Battle Creek Development Co

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

In THe Marrar oF :

_BATTLE: ‘ORERK DEVELOPMENT 00, ET AL.

_ CONSENT: “ORDER, ETC., In, REGARD TO: THE ALLEGED VIOLATION , OF THE FEDERAL TRADE COMMISSION. .ACT - Docket C-2267. Complaint, Aug: ‘8, 1972—Decision, Aug. 3, 1972. Consent order requiring a St: Paul, Minnesota, ‘company ‘of operating a number . of: retail jewelry. stores to:cease, amoiig other thitigs, using the words “Sale”. . or. ¢ 2 Surplus Stock Sale’? unless. the price. of such ‘merchandise being: ; - offered for Sale. constitutes a significant. reduction -in price; misrepresenting , the usual. or regular selling price of respondent's merchandise; misrepre- . ‘senting the amount of savings available to purchasers; “representing: re- . spondént’s’ “credit terms ‘are lenient and’ ‘that credit is available regardless : of ability ‘to: pay ‘or: legal ‘age status; representing that products contain ‘or are made or composed, in whole or in part, of a gold quantity, weight, or fineness not actually used or contained therein; and representing that any article of merchandise is guaranteed, without disclosing the nature, condi-. tions and extent of said guarantee.

_ 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 Battle Creek Development Co., a corporation, and Cortland J. Silver and James B. Seaton, 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: Paracrarn 1. Battle Creek Development Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State.of Minnesota, with its principal office and. place of business located. at 748 South Mississippi Boulevard, St. Paul, Minnesota. Respondents Cortland J. Silver and James B. Seaton are officers of said corporation. Respondent Cortland J. Silver now and for some time last past controls and respondent James B. Seaton for some time BATTLE: CREEK’ DEVELOPMENT: CO.; ET AL, 247 246-0 oe Complaint _ last past has formulated and directed: the policies, acts and practices of the corporate respondent, including the acts and practices set forth herein. They have a business address ‘the same as that of the corporate respondent.

Par. 2. Respondent Battle Greek Development Co. is now and for some time last past has been, engaged in the advertising, offering for sale, ' ‘sale, and distribution ‘of a variety of merchandise, including watches, jewelry, diamonds, radios, clocks, tape recorders, dinnerware, tableware, and other merchandise to the ‘public: Said respondent con- | ducts said business through: retail jewelry stores located in St. Paul, Minnesota, Fort Collins, Colorado and St. Joseph, Missouri and ‘pre! viously. conducted ‘said: business through retail jewelry stores located in Rochester, Minnesota, Green Bay, Wisconsin, and Waukegan and Jacksonville, Tlinois.

Par. 3. In the course and conduct. of its business as aforesaid, - re- | spondents ship, and cause to be shipped, watches, jewelry, diamonds and other merchandise to said retail jewelry outlets for sale to the purchasing public. Similarly, advertising and promotional material is prepared, or caused to be prepared, by respondents in St. Paul, Minnesota, and transmitted to and used by said retail jewelry outlets:and published in newspapers having an interstate circulation. Respondents further engage in business, in commerce, consisting of the transmission and receipt of letters, invoices, reports, contracts and other documents of a commercial nature between headquarters and their. retail jewelry outlets in the various states, and maintains, and at all times mentioned herein has maintained, a substantial course of trade in said merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 4. In the course and conduct of their business as aforesaid, and for the purpose of inducing the purchase of their merchandise, the respondents have made, and are now making, numerous statements and representations in advertisements inserted in newspapers of general interstate circulation. Typical and illustrative of the foregoing but not all inclusive thereof, are the following: All Merchandise Sold With a Money Back Guarantee Unconditional 30 Day Money-Back Guarantee Diamonds Guaranteed against. Loss of Value’ or Loss from Settings for Life Lifetime Guarantee on all Diamond Rings Par. 5. By and through the use of the above-quoted statements and representations, and. other of similar import and meaning but not expressly set out herein, the respondents have represented, and are now representing, directly or by implication, that their product guarantee is unconditional.

248. - —- FEDERAL TRADE, COMMISSION: DECISIONS Complaint. 81. FTC, Par. 6. In truth and in fact, respondents’ product guarantees are not. unconditional, but are subject to limitations and conditions which. ~ are not revealed in the advertising of said guarantees. Therefore, the statements and representations. as set. forth in Paragraphs Four and Five. hereof, were. and 2 are © false, misleading. and deceptive.

. Par. 7. In the course and conduct of their aforesaid business and for the purpose of inducing others. to: purchase its watches, jewelry, diamonds, and other merchandise, respondents have made, and are now: making, directly or by. implication, numerous. statements and representations on tickets, tags and labels and in advertisements in newspapers and on radio and, television and by the use of other ‘promo- _ tional material, with respect: to the price,. savings, and guarantee of: said merchandise.

Typical and illustrative of said statements and. representations, but not all inclusive thereof, are the following: ‘Cortland’s 9 ‘Store’ Surplus Stock Sale—Price Busters’ - ‘Watches _ ., Men's: So, . Now .

