K Mart Enterprises, Incorporated

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

IN THE MATTER OF K MART ENTERPRISES, INCORPORATED CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-2558. Complaint, Oct. 1, 1974—Decision, Oct. 1, 1974 Consent order requiring a Royal Oak, Mich., seller and distributor of automobile tires, among other things to cease misrepresenting the performance characteristics, construction, and structure of its tires. Further, respondent is required to maintain accurate records for Commission inspection. Appearances For the Commission: D. McCarthy Thornton.

For the respondent: James C. Tuttle, Troy, Mich. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that K mart Enterprises Incorporated, a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. K mart Enterprises Incorporated is a corporation organized, existing and doing business under and by virtue of the laws of the State of Michigan, with its principal office and place of business located at 3000 West Fourteen Mile Road, Royal Oak, Mich. Par. 2. Respondent is now, and for some time past has been, engaged in the business of advertising for sale, sale and distribution of automobile tires.

Par. 3. In the course and conduct of its business, respondent advertises extensively in media of interstate circulation and broadcast. Respondent has maintained, and now maintains, a course and conduct of business in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 4. In the course and conduct of its business, and for the purpose of inducing the purchase of automobile tires, respondent has made certain statements and representations concerning tires in media of interstate circulation. Said statements include the following: KM 100 * * * Polyester construction for added strength. 574 a5 1 1 1 1 3 1180 172 160 43 72.706345 Complaint2 1 2 0 0 0 587 208 1454 2130 -1 3 1 2 1 0 0 587 208 1394 673 -1 4 1 2 1 1 0 655 208 1268 99 -1 5 1 2 1 1 1 655 272 85 31 91.602531 Par.5 1 2 1 1 2 758 268 30 39 93.363083 5.5 1 2 1 1 3 795 258 169 43 93.363083 Through5 1 2 1 1 4 981 254 58 42 95.679672 thes 1 2 1 1 5 1057 252 60 30 96.765076 uses 1 2 1 1 6 1135 246 36 32 96.930328 of5 1 2 1 1 7 1187 241 70 34 86.672195 said5 1 2 1 1 8 1275 233 212 37 96.047112 statements,5 1 2 1 1 9 1504 214 238 43 96.299088 disseminated5 1 2 1 1 10 1762 221 37 22 93.138016 as5 1 2 1 1 11 1817 208 106 32 92.991402 afore-4 1 2 1 2 0 587 256 1339 105 -1 5 1 2 1 2 1 587 347 2 2 0.000000 _5 1 2 1 2 2 620 323 78 38 86.279205 gaid,5 1 2 1 2 3 708 314 205 44 96.823563 respondents 1 2 1 2 4 922 310 61 31 96.970955 has5 1 2 1 2 5 994 292 229 55 96.446732 represented,5 1 2 1 2 6 1234 288 140 38 96.436310 