Dahlberg Electronics, Inc

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

In THE MATTER OF DAHLBERG ELECTRONICS, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket 9013. Complaint, Jan. 29, 1975 — Decision, Sept. 8, 1976 Consent order requiring a Minneapolis, Minn., manufacturer of hearing aids and hearing aid products among other things to cease misrepresenting the beneficial results of using its merchandise; misrepresenting the performance characteristies, efficacy and uniqueness of its products; furnishing means and/or instrumentalities of misrepresentation or deception; and failing to maintain records which are both accurate and adequate. Further, should a final trade regulation rule regarding hearing aids be promulgated, such rule shall supersede this order to the extent that any requirement or prohibition herein is omitted by the rule or differs from the corresponding portion of the rule. Appearances For the Commission: Wallace S. Snyder.

For the respondent: Reinhold F. Hollender, Minneapolis, Minn., and Jack L. Lahr and John C. Fillippini, Arent, Fox, Kintner, Plotkin & Kahn, Washington, D.C.

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 Dahlberg Electronics, Inc. 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. Respondent Dahlberg Electronics, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Minnesota with its principal place of business located at Golden Valley, Minnesota.

Par. 2. Respondent is now, and for some time last past has been engaged in the advertising, offering for sale, sale and distribution of hearing aids which come within the classification of device as the term “device” is defined in the Federal Trade Commission Act, to dealers, distributors, licensees, retailers, salespersons, representatives or agents thereof, for resale to the public.

Par. 8. In the course and conduct of its business as aforesaid, respondent causes, and for some time last past has caused, its devices Complaint 88 F.T.C.

when sold to be shipped from its place of business in the State of Minnesota to purchasers thereof located in various other States of the United States, and maintains, and at all times mentioned herein has maintained, a substantial course of trade in said devices in commerce as “commerce” is defined in the Federal Trade Commission Act. Par. 4. In the course and conduct of its business and at all times mentioned herein, respondent has been, and is now, in substantial competition in commerce with corporations, firms and individuals likewise engaged in the sale of hearing aids of the same general kind and nature as the devices sold by respondent. Par. 5. Respondent in the course and conduct of its business and for the purpose of inducing the purchase of said devices has furnished and supplied to dealers, distributors, licensees, retailers, salespersons, representatives or agents thereof, who sell said devices to the public, various types of advertising materials, including, but not limited to advertisements, sales manuals, brochures, advertising mailers, ad mats and other sales aid materials.

Respondent has assisted, aided, provided payments to and otherwise cooperated with its dealers, distributors, licensees, retailers, salespersons, representatives, or agents thereof, in the advertising of said devices.

Par. 6. In the course and conduct of its business respondent has disseminated, and does now disseminate, certain advertisements by use of the United States mail and by various means in commerce as “commerce” is defined in the Federal Trade Commission Act, including but not limited to advertisements inserted in periodicals of general circulation, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its said devices, and has disseminated, and caused the dissemination of, advertisements concerning said devices by various means, including those aforesaid, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of said devices in commerce as “commerce” is defined in the Federal Trade Commission Act. Par. 7. Typical and illustrative of the advertisements referred to in Paragraphs Five and Six, but not all-inclusive thereof, are the advertisements attached hereto.

Par. 8. Through the attached advertisements and similar advertisements not expressly set out herein, and otherwise, respondent has represented directly or by implication that: 1. Respondent merchandises a hearing aid which is a new invention or involves new model features or a new mechanical, engineering or scientific concept or principle in hearing aid capability. DAHLBERG ELECTRONICS, INC. 321 819 Complaint 2. Respondent’s hearing aids will be beneficial to persons with a hearing loss regardless of the type or extent of loss. 3. Respondent’s hearing aids will enable persons witha hearing loss to distinguish and understand speech sounds in group or noisy situations.

4. Respondent’s hearing aids will help those persons who hear but do not understand.

5. Respondent’s hearing aid glasses designed for bone conduction will be beneficial to persons with hearing loss regardless of the type or extent of loss.

6. Respondent’s hearing aids will restore natural hearing to wearers and will enable wearers of such devices to hear sounds naturally. 7. Use of respondent’s hearing aids can reverse, halt or retard the progression of a hearing loss.