Elgin—Y.G., Auto. Day/Date (Reg. 89.25) -. ! _ 48. 88 Elgin—S8S, Waterproof (Reg. 42.50) ___- Meee 26. 88 Elgin—W. G., Automatic (Reg. 79.95) 39. 88 Hamilton—Y.G., Automatic (Reg. 119.95) —— 69. 88 Hamilton—yY.G., Calendar (Reg. 79.95) _- 389. 88 Hamilton—W.G., Automatic, Calendar (Reg. 99.50) ~---.----------- 59. 88 Ladies’:

Hamilton—Y.G., 6 Diamonds (Reg. 175.00) ~----------------------- 91. 88 Hamilton—W.G., Dress (Reg. 100.00) _ --- 49. 88 Hamilton—YG., Dress (Reg. 79.95) ------ 39. 88 Benrus—yY.G., Patriot (Reg. 59.95) --- 23.95 Hlgin—Y.G., 6 Diamonds, 19 Jewel (Reg. 149.50) ------------------- 58. 88 Hgin—yY.G., Dress (Reg. 67.50) 81. 88 Elgin—Y.G., Sport Dress (Reg. 29.88) ---- 17. 88 CASH SPECIAL . Now 17 Jewel SWISS MOVEMENT WATCHES (Reg. 39.95) ----------------- 12. 88 17 Jewel SWISS MOVEMENT WATCHES (Reg. 49.95) ----------------- 22. 88 * * * * * * * Pierced Earrings Reg. $9.00 -Now $6.00 Reg. $6.00_ . -Now 4.00 Reg. $3.00 Now 2.00 Entire Stock % off * * * * * * * BATTLE! CREEK “DEVELOPMENT CO.;ET AL. 249° 246) Complaint oo Sa Does “Now Ladies Pearl Rings Reg. 29,95--~-_-~--. : _-Now. $11.88' Birthstone Rings. Many to choose from. Value to $29.95. Your choice only_- $8.99. Man’s Diamond—Onyx Initial Ring. Yellow Gold. Reg. $47.50____---- Now $22.88 * * * % Eg Ey * Ironstone Dinnerware, Complete Service for 8. Regular $39.95.----- Now $21.88 2 patterns to choose from * * ok * * ® * Grab Bags: $1.00 ‘Included are Diamond Rings, Watches, Jewelry for Ladies or Men : Values to $125.00 China and Orystal. Complete Service for 8. Included are: China 53 pieces, crystal 24 pieces. ‘Regular $69,95..-----.----.-- Now $48.88 . RADIO. — AM/FM/SW,. Battery or Blectric. Reg. $49.95. ace ae Now: $24.88 ° All Cortland Watches. 5-Year. Guarantee. Buy now_--: ui 25% . Off : * * * i * fr Se Buys of a Lifetime. Loose Diamonds:

% ct (Reg.:$200.00) ----- ++ -L_-----------------+---------------- “$120 % et (Reg. $345.00) -~ 239 34 et (Reg. $685.00) 459 * * * * * * cy Birthstone Rings. Entire Stock. Ladies and Men’s eek 25% Off * * * % * % * , Sheffield Reproduction Silver Sale. . Save up to 50% * * * * % * * Famous Brand Cigarette Lightergs____._-___---------~-------- Save 30% * * * * a Bo * Save on Silver Plated Holloware. .. 82% Discount C. J. Silver Jewelers Blasts Prices On Diamonds—Jewelry—Gifts Right Before Christmas___.-._..---------~-~----------- Save 20% to 338% Everything Included—Nothing Held Back ¥* * * * a * * All the Credit You Need * * * * * * _o% Easy Credit Terms * * # * * * * Instant Credit—Even if you are under 21 * * * * * * * Your Credit is Good— * * * Even if you are under 21 % * * * : * * 494-841—73—_17 250: FEDERAL TRADE COMMISSION. DECISIONS Complaint 81 FVL.C.

Par. 8. By and through the use of the above-quoted statements and representations, and others of similar import and meaning not expressly set out herein, respondents have represented, and are now representing, directly or by implication, that: 1. The higher prices, accompanied by the words “Regular, » “Reg.” or words of similar import or meaning, were the prices at which the advertised merchandise was offered for sale or sold by the respondents in good faith for a reasonably substantial period of time in the recent, regular course of their business. Purchasers of such merchandise would save an amount equal to the difference between respondents’ higher selling prices and the corresponding advertised lower selling prices. 2. During the period of the advertised “Sale” or “Surplus Stock Sale,” or words of similar import and meaning, the advertised. price of any merchandise represents a reduction from the price at which respondents have made a bona fide offer to sell or have sold said -merchandise on a regular basis for a reasonably substantial period of time | in the recent, regular course of their business. 3. The terms “Save 20%,” “Save 25%,” “Save 20% to 38%,” “14 off” and other savings claims of similar import expressed in percentages or fractions set out in said advertisements offer a reduction in price by the stated savings from respondents’ watches, rings and diamond—jewelry—gifts. .

4. The terms “All the Credit You Need,” “Easy Credit Terms,” “Instant Credit—Even if you are under 21,” “Your Credit is good * * * Even if you are under 21” and other words of similar import used in said advertisements offering to extend easy credit to all customers responding to the advertisements without determining the customers’ financial ability to pay, or their credit rating or legal age status. 5. Watches, rings and o(aer merchandise offered for sale in said advertisements are made in whole or in part of gold or of an alloy of gold.

6. Pearl rings offered for sale in said advertisements are made with natural or genuine pearls.

7. Birthstone rings offered for sale in said advertisements are made with natural or genuine precious or semi-precious stones. 8, Watches offered for sale in said advertisements are waterproof in every respect, without qualification or limitation. ~. Par. 9. In truth and in fact:

1. The higher prices, accompanied by the words “Regular,” “Reg.,” or words of similar import and meaning, were not the prices that advertised merchandise was offered for sale or sold by respondents in good faith for a reasonably substantial period of time in the recent, BATTLE CREEK DEVELOPMENT .CO., ET AL. 251° 246 ~ Complaint regular course of their business, and purchasers thereof would not save amounts equal to the difference between respondents’ higher selling prices and the corresponding advertised lower selling prices. 2. During the period of the advertised “Sale” or “Surplus Stock Sale,” or words of similar import and meaning, the advertised price of any merchandise did not represent a reduction from the price at which respondents have made a bona fide offer to sell or have sold. said merchandise on a regular basis for a reasonably substantial period of time in the recent, regular course of their business. 3. All of respondents’ watches, rings and diamonds—jewelry—gifts in the stores covered by said advertisements were not reduced by the stated savings of “20%” and “25%” and “20% to 33%” and “Ve off” from respondents’ regular prices. , . en _ 4, Contrary to respondents’ representations not all customers of all . ages responding to said advertisements are able to purchase advertised merchandise on credit. ;

