Nu Dimensions International, LTD., et al.

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NU DIMENSIONS INTERNATIONAL, LTD., ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LEADING ACTS Docket C-2318. Complaint, Nov. 20, 1972—Decision, Nov. 20, 1972. Consent order requiring a Seattle, Washington, promoter and seller of figure improvement programs, among other things to cease representing prices as special or for a limited time only; falsely advertising the results ob- . tainable through said figure improvement programs; representing certain treatments as healthful when, in fact, they can be detrimental in certain instances; and failing to disclose to customers, in connection with the - extension of consumer credit, information required by Regulation Z of the Truth in Lending Act. The order further provides that purchasers of ; programs or services costing more than $25, be entitled to a trial period and cancellation rights; for termination rights and pro-rata refunds to patrons who have a doctor-certified health problem or have moved more: than 25 miles from the salon; and preserves credit purchasers’ rights if their notes are turned over to third parties. Complaint Pursuant to the provisions of the Federal Trade Commission Act and of the Truth in Lending Act and the regulations promulgated thereunder, and by virtue of “the authority vested in it by said Acts, 49.

794 FEDERAL TRADE COMMISSION DECISIONS °— Complaint 81 FTC.

the Federal Trade Commission, having reason to believe that Nu Dimensions International, Ltd., New Dimensions, -Ltd., Alan Acceptance Corporation, corporations, and Allan A. Turner and Cindy Young, individually and as officers of said corporations, hereinafter referred to as respondents, have violated the provisions of said Acts, 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: eo ” -Paracrary 1. For the purpose of this complaint and the accompany- . ing order to cease and desist, “passive equipment” is defined as vibratory or oscillatory tables and belts, motorized rollers: and other types of motor-driven massage devices which require no substantial exercise on the part of the use.

Par. 2. Respondent Nu Dimensions International, Ltd., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Washington with its office and principal place of business located at 1628 Ninth Avenue, Seattle, Washington. Prior to June 24, 1970, or thereabouts, its corporate name was Inter-. national New Dimensions, Inc. The said change of corporate name. was accomplished by amendment to the corporate articles of International New Dimensions, Inc., pursuant to the laws of the State of Washington.

Respondent New Dimensions, Ltd., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Oregon with its principal place of business located at 1969 N.E. 42nd Avenue, Portland, Oregon.

Respondents Nu Dimensions International, Ltd. and New Dimensions, Ltd. are now and for some time last past have been doing business as Nu Dimensions Figure Salons and as International Acceptance Company.

Respondent Alan Acceptance Corporation. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Washington with its office and principal place of business located at 1628 Ninth Avenue, Seattle, Washington. By and through said corporate respondent, respondents Nu Dimensions International, Ltd. and New Dimensions, Ltd. finance the purchase of ‘figure improvement contracts and collect monthly payments from persons enrolled in the aforesaid programs.

Respondents Allan A. Turner and Cindy Young are individuals and officers of said corporate respondents Nu Dimensions International, Ltd., New Dimensions, Ltd. and Alan Acceptance Corporation. They NU DIMENSIONS INTERNATIONAL, LTD., ET AL. 195 formulate, direct and control the.acts and practices of said corporate respondents, including the acts and practices hereinafter set forth. Their address is the same as that of Nu Dimensions International, ‘Ltd, and Alan Acceptance Corporation.

Par. 3. Respondents are now, and for some time last past ‘have been engaged in the advertising, offering for sale, and sale of figure improvement programs for women of the general public; the financing of the purchase of said figure improvement programs; the collection of patron’s accounts; and the general management and supervision of figure salons located i in the © States of Washington, Oregon, and Minnesota.

Count i Alleging violations of Section 5.of the Federal Trade Commission Act; the allegations of Paragraphs One, Two and Three hereof are incorporated by reference in Count I as if fully set forth verbatim. Par. 4. In the course-and conduct of their business as aforesaid, respondents Nu Dimensions International, Ltd: and New Dimensions, Ltd: have caused, and do now cause, advertisements for said figure salons to appear in media‘of interstate circulation, including but not limited to the Seattle Times, the Seattle Post-Intelligencer, the Spokane Daily Chronicle, the Spokane Spokesman-Review, the Minneapolis Star, and the Portland Oregonian, and on television broadcasts of interstate transmission, all of which are designed and intended to induce persons to purchase said figure improvement programs. In the course and conduct of their business as aforesaid, Nu Dimensions International, Ltd., New Dimensions, Ltd. and Alan Acceptance Corporation finance memberships in their figure improvement programs and collect payments from patrons located in various States of the United States.

Accordingly, all of ‘said respondents have maintained, and do now maintain, a course and conduct of business in commerce, as “commerce” is defined in the Federal Trade Commission Act. Par. 5. In the course and conduct of their business as aforesaid,. - and for the purpose of inducing the purchase of figure improvement programs, respondents have made and are now making numerous statements and representations in advertisements inserted in newspapers of general circulation and by means of television broadcasts and promotional material, with respect to the price of said figure improvement programs and the benefits and facilities available for those who enroll in a program.

796 —S—S”—«SW& FEDERAL’ TRADE COMMISSION DECISIONS Complaint 81 FTC.

_ Typical and illustrative of said statements and advertising representations, but not all inclusivé thereof, are the following: Lose ten inches in ten visits.

* * * * ee a No crash dieting.

_ Completely new. :

*: — a e; ok ke, PS . This week—ten. treatments, ten dollars. No disrobing. , * : * * ; * * * * Lose pounds and inches fast:or your money back.. Now, any woman can have a perfect figure. -.. 7 Pe ee *: : Ro, 0, oe * » Relax your,way to new beauty.

: Only pay for the visits you need, This week only, five free‘treatments on any program to the first 25 women to call.

* * * ; * * * * Salons in principal U.S. cities from coast to coast. * * * * * % * At Nu Dimensions you lose more inches and pounds for less money than through any other program, anywhere.

.# * * * * . * * Results guaranteed in writing.

* * * * * , * * Why join a gym for two years when in weeks } you can have the results you want.

* * * * * * « Slim time special, $3 per month.

* . * * * * ; * * Representative and illustrative, albeit neither verbatim nor all inelusive, or oral statements and representations made to. prospective purchasers by the respondents Nu Dimensions International, Ltd., and New Dimensions, Ltd. and their sales representatives and agents, are the following:

NU DIMENSIONS INTERNATIONAL, LTD., ET AL. 797. At the time of your. figure analysis you are eligible for a 20% discount. * * oak a * a a No downpayment and no carrying charges of any kind. _ * * * * * * « About 85% of our women choose our accelerated program. * + * : &: * . * This is a proven concept that has been used all over the world for over thirty years with fantastic results,.

* * * . * ss * Our programs . are beneficial to persons with back trouble or other medical problems.