directly5 1 2 1 2 7 1388 292 54 36 96.436310 ands 1 2 1 2 8 1462 280 43 38 96.415665 by5 1 2 1 2 9 1516 263 210 51 96.672768 implication,5 1 2 1 2 10 1737 265 76 31 94.790741 that5 1 2 1 2 11 1825 263 34 28 94.790741 at5 1 2 1 2 12 1869 256 57 31 96.734047 thea 1 2 1 3 0 621 311 1309 98 -1 5 1 2 1 3 1 621 378 79 31 96.140244 times 1 2 1 3 2 713 373 74 31 96.963112 that5 1 2 1 3 3 804 362 200 42 94.684723 respondents 1 2 1 3 4 1015 354 98 34 17.487656 mace5 1 2 1 3 5 1125 352 57 31 96.892555 thes 1 2 1 3 6 1195 341 201 37 96.783089 statements5 1 2 1 3 7 1410 337 53 29 96.200882 sets 1 2 1 3 8 1475 328 93 34 96.745758 forth5 1 2 1 3 9 1580 326 33 30 96.754890 in5 1 2 1 3 10 1624 314 194 43 96.153519 Paragraphs 1 2 1 3 11 1832 311 98 33 96.800079 Four,4 1 2 1 4 0 624 362 1308 106 -1 5 1 2 1 4 1 624 420 203 48 96.641113 respondents 1 2 1 4 2 848 416 65 33 95.761116 had5 1 2 1 4 3 936 424 19 22 96.809341 a5 1 2 1 4 4 976 404 195 39 96.287163 reasonable5 1 2 1 4 5 1192 398 90 33 61.486900 basis5 1 2 1 4 6 1304 394 89 31 95.686234 from5 1 2 1 4 7 1407 383 113 36 96.772392 which5 1 2 1 4 8 1543 383 35 28 96.559990 to5 1 2 1 4 9 1601 371 154 37 92.187347 concludes 1 2 1 4 10 1779 368 74 35 96.220238 that5 1 2 1 4 11 1875 362 57 39 94.291306 thea 1 2 1 5 0 628 414 1307 110 -1 5 1 2 1 5 1 628 482 167 42 96.506607 polyester5 1 2 1 5 2 809 471 79 35 88.875351 cords 1 2 1 5 3 901 461 225 48 96.583168 construction5 1 2 1 5 4 1139 457 36 32 96.900742 of5 1 2 1 5 5 1186 455 56 31 96.689232 thes 1 2 1 5 6 1256 448 67 34 96.386208 KM5 1 2 1 5 7 1339 445 58 32 95.795097 1005 1 2 1 5 8 1409 442 66 31 96.874214 tires 1 2 1 5 9 1487 428 161 53 96.593666 provides:5 1 2 1 5 10 1658 423 107 36 90.433083 added5 1 2 1 5 11 1780 414 155 44 96.098419 strength4 1 2 1 6 0 631 465 1308 109 -1 5 1 2 1 6 1 631 539 34 35 96.109848 at5 1 2 1 6 2 676 528 173 45 96.109848 operating5 1 2 1 6 3 862 519 120 44 96.697746 speeds5 1 2 1 6 4 994 514 65 44 96.473907 ands 1 2 1 6 5 1069 509 247 40 96.147827 temperatures5 1 2 1 6 6 1330 508 36 22 96.832787 as5 1 2 1 6 7 1378 487 175 49 96.497116 compared5 1 2 1 6 8 1564 488 37 27 97.005943 to5 1 2 1 6 9 1612 482 82 31 96.905136 tires5 1 2 1 6 10 1706 476 36 32 96.866623 of5 1 2 1 6 11 1752 473 98 33 96.866623 others 1 2 1 6 12 1861 465 78 37 96.935921 cord4 1 2 1 7 0 631 555 1041 77 -1 5 1 2 1 7 1 631 569 253 63 93.471161 constructions.5 1 2 1 7 2 1244 555 2 2 0.587769 ,5 1 2 1 7 3 1626 558 46 8 0.000000 _4 1 2 1 8 0 623 571 1321 102 -1 5 1 2 1 8 1 623 632 138 41 22.685959 par.5 1 2 1 8 2 779 634 29 29 96.046959 6.5 1 2 1 8 3 830 630 40 31 96.681755 In5 1 2 1 8 4 888 623 93 34 87.736977 truth5 1 2 1 8 5 1000 618 64 34 95.483635 ands 