5. Watches, rings and other merchandise offered for sale in said advertisements and described as containing yellow gold or abbreviation YG or WG are not composed throughout of fine (24 karat) gold. Karat fineness of alloy is not adequately and conspicuously disclosed. 6. The pearls used in rings offered for sale in said advertisements are not natural or genuine pearls but are either cultured pearls or imitation pearls.

7. The birthstones used in rings offered for sale in said advertisements are not all natural or genuine stones but are imitation or synthetic precious or semi-precious stones.

8. Watches offered for sale in said advertisements ‘are not waterproof in every respect without qualification or limitation. Therefore, the statements and representations as set forth in Paragraphs Seven and Eight hereof were and are false, misleading and deceptive.

Par. 10. In the course and con at all times mentioned herein, respondents competition, in commerce, with corporations, firms and individuals engaged in the sale of merchandise of the same general kind and nature as the aforesaid merchandise sold by the respondents. Par. 11. The use by respondents of the aforesaid false, misleading and deceptive statements, representations, acts 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’ merchandise by reason of said erroneous and mistaken belief.

duct of their aforesaid business and have been in substantial 252: . .FEDERAL-TRADECOMMISSION DECISIONS”: i Complaint: 81 F.T:C, » Par. 12. The acts:and. practices of the respondents. as. set forth above were,-and are, all to the prejudice and injury: of the public .and. of. respondents’ competitors, and. constitute, 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.

- Dxcision AND Orper -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 Chicago Regional Office 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,. @ 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 requir ed by the Commission’s rules; and The Commission having thereafter given careful consideration to the executed consent agreement and having determined that the relief provided by the order contained therein is adequate and appropriate in all respects to dispose of this matter, ‘and having thereupon provisionally accepted the executed consent agreement and placed such’ agreement on the public record for a period of thirty (30) days, and having duly considered the comments filed thereafter pursuant to Section 2.34(b) of its rules, and having determined on the basis of such comments that Paragraph 11 of the provisionally accepted consent order should be modified, and respondents having agreed to such modification, now in further conformity with the procedure prescribed in Section 2.24(b) of its rules, the Commission hereby makes the following jurisdictional findings and enters the following order : 1. Respondent Battle Creek Development Co., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Minnesota, with its office and principal place of business located at 748 South Mississippi Boulevard, St. Paul, Minnesota. Respondent Cortland J. Silver and James B. Seaton are officers of said corporation. They formulate, direct and control the ° policies, acts BATTLE CREEK DEVELOPMENT: CO., ET AL. | 253 246 Decision and. Order and practices of said corporation, and their principal office and place of business is located at the above-stated address. , 2. The Federal Trade Commission has jurisdiction of the subj ect matter of this proceeding and of the respondents, and the proceeding is inthe public interest.

ORDER Zé is ordered, That respondents Battle Creek Development Co., acorporation, its successors and assigns, and its officers, ‘and. Cortland J. Silver and James B. Seaton, individually and as officers of said vorpavution, and respondents’ officers, agents, representatives and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, or oral sales presentation offering for sale, sale, or distribution of watches, jewelry, diamonds, radios, clocks, tape. recorders, dinnerware, tableware, or other articles of merchandise, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from : . 1. Using the words «Sale, » or “* * * Surplus Stock Sale” or any other word or words of similar import or meaning unless the price of such merchandise being offered for sale. constitutes a reduction, in an amount not.so insignificant as to be meaningless, from the actual bona fide price at which such merchandise was sold or offered for sale to the public on a regular basis by respondents for a reasonably substantial period of time in the recent, regular course of their business.

9. Using the words “Sale,” or “* * * Surplus Stock Sale,” or any other word or words of similar import or meaning, in advertising or other promotional material containing non- -sale items, without clearly and conspicuously revealing in immediate con- . junction with said representations which items are sale items. 3. Using the words “Was,” “Regular,” “Reg.,” or any other words of similar import or meaning to refer to any price amount which is in excess of the price at which such merchandise has been sold or offered for sale in good faith by respondents for a reasonably substantial period of time in the recent, regular course of their business, or misrepresenting, in any manner, the usual or regular selling price of respondents’ merchandise. 4. Using the term “Save 20%,” “Save 25%,” “From 20% to 82% off” or “14 off,” or any other word or words stating or implying reductions in price unless such reductions apply to each article of the particular class of merchandise represented to be offered for sale at the advertised reductions.

