Neighborhood Periodical Club, Inc

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

acd Ph: . IN THE: Matrer. /OF _NEIGHBORHOOD, PERIODICAL’ CLUE, 1N Y CONSENT “on ane IN REGARD TO. THE: ALEEGED: ‘VIOL TION’ OF THE : a FEDERAL. TRADE COMMISSION: AGT: 6H! ‘ Docket -e246. ‘Complaint, uly uy, 19 a uty i 1972.

Consent order requiring a Cincinnati, Ohio, seller and distributor: of: magazines ../,and: periodicals. to cease,. among: other, things, representing salesmen. were conducting suryeys or representing. bona fide non-commercial | organizations, _ _ when in fact, they were selling magazine subscrip 3 re presenting publications5 1 11 1 5 2 797 1161 76 30 96.379295 ands 1 11 1 5 3 878 1155 72 45 81.306915 ‘gift’5 1 11 1 5 4 959 1151 228 45 41.175560 subseriptions5 1 11 1 5 5 1191 1157 47 32 29.355225 as5 1 11 1 5 6 1251 1154 95 48 95.649055 beings 1 11 1 5 7 1356 1162 73 34 95.649055 free,5 1 11 1 5 8 1450 1157 139 43 55.755062 when’5 1 11 1 5 9 1550 1150 38 56 84.112350 in5 1 11 1 5 10 1607 1154 81 44 96.213631 fact,5 1 11 1 5 11 1699 1162 88 35 88.705215 their:5 1 11 1 5 12 1801 1165 64 24 94.094643 costs 1 11 1 5 13 1884 1160 62 29 96.262604 was4 1 11 1 6 0 690 1188 1259 62 -1 5 1 11 1 6 1 690 1188 142 54 15.493576 ‘neluded5 1 11 1 6 2 846 1205 46 37 71.816689 in-5 1 11 1 6 3 899 1206 57 24 62.469849 thes 1 11 1 6 4 969 1204 79 32 95.575073 prices 1 11 1 6 5 1064 1203 40 28 96.089149 of5 1 11 1 6 6 1112 1205 67 27 81.218628 the’5 1 11 1 6 7 1178 1192 212 58 78.230705 ‘stibsetiption:5 1 11 1 6 8 1400 1197 130 35 83.351532 contracts 1 11 1 6 9 1543 1213 6 22 83.351532 ;5 1 11 1 6 10 1563 1193 125 44 37.366081 falling5 1 11 1 6 11 1695 1208 31 23 96.623161 to5 1 11 1 6 12 1744 1206 110 30 95.062737 cancel,5 1 11 1 6 13 1871 1205 78 31 95.845016 upon4 1 11 1 7 0 626 1235 1321 49 -1 5 1 11 1 7 1 626 1240 36 23 35.501999 mats 1 11 1 7 2 674 1235 150 48 69.677826 ‘request,5 1 11 1 7 3 837 1255 17 18 74.460281 a:5 1 11 1 7 4 865 1241 143 33 75.464371 contracts 1 11 1 7 5 1014 1250 92 23 75.464371 when:5 1 11 1 7 6 1111 1242 241 42 51.187752 representation’5 1 11 1 7 7 1350 1244 65 30 74.926010 ‘has5 1 11 1 7 8 1423 1250 79 28 9.750221 been5 1 11 1 7 9 1505 1244 173 31 9.750221 'mdde:that:5 1 11 1 7 10 1681 1249 51 25 96.702850 thes 1 11 1 7 11 1742 1246 132 35 95.427010 contracts 1 11 1 7 12 1885 1244 62 30 90.909760 will4 1 11 1 8 0 692 1279 1257 51 -1 5 1 11 1 8 1 644 1301 27 17 0.000000 »)5 1 11 1 8 2 692 1290 40 29 81.005859 be5 1 11 1 8 3 749 1291 193 29 91.996078 cancellable;5 1 11 1 8 4 948 1291 280 33 94.324020 misrepresenting.5 1 11 1 8 5 1235 1292 51 24 96.595833 thes 1 11 1 8 6 1301 1292 127 33 80.168694 nature,5 1 11 1 8 7 1425 1291 89 34 38.298447 ;kinds 1 11 1 8 8 1522 1295 40 30 88.310867 :or;5 1 11 1 8 9 1571 1292 82 33 96.064400 legal.5 1 11 1 8 10 1655 1279 252 51 0.000000 characteristics,5 1 11 1 8 11 1915 1291 34 35 96.131081 of4 1 11 1 9 0 676 1329 1271 46 -1 5 1 11 1 9 1 676 1341 5 13 0.000000 :5 1 11 1 9 2 697 1339 59 31 96.657776 any5 1 11 1 9 3 777 1329 141 46 91.978958 documents 1 11 1 9 4 934 1334 23 28 74.429382 ;.5 1 11 1 9 5 948 1330 205 45 35.960014 representing5 1 11 1 9 6 1192 1334 68 35 96.641914 that5 1 11 1 9 7 1319 1340 19 35 75.697868 y5 1 11 1 9 8 1353 1334 86 34 80.687149 price.5 1 11 1 9 9 1455 1334 27 34 87.151627 is5 1 11 1 9 10 1504 1340 34 34 56.256340 a.5 1 11 1 9 11 1542 1334 109 35 96.497131 specials 1 11 1 9 12 1670 1340 45 19 79.024948 or5 1 11 1 9 13 1724 1334 125 31 79.024948 reduced5 1 11 1 9 14 1867 1333 80 39 96.493965 price4 1 11 1 10 0 666 1359 1281 59 -1 5 1 11 1 10 1 666 1378 2 2 11.340530 :5 1 11 1 10 2 698 1367 105 43 95.162933 unless5 1 11 1 10 3 816 1375 25 34 97.004372 it5 1 11 1 10 4 861 1359 175 54 96.982201 constitutes5 1 11 1 10 5 1056 1382 18 18 96.512741 a5 1 11 1 10 6 1093 1361 169 52 96.956490 significant5 1 11 1 10 7 1281 1368 154 43 96.605278 reductions 1 11 1 10 8 1448 1366 90 45 69.166084 from5 1 11 1 10 9 1544 1372 210 42 89.442619 Tespondent’s5 1 11 1 10 10 1767 1366 180 52 96.167328 established4 1 11 1 11 0 684 1404 1262 52 -1 5 1 11 1 11 1 684 1416 6 3 12.906258 °5 1 11 1 11 2 697 1408 105 48 94.142296 selling5 1 11 1 11 3 813 1411 96 35 77.422791 price;5 1 11 1 11 4 920 1405 263 45 95.985344 misrepresenting5 1 11 1 11 5 1288 1404 73 48 73.492073 ‘tion’5 1 11 1 11 6 1366 1413 31 30 