1 2 1 8 6 1082 617 35 30 96.603607 in5 1 2 1 8 7 1133 614 78 35 96.565590 fact,5 1 2 1 8 8 1229 611 35 29 96.548256 at5 1 2 1 8 9 1280 605 58 31 96.548256 thes 1 2 1 8 10 1357 601 81 31 96.701088 times 1 2 1 8 11 1456 595 74 31 95.987480 that5 1 2 1 8 12 1547 584 206 43 88.945618 respondents 1 2 1 8 13 1771 575 97 33 91.530884 made5 1 2 1 8 14 1886 571 58 31 96.724571 thea 1 2 1 9 0 640 624 1306 112 -1 5 1 2 1 9 1 640 689 199 47 96.564545 statements5 1 2 1 9 2 855 683 53 30 95.859604 sets 1 2 1 9 3 921 676 93 34 96.482208 forth5 1 2 1 9 4 1028 674 33 39 96.342957 in5 1 2 1 9 5 1075 662 193 43 96.552284 Paragraphs 1 2 1 9 6 1282 659 100 33 96.592712 Four,5 1 2 1 9 7 1396 638 206 55 96.508812 respondents 1 2 1 9 8 1615 638 65 33 95.845955 had5 1 2 1 9 9 1695 645 42 22 95.624634 no5 1 2 1 9 10 1751 624 195 39 95.624634 reasonable4 1 2 1 10 0 641 675 1340 112 -1 5 1 2 1 10 1 641 737 90 50 91.528046 basis5 1 2 1 10 2 742 740 88 41 96.164192 from5 1 2 1 10 3 842 731 106 34 93.287483 which5 1 2 1 10 4 960 719 204 40 49.723125 to-concludes 1 2 1 10 5 1176 717 74 31 96.551300 that5 1 2 1 10 6 1262 712 57 31 96.757088 thes 1 2 1 10 7 1333 705 170 42 96.138695 polyester5 1 2 1 10 8 1516 694 79 34 76.874634 cords 1 2 1 10 9 1609 683 224 40 96.275459 construction5 1 2 1 10 10 1846 678 37 32 96.987183 of5 1 2 1 10 11 1892 676 58 31 92.300842 thes 1 2 1 10 12 1979 675 2 2 81.210304 .4 1 2 1 11 0 646 732 1332 96 -1 5 1 2 1 11 1 646 796 66 32 91.215889 KM5 1 2 1 11 2 727 793 57 31 95.600983 1005 1 2 1 11 3 797 790 66 30 95.600983 tires 1 2 1 11 4 877 780 154 45 96.361366 provides5 1 2 1 11 5 1047 772 107 35 94.607971 added5 1 2 1 11 6 1168 763 154 40 96.064049 strengths 1 2 1 11 7 1339 762 34 29 96.064049 at5 1 2 1 11 8 1386 751 172 45 96.823074 operating5 1 2 1 11 9 1573 742 123 43 94.566956 speeds5 1 2 1 11 10 1710 737 64 33 91.802429 ands 1 2 1 11 11 1786 732 166 38 89.804329 tempera-5 1 2 1 11 12 1976 744 2 2 65.194183 ~4 1 2 1 12 0 647 798 1012 83 -1 5 1 2 1 12 1 647 854 93 27 96.243607 tures5 1 2 1 12 2 757 853 37 22 95.220215 as5 1 2 1 12 3 810 832 176 44 96.515373 compared5 1 2 1 12 4 1000 833 35 28 96.159195 to5 1 2 1 12 5 1051 827 85 31 96.201721 tires5 1 2 1 12 6 1151 821 36 32 96.923637 of5 1 2 1 12 7 1201 818 95 33 96.986694 others 1 2 1 12 8 1312 809 79 34 94.790123 cords 1 2 1 12 9 1407 798 252 40 96.500374 constructions.3 1 2 2 0 0 656 833 1320 466 -1 4 1 2 2 1 0 691 833 1269 106 -1 5 1 2 2 1 1 691 889 196 50 96.161797 Therefore,5 1 2 2 1 2 908 878 60 40 96.565811 thes 1 2 2 1 3 991 877 203 37 96.864075 statements5 1 2 2 1 4 1218 868 63 34 96.973022 ands 1 2 2 1 5 1303 850 291 57 96.690186 representations5 1 2 2 1 6 1616 849 53 30 