Lanier Carpets, Inc

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

In toe Marrer or LANIER CARPETS, INC., ET5 1 5 1 1 5 1757 1896 75 32 94.474167 AL.2 1 6 0 0 0 863 1986 1183 82 -1 3 1 6 1 0 0 863 1986 1183 82 -1 4 1 6 1 1 0 863 1986 1183 32 -1 5 1 6 1 1 1 863 1986 156 22 96.082054 CONSENTS 1 6 1 1 2 1030 1986 114 31 93.290741 ORDER,5 1 6 1 1 3 1154 1988 83 30 91.925827 ETC.,5 1 6 1 1 4 1248 1989 41 20 95.392570 IN5 1 6 1 1 5 1299 1989 129 22 96.138695 REGARDS 1 6 1 1 6 1438 1989 40 22 95.675552 TO5 1 6 1 1 7 1489 1990 72 21 77.337708 THES 1 6 1 1 8 1572 1989 147 22 96.601227 ALLEGED5 1 6 1 1 9 1729 1991 184 21 96.393517 VIOLATIONS 1 6 1 1 10 1924 1992 42 21 96.677979 OF5 1 6 1 1 11 1976 1992 70 22 72.765854 THEA 1 6 1 2 0 877 2031 1154 37 -1 5 1 6 1 2 1 877 2037 148 22 96.462769 FEDERAL5 1 6 1 2 2 1040 2038 107 21 96.663162 TRADES 1 6 1 2 3 1162 2038 220 24 96.516701 COMMISSIONS 1 6 1 2 4 1397 2041 72 21 95.721794 ANDS 1 6 1 2 5 1484 2031 72 31 95.721794 THES 1 6 1 2 6 1571 2041 213 22 96.587585 FLAMMABLE5 1 6 1 2 7 1798 2042 138 23 96.747795 FABRICS5 1 6 1 2 8 1952 2043 79 25 95.143623 ACTS2 1 7 0 0 0 902 2112 1102 36 -1 3 1 7 1 0 0 902 2112 1102 36 -1 4 1 7 1 1 0 902 2112 1102 36 -1 5 1 7 1 1 1 902 2112 113 25 91.108734 Dockets 1 7 1 1 2 1036 2114 115 33 59.502090 C-2322.5 1 7 1 1 3 1174 2115 172 31 95.708710 Complaint,5 1 7 1 1 4 1367 2117 72 24 96.405357 Nov.5 1 7 1 1 5 1459 2118 42 28 93.221123 22,5 1 7 1 1 6 1520 2118 243 24 90.705421 1972—Decisions 1 7 1 1 7 1781 2118 72 25 96.209534 Nov.5 1 7 1 1 8 1873 2118 42 30 96.209534 22,5 1 7 1 1 9 1934 2119 70 25 96.127083 19722 1 8 0 0 0 794 2187 1326 209 -1 3 1 8 1 0 0 794 2187 1326 209 -1 4 1 8 1 1 0 794 2187 1326 37 -1 5 1 8 1 1 1 794 2187 126 26 96.575935 Consents 1 8 1 1 2 934 2188 94 26 83.573578 orders 1 8 1 1 3 1036 2190 150 31 83.573578 requiring5 1 8 1 1 4 1201 2197 16 19 96.766609 a5 1 8 1 1 5 1232 2191 117 30 96.844231 Dalton,5 1 8 1 1 6 1366 2187 133 36 96.408867 Georgia,5 1 8 1 1 7 1514 2193 223 25 95.864609 manufacturers 1 8 1 1 8 1750 2195 58 23 95.864609 ands 1 8 1 1 9 1823 2194 119 25 96.760941 retailers 1 8 1 1 10 1957 2196 31 23 96.522614 of5 1 8 1 1 11 2001 2196 119 28 96.522614 carpets4 1 8 1 2 0 865 2232 1255 35 -1 5 1 8 1 2 1 865 2232 56 24 96.757347 ands 1 8 1 2 2 937 2238 77 23 96.470734 rugs,5 1 8 1 2 3 1030 2238 105 24 96.023888 among5 1 8 1 2 4 1150 2234 85 23 96.704445 others 1 8 1 2 5 1250 2235 99 29 96.330421 things5 1 8 1 2 6 1364 2236 30 24 96.392044 to5 1 8 1 2 7 1408 2241 85 19 95.872238 ceases 1 8 1 2 8 1506 2236 240 30 95.872238 manufacturing5 1 8 1 2 9 1759 2237 47 24 96.618454 for5 1 8 1 2 10 1820 2237 69 29 95.728905 sale,5 1 8 1 2 11 1905 2237 164 30 96.258392 importing,5 1 8 1 2 12 2081 2233 39 30 96.522255 or4 1 8 1 3 0 862 2272 1253 35 -1 5 1 8 1 3 1 862 2272 191 32 96.448784 distributing5 1 8 1 3 2 1068 2281 59 23 96.257088 any5 1 8 1 3 3 1141 2277 131 29 96.918152 product,5 1 8 1 3 4 1288 2277 103 30 96.076447 fabric,5 1 8 1 3 5 1409 2284 33 18 96.976166 or5 1 8 1 3 6 1458 2278 113 25 95.998932 related5 1 8 1 3 7 1587 2280 136 24 96.172501 materials 1 8 1 3 8 1738 2280 96 24 96.172501 which5 1 8 1 3 9 1850 2280 69 24 96.056793 fails5 1 8 1 3 10 1937 2281 30 24 96.566582 to5 1 8 1 3 11 1983 2281 132 25 92.658699 conform4 1 8 1 4 0 863 2316 1257 36 -1 5 1 8 1 4 1 863 2316 31 25 96.927231 to5 1 8 1 4 2 915 2322 38 19 96.681000 an5 1 8 1 4 3 973 2317 165 29 96.727890 applicable5 1 8 1 4 4 1157 2319 143 25 96.094360 standards 1 8 1 4 5 1321 2319 32 25 96.094360 of5 1 8 1 4 6 1372 2319 206 33 95.555252 flammability5 1 8 1 4 7 1598 2328 33 18 96.477364 or5 1 8 1 4 8 1652 2322 163 28 95.441711 regulations 1 8 1 4 9 1836 2322 97 25 94.624603 issued5 1 8 1 4 10 1954 2324 92 23 94.624603 under5 1 8 1 4 11 2066 2324 54 23 95.697762 thea 1 8 1 5 0 862 2359 669 37 -1 5 1 8 1 5 1 862 2359 164 28 96.682930 provisions5 1 8 1 5 2 1036 2360 34 24 96.910042 of5 1 8 1 5 3 1081 2361 50 24 96.799835 thes 1 8 1 5 4 1142 2361 181 25 96.544403 Flammable5 1 8 1 5 5 1335 2362 121 34 96.410202 Fabrics5 1 8 1 5 6 1467 2363 64 25 96.624557 Act.2 1 9 0 0 0 1346 2443 214 34 -1 3 1 9 1 0 0 1346 2443 214 34 -1 4 1 9 1 1 0 1346 2443 214 34 -1 5 1 9 1 1 1 1346 2443 214 34 82.674812 Complaint2 1 10 0 0 0 789 2523 1331 202 -1 3 1 10 1 0 0 789 2523 1331 202 -1 4 1 10 1 1 0 834 2523 1286 44 -1 5 1 10 1 1 1 834 2523 173 33 96.819420 Pursuant5 1 10 1 1 2 1026 2528 36 29 96.864227 to5 1 10 1 1 3 1082 2526 58 31 96.990456 thes 1 10 1 1 4 1159 2527 194 40 96.904816 provisions5 1 10 1 1 5 1372 2528 39 32 96.781296 of5 1 10 1 1 6 1429 2528 58 32 96.534050 thes 1 10 1 1 7 1506 2530 146 31 96.355652 Federal5 1 10 1 1 8 1671 2530 113 32 96.614517 Trades 1 10 1 1 9 1803 2530 227 33 96.751366 Commissions 1 10 1 1 10 2046 2532 74 31 73.887436 Act.4 1 10 1 2 0 790 2574 1324 48 -1 5 1 10 1 2 1 790 2574 69 31 96.524628 ands 1 10 1 2 2 874 2575 58 31 96.524628 thes 1 10 1 2 3 946 2575 214 33 96.671921 Flammable5 1 10 1 2 4 1175 2578 141 32 96.218086 Fabrics5 1 10 1 2 5 1330 2579 79 40 96.848038 Act,5 1 10 1 2 6 1425 2590 37 21 96.719261 as5 1 10 1 2 7 1475 2581 177 39 96.719261 amended,5 1 10 1 2 8 1666 2581 68 31 96.824097 ands 1 10 1 2 9 1748 2581 45 41 97.005806 by5 1 10 1 2 10 1807 2581 112 33 96.977821 virtues 1 10 1 2 11 1933 2582 40 32 96.681992 of5 1 10 1 2 12 1985 2583 58 31 93.259193 thes 1 10 1 2 13 2056 2593 58 22 93.259193 au-4 1 10 1 3 0 790 2624 1328 50 -1 5 1 10 1 3 1 790 2624 132 43 96.918053 thority5 1 10 1 3 2 948 2627 115 32 95.801392 vested5 1 10 1 3 3 1088 2627 36 32 95.801392 in5 1 10 1 3 4 1148 2628 38 31 93.643997 it5 1 10 1 3 5 1200 2629 45 41 93.643997 by5 1 10 1 3 6 1269 2629 74 32 96.851593 said5 1 10 1 3 7 1367 2630 96 41 96.732872 Acts,5 1 10 1 3 8 1489 2631 58 32 96.820953 thes 1 10 1 3 9 1571 2632 145 31 95.967598 Federal5 1 10 1 3 10 1738 2632 115 32 95.967598 Trades 1 10 1 3 11 1876 2632 242 42 92.559586 Commission,4 1 10 1 4 0 789 2675 1328 50 -1 5 1 10 1 4 1 789 2675 129 42 95.990326 having5 1 10 1 4 2 935 2688 119 22 96.905006 reasons 1 10 1 4 3 1069 2682 36 28 96.817062 to5 1 10 1 4 4 1119 2679 129 37 96.607231 believes 1 10 1 4 5 1263 2680 77 32 96.437210 that5 1 10 1 4 6 1355 2681 127 32 96.248314 Lanier5 1 10 1 4 7 1495 2682 158 41 93.298149 Carpets,5 1 10 1 4 8 1669 2683 82 41 93.219788 Inc.,5 1 10 1 4 9 1765 2694 19 21 95.926857 a5 1 10 1 4 10 1800 2685 229 40 96.727852 corporation,5 1 10 1 4 11 2044 2685 73 32 96.641792 and “LANIER CARPETS, INC, ET AL. 827 826 Decision and Order Simeon L. Archer, individually and as an officer of the said corpération, hereinafter referred to as respondents, have violated the provisions of the said Acts and the rules and regulations promulgated under the Flammable Fabrics Act, as amended, 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. Respondent Lanier Carpets, Inc., is a corporation organized, existing and doing business under and by virtue of the laws: of the State of Georgia. Respondent Simeon L. Archer is an officer of the said corporate respondent. He formulates, directs, and controls the acts, practices, and policies of the said corporation. Respondents are engaged in the manufacture and sale of carpets and rugs, with their principal place of business located at 705 Straight Street, Dalton, Georgia.