86.702568 to5 1 11 1 11 7 1409 1409 44 34 94.826836 be5 1 11 1 11 8 1452 1411 100 40 95.529541 taken5 1 11 1 11 9 1557 1410 39 33 92.684631 to5 1 11 1 11 10 1599 1411 88 40 90.886757 effects 1 11 1 11 11 1696 1412 139 44 96.764267 payments 1 11 1 11 12 1846 1417 31 32 96.953514 of5 1 11 1 11 13 1888 1419 58 31 96.990730 any4 1 11 1 12 0 684 1446 1264 55 -1 5 1 11 1 12 1 684 1452 136 37 64.427200 “alleged5 1 11 1 12 2 827 1455 84 33 64.427200 debt;5 1 11 1 12 3 931 1453 59 32 94.175156 ands 1 11 1 12 4 1004 1458 121 40 31.753586 failing’5 1 11 1 12 5 1129 1455 43 30 87.488640 to!5 1 11 1 12 6 1174 1446 140 39 73.645706 disclose:5 1 11 1 12 7 1318 1467 37 18 96.150475 on5 1 11 1 12 8 1364 1460 65 40 87.922394 ‘any5 1 11 1 12 9 1446 1448 79 37 94.552521 sales5 1 11 1 12 10 1535 1448 149 46 4.798721 Contract,5 1 11 1 12 11 1693 1452 147 49 81.275681 adjacent5 1 11 1 12 12 1846 1460 40 24 67.248787 ‘to:5 1 11 1 12 13 1897 1455 51 29 86.462349 thea 1 11 1 13 0 697 1494 1250 63 -1 5 1 11 1 13 1 697 1502 170 24 79.898994 customer’s5 1 11 1 13 2 883 1496 164 35 71.737976 ‘signature,5 1 11 1 13 3 1071 1503 53 24 90.314255 thes 1 11 1 13 4 1142 1497 77 30 91.750801 totals 1 11 1 13 5 1240 1500 82 27 53.660713 cashi:5 1 11 1 13 6 1330 1498 88 34 69.724564 price,5 1 11 1 13 7 1441 1503 65 24 69.724564 thes 1 11 1 13 8 1496 1492 11 44 56.857876 ;5 1 11 1 13 9 1505 1494 237 48 89.730354 idownpayment,5 1 11 1 13 10 1759 1499 67 28 56.645855 ‘the.5 1 11 1 13 11 1829 1498 118 59 62.127308 unpaid3 1 11 2 0 0 649 1544 1243 43 -1 4 1 11 2 1 0 649 1544 1243 43 -1 5 1 11 2 1 1 649 1551 24 21 24.254486 -:5 1 11 2 1 2 692 1544 126 29 50.001022 balances 1 11 2 1 3 832 1545 59 30 96.815086 ands 1 11 2 1 4 905 1545 59 30 96.293953 thes 1 11 2 1 5 969 1545 124 24 92.176613 numbers 1 11 2 1 6 1105 1551 34 25 96.220757 or5 1 11 2 1 7 1150 1545 102 32 96.220757 periods 1 11 2 1 8 1265 1545 39 24 96.421349 of.5 1 11 2 1 9 1308 1545 158 42 76.494881 payments5 1 11 2 1 10 1475 1545 170 34 0.000000 scheduled...5 1 11 2 1 11 1699 1560 42 19 0.000000 ::;..,5 1 11 2 1 12 1789 1559 2 2 7.077263 +>»5 1 11 2 1 13 1887 1553 5 7 0.000000 y2 1 12 0 0 0 1500 1106 89 41 -1 3 1 12 1 0 0 1500 1106 89 41 -1 4 1 12 1 1 0 1521 1106 68 19 -1 5 1 12 1 1 1 1521 1106 68 19 95.000000 4 1 12 1 2 0 1500 1125 89 22 -1 5 1 12 1 2 1 1500 1125 89 22 95.000000 2 1 13 0 0 0 1636 1154 45 6 -1 3 1 13 1 0 0 1636 1154 45 6 -1 4 1 13 1 1 0 1636 1154 45 6 -1 5 1 13 1 1 1 1636 1154 45 6 95.000000 2 1 14 0 0 0 1264 1336 54 23 -1 3 1 14 1 0 0 1264 1336 54 23 -1 4 1 14 1 1 0 1264 1336 54 23 -1 5 1 14 1 1 1 1264 1336 54 23 95.000000 2 1 15 0 0 0 1220 1407 61 2 -1 3 1 15 1 0 0 1220 1407 61 2 -1 4 1 15 1 1 0 1220 1407 61 2 -1 5 1 15 1 1 1 1220 1407 61 2 95.000000 2 1 16 0 0 0 1286 1412 33 3 -1 3 1 16 1 0 0 1286 1412 33 3 -1 4 1 16 1 1 0 1286 1412 33 3 -1 5 1 16 1 1 1 1286 1412 33 3 95.000000 2 1 17 0 0 0 1183 1420 110 27 -1 3 1 17 1 0 0 1183 1420 110 27 -1 4 1 17 1 1 0 1183 1420 110 27 -1 5 1 17 1 1 1 1183 1420 110 27 95.000000 2 1 18 0 0 0 1179 1610 210 48 -1 3 1 18 1 0 0 1179 1610 213 48 -1 4 1 18 1 1 0 1179 1610 210 48 -1 5 1 18 1 1 1 1179 1610 210 48 15.659325 Compiamnr2 1 19 0 0 0 623 1708 1329 1010 -1 3 1 19 1 0 0 625 1708 1325 396 -1 4 1 19 1 1 0 669 1708 1280 46 -1 5 1 19 1 1 1 669 1708 174 32 95.972618 Pursuant5 1 19 1 1 2 862 1712 37 28 95.613266 to5 1 19 1 1 3 916 1709 58 31 96.906624 thes 1 19 1 1 4 991 1708 194 41 96.365471 provisions5 1 19 1 1 5 1202 1710 39 31 96.497993 of5 1 19 1 1 6 1258 1710 59 31 96.405670 thes 1 19 1 1 7 1335 1710 145 31 95.665359 Federal5 1 19 1 1 8 1498 1710 115 31 90.993721 Trades 1 19 1 1 9 1628 1709 227 33 96.500328 Commissions 1 19 1 1 10 1871 1709 78 45 94.685287 Act,4 1 19 1 2 0 628 1758 1320 44 -1 5 1 19 1 2 1 628 1758 68 40 96.496895 ands 1 19 1 2 2 709 1758 51 42 96.614182 by5 1 19 1 2 3 779 1758 113 33 96.722939 virtues 1 19 1 2 4 911 1759 39 32 95.963036 of5 1 19 1 2 5 970 1760 58 31 96.787003 thes 1 19 1 2 6 1047 1760 177 42 96.525269 authority5 1 19 1 2 7 1244 1761 115 31 95.926971 vested5 1 19 1 2 8 1378 1760 37 31 95.465347 in5 1 19 1 2 9 1435 1760 28 32 95.465347 it5 1 19 1 2 10 1481 1761 45 40 96.575348 by5 1 19 1 2 11 1546 1760 75 32 96.217674 said5 1 19 1 2 12 1638 1760 70 32 96.593704 Acts 1 19 1 2 13 1724 1760 60 31 96.892426 thes 1 19 1 2 14 1803 1759 145 32 96.281792 Federal4 