+ * * * * a rn 3 In our cash accelerated program, you’ will ‘achieve your results in about 14 to _% the amount oF: time. ‘ : 4 1 6 1 3 0 664 1297 1285 69 -1 5 1 6 1 3 1 664 1318 63 24 96.869926 You5 1 6 1 3 2 743 1318 61 24 94.642990 will5 1 6 1 3 3 820 1318 61 24 96.574051 finds 1 6 1 3 4 898 1324 57 23 96.092468 you5 1 6 1 3 5 970 1318 76 24 96.669655 have5 1 6 1 3 6 1061 1324 18 18 96.243942 a5 1 6 1 3 7 1096 1318 85 29 96.243942 great5 1 6 1 3 8 1198 1297 67 44 96.979118 deals 1 6 1 3 9 1282 1322 80 19 96.428520 more5 1 6 1 3 10 1378 1322 106 23 96.410721 energy5 1 6 1 3 11 1502 1316 60 24 96.279228 ands 1 6 1 3 12 1579 1298 62 61 86.147408 zest5 1 6 1 3 13 1657 1315 48 47 96.382347 for5 1 6 1 3 14 1720 1314 55 24 96.407166 life5 1 6 1 3 15 1791 1314 90 24 81.292358 when:5 1 6 1 3 16 1876 1308 73 58 60.134274 you4 1 6 1 4 0 625 1348 1272 66 -1 5 1 6 1 4 1 625 1367 52 23 81.481476 ares 1 6 1 4 2 690 1360 103 29 88.521904 taking5 1 6 1 4 3 802 1348 179 66 93.861099 treatments5 1 6 1 4 4 993 1356 157 37 90.799927 regularly:5 1 6 1 4 5 1633 1371 61 3 12.104256 So5 1 6 1 4 6 1894 1361 3 11 24.666588 :4 1 6 1 5 0 698 1409 1265 32 -1 5 1 6 1 5 1 694 1404 8 43 5.862976 |5 1 6 1 5 2 777 1414 75 16 19.326752 re5 1 6 1 5 3 874 1408 109 32 13.069115 Te5 1 6 1 5 4 1086 1417 209 17 54.170719 ek5 1 6 1 5 5 1378 1410 2 3 21.232666 :5 1 6 1 5 6 1454 1416 117 16 16.011734 en5 1 6 1 5 7 1658 1409 42 22 16.596764 +!5 1 6 1 5 8 1839 1414 124 27 42.656094 Hg4 1 6 1 6 0 662 1448 1287 52 -1 5 1 6 1 6 1 662 1461 63 24 85.438263 You5 1 6 1 6 2 734 1467 61 18 67.480293 eans 1 6 1 6 3 805 1455 103 30 48.174633 cancel5 1 6 1 6 4 918 1461 206 29 88.098679 the:programs 1 6 1 6 5 1137 1461 33 24 96.834358 at5 1 6 1 6 6 1183 1458 59 37 96.332825 any5 1 6 1 6 7 1255 1454 74 30 96.193748 times 1 6 1 6 8 1342 1460 60 28 96.193748 ands 1 6 1 6 9 1417 1459 49 29 19.357262 gets 1 6 1 6 10 1474 1465 80 23 11.197647 yours 1 6 1 6 11 1568 1448 103 38 95.817436 moneys 1 6 1 6 12 1685 1458 75 24 86.412636 backs 1 6 1 6 13 1774 1457 26 24 96.590782 if5 1 6 1 6 14 1813 1463 57 22 96.507469 you5 1 6 1 6 15 1876 1463 73 37 50.469624 can-4 1 6 1 7 0 536 1501 628 32 -1 5 1 6 1 7 1 536 1501 2 32 80.346153 :5 1 6 1 7 2 625 1503 52 24 96.477432 not5 1 6 1 7 3 687 1503 137 24 96.559692 continues 1 6 1 7 4 834 1503 72 24 96.408348 with5 1 6 1 7 5 919 1503 51 24 96.882324 thes 1 6 1 7 6 982 1502 182 25 96.321899 treatments.3 1 6 2 0 0 622 1593 1353 251 -1 4 1 6 2 1 0 658 1593 1317 48 -1 5 1 6 2 1 1 658 1599 92 32 93.239975 ‘Par.5 1 6 2 1 2 767 1602 30 30 75.953323 6.5 1 6 2 1 3 811 1599 62 42 96.011063 By5 1 6 2 1 4 887 1599 70 34 96.443443 ands 1 6 2 1 5 973 1599 151 42 96.269852 through5 1 6 2 1 6 1140 1599 61 33 97.000015 thes 1 6 2 1 7 1217 1610 59 26 93.276978 uses 1 6 2 1 8 1292 1599 132 35 54.334427 of:said.5 1 6 2 1 9 1441 1597 291 40 96.612007 advertisements,5 1 6 2 1 10 1750 1597 69 32 96.888290 ands 1 6 2 1 11 1834 1597 118 39 9.651306 others4 1 6 2 2 0 622 1643 1322 49 -1 5 1 6 2 2 1 622 1643 38 38 96.432861 of5 1 6 2 2 2 672 1650 132 32 96.432861 similar5 1 6 2 2 3 816 1650 128 41 96.405418 imports 1 6 2 2 4 956 1650 68 32 96.582565 ands 1 6 2 2 5 1037 1650 161 42 95.906036 meanings 1 6 2 2 6 1210 1650 62 32 96.885109 but5 1 6 2 2 7 1285 1654 60 27 96.519157 not5 1 6 2 2 8 1357 1650 174 41 96.519157 expressly5 1 6 2 2 9 1544 1653 50 28 96.857437 sets 1 6 2 2 10 1603 1653 62 28 96.632820 outs 1 6 2 2 11 1678 1648 127 41 96.669533 herein,5 1 6 2 2 12 1819 1648 67 32 96.838089 ands 1 6 2 2 13 1898 1648 46 41 96.757240 by4 1 6 2 3 0 624 1699 1323 43 -1 5 1 6 2 3 1 624 1701 73 30 96.697472 oral5 1 6 2 3 2 719 1704 198 28 96.651176 statements5 1 6 2 3 3 939 1701 68 31 96.651176 ands 1 6 2 3 4 1029 1700 287 41 96.383400 representations5 1 6 2 3 5 1335 1700 100 32 94.885307 made.5 1 6 2 3 6 1454 1700 46 42 96.493195 by5 1 6 2 3 7 1521 1699 91 32 96.074730 theirs 1 6 2 3 8 1631 1699 86 32 93.283974 sales5 1 6 2 3 9 1738 1701 209 38 90.951759 representa-4 1 6 2 4 0 622 1749 1326 43 -1 5 1 6 2 4 1 622 1750 88 32 96.332756 tives5 1 6 2 4 2 733 1751 67 31 96.217422 ands 1 6 2 4 3 823 1754 130 38 96.621826 agents,5 1 6 2 4 4 976 1751 223 40 96.223999 respondents5 1 6 2 4 5 1221 1751 87 31 96.725700 have5 1 6 2 4 6 1331 1750 216 41 96.403954 represented5 1 6 2 4 7 1570 1749 68 32 96.918907 ands 1 6 2 4 8 1660 1761 58 20 96.564529 ares 1 6 2 4 9 1738 1760 77 20 93.221512 now5 1 6 2 4 10 1837 1758 111 30 92.119148 repre-4 1 6 2 5 0 622 1801 1272 43 -1 5 1 6 2 5 1 622 1801 137 41 96.573463 senting5 1 6 2 5 2 769 1802 145 42 96.688049 directly5 1 6 2 5 3 925 1813 39 21 96.775276 or5 1 6 2 5 4 973 1802 46 42 96.560257 by5 1 6 2 5 5 1030 1801 216 41 96.410843 implications 1 6 2 5 6 1255 1803 79 30 75.792725 that5 1 6 2 5 7 1343 1813 7 20 75.792725 :3 1 6 3 0 0 622 1851 1324 144 -1 4 1 6 3 1 0 666 1851 1280 43 -1 5 1 6 3 1 1 666 1854 28 30 94.046593 1.5 1 6 3 1 2 718 1853 97 40 94.074493 They5 1 6 3 1 3 831 1863 57 21 96.214088 ares 1 6 3 1 4 902 1852 142 42 96.274925 making5 1 6 3 1 5 1057 1853 89 31 96.603943 bona5 1 6 3 1 6 1160 1852 68 32 96.171127 fide5 1 6 3 1 7 1242 1853 103 31 95.752640 offers5 1 6 3 1 8 1358 1856 36 28 95.752640 to5 1 6 3 1 9 1408 1852 60 32 96.926987 sells 1 6 3 1 10 1483 1852 110 41 96.318718 figures 1 6 3 1 11 1606 1851 248 42 76.685448 improvements 1 6 3 1 12 1868 1861 78 30 92.698334 pro-4 1 6 3 2 0 623 1901 1323 66 -1 5 1 6 3 2 1 623 1913 115 31 96.839821 grams5 1 6 3 2 2 754 1902 60 33 96.746490 for5 1 6 3 2 3 827 1902 78 33 96.501465 “tens 1 6 3 2 4 919 1906 202 29 96.478134 treatments5 1 6 3 2 5 1135 1903 58 33 96.478134 for5 1 6 3 2 6 1206 1907 58 28 96.887924 tens 1 6 3 2 7 1279 1903 160 41 95.963882 dollars,”5 1 6 3 2 8 1454 1903 122 33 78.322807 “three5 1 6 3 2 9 1587 1902 129 33 95.350754 dollars5 1 6 3 2 10 1729 1912 62 31 96.983597 pers 1 6 3 2 11 1805 1901 141 66 52.866825 month”4 1 6 3 3 0 622 1927 973 68 -1 5 1 6 3 3 1 622 1927 69 58 96.999908 ands 1 6 3 3 2 702 1953 137 33 96.876572 various5 1 6 3 3 3 850 1954 97 32 96.622627 others 1 6 3 3 4 958 1954 94 41 96.662720 prices 1 6 3 3 5 1063 1957 157 29 96.662720 amounts5 1 6 3 3 6 1230 1958 61 28 95.975609 not5 1 6 3 3 7 1300 1958 50 28 95.975609 sets 1 6 3 3 8 1361 1954 97 32 96.558685 forth5 1 6 3 3 9 1468 1953 127 33 96.593552 herein.3 1 6 4 0 0 620 2000 1326 145 -1 4 1 6 4 1 0 664 2000 1280 64 -1 5 1 6 4 1 1 664 2006 29 29 96.509315 2.5 1 6 4 1 2 717 2004 73 32 96.444870 Thes 1 6 4 1 3 805 2000 110 64 94.144585 prices5 1 6 4 1 4 931 2004 39 33 96.143089 of5 1 6 4 1 5 985 2016 181 45 96.644821 programs5 1 6 4 1 6 1181 2006 69 31 95.206810 ands 1 6 4 1 7 1266 2005 143 32 95.206810 services5 1 6 4 1 8 1425 2004 113 33 96.768181 which5 1 6 4 1 9 1553 2016 59 21 95.750542 ares 1 6 4 1 10 1625 2004 104 42 96.843468 beings 1 6 4 1 11 1744 2004 128 32 96.771843 offered5 1 6 4 1 12 1886 2014 58 22 96.862526 area 1 6 4 2 0 622 2030 1324 67 -1 5 1 6 4 2 1 622 2054 157 32 95.688408 discounts 1 6 4 2 2 793 2055 110 41 95.688408 prices5 1 6 4 2 3 917 2066 39 21 96.315979 or5 1 6 4 2 4 972 2055 126 41 96.560432 specials 1 6 4 2 5 1113 2055 135 42 96.922371 prices5 1 6 4 2 6 1239 2055 169 33 96.738831 available5 1 6 4 2 7 1423 2055 57 32 96.960869 for5 1 6 4 2 8 1495 2067 19 20 96.999931 a5 1 6 4 2 9 1528 2055 135 32 96.655731 limited5 1 6 4 2 10 1677 2030 120 66 96.815163 periods 1 6 4 2 11 1812 2054 38 32 96.798553 of5 1 6 4 2 12 1863 2054 83 32 96.554718 time4 1 6 4 3 0 620 2105 613 40 -1 5 1 6 4 3 1 620 2117 38 20 92.693016 or5 1 6 4 3 2 668 2109 67 29 87.377869 to.a5 1 6 4 3 3 746 2105 134 35 95.675903 limited5 1 6 4 3 4 889 2106 143 39 96.849281 numbers 1 6 4 3 5 1042 2106 40 32 96.168922 of5 1 6 4 3 6 1093 2118 140 25 96.168922 women.3 1 6 5 0 0 619 2157 1324 142 -1 4 1 6 5 1 0 664 2157 1279 41 -1 5 1 6 5 1 1 664 2158 28 30 95.083488 3.5 1 6 5 1 2 715 2157 34 31 95.999275 A5 1 6 5 1 3 766 2157 130 32 95.319641 certain5 1 6 5 1 4 912 2157 143 32 96.398087 numbers 1 6 5 1 5 1070 2157 36 32 96.684067 of5 1 6 5 1 6 1118 2157 81 38 95.938087 free5 1 6 5 1 7 1216 2161 200 28 96.841324 treatments5 1 6 5 1 8 1432 2169 57 21 96.674927 ares 1 6 5 1 9 1506 2157 170 34 95.788818 available5 1 6 5 1 10 1691 2157 84 32 96.853127 with5 1 6 5 1 11 1789 2157 59 32 93.301888 thes 1 6 5 1 12 1862 2167 81 31 91.452866 pur-4 1 6 5 2 0 622 2207 1320 43 -1 5 1 6 5 2 1 622 2207 98 32 96.634720 chases 1 6 5 2 2 735 2207 39 32 96.303749 of5 1 6 5 2 3 790 2218 20 21 96.232918 a5 1 6 5 2 4 826 2218 173 31 96.232918 program,5 1 6 5 2 5 1015 2208 56 31 95.665443 for5 1 6 5 2 6 1087 2219 20 21 95.665443 a5 1 6 5 2 7 1121 2208 135 32 96.459946 limited5 1 6 5 2 8 1270 2208 121 42 96.684341 periods 1 6 5 2 9 1406 2208 39 32 96.615196 of5 1 6 5 2 10 1460 2208 84 32 95.346527 times 1 6 5 2 11 1558 2220 38 20 95.346527 or5 1 6 5 2 12 1609 2211 37 29 96.247742 to5 1 6 5 2 13 1662 2220 20 20 95.333061 a5 1 6 5 2 14 1698 2208 133 31 90.945816 limited5 1 6 5 2 15 1846 2219 96 21 90.945816 num-4 1 6 5 3 0 619 2257 282 42 -1 5 1 6 5 3 1 619 2257 59 33 96.656052 bers 1 6 5 3 2 693 2257 44 33 96.656052 of.5 1 6 5 3 3 746 2261 155 38 0.000000 patrons.3 1 6 6 0 0 619 2309 1324 143 -1 4 1 6 6 1 0 660 2309 1283 43 -1 5 1 6 6 1 1 660 2311 30 30 92.109383 4.5 1 6 6 1 2 713 2309 247 41 96.051369 Respondents’5 1 6 6 1 3 975 2320 180 31 96.054710 programs5 1 6 6 1 4 1170 2310 71 32 93.169708 will5 1 6 6 1 5 1255 2310 196 40 92.062340 slenderize,5 1 6 6 1 6 1464 2310 169 42 96.747643 beautify,5 1 6 6 1 7 1647 2310 213 41 96.293594 proportion,5 1 6 6 1 8 1874 2310 69 32 96.851913 anda 1 6 6 2 0 619 2359 1324 45 -1 5 1 6 6 2 1 619 2359 175 33 96.579582 eliminates 1 6 6 2 2 820 2360 133 41 96.567429 pounds5 1 6 6 2 3 980 2361 69 32 96.173462 ands 1 6 6 2 4 1074 2360 116 33 96.473549 inches5 1 6 6 2 5 1217 2361 93 32 96.356674 from5 1 6 6 2 6 1337 2373 101 31 93.268982 every5 1 6 6 2 7 1464 2361 162 32 92.289497 woman’s5 1 6 6 2 8 1651 2361 119 42 96.608574 figure,5 1 6 6 2 9 1798 2361 145 33 96.876015 without4 1 6 6 3 0 619 2406 1282 51 -1 5 1 6 6 3 1 619 2406 140 51 96.721939 dieting.5 1 6 6 3 2 1899 2434 2 3 21.023575 ;3 1 6 7 0 0 616 2462 1326 143 -1 4 1 6 7 1 0 660 2462 1281 42 -1 5 1 6 7 1 1 660 2464 28 29 96.247864 5.5 1 6 7 1 2 711 2462 248 41 96.285973 Respondents’5 1 6 7 1 3 979 2462 135 41 96.591911 passive5 1 6 7 1 4 1134 2462 198 42 96.315048 equipments 1 6 7 1 5 1351 2463 72 32 96.433975 will5 1 6 7 1 6 1443 2463 174 32 96.365417 stimulates 1 6 7 1 7 1637 2462 213 41 93.279503 circulation,5 1 6 7 1 8 1870 2474 71 21 93.169838 cor-4 1 6 7 2 0 618 2513 1324 43 -1 5 1 6 7 2 1 618 2515 69 29 87.729172 rect5 1 6 7 2 2 706 2516 149 37 95.339958 posture,5 1 6 7 2 3 875 2516 79 28 97.001602 tones 1 6 7 2 4 973 2513 69 32 96.224121 ands 1 6 7 2 5 1060 2513 80 32 96.201752 firms 1 6 7 2 6 1158 2514 131 31 96.183578 humans 1 6 7 2 7 1306 2513 117 41 95.803574 tissue,5 1 6 7 2 8 1441 2515 181 41 96.128723 including5 1 6 7 2 9 1639 2514 154 40 96.022781 muscles,5 1 6 7 2 10 1813 2514 129 38 96.336128 and/or4 1 6 7 3 0 616 2563 649 42 -1 5 1 6 7 3 1 616 2563 123 35 96.906448 induces 1 6 7 3 2 749 2563 126 42 96.570740 weights 1 6 7 3 3 885 2564 67 32 96.875046 loss5 1 6 7 3 4 962 2575 39 21 96.985634 or5 1 6 7 3 5 1012 2564 67 32 96.717529 loss5 1 6 7 3 6 1090 2564 38 32 96.973511 of5 1 6 7 3 7 1141 2564 124 40 96.702583 inches.3 1 6 8 0 0 616 2614 1324 143 -1 4 1 6 8 1 0 660 2614 1280 43 -1 5 1 6 8 1 1 660 2616 28 29 96.173500 6.5 1 6 8 1 2 712 2614 148 32 96.711357 Patrons5 1 6 8 1 3 875 2626 63 20 93.408745 cans 1 6 8 1 4 953 2615 69 32 93.408745 loses 1 6 8 1 5 1037 2617 57 30 96.447403 tens 1 6 8 1 6 1110 2614 116 33 96.463478 inches5 1 6 8 1 7 1241 2615 36 32 96.990997 in5 1 6 8 1 8 1291 2619 57 28 96.520454 tens 1 6 8 1 9 1361 2616 102 32 96.517944 visits5 1 6 8 1 10 1476 2620 36 28 96.974205 to5 1 6 8 1 11 1528 2616 232 41 96.028641 respondents’5 1 6 8 1 12 1774 2616 112 32 96.568863 salons5 1 6 8 1 13 1900 2627 40 21 96.980606 or4 1 6 8 2 0 616 2664 1324 45 -1 5 1 6 8 2 1 616 2675 63 21 96.572037 cans 1 6 8 2 2 697 2664 111 32 91.330254 attain5 1 6 8 2 3 824 2665 99 32 91.330254 others 1 6 8 2 4 940 2665 111 32 96.549072 stated5 1 6 8 2 5 1069 2665 148 42 96.910812 changes5 1 6 8 2 6 1234 2666 36 32 96.345139 in5 1 6 8 2 7 1287 2667 91 42 96.946823 body5 1 6 8 2 8 1395 2667 77 40 92.504906 size,5 1 6 8 2 9 1489 2666 251 43 92.504906 configurations 1 6 8 2 10 1757 2678 40 21 96.559967 or5 1 6 8 2 11 1814 2667 126 42 96.629791 weight4 1 6 8 3 0 616 2715 508 42 -1 5 1 6 8 3 1 616 2715 36 32 95.255821 in5 1 6 8 3 2 665 2715 159 42 95.255821 specified5 1 6 8 3 3 835 2716 137 41 95.933327 periods5 1 6 8 3 4 984 2716 38 32 96.879608 of5 1 6 8 3 5 1035 2716 89 33 96.916077 time. 798 ' FEDERAL TRADE COMMISSION DECISIONS Coniplaint 81 FEC:

7. Respondents operate a nationwide chain of reducing salons with facilities in most major cities of the United States. 8. Respondents’ salons use completely new methods for - figure reducing.

9. Respondents’ salons use reducing methods which have been thoroughly and scientifically tested and approved by experts ‘and physicians. — 10. Every woman who enrolls in respondents’ programs can attain a perfect figure.

11. Respondents’ programs are helpful to persons with back trouble or other medical problems.

12. Respondents’ treatments will give the patrons more energy. 13. Respondents’ program involves no disrobing by patrons. 14. Each “treatment” 4 is equivalent to a visit to one of respondents’ salons...

15. Respondents? accelerated program accomplishes desired results in about half the time it,would take under the regular program. “16. About 85 percent: of respondents’ patrons. choose the accelerated program.

17. Respondents’ programs do not involve memberships or long-term contractual obligations, and patrons can ‘Purchase respondents” services on a per treatment basis.

18. Respondents’ program is the least expensive method of figure reduction.

19. Respondents will hold prospective customers’ applications for figure improvement programs without accepting same, until further confirmation by the prospective customer or approval by their husbands.

Par. 7. In truth and in fact:

1. The advertised figure improvement programs for “ten treatments for ten dollars,” “three dollars per month” and various other price amounts not set forth herein, are not bona fide offers to sell figure improvement programs at the advertised prices, but are advertised for the purpose of obtaining leads to prospective purchasers of more expensive programs. After inducing prospective customers into respondents’ salons by means of the aforesaid advertised minimal cost programs, respondents’ sales personnel disparage the advertised minimal cost programs by act or words or both, and attempt to sell and do sell different and more expensive reducing programs. Respondents’ sales personnel are directed and encouraged by respondents not to sell the minimal cost programs and may be and have been penalized or discharged for selling such programs. Such minimal tee! NU DIMENSIONS. INTERNATIONAL, LTD., ET: AL. 799 793 Complaint cost programs as have been sold have not been accorded the benefits of guarantees advertised in conjunction therewith. 2. The prices at which figure improvement programs are sold are not special prices or discount. prices, nor are they available for only a limited period of time or to a limited number of patrons. They are the usual and customary prices charged for respondents’ figure improvement programs, and they have been substantially the same for an extended: period of time.

‘3. Offers of free treatments withthe purchase of a program are not limited to the stated period of time or stated number of patrons. - 4. Respondents’ programs will not slenderize, beautify, proportion, and eliminate pounds and inches from every woman’s figure without dieting.

5. Respondents’ passive equipment will not stimulate circulation, correct posture, tone. and firm human tissue, including muscles, or “Induce weight loss or-loss of.inches.

6. Patrons cannot lose ten inches in ten visits to respondents’ salons, nor are other stated changes in body size,: configuration. or weight Possible in the specified periods of time. ; 7. Respondents do not operate a nationwide chain of reducing salons with facilities in most major cities of the United States. o 8. Respondents do not use completely new methods for figure reducing.

9. Respondents’ methods have neither been thoroughly nor scientifically tested, nor approved by experts or physicians. 10. It is not possible for every patron to attain a perfect figure through respondents’ programs.

11. “Respondents? programs are not necessarily helpful to persons with back. trouble or other medical problems and may actually be detrimental to such persons. The programs are not a substitute for proper medical treatment by physicians and other qualified personnel. 12. Respondents’ treatments will not give patrons more energy; in fact, the diet required of most patrons may result in a decrease of energy.

13. Partial disrobing i is necessary during measuring. 14.4 “treatment” consists of a half hour ¢ on respondents’ equipment. Patrons are usually required by respondents to use two or more such treatments per visit.