5. (a) Representing, in any manner, that by purchasing any of said merchandise, customers are afforded savings amount- FEDERAL ‘TRADE . COMMISSION. DECISIONS ‘Decision and: Order 81 F.T.C.

ing to the difference. between respondents’ stated price and respondents’ former price unless such merchandise has been ‘sold or offered for sale.in good faith at the former price by respondents for a reasonably substantial period of time in the recent, regular course of their business. . (b) Representing, in any manner, that by purchasing any of said merchandise, customers are afforded savings amounting 5 1 3 4 1 2 933 963 36 29 78.840225 to5 1 3 4 1 3 980 960 58 32 78.840225 thes 1 3 4 1 4 1051 959 183 34 96.938469 differences 1 3 4 1 5 1245 950 151 43 96.799652 between5 1 3 4 1 6 1408 954 234 64 96.408783 respondents’5 1 3 4 1 7 1647 957 120 33 91.696861 ‘stated5 1 3 4 1 8 1780 957 93 43 92.911842 prices 1 3 4 1 9 1887 956 103 33 44.263725 anda5 1 3 4 1 10 2003 959 90 29 92.561790 com-3 1 3 5 0 0 934 1006 1159 46 -1 4 1 3 5 1 0 934 1006 1159 46 -1 5 1 3 5 1 1 934 1010 106 48 96.091301 pared5 1 3 5 1 2 1057 1010 94 42 96.726089 prices 1 3 5 1 3 1170 1011 57 32 96.652802 for5 1 3 5 1 4 1244 1010 75 33 96.764305 said5 1 3 5 1 5 1336 1008 262 34 96.876740 merchandise5 1 3 5 1 6 1589 1019 39 21 97.002594 in5 1 3 5 1 7 1645 1007 237 42 95.797287 respondents’5 1 3 5 1 8 1897 1006 98 32 96.152641 trades 1 3 5 1 9 2014 1016 79 22 96.758308 area3 1 3 6 0 0 932 1056 1162 44 -1 4 1 3 6 1 0 932 1056 1162 44 -1 5 1 3 6 1 1 932 1056 113 37 96.634666 unless5 1 3 6 1 2 1060 1072 21 20 96.340454 a5 1 3 6 1 3 1096 1061 207 32 96.340454 substantial5 1 3 6 1 4 1318 1054 143 38 96.374008 numbers 1 3 6 1 5 1477 1060 40 32 96.464470 of5 1 3 6 1 6 1531 1058 175 42 96.995850 principals 1 3 6 1 7 1721 1057 101 33 96.947723 retails 1 3 6 1 8 1840 1057 149 32 96.522194 outlets5 1 3 6 1 9 1982 1068 36 21 96.395668 in5 1 3 6 1 10 2034 1056 60 32 96.967789 thee 1 3 7 0 0 931 1107 1163 96 -1 4 1 3 7 1 0 931 1107 1163 46 -1 5 1 3 7 1 1 931 1112 100 44 96.125008 trades 1 3 7 1 2 1049 1114 79 29 96.727150 areas 1 3 7 1 3 1147 1111 175 42 96.034645 regularly5 1 3 7 1 4 1343 1111 62 46 96.303543 sells 1 3 7 1 5 1422 1109 79 49 96.605484 said5 1 3 7 1 6 1519 1107 236 35 96.376816 merchandise5 1 3 7 1 7 1776 1112 38 28 96.803848 at5 1 3 7 1 8 1831 1108 59 50 96.757828 thes 1 3 7 1 9 1911 1107 183 42 96.691711 compared4 1 3 7 2 0 933 1156 518 65 -1 5 1 3 7 2 1 933 1161 94 42 96.635002 prices 1 3 7 2 2 1036 1167 40 27 96.973824 or5 1 3 7 2 3 1085 1172 92 22 96.566689 some5 1 3 7 2 4 1185 1160 125 45 96.811646 higher5 1 3 7 2 5 1319 1156 103 65 96.944992 price.3 1 3 8 0 0 934 1189 1162 215 -1 4 1 3 8 1 0 983 1189 1111 76 -1 5 1 3 8 1 1 983 1212 51 42 91.568970 (c)5 1 3 8 1 2 1049 1199 261 64 96.584435 Representing,5 1 3 8 1 3 1321 1211 37 32 95.462769 in5 1 3 8 1 4 1369 1222 68 31 95.462769 any5 1 3 8 1 5 1447 1220 153 31 94.872040 manner,5 1 3 8 1 6 1609 1189 79 66 96.085396 that5 1 3 8 1 7 1699 1210 45 41 96.732788 by5 1 3 8 1 8 1754 1208 212 57 96.353943 purchasing5 1 3 8 1 9 1975 1210 67 38 96.924362 any5 1 3 8 1 10 2053 1206 41 33 95.941841 of4 1 3 8 2 0 934 1233 1162 81 -1 5 1 3 8 2 1 932 1255 78 40 96.740204 said5 1 3 8 2 2 1022 1256 237 38 96.647629 merchandise5 1 3 8 2 3 1279 1233 201 80 96.585831 (customers5 1 3 8 2 4 1495 1261 58 31 96.539307 ares 1 3 8 2 5 1567 1259 157 33 79.282112 afforded5 1 3 8 2 6 1737 1259 140 55 96.853622 savings5 1 3 8 2 7 1891 1251 205 63 96.303314 amounting4 1 3 8 3 0 934 1307 1159 46 -1 5 1 3 8 3 1 934 1316 47 28 58.785709 to5 1 3 8 3 2 985 1313 59 31 58.785709 thes 1 3 8 3 3 1053 1304 197 41 96.622353 differences 1 3 8 3 4 1259 1307 151 42 96.311859 between5 1 3 8 3 