surpass a herd of nearly 100 animals at the end of three years, and continually expand from there. T & T EDUCATIONAL AND INVESTMENT PLAN Starting with Seven (7) Females and One (1) Male Chinchilla. Estimating three (3) Babies per Female per year. ANowing Six Months consolidation or grace period.

' Allowing 10% for replacement and taking advantage of the T & T purchasing agreement, your potential is as follows: * tk cg * * * * “AA” STRING - Total number of animals to be sold to T & T Chinchilla Ranch, Ine. at the end of FIVE YEARS, Your Potential:

8 weeks 6 months 288 Males....--... 8 weeks old at $15.00...-.2.022 2-2 ale _ . 6 months old at $25.00... $7,200 191 Females....... 8 weeks old at $27.50... . : : 6 months old at $37.50_-. 2202.2 ooo eee: . - 7,162.56 Total... 2-22-22 eneeee eee ee eee ence creep ee eeeeeee ee nanese-t- 9,572.50 14, 362. 50 Complaint i7 F.TC.

DOUBLE MIXED STRING Total number of animals to be sold to T & T Chinchilla Ranch at the end of FIVE YEARS Your Potential:

8 weeks 6 months 288 Males_.......- 8 weeks old at.$5.00..... 6 months old at $15.00 $4, 320. 00 191 Females_...._. 8 weeks old at $10.00.__. , 6 months old at $20.00 3, 820. 00 ee . 8, 140. 00 YY & T Chinchilla Ranch can offer the capabilities of nearly a century’s experience in the fur industries to assist you in initiating your beginning herd. Our consultation service—already used by many well established ranchers— is available to you. Ten years actual experience in raising the animals is your warranty of success.

Q. What does T & T Ranch offer that I can't find from other ranchers advertising animals for sale? A. Established business respect through banks, eredit bureaus, the FTC [regnlatory agencies] the New York Auction and other markets as well as busimesses wherever T & T operates. .

Our garment division ... creators of Taylor Royal Furs ... sells these Barments almost as fast as we make them ... The demand is there as it’s been since the 16th century. Only the supply is limited. That’s why we need more ranchers.

And T & T has its own garment division ... creating a ready-market for the pelts produced by our associate breeders. 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, and through the oral statements and representations made in sale representations to purchasers, respondents have represented, directly or by implication, that: 1. It is commercially feasible to breed and raise chinchillas from breeding stock purchased from respondents in homes, basements, garages, or spare buildings, and large profits can be made in this manner.

2. The breeding of chinchillas from breeding stock purchased from respondents, is a commercially profitable enterprise, and requires no previous experience in the breeding, caring for and raising of such animals.

8. Chinchillas are hardy animals, and are not susceptible to disease.

4, Purchasers of respondents’ breeding stock receive top quality chinchillas. . .

' 5. Each female chinchilla purchased from respondents and each T & T CHINCHILLA, INC., ET AL. 1217 1214 Complaint female offspring will produce two to three litters per year averaging one to four offspring per litter.

6. Each female chincilla purchased from respondents and each female offspring will produce at least three live offspring per year. 7. The offspring referred to in subparagraphs 5 and 6 above will produce pelts selling for an average price of $20 to $25 per pelt. 8. A purchaser starting with seven females and one male of respondents’ chinchilla breeding stock under their “T & T Educational and Investment Plan” will have income at the end of five years ranging from $8,140 on the basis of their “Double Mixed String” quality to $14,362.50 on the basis of their “A.A String” quality breeding stock.

9. Respondent guarantees that the buyer’s female herd will double within 18 months.

10. Purchasers of respondents’ breeding stock will receive service calls from respondents’ service personnel on a monthly, or more frequent basis.

11. Respondents have owned and operated a successful fur gar-~ ment manufacturing facility providing a ready market for pelts produced by purchasers of their chinchillas. 12. Respondents’ business operation has the approval of the Federal Trade Commission or other governmental regulatory agencies. Par. 6. In truth and in fact:

1. It is not commercially feasible to breed or raise chinchillas from breeding stock purchased from respondents in homes, basements, garages or spare buildings, and large profits cannot be made in this manner. Such quarters or buildings, unless they have adequate space and the requisite temperature, humidity, ventilation and other necessary environmental conditions are not adaptable to or suitable for the breeding or raising of chinchillas on a commercial basis.