15...Patrons utilizing the accelerated program do not usually achieve desired results in half the time it would take under the regular program, — 16. Nowhere near 85 percent of respondents’ patrons, but substantially less than such percentage, choose the accelerated program. 800 5 1 1 1 1 3 1049 437 165 33 94.768158 FEDERAL5 1 1 1 1 4 1240 440 117 30 68.795494 TRADES 1 1 1 1 5 1385 440 235 31 78.610077 COMMISSION’5 1 1 1 1 6 1646 441 192 30 88.407959 DECISIONS5 1 1 1 1 7 1853 442 30 22 67.274979 .”5 1 1 1 1 8 1895 460 3 2 67.274979 -4 1 1 1 2 0 1359 510 746 46 -1 5 1 1 1 2 1 1359 510 168 46 95.906082 Complaints 1 1 1 2 2 1931 537 2 2 58.555550 -5 1 1 1 2 3 1958 523 30 25 80.544502 815 1 1 1 2 4 1995 518 110 33 51.365623 BTC.2 1 2 0 0 0 735 587 1399 2108 -1 3 1 2 1 0 0 777 587 1331 150 -1 4 1 2 1 1 0 788 587 1320 51 -1 5 1 2 1 1 1 788 598 3 7 56.988686 '5 1 2 1 1 2 819 593 48 33 84.211891 17.5 1 2 1 1 3 890 587 249 48 95.905067 Respondents’5 1 2 1 1 4 1154 599 146 37 96.491966 patrons5 1 2 1 1 5 1313 606 58 21 96.984207 ares 1 2 1 1 6 1387 595 158 48 96.987061 required5 1 2 1 1 7 1561 599 36 28 97.004646 to5 1 2 1 1 8 1612 594 79 48 96.870209 signs 1 2 1 1 9 1706 597 20 30 96.925865 a5 1 2 1 1 10 1741 599 153 29 93.274399 contracts 1 2 1 1 11 1909 595 199 43 90.195717 obligating4 1 2 1 2 0 777 642 1330 72 -1 5 1 2 1 2 1 777 638 92 42 96.541977 them5 1 2 1 2 2 886 648 36 28 96.024155 to5 1 2 1 2 3 941 656 20 21 96.024155 a5 1 2 1 2 4 979 645 143 41 95.880280 lengthy5 1 2 1 2 5 1141 647 165 40 96.791550 programs 1 2 1 2 6 1324 646 40 32 96.487251 of5 1 2 1 2 7 1381 641 202 37 96.487251 treatments5 1 2 1 2 8 1601 646 70 31 96.540955 ands 1 2 1 2 9 1691 642 193 72 93.082405 payments.5 1 2 1 2 10 1900 645 207 62 95.513885 Individual4 1 2 1 3 0 778 695 945 42 -1 5 1 2 1 3 1 778 697 198 40 96.438202 treatments5 1 2 1 3 2 985 698 129 29 96.936829 cannot5 1 2 1 3 3 1120 695 41 32 96.837090 be5 1 2 1 3 4 1171 695 192 42 96.349884 purchased5 1 2 1 3 5 1373 695 93 32 96.333771 from5 1 2 1 3 6 1472 690 251 52 7.811951 respondents.3 1 2 2 0 0 776 735 1329 153 -1 4 1 2 2 1 0 788 735 1317 70 -1 5 1 2 2 1 1 788 735 80 41 0.000000 18.5 1 2 2 1 2 891 746 249 41 92.920090 Respondents’5 1 2 2 1 3 1159 752 182 35 96.796707 programs5 1 2 2 1 4 1360 757 58 20 96.685997 ares 1 2 2 1 5 1436 749 63 28 96.781662 not5 1 2 2 1 6 1517 746 204 42 96.219246 necessarily5 1 2 2 1 7 1741 746 60 33 96.510887 thes 1 2 2 1 8 1819 746 83 36 96.510887 least5 1 2 2 1 9 1921 742 184 63 96.831093 expensive4 1 2 2 2 0 776 794 1326 69 -1 5 1 2 2 2 1 776 794 138 44 94.025612 methods 1 2 2 2 2 931 795 40 32 96.573067 of5 1 2 2 2 3 988 795 109 42 96.778320 figures 1 2 2 2 4 1113 796 186 32 96.249107 reduction.5 1 2 2 2 5 1317 797 34 31 96.792885 A5 1 2 2 2 6 1368 796 183 42 96.753326 medically5 1 2 2 2 7 1568 791 195 46 96.753326 prescribed5 1 2 2 2 8 1781 797 72 61 93.793594 diets 1 2 2 2 9 1870 797 58 65 92.581978 ands 1 2 2 2 10 1962 860 2 3 71.767540 «5 1 2 2 2 11 1955 796 147 55 34.979599 exercise4 1 2 2 3 0 777 820 722 69 -1 5 1 2 2 3 1 777 852 162 34 94.851540 programs 1 2 2 3 2 949 845 29 32 94.496758 is5 1 2 2 3 3 988 820 66 57 79.556351 leas5 1 2 2 3 4 1063 846 183 46 96.553230 expensive5 1 2 2 3 5 1252 846 39 32 96.553230 in5 1 2 2 3 6 1301 849 92 43 96.600594 most5 1 2 2 3 7 1399 851 100 27 88.573738 cases.3 1 2 3 0 0 739 863 1363 225 -1 4 1 2 3 1 0 817 863 1285 80 -1 5 1 2 3 1 1 817 896 48 31 95.989998 19.5 1 2 3 1 2 888 890 248 46 95.228447 Respondents5 1 2 3 1 3 1139 896 45 32 95.228447 do5 1 2 3 1 4 1194 899 63 30 96.806671 not5 1 2 3 1 5 1267 887 84 42 96.806671 holds 1 2 3 1 6 1363 896 230 42 40.567101 applications5 1 2 3 1 7 1606 868 154 71 62.672333 pending5 1 2 3 1 8 1773 863 136 66 96.308441 furthers 1 2 3 1 9 1921 865 181 78 51.727592 confirma-4 1 2 3 2 0 775 944 1327 46 -1 5 1 2 3 2 1 775 944 73 32 96.640259 tions 1 2 3 2 2 871 945 45 42 96.558884 by5 1 2 3 2 3 941 946 215 45 96.644653 prospective5 1 2 3 2 4 1180 950 185 29 96.174034 customers5 1 2 3 2 5 1388 958 41 20 96.437813 or5 1 2 3 2 6 1452 947 170 41 96.453087 approvals 1 2 3 2 7 1645 947 46 43 95.586815 by5 1 2 3 2 8 1716 947 92 32 96.199013 theirs 1 2 3 2 9 1831 947 183 40 96.558899 husbands,5 1 2 3 2 10 2038 947 64 31 96.899811 but4 1 2 3 3 0 775 993 1324 77 -1 5 1 2 3 3 1 775 1001 131 35 96.388550 process5 1 2 3 3 2 922 995 76 33 95.844635 said5 1 2 3 3 3 1012 996 232 46 96.356918 applications5 1 2 3 3 4 1257 989 233 49 96.346382 immediately5 1 2 3 3 5 1506 998 69 31 96.974319 ands 1 2 3 3 6 1591 1001 152 55 96.707062 attempts 1 2 3 3 7 1748 993 40 50 96.465881 to5 1 2 3 3 8 1804 997 129 73 78.723572 imposes 1 2 3 3 9 1948 1001 151 45 92.265991 contrac-4 1 2 3 4 0 739 1044 858 44 -1 5 1 2 3 4 1 739 1065 3 8 13.417313 .5 1 2 3 4 2 775 1044 73 33 96.159813 tual5 1 2 3 4 3 856 1044 154 47 89.505745 liability5 1 2 3 4 4 1020 1056 44 21 96.347717 on5 1 2 3 4 5 1075 1046 74 33 96.549973 said5 1 2 3 4 6 1159 1046 214 42 96.536621 prospective5 1 2 3 4 7 1383 1050 214 29 96.328117 customers.5 1 2 3 4 8 1587 1040 15 55 27.480225 |3 1 2 4 0 0 774 1062 1331 175 -1 4 1 2 4 1 0 818 1062 1287 77 -1 5 1 2 4 1 1 818 1086 198 49 96.861885 Therefore,5 1 2 4 1 2 1025 1095 64 32 96.991882 thes 1 2 4 1 3 1104 1099 216 38 91.066208 statements,5 1 2 4 1 4 1327 1091 289 52 96.421082 representations5 1 2 4 1 5 1630 1097 71 32 85.410255 and.5 1 2 4 1 6 1713 1068 176 71 45.263672 practicas5 1 2 4 1 7 1893 1108 36 21 96.632187 as5 1 2 4 1 8 1935 1069 67 62 42.541576 set!5 1 2 4 1 9 2006 1062 99 67 96.691078 forth4 1 2 4 2 0 774 1145 1325 64 -1 5 1 2 4 2 1 774 1144 35 32 96.279831 in5 1 2 4 2 2 827 1145 264 42 96.028496 Paragraphs5 1 2 4 2 3 1074 1145 81 33 96.357758 Five5 1 2 4 2 4 1174 1147 69 32 96.357758 ands 1 2 4 2 5 1264 1146 70 34 81.626389 Six5 1 2 4 2 6 1345 1141 121 38 81.626389 hereof5 1 2 4 2 7 1485 1157 97 31 93.305496 were,5 1 2 4 2 8 1601 1148 157 40 62.450279 and.are,5 1 2 4 2 9 1777 1148 99 41 95.387032 false,5 1 2 4 2 10 1893 1145 206 64 96.806595 misleading4 1 2 4 3 0 774 1195 1329 42 -1 5 1 2 4 3 1 774 1195 68 32 96.235245 ands 1 2 4 3 2 853 1195 184 45 96.262321 deceptive.3 1 2 5 0 0 735 1213 1399 214 -1 4 1 2 5 1 0 803 1213 1301 74 -1 5 1 2 5 1 1 803 1244 97 32 60.465958 “Par.5 1 2 5 1 2 920 1247 29 29 87.590019 8.5 1 2 5 1 3 969 1241 252 45 94.805069 Respondents,5 1 2 5 1 4 1236 1246 56 32 96.539017 Nu5 1 2 5 1 5 1315 1242 220 36 96.539017 Dimensions5 1 2 5 1 6 1549 1246 268 41 95.800873 International,5 1 2 5 1 7 1833 1247 82 32 95.437210 Ltd.5 1 2 5 1 8 1933 1220 70 59 96.984802 ands 1 2 5 1 9 2009 1213 95 66 88.506065 New4 1 2 5 2 0 735 1256 1366 85 -1 5 1 2 5 2 1 735 1307 10 5 0.000000 -5 1 2 5 2 2 772 1256 227 85 96.085732 Dimensions,5 1 2 5 2 3 1015 1295 94 41 89.006866 Ltd.,5 1 2 5 2 4 1120 1296 46 42 96.493095 by5 1 2 5 2 5 1181 1301 116 38 96.634003 means5 1 2 5 2 6 1313 1293 39 36 96.634003 of5 1 2 5 2 7 1367 1297 78 32 96.469582 oral5 1 2 5 2 8 1453 1293 202 36 96.262970 statements5 1 2 5 2 9 1672 1298 76 31 95.974281 ands 1 2 5 2 10 1756 1298 294 40 95.413422 representations5 1 2 5 2 11 2055 1298 46 31 96.179993 of4 1 2 5 3 0 773 1321 1361 102 -1 5 1 2 5 3 1 773 1344 90 33 96.323524 theirs 1 2 5 3 2 874 1346 166 31 96.008881 salesmen5 1 2 5 3 3 1054 1321 68 57 96.981056 ands 1 2 5 3 4 1136 1342 293 81 89.343689 representatives,5 1 2 5 3 5 1444 1342 89 71 95.830948 have5 1 2 5 3 6 1545 1347 285 63 96.030075 misrepresented5 1 2 5 3 7 1844 1348 90 59 91.658775 and/5 1 2 5 3 8 1935 1354 39 26 96.818642 or5 1 2 5 3 9 1990 1347 108 33 81.472183 failed5 1 2 5 3 10 2132 1387 2 2 26.689156 —4 1 2 5 4 0 771 1395 1204 33 -1 5 1 2 5 4 1 771 1398 35 28 96.417816 to5 1 2 5 4 2 816 1389 160 39 93.114769 discloses 1 2 5 4 3 958 1385 19 56 93.114769 :5 1 2 5 4 4 1973 1418 2 2 8.542847 :3 1 2 6 0 0 770 1442 1329 95 -1 4 1 2 6 1 0 779 1442 1320 70 -1 5 1 2 6 1 1 779 1447 63 30 35.693695 1. The identity, nature and-terms'of documents which. customers are required to sign. ; Do 9, The existence, nature’ and terms ofa required downpayment. 3. The circumstances under which programs may be: terminated: Par. 9. Respondents have represented that customers would. obtain “guaranteed results” without adequately disclosing (1) the nature and extent of the guarantee, (2) conditions and limitations on the guarantee, (8) which programs are guaranteed, (4) the duration of the guarantee, and (5) the manner in which the guarantor will perform. Par. 10. Respondents have represented to patrons directly or by implication in documents and oral statements, and in letters‘and papers sent to patrons through the United States mails, that Alan Acceptance Corporation and/or International Acceptance Company are holders in due course of instruments executed by patrons, and have certain legal rights as a result thereof.

Par. 11. In truth and in fact, none of the respondents become holders in due course of any instruments executed by purchasers of figure improvement programs. Therefore, the statements and representations as set forth in Paragraph Ten were and are false, misleading and deceptive.

Par. 12. In the course and conduct of their aforesaid business and at all times mentioned herein respondents have been and now are in substantial competition in commerce, with corporations, firms and individuals engaged in the same general kind and nature of business as that engaged in by the respondents.

NU ‘DIMENSIONS INTERNATIONAL, LTD., ET AL. 801 783 Complaint ;

Par. 18. The use by the respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had, and does now have, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that such advertisements and representations were and are true, and into the purchase of substantial numbers of respondents’ figure improvement programs by reason of said erroneous and mistaken beliefs, and into the payment of certain monies to respondents which might otherwise have ~ been disputed. - Par. 14. The aforesaid acts and practices of respondents as herein alleged were and are all to the prejudice and injury of the public and of respondents’ competitors and constituted and now constitute unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of Section 5 of the Federal ‘Trade Commission Act.

COUNT II Alleging violations of the Truth in Lending Act and Regulation Z> the allegations of Paragraphs Two-and'Three are incorporated by: reference in Count II as if fully set forth verbatim. _ Par. 15. In the ordinary course of their business as aforesaid, respondents regularly extend consumer credit and arrange for the extension of consumer credit, as “consumer credit” and “arrange for the extension of consumer credit” are defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve System. Par. 16. Subsequent to July 1, 1969, in the ordinary course of their business as aforesaid, and in connection with their credit sales, as “credit sale” is defined in Regulation Z, respondents have caused and are causing their customers to enter into contracts for the sale of respondents’ services. On these contracts and on separate disclosure statements, hereinafter referred to as “the contract” and “the statements” respondents provide and have provided certain consumer credit cost information. Respondents do not provide and have not provided these customers with any other consumer credit cost disclosures.

By and through use of the contract and statement, respondents: 1. Fail to disclose the “cash price” which is the price at which respondents offer, in the regular course of business, to sell for cash the services which are the subject of the credit sale, as required by Section 226.8 (c) (1) of Regulation Z.

2. Fail to disclose the “finance charge” which is the sum of all 802 FEDERAL TRADE’ COMMISSION DECISIONS *-: Decision and Order 81 F.T.C.

charges required by Section 296.4 of Regulation Z to be inéluded therein, as required by Section 226.8 (c) (8) (i). of Regulation. Z. =. 8. Fail to disclose the “annual percentage rate,” calculated in accordance with Section 226.5. of: Regulation 4, as required by Section 226.8 (b) (2) of Regulation Z.

Par. 17. Pursuant to Section 103(q) of the Truth in Lending Act, respondents’ aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act and, pursuant to Section 108 thereof, respondents have thereby violated the Federal Trade Commission Act.

~ Decrston AND ORDER:

‘The Federal Trade. Commission having initiated an 1 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 Seattle Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commissiofi, would charge respondents with Violation of the Federal Trade Commission ‘Act; and The respondents and counsel for. the Commission having thereafter — executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admis- . sion by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s rules; and The Commission having thereafter considered. the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedures prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order :

1.. Proposed respondent Nu Dimensions International, Ltd. and Alan Acceptance Corporations are corporations organized, existing and doing business under and by virtue of the laws of the State of Washington, with their office and principal place of business located at 1628 Ninth Avenue, Seattle, Washington. Proposed respondent New Dimensions, Ltd. is a corporation organized, existing and doing business under and by virtue of the laws Sof NU DIMENSIONS INTERNATIONAL, LTD., ET AL. 803 793. Decision and. Order the State of Oregon, with its principal place of business: located at 1969: N.E. 42nd Avenue, Portland, Oregon. Proposed respondents Allan A. Turner and. Cindy Young. are officers of said corporations. They formulate, direct and control the policies, — acts and practices of all three corporate respondents, and their address is the same as that of Nu. Dimensions International, Ltd. and Alan Acceptance Corporation.