1 19 1 3 0 627 1808 1323 43 -1 5 1 19 1 3 1 627 1808 114 34 96.811905 Trades 1 19 1 3 2 772 1809 238 41 96.363724 Commission,5 1 19 1 3 3 1040 1810 131 41 96.433685 having5 1 19 1 3 4 1202 1821 120 21 96.173607 reasons 1 19 1 3 5 1351 1814 37 28 96.173607 to5 1 19 1 3 6 1418 1810 129 32 96.351227 believes 1 19 1 3 7 1576 1811 77 31 95.453041 that5 1 19 1 3 8 1683 1809 267 42 96.217728 Neighborhood4 1 19 1 4 0 625 1860 1323 44 -1 5 1 19 1 4 1 625 1860 193 33 96.071754 Periodicals 1 19 1 4 2 832 1860 99 40 93.294121 Club,5 1 19 1 4 3 946 1862 82 39 92.635414 Inc.,5 1 19 1 4 4 1044 1873 20 20 96.240906 a5 1 19 1 4 5 1076 1862 229 42 96.230515 corporation,5 1 19 1 4 6 1318 1861 213 33 96.380325 hereinafter5 1 19 1 4 7 1543 1861 154 32 96.380325 referred5 1 19 1 4 8 1711 1865 34 28 95.827972 to5 1 19 1 4 9 1760 1872 37 21 93.233925 as5 1 19 1 4 10 1813 1872 135 31 92.868881 respon-4 1 19 1 5 0 628 1911 1319 43 -1 5 1 19 1 5 1 628 1911 91 40 96.954521 dent,5 1 19 1 5 2 735 1911 62 32 96.923698 has5 1 19 1 5 3 814 1911 151 32 96.610748 violated5 1 19 1 5 4 980 1912 60 31 96.931923 thes 1 19 1 5 5 1055 1911 194 42 96.586197 provisions5 1 19 1 5 6 1265 1912 39 33 96.917900 of5 1 19 1 5 7 1318 1913 77 32 96.063225 said5 1 19 1 5 8 1411 1913 78 39 96.986031 Act,5 1 19 1 5 9 1507 1913 69 31 96.723778 ands 1 19 1 5 10 1591 1912 28 32 96.598183 it5 1 19 1 5 11 1633 1911 192 43 96.190147 appearing5 1 19 1 5 12 1840 1916 34 27 96.254341 to5 1 19 1 5 13 1889 1911 58 32 96.961189 thea 1 19 1 6 0 629 1962 1319 43 -1 5 1 19 1 6 1 629 1962 226 32 91.725204 Commissions 1 19 1 6 2 870 1963 77 31 96.518677 that5 1 19 1 6 3 961 1974 21 20 96.518677 a5 1 19 1 6 4 996 1963 207 42 96.552422 proceedings 1 19 1 6 5 1215 1963 46 42 97.011246 by5 1 19 1 6 6 1275 1963 28 32 96.611374 it5 1 19 1 6 7 1317 1963 35 32 96.611374 in5 1 19 1 6 8 1368 1967 130 41 96.898048 respects 1 19 1 6 9 1512 1963 136 32 96.559151 thereof5 1 19 1 6 10 1661 1963 114 32 96.524162 would5 1 19 1 6 11 1780 1958 29 55 96.880997 be5 1 19 1 6 12 1842 1974 36 35 96.899879 in5 1 19 1 6 13 1890 1962 58 32 96.639374 thea 1 19 1 7 0 628 2013 1321 43 -1 5 1 19 1 7 1 628 2013 116 40 96.461838 public5 1 19 1 7 2 761 2013 150 40 96.716469 interest,5 1 19 1 7 3 928 2013 151 42 96.363914 hereby5 1 19 1 7 4 1070 2024 114 33 96.966850 issues5 1 19 1 7 5 1191 2013 45 33 96.182655 its5 1 19 1 7 6 1252 2014 189 42 96.586136 complaints 1 19 1 7 7 1456 2013 130 43 96.543892 stating5 1 19 1 7 8 1600 2013 46 32 96.184952 its5 1 19 1 7 9 1661 2013 141 42 96.265213 charges5 1 19 1 7 10 1819 2013 36 31 96.265213 in5 1 19 1 7 11 1870 2013 79 32 96.903816 that4 1 19 1 8 0 628 2064 364 40 -1 5 1 19 1 8 1 628 2061 129 43 93.696724 respects 1 19 1 8 2 779 2074 38 21 95.744690 as5 1 19 1 8 3 839 2064 153 33 96.293365 follows:3 1 19 2 0 0 624 2115 1325 195 -1 4 1 19 2 1 0 667 2115 1282 42 -1 5 1 19 2 1 1 667 2115 211 32 2.536156 Paracrari5 1 19 2 1 2 894 2117 27 30 91.611519 1.5 1 19 2 1 3 937 2115 268 42 96.643181 Neighborhood5 1 19 2 1 4 1221 2115 193 45 96.618019 Periodicals 1 19 2 1 5 1431 2115 98 42 93.269012 Club,5 1 19 2 1 6 1544 2117 82 38 93.097351 Inc.,5 1 19 2 1 7 1642 2115 28 32 96.610725 is5 1 19 2 1 8 1686 2127 20 20 96.610725 a5 1 19 2 1 9 1721 2115 228 49 47.370537 corporation,4 1 19 2 2 0 624 2140 1325 68 -1 5 1 19 2 2 1 624 2165 149 43 96.563820 existing5 1 19 2 2 2 789 2166 71 32 96.474342 ands 1 19 2 2 3 880 2166 106 42 96.474342 doing5 1 19 2 2 4 1004 2159 160 39 97.015755 business5 1 19 2 2 5 1177 2167 111 33 96.018463 under5 1 19 2 2 6 1306 2157 67 43 96.854202 ands 1 19 2 2 7 1393 2167 46 40 96.802467 by5 1 19 2 2 8 1460 2166 113 33 96.780304 virtues 1 19 2 2 9 1593 2140 37 60 94.935043 of5 1 19 2 2 10 1649 2166 60 32 96.914879 thes 1 19 2 2 11 1728 2166 84 32 95.118958 laws5 1 19 2 2 12 1825 2165 45 32 87.785614 of5 1 19 2 2 13 1890 2166 59 31 96.520035 thea 1 19 2 3 0 626 2192 1323 68 -1 5 1 19 2 3 1 626 2215 97 33 96.530724 States 1 19 2 3 2 739 2215 40 33 96.173439 of5 1 19 2 3 3 796 2216 83 32 96.883492 News 1 19 2 3 4 898 2192 108 65 96.862427 York,5 1 19 2 3 5 1023 2216 86 33 96.817772 with5 1 19 2 3 6 1124 2217 45 33 96.363983 its5 1 19 2 3 7 1185 2217 92 33 95.672775 offices 1 19 2 3 8 1293 2209 68 41 96.868019 ands 1 19 2 3 9 1378 2217 172 43 96.487717 principles 1 19 2 3 10 1566 2217 95 42 96.913536 places 1 19 