2. The breeding of chinchillas from breeding stock purchased from respondents as a commercially profitable enterprise, requires specialized knowledge in the breeding, caring for and raising of said animals much of which must be acquired through actual experience. 8. Chinchillas are not hardy animals and are susceptible to pneumonia and other diseases.

4. Chinchilla breeding stock sold by respondents is not top quality. 5. Each female chinchilla purchased from respondents and each female offspring will not produce two or three litters per year averaging one to four live offspring per litter, but generally less than that number.

Complaint 77 E.D.C §. Each female chinchilla purchased from responde ents and each female offspring will not produce at least three live © of Ispring per ven but generally less than that number. 7. The offspring referred to in subparagraphs 5 and 6 of Paraeraph Five above will not produce peits selling for an average price of $20 to $25 per pelt but substantially less than that amount. 8. A purchaser starting with seven females and one male of respondents’ chinchilla breeding stock under their “T & TP Hducational and Investment Plan” will not have income at the end of five years ranging from $8,140 on the basis of their “Double Mixed String” quality to $14,362.50 on the basis of their “‘AA’ String” juality breeding stock but substantially less than those amounts or range of amounts. 7 9. Chinchilla breeding stock purchased from respondents is not unconditionally guaranteed to double within 18 months but such gtiarantee is subject to numerous terms, limitations and conditions. — 10. Purchasers of respondents’ breeding stock have not received service calls from respondents’ service personnel on a monthly or mere frequent basis, but Jess than that number. Ji. Respondents have ‘not owned and operated a fur garment manufacturing facility providing a ready market for pelts produced by purchasers of their chinchilias.

12. Respondents’ business operation does not have .the approval of be B ederal Trade Commission or other governmental regulatory ‘Vherefore, the statorments and representations as set forth in Paragraphs Four and Five hereof were false, misleading and deceptive. Pan. 7 In the course and conduct of their business, and at all times mentioned herein, respondents were Im substantial competition, in coramerce, with corporations, firms and individuals.in the sale of chinchilla breeding stock of the same general kind and nature as those sold by respondents.

Pax. 8. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had the capacity and tendency to mislead members of the purchasing public into the erroncous and mistaken belief that said statements and repress eatat ions were tine and inte the purchase of substantial quantities of respondents’ chinchillas | by reason of said erroneous and mistaken belief. .