2. The Federal Trade Commission has jurisdiction of the. subject matter of: this proceeding and of the respondents, and the proceeding is in the pubhe interest. ;

: ; ORDER - I t is ordered, That respondents Nu Dimensions ‘International, Ltd. and New Dimensions, Ltd., corporations. ‘doing business as Nu Dimensions Figure Salons, International Acceptance Company or. under any other name or names, and Alan Acceptance. Corporation, a corporation, and their officers, and. Allan: A, ‘Turner and Cindy Young, individually and as. officers of said cor porations, and_ respondents’ successors, assigns, . agents, representatives and employees, directly or through any corporation,-subsidiary, division or other device, in connection with the advertising, offering for sale, or sale of figure improvement programs or other services or articles in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Making representations, in advertisements or otherwise, purporting to offer for sale minimal cost programs or any other program or service when the purpose of the representation is not to sell the offered program or service but to obtain leads or prospects for the sale of other programs or services at higher prices.

2. Discouraging the purchase of or disparaging in any manner any advertised reducing program.

3. Representing, directly or by implication, that any services are offered for sale when such offer is not a bona fide offer to sell the advertised service.

4. The use of any company policy, sales plan or method of compensation for any agent, representative or employee which has the effect in any manner of discouraging them from selling advertised programs or penalizing them ‘upon sale of advertised programs.

Decision and Order: 81 FTC.

5. Representing, directly or by implication, that :the price charged for any reducing program or service is a:special or re- ~ duced price unless such price represents a significant. reduction from an established selling price at which such program or service has been sold with substantial frequency by respondents in the recent regular course of their business; or misrepresenting, in any manner, the amount of savings available.to purchasers or ~ prospective purchasers of respondents’ reducing programs. 6. Representing, directly or by implication, that a price increase is imminent unless the amount and effective date of such increase have been definitely determined in advance and such increase takes place on the date determined. 7. Falsely representing, directly or by implication, that new enrollees who do not sign up for a program at the time of their , figure analysis. are regularly and customarily charged ‘an additional fee or lose a discount which would otherwise be available. 8. -Misrepresenting, directly. or by implication, that the availability of any service, specially priced program, ‘free treatments -or other inducement for enrollment is limited’ in ‘time or other- ; wise; or failing to disclose completely and accurately in immedi-' ate ‘conjunction ‘with any represented promotional inducement all onaitions and limitations on its availability. 9. Advertising or otherwise quoting the price of a “treatment,” unless a disclosure is made in immediate conjunction therewith that each salon visit normally consists of two or more treatments. 10. Representing, directly or by implication, that: A. Respondents’ programs are effective in reducing body weight or dimensions, unless respondents disclose in immediate conjunction therewith that said programs include a required diet.

B. Respondents’ passive equipment will (1) stimulate circulation, (2) correct posture, (3) tone and firm human tissue, including muscles, or (4) induce weight loss or loss of inches by any means; unless such representation is fully substantiated by controlled scientific tests conducted by independent experts, and the results are available for inspection by the general public.

C. Respondents’ programs will cause any stated change in body size, configuration or weight in any specified period of time, unless:

(1) Such representation is fully substantiated by controlled scientific tests conducted by independent experts, ._ NU DIMENSIONS INTERNATIONAL,;. LTD.,. ET. AL. 805. Decision: and Order -and the results are available for inspection by the gen- _-éral public, or - (2) The representation i is made solely in the course of - the offering or implementation of a guarantee in conformity with the following subparagraph, if applicable, and with Paragraph 18 of this order. :

D. Respondents’ program-will take off inches, or that any inch loss is guaranteed, unless:

- (1) AU measurements are made with non-stretch tape equipped with a tension meter and a uniform tightness is used;

(2) Horizontal rather than diagonal measurements are taken on body parts positioned in a uniform manner, except that. diagonal measurements at angles. constant . for each individual .patron may be taken of. the upper arms and outer thighs;

(3) All measurements are taken at specified distances from designated reference points (such as 2 inches below the navel), such distances to be constant for each individual patron;

(4) A copy of the standard tension and applicable distances, angles and body reference points is given to the prospective patron before she is measured; and (5) Any advertisement referring to inch: loss identifies each area of the body from which such loss is or will be measured.

KE. Any or all of respondents’ patrons can attain a perfect figure.

F. Respondents’ reducing methods:

(1) are new or unique, (2) are thoroughly or scientifically tested or approved by experts or physicians, unless and until such state- - ments become true, (3) will give patrons more energy, or (4) are beneficial or have therapeutic value to persons with medical problems.

G. Respondents’ programs involve no disrobing, unless it is disclosed at the same time that partial disrobing may be necessary for measurement, or unless the representation is clearly limited to use of respondents’ passive equipment. H. Respondents’ program is the least expensive method of figure reduction.

FEDERAL TRADE COMMISSION DECISIONS ©“ Decision and Order 81 FTC.

i Respondents operate salons in more than three States of the United States or in other countries, ‘unless and until such statements become true. - J. Respondents’ programs do ‘not: involve “rnemberships” or long-term contractual obligations, or that patrons can purchase respondents’ services on a per-treatment basis; unless respondents manifestly permit patrons to purchase individual treatments without contractual obligations for more. K. ‘A majority, 85 percent or any other proportion of respondents’ patrons: choose ‘the accelerated” program, unless such Proportion is _ verified by respondents! enroliment . ‘records.

“Lh Respondents’ accelerated program ‘achieves desired re- -sults in half the time it: would take under the: regular pro- ‘gram, or:at any other’ rate,. unless such representation is verified by respondents’ records.