Par. 9. In truth and in fact:

1. The hearing aids referred to in the advertisements cited in Paragraph Seven and in other advertisements are not new inventions nor do they involve model features or mechanical, engineering or scientific concepts or principles in hearing aid capability that are new. 2. Many persons with a hearing loss will not receive any significant benefit from any hearing aid.

3. Many persons with a hearing loss will not be able to consistently distinguish and understand speech sounds in group and noisy situations by using any hearing aid.

4. In many instances, persons who hear but do not understand have a discrimination problem that cannot be helped by respondent’s hearing aids.

5. Many persons with a hearing loss will not benefit from the use of a bone conduction hearing aid.

6. No hearing aid will restore natural hearing to the wearers thereof nor will it enable such persons to hear sounds naturally. 7. No hearing aid will reverse, halt or retard the progression of hearing loss.

Therefore, the advertisements referred to in Paragraphs Five through Eight were, and are, misleading in material respects and constituted, and now constitute, “false advertisements” as that term is defined in the Federal Trade Commission Act and the aforesaid statements and representations referred to in Paragraphs Five through Eight were and are false, misleading and deceptive. Par. 10. Through the use of the aforesaid advertisements, respondent has represented, directly or by implication, that at the time that respondent made the claims set forth in Paragraph Eight, respondent had a reasonable basis for such claims.

Complaint 88 F.T.C.

Par. 11. In truth and in fact, at the time that respondent made the claims set forth in Paragraph Eight, respondent had no reasonable basis from which to conclude that such claims were true. Therefore, the statements and representations set forth in Paragraph Eight were, and are, deceptive or unfair acts or practices. Par. 12. At the time that respondent made the claims set forth in Paragraph Eight, respondent had no reasonable basis to support such claims.

Therefore, the making of the claims set forth in Paragraph Eight was, and is, a deceptive or unfair act or practice. Par. 18. The following statement constitutes a material fact with respect to the making of any claim regarding the hearing capability or hearing quality of any hearing aid:

Many persons with a hearing loss will not receive any significant benefit from any hearing aid. Par. 14. The advertisements referred to in Paragraphs Five through Eight contain claims regarding the hearing capability or the hearing quality of respondent’s hearing aids and fail to disclose the material fact set forth in Paragraph Thirteen. Therefore, those advertisements were and are “false advertisements” as that term is defined in the Federal Trade Commission Act, and respondent’s failure to disclose said material fact in connection with each such claim for its hearing aids was, and is, an unfair or deceptive act or practice. Par. 15. The dissemination by respondent of the aforesaid false advertisements and the use of the aforesaid unfair or deceptive acts or 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 advertisements and representations were, and are, true and into the purchase of substantial quantities of respondent’s devices by reason of said erroneous belief.

Par. 16. The aforesaid acts and practices of respondent, as herein alleged, including the dissemination of false advertisements, and the making of representations without a reasonable basis as aforesaid, were, and are, all to the prejudice and injury of the public and of respondent’s competitors and constituted, and now constitute, unfair . methods of competition in commerce, and unfair or deceptive acts or practices in commerce in violation of Sections 5 and 12 of the Federal Trade Commission Act.

DAHLBERG ELECTRONICS, ING.

Complaint DAHLBERG MIRACLE: EAR, HEARING AIDS sUTHORIZEO DEALER NEWSPAPER ADVERTISING BASIC ADS OAHLBERG ELECTRO! ATTACHMENT A FOR MILD NERVE DEAFNESS Miracle Far OUR RECOMMENDATION for.

JUSt skp shan yourieues* #& PROVE viwhen you néed ¥.IN USE Ch? HEARING LIFT! anne? WT Remarkable new deti after then ever before! ‘FX Natural colored, contoured to blend with the shape of your ear! ¥ Proven in Use! Happily worn by thousands! 4X NO CORDS, NO TUBES, Norting in your clothes or in your hair! ©1972~ }’NO.CORDS «NO TUBES ®NO WIRES Mira P EXCLUSIVELY FROM AE ERG &ceragnies, inc, Oahiberg Electronics, Inc, vs. PATS.: 3,197,576;

* DEALER'S FIRM NAME pif youcan © AODRESS AND PHONE hear sounds but can’t always +c Tell me bow to hear again in eth tars without sng understand hearing aids Ihat have cords words...