5 1426 1311 235 42 96.588539 respondents’5 1 3 8 3 6 1675 1310 115 32 96.096016 stated5 1 3 8 3 7 1808 1309 93 43 96.735428 prices 1 3 8 3 8 1920 1307 68 34 93.274796 ands 1 3 8 3 9 2005 1308 88 33 92.110542 com-4 1 3 8 4 0 934 1355 1160 49 -1 5 1 3 8 4 1 934 1362 108 42 96.893311 pared5 1 3 8 4 2 1051 1362 100 33 96.796753 values 1 3 8 4 3 1161 1363 94 41 96.796753 prices 1 3 8 4 4 1266 1355 57 40 96.662773 for5 1 3 8 4 5 1331 1358 219 46 96.712723 comparable5 1 3 8 4 6 1559 1359 246 41 96.801125 merchandise,5 1 3 8 4 7 1815 1360 113 32 93.293922 unless5 1 3 8 4 8 1940 1359 154 32 92.018524 substan-3 1 3 9 0 0 894 1408 1202 147 -1 4 1 3 9 1 0 909 1408 1187 50 -1 5 1 3 9 1 1 933 1413 65 32 96.674011 tials 1 3 9 1 2 1013 1413 87 33 96.904030 sales5 1 3 9 1 3 1114 1413 40 33 96.970772 of5 1 3 9 1 4 1165 1411 238 47 96.812637 merchandise5 1 3 9 1 5 1419 1412 39 36 97.002808 of5 1 3 9 1 6 1472 1412 71 32 96.914963 likes 1 3 9 1 7 1562 1411 102 42 96.574722 grades 1 3 9 1 8 1683 1411 59 32 96.561050 ands 1 3 9 1 9 1767 1409 134 42 96.472702 quality5 1 3 9 1 10 1918 1420 58 21 96.962463 ares 1 3 9 1 11 1990 1408 106 42 96.725555 being4 1 3 9 2 0 934 1458 1159 45 -1 5 1 3 9 2 1 934 1463 100 32 94.653725 made5 1 3 9 2 2 1043 1463 30 32 94.653725 in5 1 3 9 2 3 1084 1463 65 32 96.274841 thes 1 3 9 2 4 1157 1463 101 32 96.631630 trades 1 3 9 2 5 1270 1473 78 22 96.966187 areas 1 3 9 2 6 1359 1466 38 28 96.211563 at5 1 3 9 2 7 1403 1463 60 31 96.211563 thes 1 3 9 2 8 1474 1461 183 42 96.384430 compared5 1 3 9 2 9 1668 1460 94 43 96.581451 prices 1 3 9 2 10 1773 1472 40 21 96.439529 or5 1 3 9 2 11 1824 1472 20 20 96.439529 a5 1 3 9 2 12 1853 1459 126 42 96.644791 higher5 1 3 9 2 13 1990 1458 103 43 96.826897 price.4 1 3 9 3 0 894 1507 1200 48 -1 5 1 3 9 3 1 894 1515 27 30 93.305740 6.5 1 3 9 3 2 934 1507 318 52 20.750191 Misrepresenting,5 1 3 9 3 3 1264 1513 37 32 96.663887 in5 1 3 9 3 4 1313 1519 69 40 96.757652 any5 1 3 9 3 5 1393 1523 153 34 96.746849 manner,5 1 3 9 3 6 1558 1512 58 32 96.971382 thes 1 3 9 3 7 1630 1514 141 28 96.828346 amounts 1 3 9 3 8 1783 1511 41 31 96.894737 of5 1 3 9 3 9 1836 1510 139 41 92.412300 savings5 1 3 9 3 10 1988 1509 106 32 92.412300 avail-2 1 4 0 0 0 836 1558 1258 64 -1 3 1 4 1 0 0 836 1558 1258 64 -1 4 1 4 1 1 0 836 1558 1258 64 -1 5 1 4 1 1 1 836 1563 91 44 62.263355 able5 1 4 1 1 2 939 1563 40 32 96.534683 to5 1 4 1 1 3 988 1560 203 50 96.534683 purchasers5 1 4 1 1 4 1205 1575 40 20 96.744865 or5 1 4 1 1 5 1258 1562 214 60 96.987961 prospective5 1 4 1 1 6 1487 1558 204 63 96.790298 purchasers5 1 4 1 1 7 1705 1561 43 32 96.351166 of5 1 4 1 1 8 1756 1560 238 43 93.290230 respondents’5 1 4 1 1 9 2007 1571 87 21 91.935898 mer-2 1 5 0 0 0 851 1613 1280 851 -1 3 1 5 1 0 0 852 1613 327 34 -1 4 1 5 1 1 0 852 1613 327 34 -1 5 1 5 1 1 1 852 1605 161 41 92.032700 chandise5 1 5 1 1 2 1024 1617 35 29 95.292076 at5 1 5 1 1 3 1069 1608 110 39 94.772911 retail.3 1 5 2 0 0 851 1661 1280 196 -1 4 1 5 2 1 0 892 1661 1203 45 -1 5 1 5 2 1 1 892 1663 28 33 95.176453 7.5 1 5 2 1 2 941 1665 261 41 95.865799 Representing,5 1 5 2 1 3 1224 1664 144 41 96.673256 directly5 1 5 2 1 4 1390 1675 39 21 96.835663 or5 1 5 2 1 5 1448 1663 45 42 96.864037 by5 1 5 2 1 6 1515 1662 227 42 96.576797 implication,5 1 5 2 1 7 1762 1662 78 31 95.053757 that5 1 5 2 1 8 1860 1661 235 41 95.053757 respondents’4 1 5 2 2 0 851 1710 1245 45 -1 5 1 5 2 2 1 851 1713 108 33 96.466881 credits 1 5 2 2 2 978 1718 104 28 95.784897 terms5 1 5 2 2 3 1102 1725 58 21 95.784897 ares 1 5 2 2 4 1178 1713 128 33 72.529839 lenient5 1 5 2 2 5 1327 1715 69 31 96.102425 ands 1 5 2 2 6 1415 1713 237 42 96.446892 representing5 1 5 2 2 7 1672 1712 147 41 96.735832 directly5 1 5 2 2 8 1839 1712 77 31 