11. Using any advertising, sales plan or procedure involving . the lise’ of false; deceptive or misleading statements or representations for the: purpose of obtaining leads: or Prospects5 1 11 1 2 10 1969 1462 58 32 96.234161 for5 1 11 1 2 11 2044 1462 61 32 96.234161 thea 1 11 1 3 0 832 1521 535 55 -1 5 1 11 1 3 1 832 1568 2 4 68.041512 _5 1 11 1 3 2 859 1523 71 33 94.749191 sales 1 11 1 3 3 944 1522 41 32 96.649361 of5 1 11 1 3 4 999 1521 165 55 96.938828 reducing5 1 11 1 3 5 1178 1530 189 32 96.239235 programs.2 1 12 0 0 0 860 1537 1242 128 -1 3 1 12 1 0 0 860 1537 1242 128 -1 4 1 12 1 1 0 904 1537 1198 93 -1 5 1 12 1 1 1 904 1575 61 46 67.213943 12.:5 1 12 1 1 2 976 1567 152 63 95.188622 Failing,5 1 12 1 1 3 1143 1571 64 32 67.582428 ‘in5 1 12 1 1 4 1204 1568 208 35 41.465912 ‘connections 1 12 1 1 5 1436 1568 84 33 94.389633 with5 1 12 1 1 6 1541 1537 61 65 96.917023 thes 1 12 1 1 7 1624 1566 77 63 90.936440 sales 1 12 1 1 8 1708 1538 48 60 94.866219 of5 1 12 1 1 9 1780 1575 69 31 96.732300 any5 1 12 1 1 10 1874 1561 164 45 94.463272 programs 1 12 1 1 11 2062 1574 40 21 96.609230 or4 1 12 1 2 0 860 1619 645 46 -1 5 1 12 1 2 1 860 1619 128 38 96.420799 services 1 12 1 2 2 998 1626 36 29 89.182404 at5 1 12 1 2 3 1043 1634 20 20 89.182404 a5 1 12 1 2 4 1074 1621 92 44 96.402367 prices 1 12 1 2 5 1177 1620 184 42 96.663528 exceeding5 1 12 1 2 6 1369 1619 73 42 93.567413 $25,5 1 12 1 2 7 1451 1622 54 28 93.567413 to:2 1 13 0 0 0 946 1664 1157 118 -1 3 1 13 1 0 0 946 1664 1157 100 -1 4 1 13 1 1 0 985 1664 1117 48 -1 5 1 13 1 1 1 985 1674 44 32 93.825699 A.5 1 13 1 1 2 1051 1672 144 33 87.553719 Includes 1 13 1 1 3 1215 1671 135 41 89.609039 clearly.5 1 13 1 1 4 1365 1670 69 32 89.609039 ands 1 13 1 1 5 1455 1668 260 42 96.196037 conspicuously5 1 13 1 1 6 1737 1677 45 21 96.774597 on5 1 13 1 1 7 1803 1665 60 32 96.746521 thes 1 13 1 1 8 1884 1665 77 32 96.724945 faces 1 13 1 1 9 1982 1665 39 32 96.802307 of5 1 13 1 1 10 2041 1664 61 32 97.014763 thea 1 13 1 2 0 946 1714 1157 68 -1 5 1 13 1 2 1 946 1720 152 36 94.087112 contracts 1 13 1 2 2 1121 1734 39 21 94.087112 or5 1 13 1 2 3 1184 1720 99 35 96.836746 others 1 13 1 2 4 1298 1720 138 62 91.962753 legally5 1 13 1 2 5 1457 1719 149 42 95.442123 bindings 1 13 1 2 6 1630 1719 181 31 96.683830 documents 1 13 1 2 7 1834 1716 60 32 96.801094 thes 1 13 1 2 8 1919 1714 184 43 96.623077 following2 1 14 0 0 0 945 1777 567 74 -1 3 1 14 1 0 0 945 1777 567 74 -1 4 1 14 1 1 0 945 1777 197 31 -1 5 1 14 1 1 1 945 1777 197 31 92.731415 statements 1 14 1 1 2 1127 1773 19 43 92.731415 :4 1 14 1 2 0 1367 1824 145 27 -1 5 1 14 1 2 1 1367 1824 145 27 21.769348 NOTICE2 1 15 0 0 0 776 1881 1332 381 -1 3 1 15 1 0 0 776 1881 1332 381 -1 4 1 15 1 1 0 809 1881 1288 41 -1 5 1 15 1 1 1 809 1896 68 25 96.145927 You5 1 15 1 1 2 893 1902 51 18 96.359856 ares 1 15 1 1 3 961 1895 123 25 96.140625 entitled5 1 15 1 1 4 1101 1896 30 23 96.212181 to5 1 15 1 1 5 1149 1900 17 18 96.441399 a5 1 15 1 1 6 1183 1893 72 25 96.560677 trials 1 15 1 1 7 1271 1893 102 29 96.608200 periods 1 15 1 1 8 1390 1892 32 25 96.890167 of5 1 15 1 1 9 1439 1893 58 23 96.419373 two5 1 15 1 1 10 1520 1881 45 40 96.609802 (2)5 1 15 1 1 11 1589 1890 86 24 95.867851 visits5 1 15 1 1 12 1692 1888 107 25 96.000244 within5 1 15 1 1 13 1815 1888 51 23 96.000244 thes 1 15 1 1 14 1882 1888 73 23 96.071182 next5 1 15 1 1 15 1972 1886 56 24 96.071182 five5 1 15 1 1 16 2050 1886 47 28 96.920570 (5)4 1 15 1 2 0 776 1929 1330 37 -1 5 1 15 1 2 1 776 1939 134 24 96.308365 business5 1 15 1 2 2 927 1939 80 27 96.272621 days,5 1 15 1 2 3 1024 1938 156 28 94.641228 excluding5 1 15 1 2 4 1197 1937 49 23 96.764656 thes 1 15 1 2 5 1262 1936 69 24 96.331711 dates 1 15 1 2 6 1347 1935 59 24 96.331711 ands 1 15 1 2 7 1421 1934 71 24 96.461571 visits 1 15 1 2 8 1507 1933 106 29 96.689209 during5 1 15 1 2 9 1629 1932 96 25 96.843170 which5 1 15 1 2 10 1740 1937 56 23 96.327858 you5 1 15 1 2 11 1812 1931 65 28 96.847549 signs 1 15 1 2 12 1893 1936 34 22 95.980461 up5 1 15 1 2 13 1942 1929 49 24 96.607414 for5 1 15 1 2 14 2009 1935 18 18 92.514435 a5 1 15 1 2 15 2041 1935 65 23 92.514435 pro-4 1 15 1 3 0 776 1971 1329 40 -1 5 1 15 1 3 1 776 1987 91 24 96.341599 gram.5 1 15 1 3 2 882 1980 200 29 96.344170 Accordingly,5 1 15 1 3 3 1098 1986 56 21 96.144302 you5 1 15 1 3 4 1168 1984 67 22 96.144302 may5 1 15 1 3 5 1249 1978 99 25 95.979568 cancel5 1 15 1 3 6 1362 1977 61 24 96.330513 this5 1 15 1 3 7 1436 1976 132 26 96.937584 contracts 1 15 1 3 8 1582 1972 46 27 96.096863 for5 1 15 1 3 9 1641 1980 58 22 96.096863 any5 1 15 1 3 10 1713 1979 105 18 96.984535 reasons 1 15 1 3 11 1831 1973 37 28 96.108215 by5 1 15 1 3 12 1881 1971 131 25 96.411140 certified5 1 15 1 3 13 2026 1971 79 28 96.723610 mail,4 1 15 1 4 0 779 2014 1329 37 -1 5 1 15 1 4 1 779 2025 102 23 96.125229 returns 1 15 1 4 2 895 2023 109 28 95.907982 receipts 1 15 1 4 3 1019 2022 159 28 95.908463 requested,5 1 15 1 4 4 1194 2027 32 17 96.853462 or5 1 15 1 4 5 1241 2020 141 29 96.911118 telegrams 1 15 1 4 6 1396 2019 66 25 96.682312 sents 1 15 1 4 7 1475 2017 104 25 96.300415 within5 1 15 1 4 8 1593 2017 54 24 96.800552 five5 1 15 1 4 9 1666 2016 46 29 95.748901 (5)5 1 15 1 4 10 1729 2016 136 24 95.748901 business5 1 15 1 4 11 1877 2014 73 28 96.562180 days5 1 15 1 4 12 1964 2014 80 24 96.714981 after5 1 15 1 4 13 2056 2014 52 23 96.461418 thea 1 15 1 5 0 779 2055 1326 36 -1 5 1 15 1 5 1 779 2067 69 30 95.637436 dates 1 15 1 5 2 856 2064 39 32 95.637436 of5 1 15 1 5 3 910 2064 60 25 96.485794 this5 1 15 1 5 4 984 2064 135 25 96.690285 contracts 1 15 1 5 5 1133 2069 33 18 96.372314 or5 1 15 1 5 6 1181 2063 106 24 96.566277 within5 1 15 1 5 7 1300 2061 193 29 96.348625 twenty-four5 1 15 1 5 8 1510 2061 89 23 96.772774 hours5 1 15 1 5 9 1615 2058 80 25 96.141426 after5 1 15 1 5 10 1711 2058 51 24 96.739464 thes 1 15 1 5 11 1777 2057 107 25 95.652405 seconds 1 15 1 5 12 1900 2056 80 29 92.714020 visit,5 1 15 1 5 13 1996 2055 109 25 92.714020 which-4 1 15 1 6 0 778 2092 1326 46 -1 5 1 15 1 6 1 778 2114 70 19 96.153740 ever5 1 15 1 6 2 868 2113 101 19 96.174332 occurs5 1 15 1 6 3 991 2106 114 25 95.317184 earlier.5 1 15 1 6 4 1129 2105 78 25 96.305717 Such5 1 15 1 6 5 1229 2103 183 26 93.682396 notifications 1 15 1 6 6 1434 2103 32 25 93.682396 of5 1 15 1 6 7 1487 2092 195 46 91.552925 cancellations 1 15 1 6 8 1700 2100 110 33 96.345963 should5 1 15 1 6 9 1832 2100 35 33 96.566368 be5 1 15 1 6 10 1890 2099 159 24 96.508537 addressed5 1 15 1 6 11 2070 2099 34 23 96.780151 to4 1 15 1 7 0 778 2127 1327 50 -1 5 1 15 1 7 1 778 2150 48 25 94.772621 Nu5 1 15 1 7 2 844 2148 185 25 94.772621 Dimensions5 1 15 1 7 3 1048 2149 33 24 96.428452 at5 1 15 1 7 4 1105 2148 134 29 96.258362 (currents 1 15 1 7 5 1258 2146 122 29 96.353119 mailings 1 15 1 7 6 1399 2145 123 25 96.204094 address5 1 15 1 7 7 1540 2145 79 23 94.885223 must5 1 15 1 7 8 1641 2144 32 23 89.407715 be5 1 15 1 7 9 1694 2127 126 49 94.197548 stated).5 1 15 1 7 10 1842 2142 83 28 96.262482 Upon5 1 15 1 7 11 1945 2142 73 24 93.202728 such5 1 15 1 7 12 2039 2146 66 20 90.180008 can-4 1 15 1 8 0 776 2181 1332 40 -1 5 1 15 1 8 1 776 2193 148 28 69.532867 eellation,5 1 15 1 8 2 937 2198 57 22 96.908287 you5 1 15 1 8 3 1006 2190 60 25 96.893944 will5 1 15 1 8 4 1078 2190 34 25 96.946854 be5 1 15 1 8 5 1123 2190 124 25 96.623253 entitled5 1 15 1 8 6 1258 2190 31 23 94.622200 to5 1 15 1 8 7 1300 2195 17 18 94.622200 a5 1 15 1 8 8 1328 2189 117 29 96.774506 prompt5 1 15 1 8 9 1454 2193 52 23 95.331390 pros 1 15 1 8 10 1519 2187 66 25 95.331390 rata5 1 15 1 8 11 1597 2186 107 25 96.372047 refunds 1 15 1 8 12 1714 2185 103 29 96.729126 excepts 1 15 1 8 13 1827 2184 48 25 79.932861 for5 1 15 1 8 14 1885 2190 17 18 79.932861 a5 1 15 1 8 15 1913 2181 195 28 92.340714 eancellation4 1 15 1 9 0 780 2227 1109 35 -1 5 1 15 1 9 1 780 2235 47 25 95.881462 fees 1 15 1 9 2 844 2235 52 24 96.599358 not5 1 15 1 9 3 913 2235 28 24 96.078072 to5 1 15 1 9 4 959 2233 106 25 96.300171 exceeds 1 15 1 9 5 1081 2232 52 30 96.576782 $155 1 15 1 9 6 1150 2238 33 18 96.545189 or5 1 15 1 9 7 1201 2231 67 30 96.347740 10%5 1 15 1 9 8 1288 2231 32 24 96.475174 of5 1 15 1 9 9 1337 2231 49 24 96.304573 thes 1 15 1 9 10 1404 2230 71 24 96.412773 cash5 1 15 1 9 11 1492 2230 88 29 96.454674 price,5 1 15 1 9 12 1597 2229 167 24 96.399048 whichever5 1 15 1 9 13 1779 2227 29 24 95.974121 is5 1 15 1 9 14 1824 2227 65 24 96.783134 less.2 1 16 0 0 0 949 2281 1162 403 -1 3 1 16 1 0 0 949 2281 1157 150 -1 4 1 16 1 1 0 991 2281 1114 47 -1 5 1 16 1 1 1 991 2288 41 32 93.139191 B.5 1 16 1 1 2 1055 2286 123 42 96.580116 Orally5 1 16 1 1 3 1201 2286 130 32 96.580116 informs 1 16 1 1 4 1351 2286 59 33 96.744339 thes 1 16 1 1 5 1433 2283 213 45 96.303818 prospective5 1 16 1 1 6 1668 2286 136 40 96.562592 patron,5 1 16 1 1 7 1827 2281 119 34 96.773270 before5 1 16 1 1 8 1969 2282 59 32 93.277428 she5 1 16 1 1 9 2050 2292 55 21 92.812637 en-4 1 16 1 2 0 949 2327 1157 74 -1 5 1 16 1 2 1 949 2339 94 41 61.140934 rolls,5 1 16 1 2 2 1062 2338 40 32 96.995384 of5 1 16 1 2 3 1121 2337 59 33 96.980904 thes 1 16 1 2 4 1198 2336 84 33 96.433708 trials 1 16 1 2 5 1302 2335 121 44 96.761124 periods 1 16 1 2 6 1444 2336 69 32 97.007019 ands 1 16 1 2 7 1532 2334 231 67 93.403099 cancellations 1 16 1 2 8 1771 2333 119 57 96.092003 rights5 1 16 1 2 9 1900 2327 206 61 83.904510 prescribed4 1 16 1 3 0 949 2387 502 44 -1 5 1 16 1 3 1 949 2390 46 41 93.516510 by5 1 16 1 3 2 1009 2388 264 42 93.516510 subparagraphs 1 16 1 3 3 1288 2388 33 31 95.476395 A5 1 16 1 3 4 1337 2387 114 32 95.476395 above.3 1 16 2 0 0 949 2435 1162 249 -1 4 1 16 2 1 0 994 2435 1112 44 -1 5 1 16 2 1 1 994 2439 37 35 92.833405 C.5 1 16 2 1 2 1051 2439 129 34 96.869370 Cancel5 1 16 2 1 3 1200 2439 60 32 96.314095 thes 1 16 2 1 4 1281 2441 155 29 96.473145 contracts 1 16 2 1 5 1456 2437 40 33 96.470490 of5 1 16 2 1 6 1519 2440 68 39 96.635437 any5 1 16 2 1 7 1608 2440 127 39 96.411453 patrons 1 16 2 1 8 1755 2435 77 32 96.515915 who5 1 16 2 1 9 1856 2437 150 39 93.186050 requests5 1 16 2 1 10 2029 2445 77 22 93.122513 can-4 1 16 2 2 0 949 2485 1159 45 -1 5 1 16 2 2 1 949 2490 163 34 92.171593 cellation5 1 16 2 2 2 1127 2490 39 32 96.964348 in5 1 16 2 2 3 1180 2489 206 33 96.480682 accordance5 1 16 2 2 4 1402 2488 86 33 96.566048 with5 1 16 2 2 5 1503 2489 60 32 96.886543 thes 1 16 2 2 6 1579 2487 193 43 96.522324 provisions5 1 16 2 2 7 1788 2486 39 32 95.899078 of5 1 16 2 2 8 1844 2485 264 43 95.791855 subparagraph4 1 16 2 3 0 950 2536 1151 46 -1 5 1 16 2 3 1 950 2542 36 32 40.690041 A.5 1 16 2 3 2 1009 2542 121 40 50.776299 above;5 1 16 2 3 3 1157 2540 69 33 95.089783 ands 1 16 2 3 4 1249 2540 83 32 95.089783 mails 1 16 2 3 5 1354 2542 37 30 96.822586 to5 1 16 2 3 6 1416 2539 83 33 96.118217 each5 1 16 2 3 7 1522 2539 84 33 96.118217 such5 1 16 2 3 8 1629 2538 135 44 96.404350 patron,5 1 16 2 3 9 1790 2536 123 33 96.302727 within5 1 16 2 3 10 1936 2539 60 30 96.608330 tens 1 16 2 3 11 2027 2536 74 42 96.674065 (10)4 1 16 2 4 0 950 2587 1161 46 -1 5 1 16 2 4 1 950 2591 153 33 96.383286 business5 1 16 2 4 2 1121 2592 85 41 96.703720 days5 1 16 2 4 3 1224 2592 40 31 96.703720 of5 1 16 2 4 4 1282 2591 128 41 96.539093 receipts 1 16 2 4 5 1427 2590 39 33 96.971771 of5 1 16 2 4 6 1483 2590 71 33 96.165215 said5 1 16 2 4 7 1576 2590 145 41 95.244888 request,5 1 16 2 4 8 1738 2600 20 21 96.961189 a5 1 16 2 4 9 1776 2588 127 32 96.728149 refunds 1 16 2 4 10 1921 2587 36 33 92.810860 in5 1 16 2 4 11 1975 2588 136 32 92.810860 accord-4 1 16 2 5 0 952 2641 543 43 -1 5 1 16 2 5 1 952 2653 81 22 96.760597 ances 1 16 2 5 2 1044 2641 84 33 96.726158 with5 1 16 2 5 3 1138 2642 75 33 96.775108 said5 1 16 2 5 4 1224 2641 271 43 96.489548 subparagraph. NU DIMENSIONS INTERNATIONAL, ‘LTD., ET AL. 807 793 | Decision: and ‘Order 13. Failing to disclose clearly, conspicuously, completely and accurately, both orally, and in writing, before enrolling any person in any program:

* A. The nature of respondents programs, equipment and - pequired diets.

B. That prospective patrons with health problems or who are under:a doctor’s care should consult their -physician to be sure that respondents’ programs are not. incompatible ~ with figure control or other health plans prescribed: by‘such : physician.