SEND: THIS Name, COUPON NOW J NO Of ICATION City State__2ip__.

Ag No. MA}! 2 ooh 2 0 (SR Bay) ‘Tes chematls ia Unit msl art be weed we local staplabens Bet otrwlannen! pd Ou iy evade.

toms U Dating hide rand Maeda no aet tthe De Cees Adve bog Nics INC. + GOLDEN VALLEY, Mil BOLIS, MINNESOTA $5427 * Pace.

Complaint 88 F.T.C.

.. NEWSPAPER!? ADVERTISING BASIC ADS HEARING AIDS sUTHORIZED DEALER ATTACHMENT 5 I'M NOT DEAF! Under normal conditions, J hear Rush this coupon. Youll rewell enough. Dut sometimes my | ceive a descriptive pamphlet vltraminiature DAaHLBERG | promptly.

‘AR® hearing aid is a *ASK YOUR DOCTOR ABOUT DAHLBERG HEARING AIDS.

DAHLGERG nothing above & Y my car. or 4 below my car. —K— Nothing hind my ear or in front of my ear. No tubes, individual Name no ho scratchy soundr. irm Name, Address It ix especially designed for ush full .

thore who hear but do not y Peme wah full antormanion always underatand—a classic on the MuracieEar. symptom of nerve impai Name If diugnosis* shows you have of loss, this modern | $00"

may ‘give youthe City.

ou need tulives |g, z.

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full and active life! re MA 24 2 COL. X 45 lines (90li.) The elements in thes mat may be used in local adaplations of this advertisement provided the locally devised ad conforms Lo Dahlberg advertising slandards as set forth in the Co-op Advertising Manual. DAHLBERG ELECTRONICS, INC.