92.749969 sets 1 2 2 1 7 1690 840 93 34 93.077560 forth5 1 2 2 1 8 1806 837 45 30 57.072975 in:5 1 2 2 1 9 1868 833 92 31 75.354485 Para-4 1 2 2 2 0 656 889 1305 105 -1 5 1 2 2 2 1 656 952 120 42 96.611992 graphs5 1 2 2 2 2 793 947 91 31 96.300354 Four5 1 2 2 2 3 901 939 62 34 96.477341 ands 1 2 2 2 4 980 936 82 32 96.736328 Five5 1 2 2 2 5 1078 938 100 28 96.239403 were,5 1 2 2 2 6 1195 923 63 34 96.239403 ands 1 2 2 2 7 1275 929 66 27 96.627533 are,5 1 2 2 2 8 1355 910 176 41 96.246452 deceptive5 1 2 2 2 9 1549 914 38 22 96.243851 or5 1 2 2 2 10 1603 899 110 34 96.817696 unfair5 1 2 2 2 11 1730 889 70 38 96.709373 acts5 1 2 2 2 12 1818 899 37 22 93.206459 or5 1 2 2 2 13 1870 893 91 34 91.591026 prac-4 1 2 2 3 0 657 948 1135 103 -1 5 1 2 2 3 1 657 999 91 52 96.417290 tices.5 1 2 2 3 2 1195 969 1 3 0.000000 )5 1 2 2 3 3 1432 956 159 37 20.880768 a5 1 2 2 3 4 1705 962 2 2 0.000000 Oo4 1 2 2 4 0 667 986 1300 102 -1 5 1 2 2 4 1 667 1076 2 2 0.000000 -5 1 2 2 4 2 700 1058 85 30 0.000000 Par.5 1 2 2 4 3 796 1053 28 30 0.000000 7.5 1 2 2 4 4 847 1039 217 46 96.772766 Respondents 1 2 2 4 5 1075 1037 62 30 96.656204 has5 1 2 2 4 6 1147 1021 229 49 96.055794 represented,5 1 2 2 4 7 1387 1012 145 40 96.421837 through5 1 2 2 4 8 1543 1009 59 31 96.180817 thes 1 2 2 4 9 1613 1013 60 23 96.807693 uses 1 2 2 4 10 1685 1000 36 32 96.949852 of5 1 2 2 4 11 1730 998 57 31 96.949852 thes 1 2 2 4 12 1801 986 166 40 96.732185 aforesaid4 1 2 2 5 0 664 1037 1307 106 -1 5 1 2 2 5 1 664 1100 268 43 96.569733 advertisements 1 2 2 5 2 955 1092 66 34 96.635277 ands 1 2 2 5 3 1044 1083 191 38 96.483185 otherwise,5 1 2 2 5 4 1258 1072 144 38 96.732742 directly5 1 2 2 5 5 1426 1065 65 34 95.908203 ands 1 2 2 5 6 1513 1064 43 37 96.942673 by5 1 2 2 5 7 1581 1047 211 52 96.597786 implication,5 1 2 2 5 8 1816 1045 76 32 96.194916 that5 1 2 2 5 9 1908 1037 63 34 96.194916 thea 1 2 2 6 0 667 1093 1307 111 -1 5 1 2 2 6 1 667 1163 167 41 96.764778 polyester5 1 2 2 6 2 848 1151 78 34 94.673119 cords 1 2 2 6 3 940 1141 224 39 96.850990 construction5 1 2 2 6 4 1178 1136 36 31 96.943146 of5 1 2 2 6 5 1224 1134 57 30 96.355576 thes 1 2 2 6 6 1295 1127 67 33 96.799232 KM5 1 2 2 6 7 1378 1124 58 31 96.862602 1005 1 2 2 6 8 1448 1121 65 31 95.975494 tires 1 2 2 6 9 1525 1111 157 44 96.716980 provides5 1 2 2 6 10 1696 1102 108 36 95.539993 added5 1 2 2 6 11 1819 1093 155 41 96.746239 strength4 1 2 2 7 0 671 1143 1305 110 -1 5 1 2 2 7 1 671 1219 33 29 96.635841 at5 1 2 2 7 2 715 1208 174 45 96.735069 operating5 1 2 2 7 3 901 1199 120 43 96.053680 speeds5 1 2 2 7 4 1033 1194 65 33 96.685440 ands 1 2 2 7 5 1108 1187 247 41 96.199799 temperatures5 1 2 2 7 6 1369 1187 36 21 96.251762 