Par. 2. Respondents. are now and for some time last past have been engaged i in the manufacturing for sale, sale and offering for sale, in commerce, and have introduced, delivered for introduction, transported and caused to be transported in commerce, and have sold or | delivered. after sale or shipment in commerce, products, as the terms “commerce” and “product,” are defined in the Flammable Fabrics Act, as amended, which products, fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended. Among such products mentioned hereinabove were carpets and rugs in style “Colony HDR,” subject to Department of Commerce Standard For The Surface Flammability of Carpets and Rugs (DOC FF 1-70). Par. 3. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act, as amended, and the rules and regulations promulgated thereunder, and as such constituted, and now constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of 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 Division of Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation 828 FEDERAL TRADE COMMISSION. DECISIONS Decision and Order: 81 ET, C.

of the Federal Trade Commission Act, and the Flammable. Fabrics Act, as amended;.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 admission 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 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 record 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 Lanier Carpets, Inc., is a corporation organized, existing and doing business under and iby virtue of the laws of the State of Georgia.

Respondent Simeon L. Archer is an officer of the said corporation. He formulates, directs and controls the acts, ‘practices and policies of the said corporation.

Respondents are engaged in the manufacture and sale of carpets and rugs, with the office and principal place of business of respondents located at 705 Straight Street, Dalton, Georgia. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered, That respondent Lanier Carpets, Inc., a corporation, ‘its successors and assigns, and its officers, and respondent Simeon L. Archer, individually and as an officer of said corporation and re- ‘spondents’ agents, representatives and employees directly or through ‘any corporation, subsidiary, division, or other device, do forthwith cease and desist from manufacturing for sale, selling, offering for sale, in commerce, or importing into the United ‘States, or introducing, de-livering for introduction, transporting or causing to be transported in commerce or selling or delivering after sale or shipment in com- LANIER CARPETS, INC., ET AL. 829 826 | Decision and Order merce, any product, fabric, or related material; or manufacturing for sale, selling, or offering for sale, any product made of fabric or re~ lated material which has been shipped or received in commerce, as “commerce,” “product,” “fabric” and “related material” are. defined: in the Flammable Fabrics Act, as amended, which product, fabric or related material fails to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act.

It is further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products - which gave rise to this complaint, of the flammable nature of said products and effect the recall of said products from such customers. It is further ordered, That the respondents herein either process the products which gave rise to the complaint so as to bring them into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said products. - It is further ordered, That the provisions of this order with respect to customer notification, recall and processing or destruction shail be applicable to “Colony HDR” Style carpets as designated in subparagraph one of Paragraph Two of the complaint giving rise to this order, and any other styles determined to be in viclation of the Flammable Fabrics Act, as amended, prior to the date of acceptance, by the Com- © mission of the final compliance report.

It is further ordered, That respondents herein shall, within ten (10) days after service upon them of this order, file with the Commission a special report in writing setting forth the respondents’ intentions as to compliance with this order. This special report shall also advise the Commission fully and specifically concerning (1) the identity of the products which gave rise to the complaint, (2) the identity of the pur- _ chasers of said products, (3) the amount of said products on hand and in the channels of commerce, (4) any action taken and further actions proposed to be taken to notify customers of the flammability of said products and effect the recall of said products from customers, and the results thereof, (5) any disposition of said products since March 8, 1972, and (6) any action taken or proposed to be taken to bring said products into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or to destroy said products, and the results of such action. Respondents will submit with their report, a complete description of each style of carpet or rug currently in inventory or production. Upon request, respondents will forward to the Commission for testing a sample of any such carpet or rug.