319 Complaint Aes NEWSPAPER ADVERTISING IRACL R — BASIC ADS \AUTHORIZED OEALER eae ATTACHMENT C Mild Nerve Deafness? t5 1 14 1 1 2 1138 1004 52 15 63.279728 always4 1 14 1 2 0 1135 1020 43 14 -1 5 1 14 1 2 1 1135 1020 43 14 77.534775 lassic4 1 14 1 3 0 932 1035 237 17 -1 5 1 14 1 3 1 932 1035 71 15 94.238342 symptoms 1 14 1 3 2 1009 1035 14 12 95.093956 of5 1 14 1 3 3 1030 1038 43 10 96.520729 nerves 1 14 1 3 4 1079 1036 90 16 85.972466 impairment2 1 15 0 0 0 1212 940 217 100 -1 3 1 15 1 0 0 1212 940 217 100 -1 4 1 15 1 1 0 1212 940 217 100 -1 5 1 15 1 1 1 1212 940 217 100 95.000000 2 1 16 0 0 0 870 1000 263 60 -1 3 1 16 1 0 0 870 1000 263 60 -1 4 1 16 1 1 0 913 1000 220 33 -1 5 1 16 1 1 1 913 1000 220 33 95.000000 4 1 16 1 2 0 870 1040 62 20 -1 5 1 16 1 2 1 870 1040 62 20 95.000000 2 1 17 0 0 0 1127 1004 6 12 -1 3 1 17 1 0 0 1127 1004 6 12 -1 4 1 17 1 1 0 1127 1004 6 12 -1 5 1 17 1 1 1 1127 1004 6 12 95.000000 2 1 18 0 0 0 870 1040 560 515 -1 3 1 18 1 0 0 870 1040 560 515 -1 4 1 18 1 1 0 870 1040 560 515 -1 5 1 18 1 1 1 870 1040 560 515 95.000000 2 1 19 0 0 0 1049 1162 179 29 -1 3 1 19 1 0 0 1049 1162 179 29 -1 4 1 19 1 1 0 1074 1162 154 17 -1 5 1 19 1 1 1 1074 1162 10 12 43.276936 05 1 19 1 1 2 1090 1163 57 16 12.424004 TUALS,©5 1 19 1 1 3 1151 1164 20 11 73.700996 NO5 1 19 1 1 4 1178 1164 50 11 73.700996 WIRES:4 1 19 1 2 0 1049 1179 126 12 -1 5 1 19 1 2 1 1049 1180 31 10 0.000000 rare5 1 19 1 2 2 1085 1179 6 12 0.000000 k5 1 19 1 2 3 1173 1182 2 2 0.000000 ”2 1 20 0 0 0 1084 1363 237 13 -1 3 1 20 1 0 0 1084 1363 237 13 -1 4 1 20 1 1 0 1084 1363 237 13 -1 5 1 20 1 1 1 1084 1363 38 12 85.946579 OURS 1 20 1 1 2 1132 1364 189 12 63.855072 RECOMMENDATION®2 1 21 0 0 0 884 1380 522 117 -1 3 1 21 1 0 0 884 1380 522 117 -1 4 1 21 1 1 0 884 1380 522 117 -1 5 1 21 1 1 1 884 1380 522 117 0.000000 Moraceae2 1 22 0 0 0 898 1500 487 96 -1 3 1 22 1 0 0 898 1500 487 96 -1 4 1 22 1 1 0 910 1500 467 16 -1 5 1 22 1 1 1 910 1500 86 11 61.716454 CEVELOPED5 1 22 1 1 2 1003 1501 31 10 69.366905 AMD5 1 22 1 1 3 1042 1501 76 11 96.731300 PATENTED5 1 22 1 1 4 1126 1503 18 9 93.096443 BY5 1 22 1 1 5 1151 1503 79 11 90.285553 DAHLBERG5 1 22 1 1 6 1237 1503 106 13 73.005569 ELECTRONICS,5 1 22 1 1 7 1348 1504 29 11 93.867241 INC.4 1 22 1 2 0 900 1518 485 20 -1 5 1 22 1 2 1 900 1518 53 15 96.798203 Proven5 1 22 1 2 2 961 1519 13 14 96.798203 in5 1 22 1 2 3 982 1519 31 15 93.248405 use!5 1 22 1 2 4 1021 1519 129 16 92.417496 MIRACLE-EARS 1 22 1 2 5 1157 1521 36 15 95.324944 HAS5 1 22 1 2 6 1199 1521 72 15 96.704376 HELPED5 1 22 1 2 7 1277 1522 108 16 95.563309 COUNTLESS4 1 22 1 3 0 898 1539 486 19 -1 5 1 22 1 3 1 898 1539 34 13 96.874466 who5 1 22 1 3 2 939 1539 44 14 93.165596 could5 1 22 1 3 3 990 1542 41 11 96.534538 never5 1 22 1 3 4 1039 1540 33 14 93.305649 hear5 1 22 1 3 5 1079 1540 102 16 87.710648 clearly—they5 1 22 1 3 6 1187 1542 44 14 96.483406 heard5 1 22 1 3 7 1237 1543 60 15 94.975975 sounds,5 1 22 1 3 8 1304 1543 26 14 96.638199 but5 1 22 1 3 9 1336 1544 48 13 96.638199 words4 1 22 1 4 0 898 1556 485 21 -1 5 1 22 1 4 1 898 1560 37 10 96.466270 were5 1 22 1 4 2 942 1557 70 14 85.030380 jumbled,5 1 22 1 4 3 1022 1557 11 13 95.763474 If5 1 22 1 4 4 1039 1556 81 19 92.376228 diagnosis”5 1 22 1 4 5 1126 1560 48 13 96.819450 shows5 1 22 1 4 6 1179 1563 29 12 96.583183 you5 1 22 1 4 7 1214 1560 35 14 95.947586 have5 1 22 1 4 8 1255 1560 28 15 96.976357 this5 1 22 1 4 9 1288 1563 34 14 95.654404 types 1 22 1 4 10 1327 1562 16 13 96.431190 of5 1 22 1 4 11 1348 1562 35 14 93.321480 mild4 1 22 1 5 0 898 1575 485 21 -1 5 1 22 1 5 1 898 1575 33 15 91.235138 loss,5 1 22 1 5 2 955 1575 76 15 92.143532 Miracle-Ears 1 22 1 5 3 1039 1580 33 13 96.984314 may5 1 22 1 5 4 1078 1578 52 13 94.465645 enables 