2 3 11 1677 2217 40 33 96.923233 of5 1 19 2 3 12 1732 2216 152 35 91.926636 business5 1 19 2 3 13 1900 2217 49 32 91.926636 lo-4 1 19 2 4 0 625 2268 1134 43 -1 5 1 19 2 4 1 625 2268 96 32 96.090416 cated5 1 19 2 4 2 739 2272 37 27 91.719536 at5 1 19 2 4 3 795 2268 62 32 82.587234 7335 1 19 2 4 4 877 2268 232 43 96.199478 Washington5 1 19 2 4 5 1129 2269 109 39 96.391991 Road,5 1 19 2 4 6 1260 2259 215 52 96.479652 Pittsburgh,5 1 19 2 4 7 1497 2268 262 42 96.850601 Pennsylvania.3 1 19 3 0 0 623 2298 1329 420 -1 4 1 19 3 1 0 666 2298 1282 81 -1 5 1 19 3 1 1 666 2307 82 44 70.526375 Par.5 1 19 3 1 2 769 2321 29 30 89.817963 2.5 1 19 3 1 3 814 2298 219 81 73.567062 Respondents 1 19 3 1 4 1060 2319 29 33 97.001579 is5 1 19 3 1 5 1108 2319 160 43 96.774742 engaged5 1 19 3 1 6 1283 2320 36 33 97.003929 in5 1 19 3 1 7 1339 2320 58 32 96.962929 thes 1 19 3 1 8 1415 2320 156 33 96.683968 business5 1 19 3 1 9 1588 2320 39 32 96.691895 of5 1 19 3 1 10 1647 2319 124 43 96.976532 selling5 1 19 3 1 11 1791 2319 68 31 93.256622 ands 1 19 3 1 12 1880 2311 68 39 92.919632 dis-4 1 19 3 2 0 629 2369 1323 44 -1 5 1 19 3 2 1 629 2369 172 42 92.491379 tributing5 1 19 3 2 2 815 2370 196 42 96.814072 magazines5 1 19 3 2 3 1027 2370 70 33 96.327873 ands 1 19 3 2 4 1113 2370 205 42 95.908157 periodicals5 1 19 3 2 5 1333 2375 37 28 96.148537 to5 1 19 3 2 6 1384 2371 59 32 96.934349 thes 1 19 3 2 7 1457 2372 138 41 96.843216 general5 1 19 3 2 8 1611 2370 116 41 96.364006 public5 1 19 3 2 9 1741 2370 151 41 96.670975 through5 1 19 3 2 10 1906 2369 46 32 96.388840 its4 1 19 3 3 0 623 2420 1323 42 -1 5 1 19 3 3 1 623 2421 208 32 96.467438 franchisees5 1 19 3 3 2 854 2421 69 32 93.285240 ands 1 19 3 3 3 946 2421 298 40 92.477257 sub-franchisees,5 1 19 3 3 4 1268 2422 189 33 96.136436 sometimes5 1 19 3 3 5 1480 2421 156 33 96.475304 referred5 1 19 3 3 6 1657 2424 36 29 96.393105 to5 1 19 3 3 7 1718 2432 36 21 96.181862 as5 1 19 3 3 8 1778 2420 168 42 96.181862 Regional4 1 19 3 4 0 623 2470 1326 45 -1 5 1 19 3 4 1 623 2472 188 32 96.510445 Franchises 1 19 3 4 2 821 2472 189 42 93.217178 Operators5 1 19 3 4 3 1027 2472 147 43 92.240700 (RFOs)5 1 19 3 4 4 1192 2473 68 32 96.174858 ands 1 19 3 4 5 1270 2474 104 32 96.702980 Local5 1 19 3 4 6 1385 2472 189 34 96.302155 Franchises 1 19 3 4 7 1584 2472 188 42 93.282471 Operators5 1 19 3 4 8 1789 2470 160 47 82.018173 (LFOs).4 1 19 3 5 0 628 2521 1321 46 -1 5 1 19 3 5 1 628 2521 238 46 96.578339 Subscriptions 1 19 3 5 2 884 2526 170 28 96.562836 contracts5 1 19 3 5 3 1071 2533 57 21 96.420654 ares 1 19 3 5 4 1146 2524 75 30 96.903534 sold5 1 19 3 5 5 1237 2534 45 21 96.846794 on5 1 19 3 5 6 1300 2534 43 21 96.878723 an5 1 19 3 5 7 1360 2523 214 32 96.217735 installments 1 19 3 5 8 1588 2522 91 32 96.940109 basis5 1 19 3 5 9 1703 2521 125 43 95.711227 (PDS)5 1 19 3 5 10 1853 2521 57 32 96.116707 for5 1 19 3 5 11 1927 2515 22 37 88.858421 a4 1 19 3 6 0 627 2571 1321 45 -1 5 1 19 3 6 1 627 2572 95 42 96.308899 large5 1 19 3 6 2 735 2573 143 32 96.880508 numbers 1 19 3 6 3 892 2573 39 32 96.997414 of5 1 19 3 6 4 944 2566 229 48 97.001038 publications5 1 19 3 6 5 1184 2574 153 42 96.927139 through5 1 19 3 6 6 1348 2575 180 40 96.179489 telephones 1 19 3 6 7 1541 2574 68 31 97.002602 ands 1 19 3 6 8 1622 2572 235 33 93.283646 door-to-doors 1 19 3 6 9 1869 2571 79 33 93.146622 soli-4 1 19 3 7 0 628 2599 1321 66 -1 5 1 19 3 7 1 628 2623 166 33 96.545700 citations.5 1 19 3 7 2 816 2624 221 41 93.727631 Respondents 1 19 3 7 3 1057 2624 193 32 95.655869 authorizes5 1 19 3 7 4 1270 2599 59 57 96.962112 thes 1 19 3 7 5 1347 2635 60 22 96.381439 uses 1 19 3 7 6 1426 2625 45 31 96.381439 of5 1 19 3 7 7 1486 2621 82 35 96.352852 four5 1 19 3 7 8 1586 2624 99 32 96.003426 trades 1 19 3 7 9 1704 2634 115 22 96.492477 names5 1 19 3 7 10 1839 2623 110 32 96.402985 under4 1 19 3 8 0 626 2672 1323 46 -1 5 1 19 3 8 1 626 2674 112 33 96.601761 which5 1 19 3 8 2 752 2674 248 42 96.289383 subscriptions5 1 19 3 8 3 1012 2686 64 21 96.625778 cans 1 19 3 8 4 1089 2675 41 43 93.288521 be5 1 19 3 8 5 1144 2674 191 33 92.176422 solicitated5 1 19 3 8 6 1348 2676 70 32 96.208649 ands 1 19 3 8 7 1432 2675 154 32 65.509323 written’:5 1 19 3 8 8 1599 2674 176 33 95.940933 Premiums 1 19 3 8 9 1786 2672 163 35 96.031082 Readers’ 94 FEDERAL ‘TRADE.'COMMISSION DECISIONS Complaint 81 F.T.C.