Par. 9. The aforesaid acts and practices of the respondents, as herein alleged, were all to the prejudice and injury of the public and of respondents’ competitors and ccnstituted unfair methods of T & Po Grtivesww., 1214 .- Decision and Order competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act. |4 1 3 1 4 0 662 437 848 40 -1 5 1 3 1 4 1 662 453 2 2 0.000000 :5 1 3 1 4 2 754 443 2 2 0.000000 ,5 1 3 1 4 3 1117 437 171 38 64.667336 Decisions 1 3 1 4 4 1306 455 70 21 75.326920 anp5 1 3 1 4 5 1394 445 116 32 86.612999 Orver2 1 4 0 0 0 629 523 1341 1845 -1 3 1 4 1 0 0 645 523 1325 749 -1 4 1 4 1 1 0 696 523 1274 48 -1 5 1 4 1 1 1 696 523 72 31 96.242310 Thes 1 4 1 1 2 788 524 145 31 96.159348 Federal5 1 4 1 1 3 954 525 114 32 96.159348 Trades 1 4 1 1 4 1089 526 226 37 96.328850 Commissions 1 4 1 1 5 1333 528 130 41 96.776566 having5 1 4 1 1 6 1483 528 159 33 96.162399 initiated5 1 4 1 1 7 1665 540 42 20 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1578 193 39 90.456100 prescribed5 1 4 2 7 5 1229 1579 34 31 91.569771 in5 1 4 2 7 6 1284 1581 14 39 87.403992 §5 1 4 2 7 7 1312 1578 133 41 87.403992 2.34(b)5 1 4 2 7 8 1468 1579 39 32 95.847092 of5 1 4 2 7 9 1525 1579 43 31 96.422371 its5 1 4 2 7 10 1586 1580 113 42 95.752609 Rules,5 1 4 2 7 11 1716 1580 59 31 93.293755 thes 1 4 2 7 12 1792 1581 163 31 91.212082 Commis-4 1 4 2 8 0 639 1624 1316 46 -1 5 1 4 2 8 1 639 1624 74 32 96.465446 sions 1 4 2 8 2 731 1625 125 41 87.610580 hereby.5 1 4 2 8 3 877 1626 103 32 87.927750 issues5 1 4 2 8 4 999 1628 44 31 96.631409 its5 1 4 2 8 5 1062 1629 213 39 96.372253 complaints,5 1 4 2 8 6 1294 1630 115 31 96.372253 makes5 1 4 2 8 7 1426 1629 59 32 96.672005 thes 1 4 2 8 8 1507 1629 178 41 95.978622 following5 1 4 2 8 9 1705 1629 250 41 95.581032 jurisdictional4 1 4 2 9 0 638 1675 1147 44 -1 5 1 4 2 9 1 638 1675 160 41 96.690399 findings,5 1 4 2 9 2 818 1677 72 30 88.335434 ands 1 4 2 9 3 904 1676 112 33 88.335434 enters5 1 4 2 9 4 1033 1678 58 31 69.915878 thes 1 4 2 9 5 1102 1678 188 41 80.224144 following5 1 4 2 9 6 1301 1679 121 36 95.990585 order:5 1 4 2 9 7 1654 1705 2 2 0.000000 ;5 1 4 2 9 8 1783 1710 2 2 0.000000 ;3 1 4 3 0 0 633 1726 1321 495 -1 4 1 4 3 1 0 682 1726 1272 47 -1 5 1 4 3 1 1 682 1726 27 30 87.282585 i,5 1 4 3 1 2 733 1726 220 41 93.172363 Respondents 1 4 3 1 3 970 1728 31 30 73.250580 T5 1 4 3 1 4 1019 1728 27 30 73.250580 &5 1 4 3 1 5 1065 1728 29 31 92.075294 T5 1 4 3 1 6 1114 1728 205 41 93.200974 Chinchilla,5 1 4 3 1 7 1339 1731 81 39 92.182755 Inc.,5 1 4 3 1 8 1441 1731 28 31 96.684464 is5 1 4 3 1 9 1489 1741 19 20 96.684464 a5 1 4 3 1 10 1526 1731 216 41 69.133812 corporations 1 4 3 1 11 1761 1731 193 42 96.596107 organized,4 1 4 3 2 0 638 