as5 1 2 2 7 7 1417 1165 175 44 95.938095 compared5 1 2 2 7 8 1604 1167 35 27 96.600174 to5 1 2 2 7 9 1650 1160 83 31 96.854843 tires5 1 2 2 7 10 1744 1154 36 32 96.950378 of5 1 2 2 7 11 1790 1151 98 33 96.931702 others 1 2 2 7 12 1899 1143 77 34 96.631935 cord4 1 2 2 8 0 673 1249 593 57 -1 5 1 2 2 8 1 673 1249 250 57 96.584740 constructions.5 1 2 2 8 2 1264 1262 2 2 0.000000 ;3 1 2 3 0 0 677 1248 1308 207 -1 4 1 2 3 1 0 690 1248 1292 113 -1 5 1 2 3 1 1 690 1359 2 2 0.000000 _5 1 2 3 1 2 717 1319 45 31 94.852859 At5 1 2 3 1 3 780 1315 58 31 96.952736 thes 1 2 3 1 4 857 1310 81 31 96.651634 times 1 2 3 1 5 959 1303 36 32 96.651634 of5 1 2 3 1 6 1013 1298 70 34 95.347794 said5 1 2 3 1 7 1102 1274 296 64 96.781250 representations,5 1 2 3 1 8 1417 1271 206 44 96.357338 respondents 1 2 3 1 9 1641 1262 71 34 95.761131 had5 1 2 3 1 10 1725 1263 42 28 95.761131 no5 1 2 3 1 11 1786 1248 196 39 96.718231 reasonable4 1 2 3 2 0 677 1300 1308 110 -1 5 1 2 3 2 1 677 1370 90 33 86.721085 basis5 1 2 3 2 2 781 1370 36 40 96.031708 to5 1 2 3 2 3 834 1360 140 41 96.779831 supports 1 2 3 2 4 990 1352 70 34 90.514153 said5 1 2 3 2 5 1075 1339 286 48 96.589867 representations5 1 2 3 2 6 1378 1324 187 48 96.805336 pertaining5 1 2 3 2 7 1580 1324 36 27 96.937607 to5 1 2 3 2 8 1631 1317 58 31 96.270813 thes 1 2 3 2 9 1706 1306 156 41 96.708168 strengths 1 2 3 2 10 1878 1302 36 33 96.844299 of5 1 2 3 2 11 1928 1300 57 31 96.844299 thea 1 2 3 3 0 682 1389 1200 66 -1 5 1 2 3 3 1 682 1422 66 33 94.392502 KM5 1 2 3 3 2 765 1419 56 31 48.111633 1005 1 2 3 3 3 837 1416 87 30 29.951920 tire.5 1 2 3 3 4 1725 1401 13 9 0.000000 :5 1 2 3 3 5 1880 1389 2 2 0.000000 ,3 1 2 4 0 0 688 1405 1302 164 -1 4 1 2 4 1 0 724 1405 1266 101 -1 5 1 2 4 1 1 724 1469 192 37 96.616669 Therefore,5 1 2 4 1 2 932 1463 59 31 97.016869 thes 1 2 4 1 3 1008 1450 166 39 96.595573 aforesaid5 1 2 4 1 4 1191 1450 70 29 96.406456 acts5 1 2 4 1 5 1278 1440 63 34 96.116318 ands 1 2 4 1 6 1357 1421 163 61 96.457298 practices5 1 2 4 1 7 1537 1434 100 27 96.829292 were,5 1 2 4 1 8 1654 1419 63 33 95.219620 ands 1 2 4 1 9 1735 1425 65 26 95.219620 are,5 1 2 4 1 10 1816 1405 174 41 39.634819 deceptive4 1 2 4 2 0 688 1522 393 47 -1 5 1 2 4 2 1 688 1539 39 26 95.525398 or5 1 2 4 2 2 739 1522 118 47 95.525398 unfair.3 1 2 5 0 0 692 1502 1308 162 -1 4 1 2 5 1 0 730 1502 1267 107 -1 5 1 2 5 1 1 730 1578 85 31 95.894882 Par.5 1 2 5 1 2 829 1574 28 29 96.603218 8.5 1 2 5 1 3 880 1570 38 30 94.886749 In5 1 2 5 1 4 932 1566 58 31 94.886749 thes 1 2 5 1 5 1005 1552 114 41 96.336594 courses 1 2 5 1 6 1135 1553 63 33 96.697472 ands 1 2 5 1 7 1213 1536 139 56 85.448616 conducts 1 2 5 1 8 1365 1540 37 32 93.783691 of5 1 