Service, QM Readers’ Service,. Neighborhood Periodical Club, and Neighborhood Readers’ Service... eg Par. 3, Inthe course and conduct of its business of selling magazines and distributing periodicals, respondent has ‘entered. into: franchise agreements with various individuals:and ‘firms; and through representatives engaged. by or through franchisees and. sub-francisees, have induced members of the general public to subscribe to various publicationss.°.: valle 0 a Pa ee ~ Respondents; ‘through “its ‘said franchisees; sub-franchisees, and means and devices,. control, direct..and implement sales methods -whereby members'of:the-general publicare contacted by telephone calls and door-to-door solicitations, and by means of statements, representations, acts and. practices as’ hereinafter set forth, are induced to sign shoice, a stated subscription period for each, and the terms and conditions for payments: by‘installments:for the purchase price... The executed’ ‘sibscription ‘contracts! are’ thereafter « forwarded through various representatives engaged by or for the franchisees and sub-franchisees to respondent for processing in the usual course of respondents’ business. Respondent accepts the revenues flowing from said circulation, sale and distribution of the various publications offered. In the manner aforesaid, respondent dominates, controls, furnishes the means, instrumentalities, services and facilities for, and condones, approves, and accepts the pecuniary and other benefits flowing from the acts, practices and policies hereinafter set forth of the franchisees, sub-franchisees, and their representatives engaged by or through said franchisees and sub-franchisees, hereinafter referred to as respondent's representatives. - Par. 4. In the course and conduct of its business as aforesaid, respondent through ‘its representatives, solicit subscriptions for magazines in the various States of the United States. Respondent now, and for some time last past, has transmitted and received, and caused to be transmitted and received, during the course of selling subscriptions, contracts, checks, collection notices and various other kinds of commercial paper and documents in commerce. The subscription contracts sold by respondents’ representatives are sent from various states to respondent’s place of business in the State of Pennsylvania and are then forwarded by respondent to various publishers, many of whom are located in states other than the State of Pennsylvania. Respondent thereby maintains, and at all times mentioned herein has maintained, a sub- NEIGHBORHOOD. .PERIODICAL . CLUB, -INC. 95 93. Complaint stantial course of trade in the sale of magazine subscriptions in, commerce, as “commerce” is defined i in the Federal Trade Commission ‘Act. Par. 5. In the course and conduct of its business as aforesaid, and for the purpose of. inducing members of, the general. public to sign subscription..contracts,. respondent, . and its representatives utilize or display sales promotional materials or other means and instrumentalities: furnished,: approved. .or. ratified. by respondent. In conjunction therewith, respondent - and. its representatives have made oral statements and representations. concerning the. terms and conditions. of said subscription contracts, their renewal or cancellation, special offers, the nature and- purpose of: the . solicitation,. and the identity. of the solicitor. In the foregoing manner, Tespondent and. its. represent tives have represented, directly or indirectly : (a). That they are primarily. condyeting, or participating i in 1 bona fide surveys, quizzes or contests.