830 © FEDERAL TRADE COMMISSION DECISIONS Decisions 1 1 1 2 2 1440 485 58 46 95.997086 ands 1 1 1 2 3 1518 484 93 42 96.582840 Orders 1 1 1 2 4 1721 484 2 2 34.003021 ‘5 1 1 1 2 5 1957 483 34 25 87.180901 815 1 1 1 2 6 2010 483 29 24 52.456741 ¥F.5 1 1 1 2 7 2044 483 65 40 84.247871 T.C.2 1 2 0 0 0 775 524 1334 967 -1 3 1 2 1 0 0 776 524 1333 331 -1 4 1 2 1 1 0 823 524 1285 79 -1 5 1 2 1 1 1 823 557 37 31 79.400513 It5 1 2 1 1 2 877 557 29 32 94.275513 is5 1 2 1 1 3 925 557 141 41 96.743378 furthers 1 2 1 1 4 1084 557 153 42 96.245514 ordered,5 1 2 1 1 5 1256 535 92 54 96.532982 That5 1 2 1 1 6 1361 529 231 74 96.391113 respondents5 1 2 1 1 7 1609 555 117 47 96.851784 notify5 1 2 1 1 8 1746 556 58 31 96.862747 thes 1 2 1 1 9 1822 524 228 78 94.575867 Commissions 1 2 1 1 10 2071 559 37 36 96.882668 at4 1 2 1 2 0 776 598 1333 69 -1 5 1 2 1 2 1 776 608 91 33 82.296814 Jeast5 1 2 1 2 2 880 610 40 30 96.319954 305 1 2 1 2 3 931 605 86 45 96.631668 days5 1 2 1 2 4 1028 608 98 42 96.798576 prior5 1 2 1 2 5 1137 612 35 28 96.952644 to5 1 2 1 2 6 1184 612 68 38 96.923347 any5 1 2 1 2 7 1264 605 172 45 96.277306 proposed5 1 2 1 2 8 1448 607 151 42 96.716614 changes 1 2 1 2 9 1590 618 37 20 96.473572 in5 1 2 1 2 10 1639 608 60 31 96.473572 thes 1 2 1 2 11 1709 598 179 69 96.923759 corporate5 1 2 1 2 12 1901 607 208 41 95.471092 respondent4 1 2 1 3 0 775 632 1333 69 -1 5 1 2 1 3 1 775 660 89 31 65.170822 such5 1 2 1 3 2 881 670 36 21 96.964088 as5 1 2 1 3 3 934 659 216 42 96.572128 dissolution,5 1 2 1 3 4 1167 659 211 48 96.405922 assignments 1 2 1 3 5 1395 670 40 21 95.591026 or5 1 2 1 3 6 1452 658 69 32 95.591026 sales 1 2 1 3 7 1537 632 163 68 96.449692 resulting5 1 2 1 3 8 1728 657 6 6 50.662136 45 1 2 1 3 9 1721 667 50 23 22.271477 in.5 1 2 1 3 10 1780 658 58 32 22.271477 thes 1 2 1 3 11 1844 668 205 32 96.569702 emergence5 1 2 1 3 12 2066 657 42 32 96.569702 of4 1 2 1 4 0 780 708 1328 59 -1 5 1 2 1 4 1 777 709 24 34 66.539703 @5 1 2 1 4 2 818 717 169 26 96.261383 successors 1 2 1 4 3 1004 710 230 57 97.002495 corporation,5 1 2 1 4 4 1252 711 58 32 95.935806 thes 1 2 1 4 5 1325 710 154 32 96.528046 creations 1 2 1 4 6 1495 715 39 26 96.424553 or5 1 2 1 4 7 1552 709 203 33 96.888412 dissolution5 1 2 1 4 8 1772 709 41 32 97.011192 of5 1 2 1 4 9 1830 704 228 45 94.770233 subsidiaries5 1 2 1 4 10 2069 719 39 26 94.770233 or4 1 2 1 5 0 781 755 1328 64 -1 5 1 2 1 5 1 779 770 70 39 96.545158 any5 1 2 1 5 2 872 763 99 31 96.012627 others 1 2 1 5 3 994 762 132 57 96.434013 changes 1 2 1 5 4 1147 761 39 33 96.843842 in5 1 2 1 5 5 1207 762 59 32 96.164268 thes 1 2 1 5 6 1289 760 219 44 96.235893 corporations 1 2 1 5 7 1533 760 112 32 96.235893 which5 1 2 1 5 8 1667 771 79 31 96.690002 may5 1 2 1 5 9 1771 760 103 43 96.205833 affects 1 2 1 5 10 1898 755 211 63 96.833191 compliance4 1 2 1 6 0 779 812 717 43 -1 5 1 2 1 6 1 779 813 210 42 96.527466 obligations5 1 2 1 6 2 999 813 132 42 96.329460 arising5 1 2 1 6 3 1139 817 62 29 96.021126 outs 1 2 1 6 4 1209 813 41 33 96.601089 of5 1 2 1 6 5 1260 813 59 39 82.443825 thes 1 2 1 6 6 1328 813 111 43 82.443825 order.5 1 2 1 6 7 1494 812 2 2 45.413151 _3 1 2 2 0 0 776 850 1332 312 -1 4 1 2 2 1 0 823 850 1285 58 -1 5 1 2 2 1 1 823 861 37 36 91.133797 It5 1 2 2 1 2 873 865 29 32 88.182327 is5 1 2 2 1 3 916 864 141 44 96.558182 furthers 1 2 2 1 4 1070 863 154 41 96.274910 ordered,5 1 2 2 1 5 1239 864 92 40 96.779968 That5 1 2 2 1 6 1345 854 59 42 96.706818 thes 1 2 2 1 7 1419 853 195 50 96.490044 individuals 1 2 2 1 8 1631 861 206 42 96.388374 respondents 1 2 2 1 9 1852 862 123 32 95.953232 named5 1 2 2 1 10 1989 850 119 55 96.934677 hereina 1 2 2 2 0 778 903 1330 55 -1 5 1 2 2 2 1 778 916 181 42 96.408119 promptly5 1 2 2 2 2 974 915 117 42 96.779785 notify5 1 2 2 2 3 1106 916 59 32 96.649086 thes 1 2 2 2 4 1180 910 227 38 96.163437 Commissions 1 2 2 2 5 1423 914 40 33 96.196533 of5 1 2 2 2 6 1477 909 59 36 96.276680 thes 1 2 2 2 7 1552 912 277 34 96.298370 discontinuance5 1 2 2 2 8 1843 912 42 33 96.967934 of5 1 2 2 2 9 1899 911 62 39 96.808952 his.5 1 2 2 2 10 1971 903 137 51 96.364746 presenta 1 2 2 3 0 776 956 1332 53 -1 5 1 2 2 3 1 776 968 157 32 71.664001 business5 1 2 2 3 2 950 978 40 21 96.972763 or5 1 2 2 3 3 1001 967 237 42 96.306412 employment5 1 2 2 3 4 