96.805573 that5 1 5 2 2 9 1938 1710 107 33 96.805573 credits 1 5 2 2 10 2065 1710 31 32 96.782059 is4 1 5 2 3 0 852 1761 1279 45 -1 5 1 5 2 3 1 852 1765 169 32 96.240479 available5 1 5 2 3 2 1032 1765 191 41 96.240479 regardless5 1 5 2 3 3 1235 1766 40 31 96.994690 of5 1 5 2 3 4 1286 1766 57 31 96.982719 thes 1 5 2 3 5 1356 1764 109 33 96.464012 credits 1 5 2 3 6 1477 1764 127 41 96.996559 rating,5 1 5 2 3 7 1616 1762 162 33 95.860466 financial5 1 5 2 3 8 1791 1761 122 42 96.719582 ability5 1 5 2 3 9 1927 1765 35 28 96.953773 to5 1 5 2 3 10 1975 1772 68 30 96.835503 pays 1 5 2 3 11 2056 1772 40 20 89.386452 or5 1 5 2 3 12 2129 1768 2 2 24.853355 ~4 1 5 2 4 0 852 1815 715 42 -1 5 1 5 2 4 1 852 1815 89 41 96.412201 legal5 1 5 2 4 2 952 1827 64 30 96.759666 ages 1 5 2 4 3 1025 1818 109 30 96.507957 status5 1 5 2 4 4 1145 1816 38 32 96.507957 of5 1 5 2 4 5 1193 1815 168 42 95.016914 potential5 1 5 2 4 6 1371 1819 196 29 96.476212 customers.3 1 5 3 0 0 851 1861 1248 291 -1 4 1 5 3 1 0 894 1861 1202 47 -1 5 1 5 3 1 1 894 1868 27 29 90.141861 8.5 1 5 3 1 2 941 1866 260 42 96.509850 Representing,5 1 5 3 1 3 1220 1866 147 42 96.704338 directly5 1 5 3 1 4 1384 1877 40 21 96.886559 or5 1 5 3 1 5 1441 1864 195 42 96.581390 indirectly,5 1 5 3 1 6 1654 1863 154 42 96.740120 through5 1 5 3 1 7 1824 1863 58 32 96.823158 thes 1 5 3 1 8 1901 1872 60 21 96.909370 uses 1 5 3 1 9 1980 1861 37 32 96.573448 of5 1 5 3 1 10 2036 1862 60 31 96.997231 thea 1 5 3 2 0 852 1912 1244 46 -1 5 1 5 3 2 1 852 1916 95 32 95.538673 words 1 5 3 2 2 958 1917 93 41 96.799080 gold,5 1 5 3 2 3 1062 1917 58 31 96.988937 thes 1 5 3 2 4 1131 1917 236 32 96.369362 abbreviations 1 5 3 2 5 1380 1916 68 34 96.434242 YG5 1 5 3 2 6 1458 1927 40 21 96.900970 or5 1 5 3 2 7 1508 1915 90 41 96.809013 WG,5 1 5 3 2 8 1610 1926 38 21 96.319511 or5 1 5 3 2 9 1660 1915 58 31 96.899887 thes 1 5 3 2 10 1729 1917 89 28 96.925621 terms 1 5 3 2 11 1830 1913 121 42 96.716682 yellow5 1 5 3 2 12 1964 1912 80 42 96.639023 gold5 1 5 3 2 13 2056 1923 40 21 96.778122 or4 1 5 3 3 0 851 1962 1245 46 -1 5 1 5 3 3 1 851 1977 67 31 96.672791 any5 1 5 3 3 2 934 1967 97 32 96.771111 others 1 5 3 3 3 1046 1968 111 31 96.511909 words5 1 5 3 3 4 1171 1979 40 20 96.453972 or5 1 5 3 3 5 1226 1966 252 33 96.539558 abbreviations5 1 5 3 3 6 1493 1967 40 31 96.291222 of5 1 5 3 3 7 1547 1965 133 33 96.291222 similar5 1 5 3 3 8 1696 1965 130 40 96.010033 imports 1 5 3 3 9 1839 1964 78 31 96.572784 that5 1 5 3 3 10 1932 1962 164 42 96.882057 products4 1 5 3 4 0 853 2013 1246 46 -1 5 1 5 3 4 1 853 2017 139 33 96.313942 contains 1 5 3 4 2 1005 2028 38 21 96.313942 or5 1 5 3 4 3 1057 2028 58 22 96.480301 ares 1 5 3 4 4 1126 2018 101 32 96.846268 made5 1 5 3 4 5 1237 2029 42 21 96.330933 or5 1 5 3 4 6 1292 2017 180 42 96.666801 composed5 1 5 3 4 7 1485 2016 38 33 96.953674 in5 1 5 3 4 8 1536 2016 109 32 96.428703 whole5 1 5 3 4 9 1660 2026 39 21 96.305603 or5 1 5 3 4 10 1711 2015 37 32 96.698662 in5 1 5 3 4 11 1763 2018 81 38 96.915443 parts 1 5 3 4 12 1857 2014 39 32 96.937088 of5 1 5 3 4 13 1909 2013 83 43 96.764290 gold5 1 5 3 4 14 2006 2025 38 20 96.968491 or5 1 5 3 4 15 2059 2013 40 32 96.940857 of4 1 5 3 5 0 852 2064 1245 46 -1 5 1 5 3 5 1 852 2079 19 20 94.349625 a5 1 5 3 5 2 888 2068 83 41 94.349625 gold5 1 5 3 5 3 988 2068 169 42 96.295204 quantity,5 1 5 3 5 4 1175 2068 129 42 96.409111 weights 1 5 3 5 5 1320 2079 40 22 96.940300 or5 1 5 3 5 6 1377 2068 144 32 96.639320 fineness5 1 5 3 5 7 1540 2067 39 32 96.393013 of5 1 5 3 5 8 1596 2067 93 41 96.702156 alloys 1 5 3 5 9 1707 2069 60 29 96.965378 not5 1 5 3 5 10 1787 2064 151 43 96.788841 actually5 1 5 3 5 11 1957 2064 77 32 96.410576 used5 1 5 3 5 12 2058 2074 39 22 96.410576 or4 1 5 3 