1775 1316 46 -1 5 1 4 3 2 1 638 1775 151 41 95.463562 existing5 1 4 3 2 2 805 1776 68 31 95.463562 ands 1 4 3 2 3 893 1776 107 42 95.655502 doing5 1 4 3 2 4 1016 1777 154 32 96.368103 business5 1 4 3 2 5 1190 1779 108 32 95.944641 under5 1 4 3 2 6 1318 1781 67 31 95.666290 ands 1 4 3 2 7 1404 1781 45 40 95.666290 by5 1 4 3 2 8 1469 1780 113 32 96.230003 virtues 1 4 3 2 9 1601 1782 38 30 96.134270 of5 1 4 3 2 10 1658 1782 58 30 95.870552 thes 1 4 3 2 11 1736 1782 82 31 96.413719 laws5 1 4 3 2 12 1839 1782 38 31 96.914711 of5 1 4 3 2 13 1896 1782 58 32 97.021301 thea 1 4 3 3 0 639 1824 1314 51 -1 5 1 4 3 3 1 639 1824 96 34 96.391907 States 1 4 3 3 2 753 1826 38 30 96.591270 of5 1 4 3 3 3 810 1827 104 39 54.227692 Towa,5 1 4 3 3 4 932 1827 83 31 96.333740 with5 1 4 3 3 5 1034 1828 45 32 95.907394 its5 1 4 3 3 6 1097 1829 168 40 96.972458 principals 1 4 3 3 7 1287 1830 88 31 94.216171 offices 1 4 3 3 8 1395 1830 67 32 96.709511 ands 1 4 3 3 9 1482 1831 95 39 96.478912 places 1 4 3 3 10 1595 1832 39 30 96.554207 of5 1 4 3 3 11 1652 1832 152 43 96.669380 business5 1 4 3 3 12 1823 1833 130 31 78.485596 located4 1 4 3 4 0 638 1875 1316 47 -1 5 1 4 3 4 1 638 1878 34 28 89.659195 at5 1 4 3 4 2 695 1878 39 28 89.659195 155 1 4 3 4 3 754 1875 173 34 78.475082 Hillsdale5 1 4 3 4 4 940 1878 125 40 96.590790 Drive,5 1 4 3 4 5 1088 1879 142 35 90.313194 Councils 1 4 3 4 6 1253 1881 123 39 54.680824 Biufls,5 1 4 3 4 7 1398 1881 102 31 92.954742 Towa.5 1 4 3 4 8 1523 1881 52 37 70.574188 Its5 1 4 3 4 9 1587 1871 98 55 57.126007 offices 1 4 3 4 10 1711 1881 60 32 57.126007 ands 1 4 3 4 11 1798 1882 95 40 94.644875 places 1 4 3 4 12 1915 1882 39 32 96.677559 of4 1 4 3 5 0 637 1923 1315 49 -1 5 1 4 3 5 1 637 1923 150 34 96.244980 business5 1 4 3 5 2 806 1937 85 21 96.979843 were5 1 4 3 5 3 911 1927 165 42 96.278954 formerly5 1 4 3 5 4 1096 1929 131 32 96.298180 located5 1 4 3 5 5 1248 1935 34 26 96.298180 at5 1 4 3 5 6 1300 1932 61 30 71.655273 2585 1 4 3 5 7 1381 1931 124 31 83.367409 Elliott5 1 4 3 5 8 1525 1931 121 40 93.626579 Street,5 1 4 3 5 9 1667 1931 142 33 96.199120 Councils 1 4 3 5 10 1830 1932 122 40 25.772957 Bluffs,4 1 4 3 6 0 636 1975 1031 44 -1 5 1 4 3 6 1 636 1975 102 32 89.648605 Towa,5 1 4 3 6 2 1392 1989 71 30 0.000000 —5 1 4 3 6 3 1596 1992 71 16 4.453369 mo4 1 4 3 7 0 677 2025 1274 49 -1 5 1 4 3 7 1 677 2025 219 41 96.119278 Respondents 1 4 3 7 2 920 2028 153 32 96.153687 Norman5 1 4 3 7 3 1096 2030 41 30 49.448490 EH.5 1 4 3 7 4 1162 2030 128 40 96.805710 Taylor5 1 4 3 7 5 1313 2031 29 31 96.853851 is5 1 4 3 7 6 1366 2042 43 20 94.223671 an5 1 4 3 7 7 1433 2031 108 32 42.038765 officers 1 4 3 7 8 1561 2032 42 32 94.455460 of5 1 4 3 7 9 1616 2032 83 33 83.389854 