1255 965 70 41 96.944801 ands 1 2 2 3 5 1340 966 40 32 96.885704 of5 1 2 2 3 6 1396 965 55 32 96.919769 his5 1 2 2 3 7 1468 963 179 36 96.579483 affiliations 1 2 2 3 8 1664 963 85 33 96.902069 with5 1 2 2 3 9 1767 974 20 21 96.980164 a5 1 2 2 3 10 1808 974 62 32 65.653442 news 1 2 2 3 11 1887 956 221 50 96.731117 business5 1 2 2 3 12 2063 952 46 61 96.731117 or4 1 2 2 4 0 777 1009 1329 65 -1 5 1 2 2 4 1 777 1010 245 50 95.803734 employment.5 1 2 2 4 2 1042 1019 93 34 96.199364 Such5 1 2 2 4 3 1152 1018 112 33 96.199364 notices 1 2 2 4 4 1281 1009 89 60 95.256393 shall5 1 2 2 4 5 1389 1016 137 40 94.962685 includes 1 2 2 4 6 1544 1011 234 63 88.901840 respondent’s5 1 2 2 4 7 1796 1017 138 30 95.218224 currents 1 2 2 4 8 1951 1013 155 39 95.218224 business4 1 2 2 5 0 777 1063 1331 58 -1 5 1 2 2 5 1 777 1081 44 21 95.161491 or5 1 2 2 5 2 835 1069 255 43 95.197311 employment5 1 2 2 5 3 1093 1075 26 26 95.197311 in5 1 2 2 5 4 1135 1067 112 43 96.478233 which5 1 2 2 5 5 1251 1058 34 58 96.478233 he5 1 2 2 5 6 1319 1062 30 38 96.972115 is5 1 2 2 5 7 1365 1067 155 54 95.163490 engaged5 1 2 2 5 8 1536 1066 37 32 96.146507 as5 1 2 2 5 9 1588 1066 77 45 96.058121 wells 1 2 2 5 10 1681 1065 37 33 92.140984 as5 1 2 2 5 11 1734 1076 20 41 92.140984 a5 1 2 2 5 12 1771 1058 210 49 96.233124 descriptions 1 2 2 5 13 1997 1064 39 32 96.988670 of5 1 2 2 5 14 2050 1061 58 49 96.988670 his4 1 2 2 6 0 776 1118 497 45 -1 5 1 2 2 6 1 776 1120 121 33 96.616791 duties5 1 2 2 6 2 902 1121 69 41 96.898651 ands 1 2 2 6 3 981 1118 292 49 96.655136 responsibilities.3 1 2 3 0 0 780 1149 1327 115 -1 4 1 2 3 1 0 823 1149 1284 71 -1 5 1 2 3 1 1 823 1173 37 31 66.708817 It5 1 2 3 1 2 874 1172 30 32 94.957382 is5 1 2 3 1 3 916 1171 144 43 96.820580 furthers 1 2 3 1 4 1075 1165 158 46 96.613670 ordered,5 1 2 3 1 5 1245 1170 92 33 96.556488 That5 1 2 3 1 6 1353 1169 59 32 96.556488 thes 1 2 3 1 7 1429 1154 208 66 96.217079 respondents 1 2 3 1 8 1651 1157 220 61 95.637558 corporations 1 2 3 1 9 1887 1162 90 50 95.213600 shall5 1 2 3 1 10 1995 1149 112 49 88.030624 forth-4 1 2 3 2 0 780 1202 1326 62 -1 5 1 2 3 2 1 780 1223 86 34 96.953346 with5 1 2 3 2 2 883 1223 184 33 96.945526 distributes 1 2 3 2 3 1080 1234 20 20 96.880333 a5 1 2 3 2 4 1115 1233 87 34 96.880333 copy5 1 2 3 2 5 1216 1222 40 40 96.970245 of5 1 2 3 2 6 1270 1221 69 32 96.546906 this5 1 2 3 2 7 1354 1220 101 33 96.489204 orders 1 2 3 2 8 1469 1218 41 33 96.489204 to5 1 2 3 2 9 1516 1218 87 38 96.309296 each5 1 2 3 2 10 1617 1218 40 33 96.309296 of5 1 2 3 2 11 1665 1217 53 45 96.477135 its5 1 2 3 2 12 1731 1214 184 45 96.687988 operating5 1 2 3 2 13 1930 1202 176 62 96.947746 divisions.3 1 2 4 0 0 776 1257 1332 212 -1 4 1 2 4 1 0 822 1257 1285 59 -1 5 1 2 4 1 1 822 1275 38 32 68.203728 It5 1 2 4 1 2 869 1276 30 31 68.203728 is5 1 2 4 1 3 910 1274 141 42 96.799934 furthers 1 2 4 1 4 1061 1271 154 42 96.549248 ordered,5 1 2 4 1 5 1222 1271 97 34 95.992760 That5 1 2 4 1 6 1330 1264 58 40 95.992760 thes 1 2 4 1 7 1393 1262 238 53 92.162903 respondents5 1 2 4 1 8 1629 1258 124 43 91.955742 herein5 1 2 4 1 9 1764 1268 107 40 95.649277 shall,5 1 2 4 1 10 1878 1257 122 53 96.252380 within5 1 2 4 1 11 2012 1257 95 51 96.033363 sixty4 1 2 4 2 0 778 1304 1328 79 -1 5 1 2 4 2 1 778 1325 22 42 38.888897 (5 1 2 4 2 2 801 1327 61 56 91.414597 60)5 1 2 4 2 3 882 1327 85 41 96.976997 days5 1 2 4 2 4 980 1322 93 36 95.493874 after5 1 2 4 2 5 1085 1324 128 39 96.662392 services 1 2 4 2 6 1224 1334 95 31 96.907326 upon5 1 2 4 2 7 1331 1315 95 40 96.628044 them5 1 2 4 2 8 1438 1322 40 32 96.939384 of5 1 2 4 2 9 1490 1320 72 33 96.481712 this5 1 2 4 2 10 1575 1320 110 40 96.952072 order,5 1 2 4 2 11 1699 1319 56 43 96.708900 files 1 2 4 2 12 1768 1319 86 42 96.812538 with5 1 2 4 2 13 1867 1319 58 31 96.815910 thes 1 2 4 2 14 1940 1304 166 58 92.405609 Commis-4 1 2 4 3 0 780 1360 1328 73 -1 5 1 2 4 3 1 780 1378 77 32 96.524796 sions 1 2 4 3 2 873 1389 20 21 96.856247 a5 1 2 4 3 3 897 1380 131 40 96.915558 reports 1 2 4 3 4 1041 1377 39 32 96.981316 in5 1 2 4 3 5 1096 1375 143 43 96.905876 writings 1 2 4 3 6 1255 1373 130 43 96.744110 settings 1 2 4 3 7 1401 1372 122 34 96.726212 forth5 1 2 4 3 8 1515 1375 38 29 96.076065 in5 1 2 4 3 9 1558 1371 118 33 96.076065 details 1 2 4 3 10 1692 