2 5 1 9 1413 1539 45 30 93.783691 its5 1 2 5 1 10 1473 1527 165 42 96.098740 aforesaid5 1 2 5 1 11 1651 1522 163 34 96.166763 business,5 1 2 5 1 12 1829 1512 65 34 94.779213 ands 1 2 5 1 13 1909 1512 34 29 76.793839 at.5 1 2 5 1 14 1957 1502 40 47 95.633598 all4 1 2 5 2 0 692 1559 1308 105 -1 5 1 2 5 2 1 692 1633 99 31 96.887474 times5 1 2 5 2 2 805 1617 190 40 96.471939 mentioned5 1 2 5 2 3 1010 1611 123 36 96.454498 herein,5 1 2 5 2 4 1150 1599 202 45 96.492699 respondents 1 2 5 2 5 1366 1595 62 30 97.004532 has5 1 2 5 2 6 1442 1584 86 44 96.458824 been5 1 2 5 2 7 1543 1581 64 33 95.679543 ands 1 2 5 2 8 1622 1586 73 23 95.679543 now5 1 2 5 2 9 1710 1575 29 30 96.455460 is5 1 2 5 2 10 1752 1572 34 30 96.892944 in5 1 2 5 2 11 1801 1559 199 40 96.443161 substantial3 1 2 6 0 0 697 1616 1309 203 -1 4 1 2 6 1 0 697 1616 1306 109 -1 5 1 2 6 1 1 697 1673 210 52 96.007500 competitions 1 2 6 1 2 926 1672 34 30 96.631897 in5 1 2 6 1 3 979 1670 180 29 96.838043 commerce5 1 2 6 1 4 1180 1655 79 33 96.490028 with5 1 2 6 1 5 1278 1628 236 64 96.526833 corporations,5 1 2 6 1 6 1532 1636 98 30 96.453918 firms5 1 2 6 1 7 1650 1627 62 33 96.675568 ands 1 2 6 1 8 1730 1616 199 39 93.083084 individuals5 1 2 6 1 9 1948 1622 55 21 92.829865 en-4 1 2 6 2 0 700 1662 1306 114 -1 5 1 2 6 2 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1837 84 31 96.220154 Par.5 1 2 7 1 2 846 1832 29 30 96.743202 9.5 1 2 7 1 3 896 1827 71 31 96.936699 Thes 1 2 7 1 4 984 1831 63 23 96.690910 uses 1 2 7 1 5 1060 1819 45 38 96.590652 by5 1 2 7 1 6 1122 1807 203 44 96.778252 respondents 1 2 7 1 7 1343 1801 36 32 96.917519 of5 1 2 7 1 8 1396 1799 58 31 96.253716 thes 1 2 7 1 9 1473 1785 164 40 96.865623 aforesaid5 1 2 7 1 10 1656 1779 110 36 96.705711 unfair5 1 2 7 1 11 1783 1785 37 21 96.705711 or5 1 2 7 1 12 1838 1767 173 41 89.782097 deceptive5 1 2 7 1 13 2039 1767 2 2 13.177780 —4 1 2 7 2 0 658 1815 1358 115 -1 5 1 2 7 2 1 658 1885 262 45 27.060104 statements,5 1 2 7 2 2 943 1866 289 48 96.607635 representations5 1 2 7 2 3 1256 1856 63 34 95.575691 ands 1 2 7 2 4 1342 1848 165 45 95.947258 practices5 1 2 7 2 5 1525 1842 64 30 47.468418 has5 1 2 7 2 6 1610 1835 67 33 95.218681 had5 1 2 7 2 7 1699 1832 57 31 96.842003 thes 1 2 7 2 8 1779 1822 149 43 94.668961 capacity5 1 2 7 2 9 1952 1815 64 33 95.947060 anda 1 2 7 3 0 659 1878 1359 99 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1 2 7 5 0 715 1971 1309 106 -1 5 1 2 7 5 1 715 2051 75 26 96.343582 true5 1 2 7 5 2 813 2038 64 34 95.595329 ands 1 2 7 5 3 898 2037 70 30 95.595329 into5 1 2 7 5 4 989 2031 58 31 96.760979 thes 1 2 7 5 5 1068 2022 163 43 96.780937 purchases 1 2 7 5 6 1254 2014 35 32 95.605919 of5 1 2 7 