6 0 854 2118 332 34 -1 5 1 5 3 6 1 854 2118 179 34 96.234344 contained5 1 5 3 6 2 1044 2118 142 34 96.383835 therein.3 1 5 4 0 0 853 2165 1248 299 -1 4 1 5 4 1 0 897 2165 1203 47 -1 5 1 5 4 1 1 897 2171 28 30 96.367905 9.5 1 5 4 1 2 944 2170 261 42 96.674347 Representing,5 1 5 4 1 3 1224 2169 146 43 96.813759 directly5 1 5 4 1 4 1388 2181 39 21 97.015076 or5 1 5 4 1 5 1445 2168 195 42 96.468727 indirectly,5 1 5 4 1 6 1658 2166 153 43 96.540108 through5 1 5 4 1 7 1830 2166 57 32 96.571510 thes 1 5 4 1 8 1906 2176 59 21 96.687881 uses 1 5 4 1 9 1984 2165 37 32 96.740974 of5 1 5 4 1 10 2039 2165 61 32 97.015381 thea 1 5 4 2 0 853 2215 1246 47 -1 5 1 5 4 2 1 853 2220 96 32 96.385139 words 1 5 4 2 2 968 2220 144 33 96.457130 “Pearl”5 1 5 4 2 3 1131 2226 39 27 96.510071 or5 1 5 4 2 4 1189 2232 68 30 96.608620 any5 1 5 4 2 5 1276 2220 97 32 96.485512 others 1 5 4 2 6 1393 2220 96 31 96.669540 words 1 5 4 2 7 1507 2215 42 36 96.531746 or5 1 5 4 2 8 1567 2218 112 33 96.691261 words5 1 5 4 2 9 1699 2217 38 33 96.551407 of5 1 5 4 2 10 1756 2217 133 32 96.224365 similar5 1 5 4 2 11 1910 2216 129 41 96.224365 imports 1 5 4 2 12 2058 2226 41 22 96.966278 or4 1 5 4 3 0 854 2266 1245 47 -1 5 1 5 4 3 1 854 2271 171 41 96.652702 meaning,5 1 5 4 3 2 1037 2271 78 31 96.987297 that5 1 5 4 3 3 1127 2271 174 32 96.986420 imitations 1 5 4 3 4 1313 2270 115 43 96.410477 pearls5 1 5 4 3 5 1439 2280 59 22 96.263252 ares 1 5 4 3 6 1508 2269 147 42 96.263252 genuine5 1 5 4 3 7 1666 2268 130 42 96.592964 pearls;5 1 5 4 3 8 1810 2266 185 41 93.279152 Provided,5 1 5 4 3 9 2008 2266 91 33 91.759445 how-4 1 5 4 4 0 855 2317 1244 47 -1 5 1 5 4 4 1 855 2331 87 30 96.160751 ever,5 1 5 4 4 2 957 2322 92 31 96.984695 That5 1 5 4 4 3 1061 2322 60 31 96.984695 thes 1 5 4 4 4 1134 2321 183 43 96.642380 foregoing5 1 5 4 4 5 1329 2321 91 32 94.840721 shall5 1 5 4 4 6 1432 2323 62 30 95.775421 not5 1 5 4 4 7 1505 2321 42 32 95.775421 be5 1 5 4 4 8 1560 2319 179 34 96.334290 construed5 1 5 4 4 9 1751 2321 39 29 96.675293 to5 1 5 4 4 10 1801 2317 158 43 96.834755 prohibits 1 5 4 4 11 1970 2318 56 32 96.719223 thes 1 5 4 4 12 2039 2328 60 22 97.011490 use4 1 5 4 5 0 855 2367 1246 46 -1 5 1 5 4 5 1 855 2371 38 33 96.490143 of5 1 5 4 5 2 907 2371 60 33 96.957428 thes 1 5 4 5 3 982 2371 96 33 96.278214 words 1 5 4 5 4 1093 2372 146 32 94.697876 “Pearl”5 1 5 4 5 5 1254 2375 37 29 96.700623 to5 1 5 4 5 6 1306 2370 152 34 96.510124 describes 1 5 4 5 7 1473 2371 59 33 96.678658 thes 1 5 4 5 8 1548 2380 212 33 96.246513 appearances 1 5 4 5 9 1777 2369 40 32 96.985313 of5 1 5 4 5 10 1831 2368 76 33 95.478363 said5 1 5 4 5 11 1925 2367 176 33 95.478363 imitation4 1 5 4 6 0 855 2418 1245 46 -1 5 1 5 4 6 1 855 2422 113 41 93.291473 pearls5 1 5 4 6 2 989 2422 41 41 96.555687 if,5 1 5 4 6 3 1051 2423 177 32 96.598526 whenever5 1 5 4 6 4 1247 2422 93 42 96.657059 used,5 1 5 4 6 5 1361 2423 58 31 96.970444 thes 1 5 4 6 6 1441 2422 95 32 96.246407 words 1 5 4 6 7 1558 2420 136 42 95.548698 “pearl”5 1 5 4 6 8 1717 2420 28 32 95.548698 is5 1 5 4 6 9 1768 2418 235 42 92.679291 immediately5 1 5 4 6 10 2023 2429 77 31 92.687500 pre-2 1 6 0 0 0 845 2469 1254 46 -1 3 1 6 1 0 0 845 2469 1254 46 -1 4 1 6 1 1 0 845 2469 1254 46 -1 5 1 6 1 1 1 845 2472 124 42 87.390587 ceded,5 1 6 1 1 2 984 2473 36 31 96.991791 in5 1 6 1 1 3 1033 2473 136 42 96.645676 equally5 1 6 1 1 4 1183 2473 223 41 96.792732 conspicuous5 1 6 1 1 5 1417 2476 94 39 95.701225 type,5 1 6 1 1 6 1523 2472 45 42 96.689186 by5 1 6 1 1 7 1581 2472 58 31 96.630928 thes 1 6 1 1 8 1653 2471 95 32 96.475815 words 1 6 1 1 9 1761 2469 217 32 96.682602 “imitation”5 1 6 1 1 10 1991 2481 39 20 96.943710 or5 1 6 1 1 11 2041 2469 58 31 96.366974 the2 1 7 0 0 0 855 2518 1247 