1360 66 57 96.646667 thes 1 2 4 3 11 1766 1380 143 22 96.658386 manners 1 2 4 3 12 1926 1369 73 64 96.515007 ands 1 2 4 3 13 2014 1365 94 43 96.510048 forma 1 2 4 4 0 776 1423 824 68 -1 5 1 2 4 4 1 776 1430 41 32 96.444130 in5 1 2 4 4 2 828 1418 111 43 96.756294 which5 1 2 4 4 3 946 1428 85 57 96.689545 they5 1 2 4 4 4 1041 1428 87 32 95.088974 have5 1 2 4 4 5 1137 1425 169 44 95.088974 complied5 1 2 4 4 6 1317 1425 97 66 79.208313 with5 1 2 4 4 7 1411 1423 71 34 96.206474 this5 1 2 4 4 8 1491 1423 109 33 96.027336 order.2 1 3 0 0 0 1383 1523 124 6 -1 3 1 3 1 0 0 1383 1523 124 6 -1 4 1 3 1 1 0 1383 1523 124 6 -1 5 1 3 1 1 1 1383 1523 124 6 95.000000 2 1 4 0 0 0 1078 1578 720 132 -1 3 1 4 1 0 0 1078 1566 720 144 -1 4 1 4 1 1 0 1256 1578 374 33 -1 5 1 4 1 1 1 1256 1580 48 31 94.987328 In5 1 4 1 1 2 1325 1566 74 45 70.753563 Thes 1 4 1 1 3 1420 1578 148 32 84.998085 Marrer5 1 4 1 1 4 1589 1587 41 22 96.349884 or4 1 4 1 2 0 1078 1665 720 45 -1 5 1 4 1 2 1 1078 1665 249 40 96.521011 BEATRICE5 1 4 1 2 2 1350 1669 161 35 91.966103 FOODS5 1 4 1 2 3 1534 1669 84 41 61.566540 CO.,5 1 4 1 2 4 1639 1669 64 32 96.628044 ET5 1 4 1 2 5 1724 1668 74 33 95.626480 AL.2 1 5 0 0 0 782 1757 1328 82 -1 3 1 5 1 0 0 782 1757 1328 82 -1 4 1 5 1 1 0 782 1757 1328 44 -1 5 1 5 1 1 1 782 1769 160 22 96.130760 CONSENTS 1 5 1 1 2 957 1768 115 29 93.281174 ORDER,5 1 5 1 1 3 1086 1767 83 30 90.483681 ETC.,5 1 5 1 1 4 1184 1767 41 21 96.637787 IN5 1 5 1 1 5 1241 1766 128 22 95.528610 REGARDS 1 5 1 1 6 1383 1766 42 21 96.564888 TO5 1 5 1 1 7 1439 1765 72 22 96.171616 THES 1 5 1 1 8 1526 1764 148 22 96.542763 ALLEGED5 1 5 1 1 9 1688 1761 186 24 96.043854 VIOLATIONS 1 5 1 1 10 1888 1762 42 21 95.972794 OF5 1 5 1 1 11 1942 1762 72 21 95.817284 THES 1 5 1 1 12 2028 1757 82 44 75.400528 FED-4 1 5 1 2 0 1167 1814 543 25 -1 5 1 5 1 2 1 1167 1818 86 21 92.544647 ERAL5 1 5 1 2 2 1274 1817 107 22 96.246964 TRADES 1 5 1 2 3 1403 1814 219 24 95.723152 COMMISSIONS 1 5 1 2 4 1645 1814 65 22 96.889099 ACT2 1 6 0 0 0 889 1880 1111 42 -1 3 1 6 1 0 0 889 1880 1111 42 -1 4 1 6 1 1 0 889 1880 1111 42 -1 5 1 6 1 1 1 889 1896 112 24 87.625313 Dockets 1 6 1 1 2 1021 1895 119 25 83.052635 C-2323.5 1 6 1 1 3 1162 1894 172 28 95.447968 Complaint,5 1 6 1 1 4 1355 1893 72 25 93.331497 Nov.5 1 6 1 1 5 1446 1892 43 30 93.256889 28,5 1 6 1 1 6 1510 1890 248 31 88.168777 1972—Decision,5 1 6 1 1 7 1778 1880 72 34 87.228920 Nov.5 1 6 1 1 8 1869 1890 42 28 95.641045 28,5 1 6 1 1 9 1931 1890 69 24 96.352051 19722 1 7 0 0 0 784 1965 1324 245 -1 3 1 7 1 0 0 784 1965 1324 245 -1 4 1 7 1 1 0 784 1965 1324 34 -1 5 1 7 1 1 1 784 1971 126 25 96.744484 Consents 1 7 1 1 2 926 1971 86 25 96.756287 orders 1 7 1 1 3 1027 1971 148 28 96.283470 requiring5 1 7 1 1 4 1190 1977 18 17 96.283470 a5 1 7 1 1 5 1224 1969 133 28 96.654373 Chicago,5 1 7 1 1 6 1374 1968 123 28 76.927330 Illinois,5 1 7 1 1 7 1513 1968 229 28 95.737022 manufacturer,5 1 7 1 1 8 1757 1966 87 24 95.899773 sellers 1 7 1 1 9 1859 1966 58 24 96.932983 ands 1 7 1 1 10 1930 1965 178 25 96.603607 distributor4 1 7 1 2 0 854 2007 1253 34 -1 5 1 7 1 2 1 854 2013 31 25 93.260483 of5 1 7 1 2 2 905 2013 240 25 91.877380 confectioneries5 1 7 1 2 3 1166 2013 58 24 96.088531 ands 1 7 1 2 4 1245 2012 38 24 96.088531 its5 1 7 1 2 5 1305 2011 126 30 96.650581 Chicago5 1 7 1 2 6 1452 2011 90 24 95.536995 based5 1 7 1 2 7 1561 2009 182 29 95.536995 advertising5 1 7 1 2 8 1761 2015 117 23 96.765167 agency,5 1 7 1 2 9 1898 2014 105 23 96.827316 among5 1 7 1 2 10 2022 2007 85 25 96.487579 other4 1 7 1 3 0 856 2050 1251 36 -1 5 1 7 1 3 1 856 2057 98 29 96.748718 things5 1 7 1 3 2 971 2056 30 24 96.762772 to5 1 7 1 3 3 1015 2061 85 19 96.218437 ceases 1 7 1 3 4 1115 2055 200 29 96.607758 representing5 1 7 1 3 5 1330 2055 66 23 96.559624 that5 1 7 1 3 6 1410 2053 203 30 95.713959 consumption5 1 7 1 3 7 1628 2052 32 25 96.948257 of5 1 7 1 3 8 1675 2052 39 24 96.055588 its5 1 7 1 3 9 1728 2051 139 30 96.494781 products5 1 7 1 3 10 1882 2050 25 24 96.964088 is5 1 7 1 3 11 1921 2050 139 25 96.099922 essentials 1 7 1 3 12 2075 2051 32 23 96.922806 to4 1 7 1 4 0 855 2093 1251 34 -1 5 1 7 1 4 1 855 2098 100 29 96.448608 instill,5 1 7 1 4 2 970 2097 136 29 96.107178 improve,5 1 7 1 4 3 1120 2098 59 24 96.620644 ands 1 7 1 4 4 1192 