Wendelken-Simminger and Co

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IN THE Matrer OF WENDELKEN-SIMMINGER AND COMPANY T/A SIMS FURNITURE CO., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMSSION ACT Docket 226()- Crimpl(lint, May 1975-Decislon, May 5; 197.5 Consent order requiring. Cincinnati, Ohio seller and . distributor of furniture appliances and related products, among other things to cease misrepresenting the quantity of merchandise in stock; disparaging advertised products; failing to ' maintain adequate records, to disclosellnitprices . and other relevant' facts; using misleadingsales plans. Frirther, respondents are required to post copies of the orderinprominent locations within their storeandmruntain recordsof advertisements for a .three year period, Appmrances For the Commission: Allan M. Huss.

For the. respondents: Saul M. Greenberg, CineiImati, Ohio. COMPLANT Pursuant to the provisions of the Federal Trde Commssion Act and by virtue of the authority vested in it by said Act, the Federa Trade Commission, having reason to believe that Wendelken-Simminger and Company, a corporation, traing and doing blJiness as Sims Furiture Company, and Ralph Mazer, individually and as an offeer of said corporation, hereinafter sometimes referred to as respondents have violated the provisions of said Act, and it appearing to the Commssion 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 Wendelken-Sinuger and Company is a corpration org'.mized, existing, and doing business under and by viue of the laws of the State of Ohio, with itsprieipal offee and place of business located at 1625 Vine St., Cineinnti, Ohio. Respondent WendelkeI1-Simminger and Company is trading and doing business as Sims Furiture Company.

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2. The amount of furture offered for sale in the advertisement is not adequate in and of itself to fursh an average room, without the need for additional pieces of furniture to be purchased. Therefore, the representations, acts, and practices a.s set forth in Paragraphs Four and Five hereof were and are unfair, misleading, and deceptive.

PAR. 7. The use by respondents ofthe aforesaid false, misleading, and deceptive statements and representations, directly or by implication ha., had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true, and into the purchase of substantial quantities of furture from respondents' place of business by rea.son of said erroneous and mistaken belief. PAR. 8. In the course and conduct of their aforesaid business respondents fail to display the retail sellig price of each item advertised or offered for sale in their place of business, or to otherwse enable the customer to ascertain the retail selling price of each item prior to its purchase. Thus, respondents have failed to disclose a material fact, which, if known to certain customers, would be likely to affect their consideration of whether or not to purchase the items offered for sale.

PAR. 9. The aforesaid acts and practices of respondents, as alleged herein, were and are all to the prejudice and injur of the public and of respondents' competitors, and constitute unai methods of competition in commerce and unai and deceptive acts and practices in commerce in violation of Section 5 of the Federal Trade Commssion Act. DECISION AN 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 furshed thereafter with a 8:14 FF:DERAL TRADE COMMISSION DECISIONS Decision and Order 85 F.

copy of a draft of complaint which the Cleveland Regional Offce 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 eonsent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signng 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 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 eonsent agreement and placed such agreement on the puhlie record for a period of sixty (60) days, now in furher conformty with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jursdietional findings, and enters the following order:

1. Respondent Wendelken-Simmnger and Company is a eorpration organized, existing, and doing business under and by viue of the laws of the State of Ohio, with its offee and principal place of business located at 1625 Vine St., in the city of Cincinnati, State of Ohio. Respondent Wendelken-Simmnger and Company trades and does business as Sims Furniture Company.

Respondent Ralph Mazer is an offeer of said eorpration. He formulates, directs, and controls the policies, acts, and pratiees of said corporation, and his address is the same as that of said corpration. 2. The Federal Trade Commssion has jursdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Wendelken-Simmnger and Company, a corporation, trading and doing business as Sims Furture Company, its successors and assigns, and its offeers, and Ralph Mazr individually and as an offieer of said corpration, and respondents representatives, agents, and employees, directly or through any corporation, subsidiar, division, or any other device in connection with the purchasing, advertising, offering for sale, sale, and distribution of furture and applianees, or any other products, in commerce, as WENDELKEN-SIMMINGER AND CU. t/a ::IM:: l"UK,NlTU.tH.. VU., l:d J-U.()").. s:n Deeision and Order eommeree" is defined in the Federal Trade Commssion Act, do forthwith cease and desist from:

1. Advertising or offering any products for sale for the purpose of obtaining leads or prospects for the sale of different products unless the advertised products are capable of adequately performing the function for which they are offered, and respondents maintain an adequate and readily available stock of said products. 2. Disp:Iaging in any manner, or refusing to sell, any product advertised.

3. Using any advertising, sales plan or procedure involving the use of false, deceptive or misleading statements or representations designed to ohtain leads or prospects for the sale of other merchandise. 4. Representing directly or indirectly that any products or services are offered for sale when such is not a bona fide offer to sell said products or servees.

5. Failing to disclose the number and typ of the pieees included in a room grouping, in any advertisement which refers to room groupings. 6. Failing to post, clearly and conspicuously, upon each item to be sold, the retail selling price of each item. 7. Failing to disclose to the consumer, in wrting on the sales invoice or sales contract, or any other wrtten evidence of sale, the manufactur- , model number, description, and retail selling price of each item at the time each item is purchased.

8. Failing to maintain adequate reeords as wil show: (a) Each advertised item identifed by model number, manufacturer description, and date(s) advertised; and (b) The number of sales made of each advertised product or servee at the advertised price for each advertisement published or otherwise disseminated durng the period of its publication or other dissemination, and for the six weeks immediately thereafter. Said records shall be retained for three year from the date of the advertisement, and shall be made available to personnel of the Federal Trade Commission upon request.

It is further ordeed That respondents shall maintain, for a three (3) year period from the date of each advertisement, copies of all advertisements, including newspaper, radio, and television advertisements, direct mail and in-store solicitation literature, and any other such promotional material utilized in the advertising, promotion, or sale of merchandise.

It is furtlwr orrkred That for a period of one (1) year, respondents post in a prominent place in each salesroom or other area wherein respondents sell furniture or other products and services, a copy of this Decision and Order 85 cease and desist order, with a notice that any customer or prospective customer may receive a copy on demand.

It is further ordered That respondents deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in any aspect of preparation, creation, or placing of advertising, and to all personnel of respondents responsible for the sale or offering for sale of all products covered by this order, and that respondents secure a signed statement acknowledging receipt of said order from each such person.

It is That respondents notify the Commission at further arred least thiry (30) days prior to any proposed change in the eorpmte respondent, such as dissolution, assigrent, or sale resulting in the emergenee of a successor eorpmtion, the creation or dissolution of subsidiares, or any other change in the corporation which may affect compliance oblig-dtions arising out of the order. It is further ordered That the individual respondent named herein promptly notify the Commssion of the diseontinuanee of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent's eurent business address or employment in which he is engaged, as well as a description of his duties and responsibilities.

It is further ored That the respondents herein shall within sixty (60) days after servee upon them of this order, fie with the Commission a report, in writing, setting forth in data the maner and form in which they have complied with this order.