(b) That. their. offers. are. being made only to specially, selected persons. fuel (c) That. they: cepresent, or are, partonming @ services for ona fide non-commercial organizations.

- Ad) That publications or other: products. will be. given, free, or. for the cost of mailing, handling, editing or printing said publications, or at special or reduced prices.

(e) That subscribers will be allowed to cancel the subscriptions if they should decide to do so.

(f) That a free gift subscription to a publication will be sent to a subscriber’s friend or relative.

Par. 6. In truth and in fact:

(a) Said representatives were not primarily conducting or participating in bona fide surveys, quizzes or contests, but to the contrary, were, and are, engaged in inducing the general public to sign subscription contracts in the manner aforesaid. (b) Respondent’s said offers were not being made only to specially selected persons, but to the contrary, were made to numerous members of the general public through frequent solicitations of broad segments thereof.

(c) Said representatives neither represented nor performed services for bona fide non-commercial organizations, but to the contrary, represented or performed services for respondent in the manner aforesaid. (d) Publications or other products were not given free, nor solely for the cost of mailing, handling, editing or printing of said publications, nor at special or reduced prices. To the contrary, the subscription contracts provided for payment to cover respondent’s regular or prevailing subscription contract prices.

96 FEDERAL ‘TRADE “COMMISSION DECISIONS Gomplaint 81 FTG.

“ (e) On a | substantial number of occasions subscribers were not’ allowed to cancel their subscription contracts or were > only allowed: to ‘do ‘SO. after extended delay: ~~ (£) ‘Gift subscriptions toa person designated by the: subscribers ‘were not given free, but to the contrary, the cost of said gift sub: scriptions ‘were included within the price of the subscription coritrdct. Therefore, the statements and representations as ‘set: forth ‘in Paragraph] Five hereof were, and are, false, misleading and deceptive. 7 Par, 7. In the. further course and conduct of their business, anid 3 in ‘furtherance of their purpose of’ inducing the purchase of and payment for said publications by the general public, respondent and its representatives, directly or ‘indirectly, have engaged in the following additional acts and practices:

(a) Ina substantial number of instances, they have stated approximate costs of a subscription contract, on a’ ‘weekly basis in conjunction with statements of typical subscription periods as, for example, a cost of “50 cents per week” and a period of 60 months. Respondent ard ‘its representatives falsely and ‘deceptively fail to disclose, in connection with such statements, the material fact that their contracts seldom, if ever, provide for weekly installment payments, or for payments spread over 60 months. In truth and in fact, the contracts require monthly installment payments of substantially higher amounts over a substantially shorter period of time than stated during such oral presentations.

(b) In a substantial number of instances the} y have induced customers to sign a subscription contract by falsely and deceptively representing it to be a preference list, a guarantee, a route slip, or a document, of an import or nature other than a subscription contract. (c) In their efforts to collect what respondent and its representatives elect to treat as delinquent accounts of customers who have been induced to sign subscription contracts, they have resorted to telephone calls at unreasonable hours and other forms of harassment, by means of which they have unfairly, falsely and deceptively represented, directly or indirectly:

(1) That the general or public credit rating or standing of any such customer will be adversely affected unless payment is made;

(2) That the failure of a customer to remit money to respondents will result in the institution of legal action to effect payment; and (3) That the failure of a customer to remit money to respondent will result in said customer’s account being turned ov: er to a bona fide, independent collection agency for collection. NEIGHBORHOOD . PERIODICAL CLUB, INC. 9%, 9B Complaint In truth and in fact, respondent and its representatives seldom, if ever, take any action, including legal. action or referral of said “ta accounts to.a bona. fide, independent. collection agency, W which -. adversely. affects, the. general or public. credit tating. of such subscribers.

(d) In a substantial number of instances, respondent has substituted publications for. those. originally contracted for by. subscribers without first giving the subscriber an option to choose the substituted 1 magazine or other publication, OF, to receive a full return th respect, to the. pro rata portion of the contract price representing the price of the undelivered issues of that magazine or other publication. = (e) In a substantial number of instances, respondent and its salesmen and solicitors have induced -persons to sign subscription. contracts without clearly, conspicnously, and. adequately designating and disclosing: . . , (1). the total cash. price, - (2) the, downpayment, .

_ (8). the unpaid | balance of the cash price, * __ (4) the number, amount, and due dates « or r period of paymer ts scheduled to satisfy the payment of the contract. Therefore, respondent’s statements, representations, ‘acti and. practices, and their failure to reveal material facts, as set forth herein were, and are, unfair, false, misleading, and deceptive acts and practices. Par. 8. In addition to the foregoing statements, representations, acts and practices, respondent has engaged in door-to-door solicitations of magazines subscriptions, either without -prior invitations to solicit such sales from prospective purchasers or by using one or more of the deceptive means and methods aforesaid to gain access to— prospective purchasers at times and under circumstances when such prospective purchasers were not otherwise considering the purchase of magazine subscriptions, and without either: (a) Affirmatively stating and affording such purchasers the right to cancel any resulting subscription contract for a period of not less than 72 hours, or (b) By refusing to honor any such right purportedly given either orally or in writing, or thwarting the exercise of any right so given. The solicitation of a subscription sale without permitting cancellation within a reasonable time constitutes an unfair, false, misleading and deceptive practice where such sale involves long term obligations on the part of the subscriber and where it is made under the _ conditions and circumstances herein alleged. Therefore, respondent’s acts and practices as set forth herein were, Gonipiaint 81 FTC.

and are, unfair, false, misleading and deceptive acts and’ practices. ‘Par. 9. By: and through’ ‘the use of the aforesaid acts and ‘practices, respondent places i in the hands of others the méahs and instrumentalities by and through which ‘they may mislead and’ deceive the puvie! in the manner and as sto the ae gee hereinabove bree : se ‘material a has, the capacity and téndency to: mislead members’ of the archasiny public into the erroneous and mistaken belief that said statéments and representations were, and are, true and coitiplete, and into the purchase of substantial quantities of said’ pl ts by reason’ of said erroneous and mistaken ‘belief and ‘unfairly into’ ‘the’ assumption of debts and obliga ons and the’ payment onies | which they, might otherwise not have done. wee Par. 12, The aforesaid’ acts and ‘practices of réspondent, ¢ as herein alleged, were, and are, all to the prejudice and injury of the public and of respondent’s competitors and constituted, and now constitute, unfair methods of competition i in commerce and unfair and deceptive acts and practices in commerce in violation of Section 5 of the Feder al Trade Commission Act.