2097 145 25 96.540939 maintains 1 7 1 4 5 1348 2096 124 25 96.763794 athletic5 1 7 1 4 6 1483 2095 106 30 95.773987 ability5 1 7 1 4 7 1607 2095 49 25 95.539680 ands 1 7 1 4 8 1663 2094 225 29 85.922638 performances 1 7 1 4 9 1876 2089 15 42 89.557579 ;5 1 7 1 4 10 1901 2094 59 24 96.623604 ands 1 7 1 4 11 1971 2093 66 24 96.383751 that5 1 7 1 4 12 2047 2098 59 23 96.383751 any4 1 7 1 5 0 855 2136 1252 34 -1 5 1 7 1 5 1 855 2142 71 23 95.859802 such5 1 7 1 5 2 939 2140 124 30 96.577278 products 1 7 1 5 3 1076 2140 25 24 96.581039 is5 1 7 1 5 4 1114 2139 142 25 96.459999 endorsed5 1 7 1 5 5 1269 2139 47 25 96.375908 for5 1 7 1 5 6 1329 2145 52 18 96.930992 uses 1 7 1 5 7 1393 2139 37 28 96.773140 by5 1 7 1 5 8 1442 2139 127 24 96.385559 athletes5 1 7 1 5 9 1583 2137 57 25 96.795441 ands 1 7 1 5 10 1654 2136 78 26 96.464653 theirs 1 7 1 5 11 1744 2136 225 30 96.480713 organizations,5 1 7 1 5 12 1984 2136 123 24 96.663368 because4 1 7 1 6 0 854 2181 843 29 -1 5 1 7 1 6 1 854 2183 32 25 96.335114 of5 1 7 1 6 2 898 2183 39 25 96.532654 its5 1 7 1 6 3 948 2182 212 25 96.261238 contributions5 1 7 1 6 4 1173 2183 30 23 95.329865 to5 1 7 1 6 5 1214 2181 78 25 95.329865 theirs 1 7 1 6 6 1302 2181 105 29 96.002480 ability5 1 7 1 6 7 1419 2181 59 25 96.775101 ands 1 7 1 6 8 1488 2181 209 29 95.892357 performance.2 1 8 0 0 0 1346 2262 213 33 -1 3 1 8 1 0 0 1346 2262 213 33 -1 4 1 8 1 1 0 1346 2262 213 33 -1 5 1 8 1 1 1 1346 2262 213 33 20.280975 ComrLaIntT2 1 9 0 0 0 779 2343 1330 250 -1 3 1 9 1 0 0 779 2343 1330 250 -1 4 1 9 1 1 0 828 2343 1279 44 -1 5 1 9 1 1 1 828 2349 72 32 94.536369 Thes 1 9 1 1 2 915 2347 148 33 96.198120 Federal5 1 9 1 1 3 1080 2347 114 33 96.062294 Trades 1 9 1 1 4 1211 2346 237 40 96.391693 Commission,5 1 9 1 1 5 1465 2345 131 42 96.653252 having5 1 9 1 1 6 1612 2355 119 22 96.664337 reasons 1 9 1 1 7 1747 2347 35 29 96.984749 to5 1 9 1 1 8 1799 2343 128 33 96.775192 believes 1 9 1 1 9 1942 2344 78 32 92.678772 that5 1 9 1 1 10 2035 2354 72 21 92.186249 cor-4 1 9 1 2 0 779 2394 1326 47 -1 5 1 9 1 2 1 779 2403 120 38 96.742271 porate5 1 9 1 2 2 913 2398 224 42 96.602013 respondents5 1 9 1 2 3 1152 2397 156 33 96.325241 Beatrice5 1 9 1 2 4 1323 2397 114 33 96.012054 Foods5 1 9 1 2 5 1452 2397 59 34 96.214470 Co.5 1 9 1 2 6 1528 2397 68 32 93.231361 ands 1 9 1 2 7 1610 2397 132 40 79.849838 I/Mac,5 1 9 1 2 8 1755 2396 84 39 93.138824 Inc.,5 1 9 1 2 9 1853 2394 87 33 96.951248 have5 1 9 1 2 10 1954 2394 151 33 96.541901 violated4 1 9 1 3 0 783 2445 1325 46 -1 5 1 9 1 3 1 783 2450 59 32 96.312607 thes 1 9 1 3 2 859 2449 193 42 96.312607 provisions5 1 9 1 3 3 1068 2448 39 33 96.740242 of5 1 9 1 3 4 1125 2448 137 34 96.744659 Sections 1 9 1 3 5 1280 2451 18 29 96.882462 55 1 9 1 3 6 1316 2448 69 32 96.625961 ands 1 9 1 3 7 1402 2451 40 29 96.625961 125 1 9 1 3 8 1458 2448 38 32 96.434822 of5 1 9 1 3 9 1511 2448 60 32 96.588097 thes 1 9 1 3 10 1588 2447 145 33 96.573662 Federal5 1 9 1 3 11 1750 2446 115 33 96.178780 Trades 1 9 1 3 12 1882 2445 226 33 96.178780 Commission4 1 9 1 4 0 783 2496 1326 46 -1 5 1 9 1 4 1 783 2501 68 32 92.604187 Acts 1 9 1 4 2 878 2501 56 41 92.687614 (155 1 9 1 4 3 955 2500 136 39 90.070580 U.S.C.,5 1 9 1 4 4 1112 2500 155 33 96.509254 Sections5 1 9 1 4 5 1285 2501 40 31 96.906189 455 1 9 1 4 6 1347 2500 69 32 96.351868 ands 1 9 1 4 7 1436 2501 51 38 96.727638 52,5 1 9 1 4 8 1506 2497 255 43 96.355972 respectively),5 1 9 1 4 9 1781 2496 70 33 96.548294 ands 1 9 1 4 10 1869 2497 28 31 96.665421 it5 1 9 1 4 11 1916 2496 193 42 96.186081 appearing4 1 9 1 5 0 782 2547 1327 46 -1 5 1 9 1 5 1 782 2556 38 28 95.003555 to5 1 9 1 5 2 834 2552 58 32 95.003555 thes 1 9 1 5 3 907 2551 227 34 96.423279 Commissions 1 9 1 5 4 1148 2551 78 33 96.713463 that5 1 9 1 5 5 1240 2562 19 21 96.963692 a5 1 9 1 5 6 1274 2551 208 41 96.141617 proceedings 1 9 1 5 7 1494 2550 47 43 96.694931 by5 1 9 1 5 8 1555 2550 28 32 96.833717 it5 1 9 1 5 9 1597 2549 35 32 96.213821 in5 1 9 1 5 10 1648 2551 130 39 96.717323 respects 1 9 1 5 11 1790 2548 136 32 96.526413 thereof5 1 9 1 5 12 1940 2548 112 32 96.582130 would5 1 9 1 5 13 2064 2547 45 31 96.976860 be BEATRICE FOODS 00., ET AL. | 831 830- Complaint in the public interest, hereby ‘issues this complaint stating its charges as follows:

Paracrape 1. Beatrice Foods Co. is a.corporation organized, existing and doing business under and by virtue of the laws of the State of | Delaware, with its principal office and place of business located. at 120 South Lasalle Street, Chicago, Illinois. Par. 2. I/Mac, Inc., is a corporation organized, existing and doing business under and by ‘virute of the laws of the State of Illinois, with its principal office and place of business located at 36 South Wabash Avenue, Chicago, Hlinois.

Par. 8. Beatrice Foods Co. is now and for several years has been engaged in the manufacture, sale and distribution of various confectioneries which come within the classification of a “food,” as said term is defined in the Federal Trade Commission Act. Said confectioneries include but are not limited to “Holloway Milk Duds.” _ Par. 4. I/Mac, Inc., was prior to February 29, 1972, the advertising agency for the Holloway division of Beatrice Foods Co., and for several years has been placing for publication and causing the dissemination of advertising material, including but not. limited to the adver-tising referred to herein, to promote the sale of certain of Beatrice - Foods Co.’s confectioneries, which come within the classification of “food,” as said term is defined in the Federal Trade Commission Act. Par. 5. Beatrice Foods Co. is now and has been maintaining a course of trade in confectionery products in commerce, as “commerce” is defined by the Federal Trade Commission Act. The volume of business in such commerce is now and has been substantial. ' Par. 6. In the course and conduct of their said businesses, respondents are now and have been causing the dissemination of certain advertisements concerning Beatrice Food Co.’s confectioneries, including but not limited to “Holloway Milk Duds,” by United States mail and by various other means and media in commerce, as “commerce” is defined in the Federal Trade Commission Act. Said advertisements are and have been disseminated for the purpose of inducing and are and were likely to induce, directly or indirectly, the purchase of said products in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 7. Typical of the statements and representations disseminated in said advertisements by respondents, but not limited thereto, is the following televised endorsement of “Holloway Milk Duds” by Lou Brock of the St. Louis Cardinals professional baseball team. 832 FEDERAL TRADE: COMMISSION DECISIONS Complaint VIDEO:

(Isolated camera shot of Lou Brock stealing second base, getting .a.base hit, and catching a fly ball.on the . run in the outfield.) (Front view .of Brock, standing ‘next to first. base and speaking to the camera; zoom to Brock’s legs and base. ) (View of pitcher going into throwing motion ;.camera follows Brock running to and sliding into second base; Ball is overthrown and: Brock picks himself up quickly and runs on to third base.) (Close-pp of Brock holding a box of | Milk Duds. Takes some.) (Close-up of Milk Duds box. Brock points to emblem and notation of MLBPA.) (Replay of Brock stealing second base. ) Si FTC.

“AUDIO:

VO: Lou Brock, St. Louis Cardinals outfielder—hitter, with blazing _speed..on.the bases. .

What’s your. secret for stealing second, Lou? :

BROCK: I study every pitcher in the’ ‘League and his moves. I take about a 4 to 5 step lead off the bag, and stay real-loose.

- BROCK: When the pitcher goes into his throwing motion, I take off like’a sprinter ... I take off running like I’m going for the last box of Milk Duds in town.

VO: Milk Duds with energy. for speed, Is that where you get your speed, Lou? :

BROCK: Well. I sure do like Milk Duds.

VO: Milk Duds are little bites of energy. Rich, chocolate-coated caramel. Mijk Duds with energy for speed on the bases. That’s why Milk Duds are the “The Official Candy of the Major League Basebali Players Association.” You'll see the official seal on every box.

Enjoy them often.

Par. 8. By means of the foregoing advertisement and others similar thereto not specifically set out herein, respondents are now and have been representing, directly and by implication that the consumption of confectioneries such as “Holloway Milk Duds” is linked to and necessary for the instilling, improving and maintaining of athletic ability and performance, and that such a product is endorsed for use by athletes and various organizations representing athletics, including but not limited to the Major League Baseball Players Association, because such a product is linked to or necessary for the instilling, improving and maintaining of athletic ability and performance. Par. 9. The foregoing statements and representations are and were false, misleading or deceptive, either in and of themselves, or by BEATRICE FOODS CO., EF AL.-- ~» 833 830 - »- Complaint omission. In truth and. in. fact, the consumption of confectioneries such as “Holloway Milk Duds” is not linked to or necessary for the instilling, improving or maintaining of athletic ability or performance. Instead, said endorsements are based upon a monetary relationship between Beatrice Foods Co. and said endorsers and not upon any nutritional superiority or attribute of said product. Therefore, the advertisements referred to in Paragraph Seven and statements and representations set forth in Paragraphs Seven and Eight are and were misleading in material respects, constitute and constituted “false advertisements” as that term is defined in the Federal Trade Commission Act, and are and were false, misleading or deceptive.

Par. 10. The dissemination by respondents of said “false advertisements” are and were all to the prejudice and injury of the public and of competitors of respondents and constitute, and constituted, unfair or deceptive acts or practicés in commerce and unfair methods of competition in commerce in violation of Sections 5 and 12 of the Federal Trade Commission Act.

Par. 11. In the course and conduct of its aforesaid business, and. at all times mentioned herein, respondent Beatrice Foods Co. has been, and now is in substantial competition, in commerce, with corporations, firms, and individuals in the sale of confectionery products of the same general kind and nature as that sold by respondent. Par. 12. In the course and conduct of its aforesaid business, and at all times mentioned herein, respondent I/Mac, Inc., has been, and now is, in substantial competition in commerce with other advertising | agencies, Par. 13. The use by respondents of the aforesaid false, misleading or deceptive statements, representations or practices and the dissemi- * nation of the aforesaid “false advertisements” has had, and now has, the capacity and tendency to mislead members of the consuming public into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of respondent Beatrice Foods Co.’s confectioneries by reason of said erroneous and mistaken belief.

Par. 14. The aforesaid acts or practices of respondents including the dissemination of “false advertisements,” 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 or deceptive acts or practices in commerce and unfair methods of competition in commerce in violation of Sections 5 and 12 of the Federal Trade Commission: Act.

834 | FEDERAL TRADE COMMISSION’ DECISIONS Decision and Order 81 F.T-C.

Decision AND ORDER:

The. Federal Trade Commission having initiated an investigation of certain acts and practices. of respondents ‘named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if 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, 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 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 agreement, placed such agreement on the public record for a period of thirty (30) days, and received and considered comments, now in further conformity with the procedure 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. Respondent Beatrice Foods Co. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware with its principal office and place of business located at 120 Lasalle Street, Chicago, Illinois.

Respondent I/Mac, Inc, is a corporation or. eanized, existing and doing business under and by virtue of the laws of the State of Illinois with its principal office and place of business located at 36 South Wabash Avenue, Chicago, Mlinois.

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

ORDER It is ordered, That respondent Beatrice Foods Co., a corporation, respondent I/Mac, Inc., a corporation, and their officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the advertising, offering for sale, sale or BEATRICE FOODS CO., ET AL. 835 830 Decision and Order distribution of any bakery or confectionery product cease and desist from:

1. Disseminating or causing the dissemination of any advertisement by means of the United States mails or by any means in commerce, as “commerce” is defined in the Federal Trade Commission Act, which represents directly or by implication that: A. The consumption of any such product is essential or necessary for instilling, improving or maintaining athletic ability or performance or that any such product has beer ‘selected or designated by an individual athlete or organiza tion representing athletes because the consumption of such product is essential or necessary for instilling, improving or maintaining athletic ability or performance. B. Any such product has been chosen for use by an athletic association, league, or any other athletic organization, due to the contribution it makes to athletic performance or physical fitness, where said choice is based primarily on monetary consideration flowing to the athletic association, league, or any other athletic organization.

2. Disseminating, or causing the dissemination of any advertisement by any means, for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase of any such product in commerce, as “commerce” is defined in the Federal Trade Commission Act, which contains any of the representations prohibited in either part of Paragraph 1 hereof.

For the purposes of this order, a bakery product shall be defined as any product which is classified under “Bakery Products,” Group No. 205, by the Standard Industrial Classification Manual 1967, prepared by the Bureau of the Budget, Executive Office of the President. A confectionery product shall be defined as any product which is classified under Group No. 207 by the aforesaid publication. It is further ordered, That respondents shall forthwith distribute a copy of this order to each of their appropriate operating divisions. It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondents such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporations which may affect compliance obligations arising out of the order. It is further ordered, That respondents shall, within sixty (60) days after service of the order upon them, file with the Commission a report: in writing setting forth in detail the manner and form of their compliance with the order to cease and desist. 836 FEDERAL TRADE. COMMISSION DECISIONS Complaint: 81 F.T.C.