Nu-Prime Marketing Systems, Inc

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IN THE MATTER OF NU-PRIME MARKETING SYSTEMS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-2594. Complaint, Nov. 4, 1974—Decision, Nov. 4, 1974 Consent order requiring a St. Petersburg, Fla., retailer and wholesale distributor of aluminum replacement windows and other aluminum siding products, among other things to cease misrepresenting the savings or benefits to be derived from their products and misrepresenting their guarantees. Appearances For the Commission: David E. Krischer. _ For the respondents: Thomas K. Riden, St. Petersburg, Fla. 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 Nu-Prime Marketing Systems, Inc., a corporation, and Herbert Anderson, individually and as an officer of said corporation, hereinafter sometimes referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Nu-Prime Marketing Systems, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida with its principal office and principal place of business located at 10590 Oak Street, N.E., St. Petersburg, Fla. Respondent Herbert Anderson is an officer of the corporate respondent. He formulates, directs and controls the acts and practices of corporate respondent including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent. Par. 2. Respondents are now, and for some time last past have engaged in the advertising, offering for sale, sale and distribution of aluminum replacement windows and other aluminum siding products to consumers through a retail outlet. In addition, respondents are now, and for some time last past have been engaged in the sale and distribution of aluminum replacement windows and other aluminum siding products --y SH eee 1248 Complaint . to distributors. Said distributors purchase respondents’ aluminum products under a distribution agreement whereby respondents agree to provide perpetual sales, management and technical assistance to distributors, and distributors agree to sell minimum quotas of respondents’ aluminum products.

Par. 3. In the course and conduct of their business, as aforesaid, respondents now cause and for some time last past have caused, their said products, when sold, to be shipped from their place of business in the State of Florida to purchasers thereof located in other States of the United States and have sent and received sales, advertising and training aids to and from their distributors and thereby maintain and at all times mentioned herein have maintained, substantial course of trade in said products and services in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 4. In the course and conduct of their aforesaid business, and for the purpose of inducing the purchase of aluminum window replacements and other aluminum siding products, respondents have made numerous statements and representations in newspapers and promotional materials. Typical and illustrative of such statements and representations, but not all inclusive thereof, are the following: NUPRIME stops loss of heating and cooling dollars. They save up to 30 percent of your heating and cooling costs. They pay for themselves in reduced fuel costs alone. Make no mistake, NUPRIME replacement windows will cut your fuel expenses considerably; make your home more comfortable; and more attractive, too. k *k # ES ae # EY On a NUPRIME replacement window, you save up to 40 percent over wood replacement windows * * * and 20-30 percent less than other types. Here’s an investment which pays for itself in savings and maintenance, heating and air conditioning costs. * * tk Ea Es 1k *% NU PRIME is the only replacement window built of such high standards that it’s guaranteed for 15 years.

ok ok * # ok * * They never need painting, are easy to clean and will make your house look years younger. * k * * k * * Par. 5. By and through the use of the above-quoted statements and representations and others of similar import and meaning but not Complaint 84 F.T.C.

expressly set out herein, separately and in connection with the oral statements and representations of respondents’ salesmen to customers and prospective customers, respondents have represented and are now representing directly or by implication that: 1. Installation of replacement windows sold by respondents will cut fuel expenses considerably and in fact will reduce fuel costs by up to _ thirty (80) percent.

2. Respondents’ replacement windows and their installation are fully or unconditionally guaranteed for 15 years. 3. Respondent is the guarantor of said guarantee. 4. Replacement windows sold by respondent will never need repainting.

Par. 6. In truth and in fact:

1. Respondents cannot predict in advance any precise percentage of savings in fuel costs that might be expected to result from the installation of their replacement windows. Since such savings will depend on the quality of construction and age of each home and since no installation will be alike, fuel savings are indeterminable. , 2. Respondents’ 15 year guarantee is not unconditional nor does it cover installation. Said guarantee is limited and restricted in certain respects which limitations and restrictions were not disclosed in many of respondents’ advertisements.

3. Respondent is not the guarantor of said guarantee. 4, Replacement windows sold by respondents will require painting. Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof, were and are, false, misleading and deceptive.

Par. 7. In the course and conduct of their aforesaid business, respondents have disseminated the aforesaid statements and representations to their distributors.

Par. 8. In the course and conduct of their aforesaid business, and at all times mentioned herein, repondents have been, and are now, in substantial competition in commerce with corporations, firms and individuals in the sale of aluminum replacement windows and other aluminum siding products of the same kind and nature as those sold by respondents.

Par. 9. The use by respondents of the aforesaid false, misleading and deceptive statements, representations, acts and practices has had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and complete and into the NU-PRIME MARKETING SYSTEMS, INU. ht Oo 1248 Decision and Order purchase of substantial quantities of respondents’ products and services by reasons of said erroneous and mistaken belief. Par. 10. 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.

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 Atlanta Regional Office proposed to present to the Commission for its consideration and which, if issue 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 2 consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, 2 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 re quired 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 4 period of sixty (60) days, now in further conformity with the procedure preseribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint making the following jurisidictional findings, and enters the following order:

1. Respondent Nu-Prime Marketing Systems, Inc, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its office and principal place of business located at 10590 Oak Street, N.E., St. Petersburg, Fila. Respondent Herbert Anderson 1S an officer of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation. His address is the same as that of the corporate respondent.

1. That any Spec containing statements or representations prohibited by this order, to its: distributors or to any other aluminum replacement window dealers for. whom respondents have been providing Sales, management or technical : assistance. we ee ae It-is further ordered, That respondents maintain files containing all inquiries or complaints made after the effective date of this order from Ic percentage or any specific amount of savings In es fuel bills wil] result from the. installation of respondents’. replace- Ee ~ Ment aluminum ndows, or misrepresenting in any manner: the . savings or benefits to be derived from the Purchase of respondents? - products, Ones bok THE SOCIETY OF THE PLASTICS INDUSTRY, INC., ET AL. 1253 1253 Complaint It is further ordered, That respondents deliver a copy of this order to cease and desist to all present and future employees, agents and representatives engaged in the offering for sale or sale of respondents’ products or in any aspect of preparation, creation or placing of advertising and that respondents secure a signed statement acknowledging receipt of said order from each such person. It is further ordered, That respondents deliver a copy of this order to cease and desist to all present and future distributors and that respondents secure a signed statement from each said distributor wherein each said distributor agrees to abide by the terms of said order. It is further ordered, That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and his affiliation with a new business or employment. Such notice shall include respondent’s eurrent business address and a statement as to the nature of the business or employment in which he is engaged as well as a description of his duties and responsibilities. :

Itis further ordered, That respondents notify the Commission at least thirty (80) days prior to any proposed change in the corporate respondent 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 corporation which may affect compliance obligations arising out of the order.

It is further ordered, That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

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