Universal Electronics Corporation
Volume 78 · 78 F.T.C. 265
franchise business opportunitydeceptive advertising
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Universal Electronics Corporation, 78 F.T.C. 265 (1971). Consumer Law Library, https://consumerlawlibrary.org/decisions/v078-0026
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In THe Matrer oF UNIVERSAL ELECTRONICS CORPORATION, ET AL. ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATIONS OF THE FEDERAL TRADE COMMISSION ACT Docket 8815. Complaint, May 26, 1970—Decision, Jan. 28, 1971 Order requiring a St. Louis Mo., distributor of radio and television tube testing devices and franchises for the sale of such products to cease misrepresenting that persons investing in respondents’ franchises will receive any stated amount of income or any discounts from respondents on repeat business, that they will obtain profitable locations for their machines or ean expect the sale of any certain number of tubes per day, that they will be granted exclusive territories in which to locate their machines, and that respondents will accept the return of, or aid in the resale of, the machines; respondents are also required to place in all franchise contracts a notification that such contracts may be cancelled within three days, and that respondents will refund all monies to customers cancelling contracts within this period.
UNIVERSAL SUbBULMUINILD COUNT.) Wa nin rahe 259° Decision and Order under circumstances similar to those of the purchaser _ to whom the representation is made.
Bz ‘Misrepresenting in any manner the earnings or profits to purchasers or reproduction capacity of any chinchilla breeding stock.
C. Failing to deliver a copy of this order to cease and desist to all present and future salesmen and other persons engaged in the sale of respondents’ products or services, and failing to secure from each such individual a signed statement acknowledging receipt of said order. ° It ts further ordered, That the respondent corporation shall forthwith distr ibute a& copy of this order to each of its operating divisions.
_ It 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 corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. 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.