1 22 1 5 5 1137 1581 29 12 96.882843 you5 1 22 1 5 6 1174 1581 16 11 95.707985 to5 1 22 1 5 7 1196 1579 33 13 95.707985 hear5 1 22 1 5 8 1236 1582 40 11 96.519913 more5 1 22 1 5 9 1283 1580 53 16 90.537140 clearly5 1 22 1 5 10 1343 1580 40 14 96.230705 AND2 1 23 0 0 0 896 1322 534 328 -1 3 1 23 1 0 0 896 1322 534 328 -1 4 1 23 1 1 0 896 1322 534 328 -1 5 1 23 1 1 1 896 1322 534 328 95.000000 2 1 24 0 0 0 896 1593 486 56 -1 3 1 24 1 0 0 896 1593 486 56 -1 4 1 24 1 1 0 898 1593 482 23 -1 5 1 24 1 1 1 898 1593 71 15 96.482788 BETTER5 1 24 1 1 2 979 1593 129 16 96.235413 UNDERSTANDS 1 24 1 1 3 1117 1596 39 15 96.603630 what5 1 24 1 1 4 1165 1597 52 15 95.859886 peoples 1 24 1 1 5 1223 1601 30 12 77.510056 say.5 1 24 1 1 6 1260 1602 36 9 94.352959 even5 1 24 1 1 7 1303 1599 14 12 89.902832 in5 1 24 1 1 8 1323 1603 57 13 89.902832 groups,4 1 24 1 2 0 896 1613 486 19 -1 5 1 24 1 2 1 896 1613 54 13 95.404205 church5 1 24 1 2 2 961 1617 16 9 96.303169 or5 1 24 1 2 3 988 1616 74 15 94.142761 meetings.5 1 24 1 2 4 1073 1614 33 15 89.469978 Joins 1 24 1 2 5 1118 1615 24 14 96.225479 thes 1 24 1 2 6 1152 1616 85 14 96.537666 multitudes5 1 24 1 2 7 1246 1617 34 14 96.504837 who5 1 24 1 2 8 1289 1620 33 12 95.245331 now5 1 24 1 2 9 1331 1617 51 15 96.960716 HEAR4 1 24 1 3 0 898 1630 369 19 -1 5 1 24 1 3 1 898 1630 59 14 96.340057 AGAIN5 1 24 1 3 2 967 1631 53 15 95.992027 MORE5 1 24 1 3 3 1030 1632 89 15 96.072235 CLEARLY5 1 24 1 3 4 1126 1633 36 14 93.297333 with5 1 24 1 3 5 1172 1635 95 14 87.643768 Miracle-Ear.2 1 25 0 0 0 878 1654 194 16 -1 3 1 25 1 0 0 878 1654 194 16 -1 4 1 25 1 1 0 878 1654 194 16 -1 5 1 25 1 1 1 878 1654 42 15 33.313744 “ASKS 1 25 1 1 2 933 1655 51 15 96.691521 YOURS 1 25 1 1 3 995 1656 77 14 96.294769 DOCTOR2 1 26 0 0 0 950 1784 307 9 -1 3 1 26 1 0 0 950 1784 307 9 -1 4 1 26 1 1 0 950 1784 307 9 -1 5 1 26 1 1 1 950 1784 307 9 95.000000 2 1 27 0 0 0 907 1829 327 12 -1 3 1 27 1 0 0 907 1829 327 12 -1 4 1 27 1 1 0 907 1829 327 12 -1 5 1 27 1 1 1 907 1829 327 12 95.000000 2 1 28 0 0 0 865 1652 552 205 -1 3 1 28 1 0 0 865 1652 552 205 -1 4 1 28 1 1 0 865 1652 552 205 -1 5 1 28 1 1 1 865 1652 552 205 95.000000 2 1 29 0 0 0 1009 1871 55 15 -1 3 1 29 1 0 0 1009 1871 55 15 -1 4 1 29 1 1 0 1009 1871 55 15 -1 5 1 29 1 1 1 1009 1871 27 14 94.758064 MA5 1 29 1 1 2 1045 1871 19 15 94.758064 272 1 30 0 0 0 981 1906 316 90 -1 3 1 30 1 0 0 981 1906 316 90 -1 4 1 30 1 1 0 981 1906 316 90 -1 5 1 30 1 1 1 981 1906 316 90 95.000000 2 1 31 0 0 0 980 1968 74 30 -1 3 1 31 1 0 0 980 1968 74 30 -1 4 1 31 1 1 0 980 1968 74 12 -1 5 1 31 1 1 1 980 1968 74 12 95.000000 4 1 31 1 2 0 980 1980 69 18 -1 5 1 31 1 2 1 980 1980 69 18 95.000000 2 1 32 0 0 0 1054 1973 125 11 -1 3 1 32 1 0 0 1054 1973 125 11 -1 4 1 32 1 1 0 1054 1973 125 11 -1 5 1 32 1 1 1 1054 1973 53 11 13.323357 conforms5 1 32 1 1 2 1117 1974 10 9 81.248611 to5 1 32 1 1 3 1136 1974 43 9 64.029877 Oaniber2 1 33 0 0 0 1051 1986 241 13 -1 3 1 33 1 0 0 1051 1986 241 13 -1 4 1 33 1 1 0 1051 1986 241 13 -1 5 1 33 1 1 1 1051 1987 3 9 0.000000 H5 1 33 1 1 2 1062 1986 28 11 64.610268 forth5 1 33 1 1 3 1097 1989 10 7 88.588982 in5 1 33 1 1 4 1114 1986 17 10 91.099640 thes 1 33 1 1 5 1139 1986 32 12 69.166153 Coop5 1 33 1 1 6 1186 1988 57 11 31.462257 Advertising5 1 33 1 1 7 1251 1987 41 11 33.166840 Manus!2 1 34 0 0 0 564 2072 1120 97 -1 3 1 34 1 0 0 564 2072 1120 97 -1 4 1 34 1 1 0 564 2072 1120 97 -1 5 1 34 1 1 1 564 2072 1120 97 95.000000 2 1 35 0 0 0 1855 444 49 26 -1 3 1 35 1 0 0 1855 444 49 26 -1 4 1 35 1 1 0 1855 444 49 26 -1 5 1 35 1 1 1 1855 444 49 26 82.841354 825 Complaint 88 F.T.C, DAHLBERG A vce) | MEWSPAPER ADVERTISING THO RIEEG DEALER BASIC ADS ATTACHMENT D i This is the ORIGINAL 1 Miracle-Ear® FROM DAHLBERE ELECTRONICS, INC.