5 7 1310 2001 200 42 96.416267 substantial5 1 2 7 5 8 1532 1987 181 54 96.984879 quantities5 1 2 7 5 9 1735 1985 37 32 92.932228 of5 1 2 7 5 10 1791 1971 233 48 91.266212 respondent’s4 1 2 7 6 0 720 2021 1306 110 -1 5 1 2 7 6 1 720 2091 194 40 92.722649 automobiles 1 2 7 6 2 938 2086 93 32 96.218460 tires.5 1 2 7 6 3 1054 2080 48 31 96.258881 As5 1 2 7 6 4 1126 2086 18 21 96.258881 a5 1 2 7 6 5 1165 2069 106 35 96.752846 results 1 2 7 6 6 1292 2058 137 39 96.579102 thereof5 1 2 7 6 7 1450 2046 200 41 96.304672 substantial5 1 2 7 6 8 1671 2040 96 34 96.286736 trades 1 2 7 6 9 1790 2043 69 23 96.286736 was5 1 2 7 6 10 1882 2021 144 49 96.519714 unfairly4 1 2 7 7 0 722 2105 826 77 -1 5 1 2 7 7 1 722 2144 151 38 96.603706 diverted5 1 2 7 7 2 889 2146 34 27 96.433281 to5 1 2 7 7 3 939 2132 204 43 95.654411 respondents 1 2 7 7 4 1153 2126 94 39 95.978973 from5 1 2 7 7 5 1262 2121 44 30 95.847816 its5 1 2 7 7 6 1322 2105 226 56 96.683334 competitors.3 1 2 8 0 0 728 2129 1313 209 -1 4 1 2 8 1 0 765 2129 1269 104 -1 5 1 2 8 1 1 765 2202 84 31 96.025139 Par.5 1 2 8 1 2 872 2196 45 30 95.020180 10.5 1 2 8 1 3 940 2190 70 32 95.020180 Thes 1 2 8 1 4 1033 2178 163 39 95.386703 aforesaid5 1 2 8 1 5 1220 2176 69 30 95.386703 acts5 1 2 8 1 6 1311 2166 64 34 96.079376 ands 1 2 8 1 7 1395 2159 164 44 96.134315 practices5 1 2 8 1 8 1580 2151 36 33 95.173058 of5 1 2 8 1 9 1634 2142 206 43 96.166351 respondents 1 2 8 1 10 1861 2145 38 22 96.387756 as5 1 2 8 1 11 1918 2129 116 35 96.956161 hereina 1 2 8 2 0 728 2173 1313 119 -1 5 1 2 8 2 1 728 2250 135 42 96.152946 alleged,5 1 2 8 2 2 877 2253 88 25 96.959702 were5 1 2 8 2 3 981 2241 41 31 93.301262 all5 1 2 8 2 4 1033 2242 34 27 96.145180 to5 1 2 8 2 5 1081 2235 57 31 96.918976 thes 1 2 8 2 6 1150 2225 169 46 72.989799 prejudice5 1 2 8 2 7 1334 2217 64 34 96.552437 ands 1 2 8 2 8 1411 2214 110 39 96.699280 injury5 1 2 8 2 9 1535 2206 36 33 96.831375 of5 1 2 8 2 10 1582 2204 58 32 96.543350 thes 1 2 8 2 11 1654 2196 108 44 96.706871 public5 1 2 8 2 12 1776 2191 63 33 96.806015 ands 1 2 8 2 13 1852 2187 38 32 92.839867 of5 1 2 8 2 14 1901 2173 140 49 91.140640 respon-4 1 2 8 3 0 730 2234 1309 104 -1 5 1 2 8 3 1 730 2304 106 34 91.627037 dent’s5 1 2 8 3 2 851 2294 213 42 96.581169 competitors5 1 2 8 3 3 1080 2285 63 34 96.440887 ands 1 2 8 3 4 1158 2271 202 42 96.397781 constituted5 1 2 8 3 5 1375 2265 112 35 92.871254 unfair5 1 2 8 3 6 1501 2270 37 22 92.871254 or5 1 2 8 3 7 1552 2252 174 41 95.307930 deceptive5 1 2 8 3 8 1741 2248 70 30 96.991554 acts5 1 2 8 3 9 1825 2251 37 22 96.939362 or5 1 2 8 3 10 1876 2234 163 44 96.742531 practices we FEDERAL TRADE COMMISSION DECISIONS Decision and Order St F.T.C.