250 -1 3 1 7 1 0 0 855 2518 1247 147 -1 4 1 7 1 1 0 856 2518 1245 45 -1 5 1 7 1 1 1 856 2523 94 31 96.558289 words 1 7 1 1 2 962 2523 235 40 96.543060 “simulated,”5 1 7 1 1 3 1209 2532 40 23 96.392303 or5 1 7 1 1 4 1259 2524 98 31 96.392303 others 1 7 1 1 5 1368 2523 113 32 96.701950 words5 1 7 1 1 6 1493 2523 40 31 96.892639 of5 1 7 1 1 7 1544 2521 132 33 96.637306 similar5 1 7 1 1 8 1688 2521 130 40 96.294640 imports 1 7 1 1 9 1828 2530 39 21 96.459885 or5 1 7 1 1 10 1879 2518 171 42 96.512848 meaning,5 1 7 1 1 11 2062 2530 39 21 96.993004 so4 1 7 1 2 0 856 2569 1246 47 -1 5 1 7 1 2 1 856 2584 37 21 96.853401 as5 1 7 1 2 2 910 2577 36 28 96.904373 to5 1 7 1 2 3 965 2573 127 43 96.726234 clearly5 1 7 1 2 4 1110 2574 150 32 96.659294 indicates 1 7 1 2 5 1278 2574 77 31 96.243958 that5 1 7 1 2 6 1373 2573 75 32 96.243958 said5 1 7 1 2 7 1468 2572 175 33 96.578995 imitations 1 7 1 2 8 1663 2571 112 42 96.574959 pearls5 1 7 1 2 9 1795 2581 59 21 96.189491 ares 1 7 1 2 10 1873 2572 61 30 95.986153 not5 1 7 1 2 11 1955 2569 147 43 96.405426 genuine4 1 7 1 3 0 855 2623 539 42 -1 5 1 7 1 3 1 855 2624 113 41 96.007515 pearls5 1 7 1 3 2 977 2624 62 32 96.007515 but5 1 7 1 3 3 1049 2623 192 33 96.327309 imitations5 1 7 1 3 4 1249 2624 145 32 95.022423 thereof.3 1 7 2 0 0 856 2671 1246 97 -1 4 1 7 2 1 0 898 2671 1204 45 -1 5 1 7 2 1 1 898 2676 49 30 96.234222 10.5 1 7 2 1 2 964 2674 260 42 96.402260 Representing,5 1 7 2 1 3 1241 2675 146 41 96.239342 directly5 1 7 2 1 4 1403 2685 39 21 97.008095 or5 1 7 2 1 5 1458 2674 194 41 96.248489 indirectly,5 1 7 2 1 6 1669 2671 153 42 96.228058 through5 1 7 2 1 7 1838 2671 57 32 96.589218 thes 1 7 2 1 8 1911 2682 61 22 96.074524 uses 1 7 2 1 9 1988 2671 37 32 96.342888 of5 1 7 2 1 10 2041 2671 61 32 96.940582 thea 1 7 2 2 0 856 2722 1244 46 -1 5 1 7 2 2 1 856 2725 94 33 96.127014 words 1 7 2 2 2 966 2725 232 33 96.244896 “birthstone”5 1 7 2 2 3 1213 2737 40 21 96.264389 or5 1 7 2 2 4 1267 2737 66 31 96.876312 any5 1 7 2 2 5 1349 2725 99 33 96.359886 others 1 7 2 2 6 1462 2724 114 32 96.816345 words5 1 7 2 2 7 1590 2724 39 32 96.958977 of5 1 7 2 2 8 1642 2722 133 33 96.547813 similar5 1 7 2 2 9 1791 2722 128 42 96.547813 imports 1 7 2 2 10 1934 2733 40 21 93.233612 or5 1 7 2 2 11 1987 2733 113 21 93.172661 mean- BATTLE CREEK DEVELOPMENT CO., ET: AL. 255 246 Decision and Order ing, that imitation or synthetic precious or semi-precious stones . are genuine and descriptive of any product which is not in fact a natural stone of the type described.

11. Representing, directly or indirectly, that ‘respondents’ ‘watches are waterproof..

12. Representing, directly or by implication, that any article of merchandise is guaranteed, without clearly and conspicuously disclosing the nature, conditions and extent of the guarantee, the identity of the guarantor, and the manner in which the guarantor will perform thereunder; and unless respondents promptly and fully perform all their obligations and requirements, directly. or impliedly represented under the terms of each such guarantee. _ It is further ordered, That the respondents shall forthwith distribute a copy of this order to each of their respective operating divisions.or departments and all jewelry store managers and sales personnel and secure from each a signed statement acklowledging receipt of said order.

It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed changes in the corporate respondent such as dissolution, assignment or sale resulting in the emerging 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 this 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, signed by such respondents, setting forth in detail the manner and form of their compliance with this order.