said5 1 4 3 7 10 1724 2033 227 41 95.885056 corporation.4 1 4 3 8 0 634 2074 1318 50 -1 5 1 4 3 8 1 634 2074 55 32 95.717949 He5 1 4 3 8 2 706 2076 222 41 93.030701 formulated,5 1 4 3 8 3 940 2077 150 33 89.202309 directed5 1 4 3 8 4 1108 2079 67 31 96.349152 ands 1 4 3 8 5 1192 2081 191 35 96.358383 controlled5 1 4 3 8 6 1393 2081 59 32 96.549049 thes 1 4 3 8 7 1469 2086 69 27 95.940765 acts5 1 4 3 8 8 1556 2082 66 31 95.940765 ands 1 4 3 8 9 1639 2082 165 42 96.547638 practices5 1 4 3 8 10 1822 2082 37 32 96.701340 of5 1 4 3 8 11 1876 2082 76 33 96.637619 said4 1 4 3 9 0 633 2124 1319 50 -1 5 1 4 3 9 1 633 2124 233 43 93.229996 corporation,5 1 4 3 9 2 878 2127 180 43 84.246384 inéluding5 1 4 3 9 3 1076 2129 57 31 96.810608 thes 1 4 3 9 4 1152 2133 69 28 96.517860 acts5 1 4 3 9 5 1240 2131 67 31 96.517860 ands 1 4 3 9 6 1326 2130 166 41 96.843552 practices5 1 4 3 9 7 1508 2132 102 41 96.926079 beings 1 4 3 9 8 1627 2133 236 41 96.511024 investigated.5 1 4 3 9 9 1883 2133 69 32 96.977982 His4 1 4 3 10 0 633 2175 1002 46 -1 5 1 4 3 10 1 633 2175 138 32 96.386841 address5 1 4 3 10 2 790 2176 28 32 96.982803 is5 1 4 3 10 3 836 2177 58 32 96.830391 thes 1 4 3 10 4 910 2188 91 22 96.816971 same5 1 4 3 10 5 1019 2189 37 21 96.896164 as5 1 4 3 10 6 1073 2179 77 32 96.760681 that5 1 4 3 10 7 1168 2181 37 31 96.230530 of5 1 4 3 10 8 1221 2180 58 32 96.936050 thes 1 4 3 10 9 1297 2181 241 40 27.656448 corporation.3 1 4 4 0 0 629 2226 1322 142 -1 4 1 4 4 1 0 674 2226 1277 49 -1 5 1 4 4 1 1 674 2228 28 29 94.703667 2.5 1 4 4 1 2 726 2226 73 32 94.703667 Thes 1 4 4 1 3 818 2227 145 33 96.051537 Federal5 1 4 4 1 4 985 2229 113 32 96.408928 Trades 1 4 4 1 5 1119 2229 224 33 96.755745 Commissions 1 4 4 1 6 1362 2230 62 32 96.866356 has5 1 4 4 1 7 1445 2231 216 41 96.266281 jurisdictions 1 4 4 1 8 1682 2232 38 43 97.012100 of5 1 4 4 1 9 1740 2232 59 31 96.801880 thes 1 4 4 1 10 1819 2232 132 40 96.591263 subject4 1 4 4 2 0 631 2277 1318 47 -1 5 1 4 4 2 1 631 2280 124 28 58.037903 matters 1 4 4 2 2 769 2277 39 31 96.981544 of5 1 4 4 2 3 823 2277 69 32 96.990456 this5 1 4 4 2 4 907 2279 207 41 96.839851 proceedings 1 4 4 2 5 1130 2280 66 31 96.654228 ands 1 4 4 2 6 1212 2280 41 38 96.654228 of5 1 4 4 2 7 1266 2280 57 33 96.482437 thes 1 4 4 2 8 1339 2281 231 41 96.380974 respondents,5 1 4 4 2 9 1585 2282 69 41 96.107735 ands 1 4 4 2 10 1670 2282 57 32 96.923332 thes 1 4 4 2 11 1743 2282 206 42 96.382668 proceeding4 1 4 4 3 0 629 2325 730 43 -1 5 1 4 4 3 1 629 2325 30 32 95.926178 is5 1 4 4 3 2 676 2327 37 31 92.765656 in5 1 4 4 3 3 730 2327 57 32 96.854958 thes 1 4 4 3 4 804 2327 116 41 96.566010 public5 1 4 4 3 5 937 2328 150 33 96.045380 interest. Decision and Order 77 ¥F.T.C.