Deciston AND (Orpen: ~ The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy: of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issuéd by. the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a-consent order, an admission by the respondent 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 respondent and waivers and other provisions as required by the Commission’s rules; and “NEIGHBORHOOD* PERIODICAL CLUB, INC. 99 98 °° Decision':‘and° Order “The Commission’ having thereafter considered the matter and. having determined that it had reason to believé-that the respondent has Violated: the’ said “Act;'and thé ‘complaint: should:issue stating its charges in’ that respect, and having’ thereupon accepted. the. executed consent: agreement and. placed’ such: agreement: on-their:public record fora' period of thirty. (80) days; now in furtherconformity: with the procedure: prescribed i in: Section 2.34(b) ‘of ‘its rules, the.Commission Hereby i igsuiésits complaint, makes ther following: Junisdietional, findings, and eriters thé following-order: 0 220 ads “Ay ‘Respondent: ‘Neighborhood: Periodical Club, Ine. f ASB: corporation organized, ‘existing’ and doing: business ‘under and by virtue of the laws of ‘the State of New York, with its office:and principal place of business “located:’at' Fourth':and “Walnut Streets, Cincinnati,:-Ohio. 2. The Feéderal''Trade Commission ‘has jurisdiction: ofthe: subject matter. of this proceeding and of the. © respondent, and: the proceeding isi in \ the public i interest. emer: ii. iL ti 7s, ss ordered, That. respondent Neigh rhood. Periodical ub, Inc., a 1 corporation, and its officers, representatives, employees, successor or asslgns,, franchisees, sub-franchisees, salesmen, agents or solicitors, and the men, agents or solicitors engaged by. or through repondents’ franchisees or sub-franchisees, directly or through any corporate or other device, in connection. with the advertising, offering for sale, sale or distribution of magazines or any other publications or merchandise, or subscription to purchase any such magazines or services, or in the collection or attempted collection of any delinquent or other subscription contract or other account, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

‘1. Representing, directly or indirectly, that respondents are ‘primarily conducting or. participating in any survey, quiz or contest, or primarily-are engaged in any activity other than soliciting business; or misrepresenting, in any manner, the purpose of the call or solicitation.

2. Representing, directly or indirectly, that any offer to sell said products or services is being made only to specially selected persons; or misrepresenting, in any manner, the persons or class of _ persons afforded the opportumity of purchasing respondents’ products or services.

3. Representing that any sale or service is being performed for any organization, individual or firm other than one engaged in soliciting magazine subscriptions; or misrepresenting, in any FEDERAL TRADE: COMMISSION: DECISIONS Decision and Order 81 F.T.C.

~ manner, the identity:of the solicitor or of his firm and. of.the business they are engaged in. ' low A, Representing, directly or: indirectly, that any merchandise 0 or -“-gervice is free, or is provided as a gift-to either the subscriber. or ‘a person designated by him, or-without. cost or that.any merchandise or servicecan be obtained free or as a: gift. or without.cost -or charge, in. connection with the purchase. of, or. agreement, to “purchase any’ merchandise, or combination of merchandise. or service, unless the stated price of: the merchandise or service or combination thereof required tobe purchased in order. to obtain such free merchandise or gift'isthe same or less than the. custom. “ary andusual: price ‘at which such “merchandise or.service or combination thereof required :to be purchased has been sold. separately from such free or gift-item, for a substantial period of time in the recent and regular course of business in the trade area. in which the represéntation is made. Bese 5. Representing that any: price is a special or reduced price unless it constitutes a significant reduction from respondents established sélling price at which such product or service has been ‘sold in substantial quantities in the recent and regular course of ' trade; or misrepresenting, in any manner, the’savings which ‘will be accorded or made available to purchasers, or that any price for any product or service covers only the cost of mailing, handling, editing, printing, or any other element of cost, or is at or below cost.

6. Refusing or failing upon request to cancel a contract when the representation has been made, either directly or indirectly, that the contract will be cancellable.

7. Failing, clearly and unqualifiedly, to reveal at the initial contact or solicitation, and at all subsequent contacts or solicitations, of purchasers or prospective purchasers, whether directly or indirectly, or by telephone, written or printed communication, or person-to-person, that the purpose of such contact or solicitation is to sell publications, products or services, as the case may be, which purpose shall be identified with particularity at the time of each such contact or solicitation. 8. Making any reference or statement concerning “50¢ per week,” “60 months,” or any other statement as to a sum of money or duration or period of time in connection with a subscription contract or other purchase agreement which does not in fact provide, at the option of the purchaser, for the payment of the stated sum, at the stated interval, and over the stated duration or period 93-5 ‘NEIGHBORHOOD ‘PERIODICAL: ‘CLUB, .INC. Tol Decision and Order ‘of time; or misrepresenting, inany manner, the terms, conditions, method, rate or time of payment actually 1 imisde available to purchasers or prospective purchasers.

9. Représenting, directly or: indirectly, that a subscription contract or other purchase agreement. isa “preference list,” “guarantee” “route slip” or any kind of document:other than a contract or agreement; or misrepresenting, in any manner, the nature, kind or legal characteristics of any document.. 10. Failing, clearly and unqualifiedly,. to reveal orally to each : purchaser or prospective purchaser before execution,'and in writing on each document, the identity and nature of any document, such as a “contract” they are requested or required to execute in -connection .with the purchase: of any ‘product ‘or service; and orally: that: the terms of any such document: ‘are: binding on the ‘parties to the: document. - ‘11. Harassing customers in order. to effect: payment of any account by any means, including the following: (a) Repeated telephone calls. within the same day or week, abusive telephone calls, or telephone calls at ‘uireasonable hours. “ re . -(b) The use’ of forms or any other items: ‘of printed or - written matter purporting to be legal documents or process. (c) Representations, direct or indirect, that in the event of ‘non-payment or delinquency of any account or alleged debt - arising from any subscription contract or other purchase agreement, the general or public credit rating or standing of “any person may be adversely affected, unless respondents refer the information concerning such delinquency to a bona fide . credit reporting agency.