- C.-That the: patron may terminate ‘her program and obtain a pro rata refund of any monies: paid; upon either (1) tender of a:letter from her physician stating clearly and unequivocally: that puarticipation::in. respondents’ program would be hazardous:to her health and:setting forth in detail the medical reasons: for such opinion, or (2) permanently moving to a residence located beyond:a: 25 mile radius of all figure salons operated by respondents, or in ‘an area so geo- ‘graphically: isolated from such salons that travel thereto would be unreasonably burdensome.’ ° © 14. Failing to terminate the contract of any patron who requests termination pursuant to subparagraph C of Paragraph 13; and failing to mail, within ten (10) business days of receipt of said request, a pro rata refund in accordance with said-subparagraph.

15. Failing to provide each customer a copy of each contract, note or other instrument of indebtedness executed by or on behalf of such customer; and failing to include clearly and conspicuously in the face of all such documents:

- A. A statement that the document is a contract and will become legally binding upon said customer upon its accept ance ‘by the respondents.

B. All terms and conditions of such document. — C. The following statement: :

‘NOTICH Any holder takes this instrument subject to the terms and conditions of the contract which gave rise to the debt evidenced hereby, any contractual provision or other agreement to the contrary notwithstanding. 16. Misrepresenting in any manner, directly or by implication: A. The conditions under which a contract may be cancelled.

808 | PEDERAL TRADE COMMISSION DECISIONS ” Decision: and. Order St VEG.

'B. That any of respondents or their successors or assigns are holders in due course of any notes, contracts or other documents executed by respondents’ customers. C. That a customer’s account has been turned over to an attorney or an independent organization engaged in. the busi- ‘ness of collecting past-due accounts..

17. Assigning, selling or otherwise transferring notes, con- ~ tracts or other documents evidencing a purchaser’s indebtedness, unless any rights or defenses which the purchaser has and may assert against respondents are preserved and. may be asserted against any assignee or subsequent holder of such note, contract or other documents evidencing the indebtedness. 18. Advertising or representing in any manner, directly or by implication, that any of respondents’ reducing programs or other services or articles are guaranteed unless: A. Respondents disclose clearly, adequately and accurately in immediate conjunction therewith:

-(1) The nature and extent of the guarantee, (2) The conditions and limitations on the guarantee, (3) Which programs are guaranteed, (4) The duration of the guarantee, (5) The manner in which the guarantor will perform; and B. Respondents promptly and fully perform all of their obligations and requirements, directly or impliedly represented, under the terms of each such guarantee; and C. Respondents honor the guarantees of all patrons who have substantially complied with the conditions of their guarantee, allowing flexibility for sickness and vacations. It is further ordered, That respondents maintain at all times complete records relative to the manner and form of their compliance, during the immediately preceding twelve-month period, with the above terms and provisions of this order. Such records shall include copies of all advertising, and shall indicate with respect to each sale the type of program and/or service, the price charged for such program and/or service, the terms of each such program or service and the name and address ‘of each purchaser thereof. Ir It is further ordered, That respondents, Nu Dimensions International, Ltd. and New Dimensions, Ltd., corporations doing business as Nu Dimensions Figure Salons, International Acceptance Company NU DIMENSIONS INTERNATIONAL, LTD.,/ET AU. 809 798 Decision and Order or under any other name or names, and Alan Acceptance Corporation, a corporation, and their officers, and Allan A. Turner and Cindy Young, individually and as officers of said corporations, and respondents’ successors, assigns, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension of consumer credit or advertisement to aid, promote or assist directly or indirectly any extension of consumer credit, as “consumer credit” and “advertisement” are defined in Regulation Z (12-C.F.R. § 226) of the Truth in Lending Act (Pub. L. 90-821,,15 U.S.C. 1601 e¢ seq.), do forthwith cease and desist from: A. Failing to disclose the “cash price” which is the price at which respondents offer, in the regular course of business, to sell for. cash ‘the services which are the subject of the credit sale, as required by Section 226.8(c) (1) of Regulation Z. B. Failing to disclose the sum of all charges made to the customer which are required by Section 226.4 of Regulation Z to be included in the finance charge, and to describe that sum as the “finance charge,” as required by Section 226.8(c) (8) (i) of Regulation Z. ;

C. Failing to disclose the annual percentage rate, calculated in acordance with Section 226.5 of Regulation Z, as required by Section 226.8(b) (2) of Regulation Z.

D. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in accordance with Sections 226.4 and 226.5 of Regulation Z, at the time and in the manner, form and amount required by Sections 226.6, 226.8, and 226.10 of Regulation Z.

Té is further ordered, That respondents shall forthwith deliver a copy of this order to cease and desist to each operating division, to all present and future franchisees and licensees, and to all personnel of respondents now or hereafter engaged in the offering for-sale, or sale of. respondents’ services, or in the collection of patrons’ accounts, in the consummation of any extension of consumer credit, or in any aspect of preparation, creation or placing of advertising; and that respondents secure from each such person a signed statement acknowledging receipt of said order.

It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in any of the corporate respondents, such as dissolution, assignment or sale resulting in the emergence of any successor corporation or corporations, the creation or dissolution of subsidiaries, or any other change in the corporations which may affect compliance obligations arising out of the order.

494-841-—73 By 810 FEDERAL5 1 2 1 1 3 1235 421 126 24 77.171249 “TRADE.5 1 2 1 1 4 1390 416 234 32 72.609177 COMMISSION’5 1 2 1 1 5 1650 407 191 39 86.372482 DECISIONS5 1 2 1 1 6 2119 462 2 2 16.121048 .3 1 2 2 0 0 791 479 1325 183 -1 4 1 2 2 1 0 1245 479 870 51 -1 5 1 2 2 1 1 1245 479 2 3 0.000000 .5 1 2 2 1 2 1366 497 167 29 78.948288 Complaints 1 2 2 1 3 1567 496 27 19 0.000000 ~..5 1 2 2 1 4 1963 487 34 37 95.647751 815 1 2 2 1 5 2016 500 99 30 29.976051 FTC;4 1 2 2 2 0 799 569 1317 45 -1 5 1 2 2 2 1 799 586 4 1 31.127983 -5 1 2 2 2 2 832 570 86 32 81.602791 [tis5 1 2 2 2 3 925 569 141 42 96.452515 furthers 1 2 2 2 4 1081 569 153 41 96.716118 ordered,5 1 2 2 2 5 1250 569 96 32 64.763374 That.5 1 2 2 2 6 1356 569 59 33 64.763374 thes 1 2 2 2 7 1430 569 223 42 96.595757 respondents5 1 2 2 2 8 1667 570 99 41 96.707001 shall,5 1 2 2 2 9 1785 564 113 54 96.495209 within5 1 2 2 2 10 1915 572 86 42 96.495209 sixty5 1 2 2 2 11 2024 572 92 42 23.920227 (60).4 1 2 2 3 0 791 619 1323 43 -1 5 1 2 2 3 1 791 620 86 42 96.981750 days5 1 2 2 3 2 894 620 92 32 96.644196 after5 1 2 2 3 3 1002 619 128 33 96.257645 services 1 2 2 3 4 1146 630 94 32 96.282333 upon5 1 2 2 3 5 1255 620 94 37 89.704132 them5 1 2 2 3 6 1366 620 40 31 89.704132 of5 1 2 2 3 7 1422 620 70 32 96.743195 this5 1 2 2 3 8 1508 620 122 41 86.475800 order,5 1 2 2 3 9 1630 620 61 33 66.624252 file.5 1 2 2 3 10 1706 621 88 33 72.466232 with5 1 2 2 3 11 1811 621 58 32 95.755356 thes 1 2 2 3 12 1886 622 228 39 96.175545 Commission2 1 3 0 0 0 781 670 1333 115 -1 3 1 3 1 0 0 787 670 1336 93 -1 4 1 3 1 1 0 790 670 1324 42 -1 5 1 3 1 1 1 790 682 19 21 96.710953 a5 1 3 1 1 2 827 671 138 31 96.086784 written5 1 3 1 1 3 980 674 117 38 96.208168 reports 1 3 1 1 4 1111 670 128 42 96.197014 settings 1 3 1 1 5 1252 670 124 32 96.603722 forth5 1 3 1 1 6 1379 682 29 20 65.943680 in:5 1 3 1 1 7 1421 671 107 31 74.113983 details 1 3 1 1 8 1538 671 63 31 96.549179 thes 1 3 1 1 9 1615 681 143 22 95.801842 manners 1 3 1 1 10 1770 672 74 32 95.801842 ands 1 3 1 1 11 1859 664 93 40 95.919167 forms 1 3 1 1 12 1968 674 146 31 10.709900 oftheir4 1 3 1 2 0 781 717 1072 68 -1 5 1 3 1 2 1 781 721 217 62 93.587135 compliance5 1 3 1 2 2 1007 721 86 31 96.871323 with5 1 3 1 2 3 1099 721 74 64 92.760208 this5 1 3 1 2 4 1183 717 102 68 45.975792 order.5 1 3 1 2 5 1298 734 8 19 45.975792 :5 1 3 1 2 6 1606 740 4 3 27.979797 ;5 1 3 1 2 7 1712 737 48 3 4.487755 vs5 1 3 1 2 8 1851 743 2 3 0.000000 ;2 1 4 0 0 0 1384 815 124 8 -1 3 1 4 1 0 0 1384 815 124 8 -1 4 1 4 1 1 0 1384 815 124 8 -1 5 1 4 1 1 1 1384 815 124 8 95.000000 2 1 5 0 0 0 1264 847 355 86 -1 3 1 5 1 0 0 1264 847 355 86 -1 4 1 5 1 1 0 1264 847 355 86 -1 5 1 5 1 1 1 1264 850 69 56 49.237877 by5 1 5 1 1 2 1336 878 72 28 88.897285 THES 1 5 1 1 3 1417 847 152 86 55.064041 Marrer5 1 5 1 1 4 1573 870 46 46 94.971458 OF.2 1 6 0 0 0 1163 940 586 93 -1 3 1 6 1 0 0 1163 940 586 93 -1 4 1 6 1 1 0 1163 940 586 93 -1 5 1 6 1 1 1 1163 943 46 55 65.517082 H.5 1 6 1 1 2 1213 943 27 85 92.422997 B5 1 6 1 1 3 1246 950 52 50 66.130859 A,5 1 6 1 1 4 1309 948 109 85 96.317459 FURS 1 6 1 1 5 1418 943 150 65 88.133255 CORP.,5 1 6 1 1 6 1578 941 64 68 96.275291 ET5 1 6 1 1 7 1651 940 98 70 75.022438 AL.2 1 7 0 0 0 802 1030 1261 129 -1 3 1 7 1 0 0 820 1030 1243 104 -1 4 1 7 1 1 0 821 1030 1242 76 -1 5 1 7 1 1 1 821 1039 159 54 96.480446 CONSENTS 1 7 1 1 2 994 1030 122 76 96.909088 ORDER,5 1 7 1 1 3 1118 1038 88 58 88.542274 ETC.,5 1 7 1 1 4 1222 1060 42 38 89.031670 IN5 1 7 1 1 5 1280 1033 127 69 96.171791 REGARDS 1 7 1 1 6 1414 1043 50 49 19.324753 ce)5 1 7 1 1 7 1474 1036 82 62 94.898972 THES 1 7 1 1 8 1559 1034 158 67 72.660416 “ALLEGED5 1 7 1 1 9 1732 1037 186 61 95.327141 VIOLATIONS 1 7 1 1 10 1935 1062 41 32 95.760902 OF5 1 7 1 1 11 1991 1063 72 20 96.243851 THEA 1 7 1 2 0 802 1090 1260 69 -1 5 1 7 1 2 1 802 1127 2 2 22.522652 -5 1 7 1 2 2 833 1106 141 47 84.688766 FEDERAL5 1 7 1 2 3 982 1094 109 65 96.450516 TRADES 1 7 1 2 4 1108 1095 219 61 95.957451 COMMISSIONS 1 7 1 2 5 1335 1095 80 61 93.068115 ANDS 1 7 1 2 6 1431 1096 73 60 96.758232 THES 1 7 1 2 7 1519 1106 75 47 93.606049 FURS 1 7 1 2 8 1604 1090 164 67 86.450096 PRODUCTS5 1 7 1 2 9 1786 1096 179 60 71.457268 LABELING5 1 7 1 2 10 1981 1112 81 40 96.690529 ACTS2 1 8 0 0 0 906 1157 1082 88 -1 3 1 8 1 0 0 906 1157 1082 88 -1 4 1 8 1 1 0 906 1157 1082 88 -1 5 1 8 1 1 1 906 1186 2 2 0.000000 ’5 1 8 1 1 2 931 1174 104 38 95.666161 Dockets 1 8 1 1 3 1046 1176 117 65 22.098732 C-2819.5 1 8 1 1 4 1173 1175 176 69 85.299385 Complaint,5 1 8 1 1 5 1354 1176 78 63 70.498215 Nov.5 1 8 1 1 6 1443 1187 41 30 95.923393 20,5 1 8 1 1 7 1465 1157 97 55 43.562675 19725 1 8 1 1 8 1581 1159 172 86 46.903206 —Deetsiom,5 1 8 1 1 9 1757 1159 77 53 89.768105 Nov.5 1 8 1 1 10 1840 1188 43 29 93.008461 20;5 1 8 1 1 11 1894 1161 94 52 58.422485 1972.2 1 9 0 0 0 780 1238 1325 125 -1 3 1 9 1 0 0 780 1238 1325 96 -1 4 1 9 1 1 0 780 1238 1325 62 -1 5 1 9 1 1 1 780 1262 127 33 96.185471 Consents 1 9 1 1 2 923 1262 86 25 96.454498 orders 1 9 1 1 3 1025 1249 152 45 96.903992 requiring5 1 9 1 1 4 1189 1268 22 27 79.287247 a5 1 9 1 1 5 1220 1238 75 56 94.240623 News 1 9 1 1 6 1305 1241 86 46 85.254158 Yorks 1 9 1 1 7 1408 1246 68 50 96.897156 City5 1 9 1 1 8 1492 1240 131 60 86.669540 furrier,5 1 9 1 1 9 1621 1244 119 55 77.684189 among5 1 9 1 1 10 1746 1238 94 49 91.204094 ‘others 1 9 1 1 11 1847 1241 108 52 92.396477 ‘things5 1 9 1 1 12 1973 1255 29 34 96.398941 to5 1 9 1 1 13 2020 1270 85 19 96.261871 cease4 1 9 1 2 0 850 1292 1070 71 -1 5 1 9 1 2 1 850 1300 203 58 90.716393 misbranding5 1 9 1 2 2 1062 1298 58 31 96.904930 ands 1 9 1 2 3 1123 1296 109 67 93.119087 falsely5 1 9 1 2 4 1244 1306 12 53 65.154068 «5 1 9 1 2 5 1247 1304 59 30 96.772354 ands 1 9 1 2 6 1291 1355 3 2 92.693794 d5 1 9 1 2 7 1319 1300 169 52 82.714890 deceptively5 1 9 1 2 8 1503 1304 11 31 34.703873 i5 1 9 1 2 9 1506 1295 150 60 95.725945 invoicing5 1 9 1 2 10 1662 1300 41 48 96.819000 its5 1 9 1 2 11 1712 1301 51 51 95.342545 furs 1 9 1 2 12 1772 1292 148 67 90.015976 products.2 1 10 0 0 0 1314 1360 263 85 -1 3 1 10 1 0 0 1314 1360 263 85 -1 4 1 10 1 1 0 1314 1360 263 85 -1 5 1 10 1 1 1 1314 1360 263 85 0.000000 Compraner2 1 11 0 0 0 762 1437 1340 1291 -1 3 1 11 1 0 0 770 1437 1332 580 -1 4 1 11 1 1 0 812 1437 1290 79 -1 5 1 11 1 1 1 812 1437 174 63 92.956604 Pursuant5 1 11 1 1 2 1014 1438 2 2 1.371948 §5 1 11 1 1 3 1010 1472 36 28 96.726486 to5 1 11 1 1 4 1063 1469 59 31 96.098335 thes 1 11 1 1 5 1140 1448 192 63 96.935036 provisions5 1 11 1 1 6 1351 1446 40 55 96.848663 of5 1 11 1 1 7 1408 1443 59 57 96.983498 thes 1 11 1 1 8 1485 1439 147 77 96.840164 Federal5 1 11 1 1 9 1651 1447 115 54 96.755531 Trades 1 11 1 1 10 1786 1449 236 63 89.282455 Commission.5 1 11 1 1 11 2032 1470 70 33 95.972656 Acta 1 11 1 2 0 774 1519 1327 44 -1 5 1 11 1 2 1 774 1513 69 38 96.903168 ands 1 11 1 2 2 860 1519 59 32 96.521088 thes 1 11 1 2 3 936 1519 75 40 96.458687 Furs 1 11 1 2 4 1029 1519 169 44 96.548141 Products5 1 11 1 2 5 1216 1519 170 43 96.754669 Labeling5 1 11 1 2 6 1403 1519 78 41 33.425095 Act,5 1 11 1 2 7 1489 1520 82 43 33.425095 ands 1 11 1 2 8 1578 1519 71 42 96.403961 by5 1 11 1 2 9 1653 1519 114 44 96.462479 virtues 1 11 1 2 10 1785 1520 42 32 97.007805 of5 1 11 1 2 11 1844 1513 59 46 96.413628 thes 1 11 1 2 12 1918 1515 183 48 96.164207 authority4 1 11 1 3 0 774 1544 1328 72 -1 5 1 11 1 3 1 774 1569 116 39 95.763268 vested5 1 11 1 3 2 907 1569 43 33 95.763268 in5 1 11 1 3 3 974 1570 29 32 96.872871 it5 1 11 1 3 4 1026 1570 45 41 96.872871 by5 1 11 1 3 5 1094 1560 83 48 66.947433 said:5 1 11 1 3 6 1193 1570 103 42 89.539284 Acts,.5 1 11 1 3 7 1312 1546 70 59 96.366783 thes 1 11 1 3 8 1396 1544 150 69 96.467247 Federal5 1 11 1 3 9 1557 1564 133 50 68.008659 ‘Trade.5 1 11 1 3 10 1696 1560 254 56 91.394829 Commission,5 1 11 1 3 11 1970 1572 132 42 96.516243 having4 1 11 1 4 0 775 1595 1325 73 -1 5 1 11 1 4 1 775 1631 118 21 95.454941 reasons 1 11 1 4 2 908 1624 36 28 95.667122 to5 1 11 1 4 3 959 1620 130 32 95.662270 believes 1 11 1 4 4 1104 1621 77 31 90.769661 that5 1 11 1 4 5 1197 1621 90 32 90.543884 H.B.5 1 11 1 4 6 1281 1596 50 69 56.851761 A, Fur Corp. ., a corporation, and Leopold Armer, Irving Himelfarb and Harold. Frishman, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the rules and regulations promulgated under the Fur Products Labeling 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:

ParacrarH 1. Respondent H.B.A. Fur Corp., is a corporation. organized, existing and doing business under and by virtue. of the laws of the State of New York.

Respondents Leopold Armer, Irving Himelfarb and Harold Frishman are officers of the corporate respondent. They formulate, direct and control the policies, acts and practices of the corporate respondent including those hereinafter set forth.

Respondents are manufacturers and wholesalers of fur products with their office and principal place of business located at 350 Seventh Avenue, New York, New York.

Par 2. ‘Respondents are now and for some time last past have been engaged in the introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and have manufac- EY B.S A FUR CORP:, ET AL. 811 810 -° : . “+ Complaint tured for sale, sold, advertised, offered for sale; transported and: -dis-: tributed fur products. ‘which have been made in whole or in part. of furs which have been shipped and received. in commerce, asthe terms “commerce,” “fur” and “fur products” are defined i in the Fur Products Labeling Act, . Par. 3. Certain of said fur products.were misbranded in that they were falsely and. deceptively labeled to show that fur contained therein was natural, when in fact such fur was. ‘pointed, bleached, dyed, ‘tipdyed, or otherwise artificially colored, in violation of Section 4(1) of the Fur Products Labeling Act.

Par. 4, Certain of said fur products - were misbranded. i in that they were not labeled as ‘required under. the. provisions of Section 4(2) of the Fur Products Labeling Act and in the manner and form prescribed by the, rules and regulations. promulgated under such Act.” Among such misbranded fur products, but not limited thereto, were fur products with labels which failed to disclose that the ‘fur contained in the fur products | was bleached, dyed, ‘or. ‘otherwise artificially colored, when such wasthe fact.

Par. 5. Certain of said fur products were falsely and deceptively invoiced by the respondents i in that they were not invoiced as required by Section 5(b) (1) of the Fur Products Labeling Act and the rules” and regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed to disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact. Par. 6. Certain of said fur products were falsély and deceptively invoiced in that certain of said fur products were invoiced to show that the fur contained therein was natural when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 5(b) (2) of the Fur Products Labeling Act. Par. 7. Respondents furnished false guaranties under Section 10(b) of the Fur Products Labeling Act with respect to certain of their fur ~ products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal Trade Commission when respondents in furnishing such guaranties had reason to believe that the fur products so falsely guarantied would be introduced, sold, transported and distributed in commerce, in violation of Rule 48(c) of said rules and regulations under the Fur Products Labeling Act and Section 10(b) of said Act.

Par. 8. The aforesaid acts and practices of respondents as herein alleged, are in violation of the Fur Products Labeling Act and 812. FEDERAL TRADE: COMMISSION. DECISIONS» Decision and Order 81 EEC.

the rules and regulations promulgated thereunder and constitute unfair methods of competition and°unfair and deceptive acts and practices in commerce. under.the Federal Trade Commission Act. Decision AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named’ in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the New York 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 Fur Products Labeling Act; and “The respondent and ecuniel for the Commission having thereafter executed an agreement containing a consent order, an ‘admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not. constitute an admission, by respondents that the law has been violated as alleged in such com-. plaint; and waivers and other provisions ag required by the Commission’s rules; and Tho Commission having thereafter considered the matter and having determined that it has reason to believe that the respondents have violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public records for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.84(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent H.B. A. Fur Corp., is a 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 350 Seventh Avenue, New York, New York.

Respondents Leopold Armer, Irving Himelfarb and Harold Frishman are officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation and their address is the same as that of said corporation.

2. The Federal Trade Commission has juridiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

H. B.A. FUR CORP., ET AL. 813 810 : , Decision and Order ORDER It is ordered, That H.B.A. Fur Corp., a corporation, its successors and assigns, and its officers, and Leopold Armer, Irving Himelfarb and Harold Frishman, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division, or other device in connection with the introduction, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection ‘with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms “commerce,” “fur” and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Misbranding any fur product by:

1. Representing directly or by implication ona label that the fur contained in such fur product is natural when such fur is pointed, bleached, dyed, tip- -dyed, or otherwise artificially colored. — 2. Failing to affix a label to such fur product showi ing in words and in figures plainly legible all of the information required to be disclosed: by each of the subsections of Section 4(2) of the Fur Products Labeling Act.

B. Falsely or deceptively invoicing any fur product by: 1. Failing to furnish an invoice, as the term “invoice” is defined in the Fur Products Labeling Act, showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act.

2. Representing directly or by implication on an invoice that the fur contained in such fur product is natural, when such fur is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

[tis further ordered, That H.B.A. Fur Corp., a corporation, its successors and assigns, and its officers, and Leopold Armer, Irving Himelfarb and Harold Frishman, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division, or other device, do forthwith cease and desist from furnishing a false guaranty that any fur product is not misbranded, falsely invoiced or falsely advertised when the respondents have reason to believe that such fur 814. FEDERAL TRADE’ COMMISSION ‘DECISIONS Decision and Order 81 RTC.

product may be introduced,. sold, . transported, or distributed in commerce.

It is further ordered, That respondents notify the Commission at least 30 days prior to any proposed change in the corporate respond- ent such: as dissolution, assigriment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries ‘or any other change i in the corporation ‘which may affect’ ‘compliance obligations arising out of the order.

lt is further ordered, That the individual respondents named: herein ‘promptly notify the Commission of the discontinuance of their pres-- ‘ent. business or employment and of their affiliation with a new business ‘or employment. Such notice shall include respondents’ current business address and a statement as to the nature of the business or employment in which’ they are engaged: as welll as a description of their duties and responsibilities. ” - - It 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. 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 the: order to cease and desist contained herein.