in commerce and unfair methods of competition in commerce in violation of Section 5 of the Federal Trade Commission Act. DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a Copy of a draft of complaint which the Bureau of Consumer Protection Proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with Violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereaftey executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a Statement that the Signing of said agreement is for Settlement Purposes only and does hot constitute an admission by respondent 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 respondent has 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 sixty (60) days, 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 K mart Enterprises Incorporated is a corporation organized, existing and doing business under and by virtue of the laws of the State of Michigan, with its office and principal place of business located at 3000 West Fourteen Mile Road, Royal Oak, Mich. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered, That respondent K mart Enterprises, Incorporated, its Successors and assigns, officers, agents, representatives and employees, directly or through any corporation, su bsidiary, division or other device, in connection with the ad vertising, offering for sale, sale or distribution Bye Decision and Order in commerce as “commerce” is defined in the Federal Trade Commission Act, of the respective products hereinafter referred to, do forthwith cease and desist from:

1. making, directly or by implication; any statement or representation in any advertising or sales promotional material as to the performance characteristics, construction or structure of any automobile tire vended by respondent or by any division, subdivision or subsidiary of respondent, unless at the time of such statement or representation respondent has a reasonable ‘basis for such statement or representation, which shall consist of competent scientific tests, or other similar objective material, and where such statement or representation includes a comparison to other products, directly or by implication, such statement or representation shall be supported by competent scientific tests showing not less than a ninetyfive percent confidence level when subjected to an appropriate statistical analysis.

2. failing to maintain and produce accurate records which may be inspected by Commission staff members upon reasonable notice: (a) which consist of documentation in support of any statement or representation referred to in Paragraph one (1) supra, included in advertising or sales promotional material disseminated by respondent, insofar as the text of such statement or representation is prepared, or is authorized and approved, by any person, who is an officer or employee of respondent, or of any division, subdivision or subsidiary of respondent, or by any advertising agency engaged for such purpose by respondent or by any such division, subdivision or subsidiary; and (b) which provided the basis upon which respondent relied as of the time the claim was made; and (c) which shall be maintained by respondent for a period of three years from the date such advertising or sales promotional material is last disseminated by said respondent or any division, subdivision or subsidiary of said respondent. It is further ordered, That respondent shall forthwith distribute a copy of this order to each of its operating divisions, subdivisions, and subsidiaries and to each of its officers, agents, representatives or employees who are engaged in the preparation or placement of advertisements. , It is further ordered, That respondent notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale, resulting in the emergence Complaint 84 F.T.C.

of a successor corporation, or any other changes in the corporation which may materially affect compliance obligations arising out of the order.

It is further ordered, That respondent shall, within sixty (60) d ays, and at the end of six (6) months after the effective date of the order served upon it, file with the Commission a report, in writing, signed by respondent, setting forth in detail the manner and form of its compliance with the order to cease and desist.