(d) Representing that legal action may be instituted unless -it is intended in good faith that such legal action be instituted ; or misrepresenting in any manner the action to be taken or ‘results of any action which may be taken to effect payment of any such account or alleged debt..

12. Contracting for any sale in the form of a subscription contract or other purchase agreement. which shall become binding on _ the: purchaser prior to a period of time not less than 72, hours after the date of signing by the purchaser. 13. Failing to disclose orally prior to the time of sale, and in writing on any subscription contract or other agreement with - such: conspieousness and clarity as will be likely to be observed and read by such purchaser, that the purchaser may rescind or 102 FEDERAL TRADE ::COMMISSION - DECISIONS Devision:and. Order: 81. F.T.C, -neeancel the sale by. directing or mailing a notice of. cancellation to em ‘respondent’s or-seller’s: address ‘prior | to: Ta hours -after. the:.date of signing by the purchaser. ... Leys 7 uh 1, 14. Failing to: provide; either. on, the « contract: ¢ or. on. a a separate Day sheet a, -clearly.understandable:: form which the purchaser: may so» use.as anoticedf.cancellation: 11! fe) 15. Ef coupon: cbooks are ‘used;

pon book furnished to,a subseribert:; !s: <5»: ii (a) a. legend, .onthe cover, stating: feheck the number of -’ eoupons'in-this book! and,their amounts against your. original 2. Subseription-contract :.(See- Pagely?. eh - (b),« statement,:on, the. first separate: inside page,. showing vs +. the.total number of:coupons in the book, the dollar.amount of yoy. seach’ coupon. and thetotal: dollar: amount of‘all;such coupons; (c) the address, on the cover or first.separate:inside:page, of itn ‘te ¥respondent,its successors, assigns er seller.of the products. 16. Failing to furnish to each subscriber.at: the time: of -his:sign- ».-ing ofsthe, subscription contract -a. duplicate: original of the coni tract, showing ‘the exact number-and name: of the magazines or other publications to which the purchaser is subscribing; the number! of issues foreach, and. the totalprice-for each magazine sub- - scription and for all such magazines; Provided, however, as an alternative, the total.price for each magazine subscription may be furnished.on a-separate schedule attached to each:of said contracts. 17. Cancelling a subscription contract for any reason other than a breach by the- subscriber without either arranging for the deinclude with each coumoney on a pr orate basis for. all undelivered i issues of publications for which payment has been made in advance.’ 18.. In the event.of the discontinuance of publication, or other -unavailability,.of any magazines-subscribed for, at any time during. the life of .the:-contract, failing to offer the subscriber the right to substitute one or: more magazines or other publications, or the extension of subscription periods of magazines | already . selected.

_., 19. Failing ‘or refusing to. cancel, at the subscriber’ 8 request all _orany portion ofa subscription contract whenever respondent in good faith finds that: any. misrepresentation: prohibited by this order hasbeen made.- 65 00), , 20. Failing to clearly,, conspicuously, and adequately designate and disclose both orally, and in writing on the subscription con- 93. ae Decision. and Order _ tract on the same side of the page: and above or adjacent to the , Place 1 for the customer’s signature:

(a) the total cash price, | (b). the ‘downpayment, - 7 pe . (¢) the unpaid balance of the cash price,, ee . (d) the amount financed, if: ee (e). the rate of the finance charge, if any, expr essed as the annual percentage } r and a (f)., the number, amount, ‘anc |. due ‘dates. or ‘period of pay- - ments ‘scheduled to satisfy. the ‘payment of see contract. _ be misled or deceived i in t prohibited by. this order, ;

_pdtis. further ordered:

; of ‘this order, or the. contents of this order,, ( a.) “That. gespondent ‘herein deliver, 0 or r have delivered, a “copy to each. of its. present and future dealers or franchisees. ‘licensees, mployees, salesmen, agents, solicitors, independent contractors, or other representatives who sell, promote or distribute-the products or services included in this order. :

(b) That respondent herein deliver or have delivered to each person so described in Paragraph (a) above a form clearly stating such person’s intention to be bound by and to conform his business practices to the requirements of this order, a copy of which shall be forwarded to the respondent.

(c) That respondent inform or have informed all such present and future dealers or franchisees, licensees, employees, salesmen, agents, solicitors, independent contractors, or other representatives who sell, promote or distribute the products or services included in this order that the respondent. shall not use any third party, or the _services of any third party for the solicitation of magazine sub- - scriptions unless such third party agrees that-it will be bound by the provisions: contained in this order and the respondent is so informed.

(d) If such third party will not so agree the. respondent shall . not use such third party or the services of such third party to solicit subscriptions. _ (e) That respondent so inform or have infor med the ‘persons § so engaged that the respondent is obligated by this order to discontinue dealing with. those persons who continue on their own the deceptive acts or practices prohibited by this order. Decision and Order 81 F.C.

~’ (£) That respondent institute a program of continuing surveillance to reveal whether the business operations of each of said persons so engaged conform to the requirements of this order; and (g) That respondent upon receiving information or knowledge from any source concerning two or more bona fide complaints prohibited by this order’ against any franchisee, his employees or agents during any one-month. period will be responsible for either ending said practices or securing the termination of the franchisee or the employment of the offending employee or agent. Lt is further. ordered, That. respondent herein shall notify the Commission it least 30 days prior to any, proposed change i in the corporate respondent such | as disssolution, assignment or sale resulting in the emergence of a successor corporation, the création or dissolution which may affect compliance obligations arising out of the order. It is further ordered, That respondent herein shall, within sixty (60) days after § service upon it of this order, file with the Commission a report: in. writing setting forth the. manner ‘and form i in which it has complied, with this order.