ORDER It is ordered, That respondents T & T Chinchilla, Inc., a corpora- _tion, and its officers, and Norman E. Taylor, individually and as an officer of said corporation, 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 chinchilla breeding stock or any other products, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: A. Representing, directly or by implication, that: 1. It is commercially feasible to breed or raise chinchillas in homes, basements, garages or spare buildings, or other quarters or buildings unless in immediate conjunction therewith it is clearly and conspicuously disclosed that the represented quarters or buildings can only be adaptable to and suitable for the breeding and raising of chinchillas on a commercial basis if they have the requisite space, temperature, humidity, ventilation and other environmental conditions.

2. Breeding chinchillas as a commercially profitable enterprise can be achieved without previous knowledge or experience in the breeding, caring for and raising of such animals.

3. Chinchillas are hardy animals or are not susceptible to disease.

4, Purchasers of respondents’ chinchilla breeding stock will receive top quality chinchillas or any other quality or grade of chinchillas unless purchasers receive animals of the quality or grade represented.

5. Each female chinchilla purchased from respondents and each female offspring will produce two to three litters per year averaging one to four offspring per litter. 6. The number of litters or sizes thereof produced per female chinchilla is any number or range thereof; or representing, in any manner, the past number or range of numbers of litters or sizes produced per female chinchilla from respondents’ breeding stock unless, in fact, the past number or range of numbers represented are those of a substantial number of purchasers and accurately reflect the number or range of numbers of litters or sizes thereof produced per female chinchilla of these purchasers under circumstances similar to those of the purchaser to whom the representation is made.

T & T CHINCHILLA, INC., ET AL. 1221 Decision and Order 7. Each female chinchilla purchased from respondents and each female offspring will produce at least three live young per year.

8. The number of live offspring produced per female chinchilla is any number or range of numbers; or repreenting, in any manner, the past number or range of numbers of live offspring produced per female chinchilla from respondents’ breeding stock unless, in fact, the past number or range of numbers represented are those of a substantial number of purchasers and accurately reflect the number or range of numbers of live offspring produced per female chinchilla of these purchasers under circumstances similar to those of the purchaser to whom the representation is made.

9. Pelts from the offspring of respondents’ chinchilla breeding stock sell for an average price of $20 to $25 per pelt.

10. Chinchilla pelts from the offspring of respondents’ breeding stock will sell for any price, average price, or range of prices; or representing, in any manner, the past price, average price or range of prices of pelts from chinchillas of respondents’ breeding stock unless, in fact, the past price, average price or range of prices represented are those of a substantial number of purchasers and accurately reflect the price, average price or range of prices realized by these purchasers under circumstances similar to those of the purchaser to whom the representation is made. 11. A purchaser starting with seven females and one male of respondents’ chinchilla breeding stock under their “T & T Educational and Investment Plan” will have income at the end of five years ranging from $8,140 on the basis of their “Double Mixed String” quality to $14,362.50 on the basis of their “‘AA’ String” quality breeding stock. 12. Purchasers of respondents’ breeding stock will realize earnings, profits or income in any amount or range of amounts; or representing, in any manner, the past earnings, profits or income of purchasers of respondents’ breeding stock unless, in fact, the past earnings, profits or income represented are those of a substantial number of purchasers and accurately reflect the average earnings, profits or income of these purchasers under circumstances similar to those of the purchaser to whom the representation is made. Decision and Order’ TT ¥F.T.C.

13. Breeding stock purchased from respondents is guaranteed or warranted without clearly and conspicuously dis-— closing in immediate conjunction therewith the nature and extent of the guarantee, the manner in which the guarantor will perform thereunder and the identity of the guarantor. 14. Purchasers of respondents’ chinchilla breeding stock will receive service calls from respondents’ service personnel once a month or at any other interval or frequency unless purchasers do, in fact, receive the represented number of service calls at the represented interval or frequency. 15. Respondents own and operate a successful fur garment manufacturing facility providing a ready market for pelts produced by purchasers of their chinchillas. _ 16. Respondents’ business operation has the approval of the Federal Trade Commission or other governmental regulatory agencies. | B. Misrepresenting, in any manner, the assistance, training, services or advice supplied by respondents to purchasers of their chinchilla breeding stock.

C. Misrepresenting, in any manner, the earnings or profits of purchasers of respondents’ chinchilla breeding stock. D. Misrepresenting, in any manner, the approval of respondents’ business or business practices by banks, credit bureaus, the New York Auction or by any other or. ganization, agency or business establishment.

E. 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 or services and failing to secure from each such salesman or other person a signed statement acknowledging receipt of said order. Tt is further ordered, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. Tt is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale resulting in the emergence of a successor corpor ation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. lé 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. JERWIN MOTORS, ‘ETC. 1245 Complaint