ow FORTHOSE WHO HEAR SOUNDS...

BUT CAN'T ALWAYS UNDERSTAND , . THE WORDS...

” A Classic Symptom of Hearing Loss Involving Nerve Impairment You're not deaf... you hear, bul it is often difficult for you to understand the words, MIRACLE-EAR® was made for you. Dahlberg was the first manufacturer to design, engineer and patent » If ‘i Wei i to help auch mild hearing impairment.

MIRACLE-EAR” nay be exactly what you need (o keep your hearing sharp BEFORE more serious correction is required, No one can duplicate the years of advanced experience Dahlberg has put into this modem, space-age solution to the correction o| hearing, the Miracle-Ear®, Fer NOW! SEE HOW MIRACLE-EAR*CAN HELP YOU! MIRACLE-EAR* Cept. 0000, P.O. Box 549 Hi Minneapolis, Minn. 55440 H Please tell me now | may understand words more | ! \ { J clearly with Miracte-Ears, Name Adaress MA 32 2 COL. X 70 lines (140 ti.) The elements Jn this mat_may be used in toca) ng of this adv lecalty ‘stan set forth in tne Ci Manvat.

GOLOEN VALLEY, MINNEAPOLIS, MINNESOTA 55427. AHLBERG: ELECTRONICS PAGE 20, DAHLBERG ELECTRONICS, INC.

Complaint DAHLBERG IRACLE-EAR HEARING AIDS sSUTHORIZEO DEALER BASIC ADS NEWSPAPER ADVERTISING ATTACHMENT E HEARING AIDS? THEM LIKE THEY USED TO...

THANK GOODNESS.

MB Thank goodness hard-of-hearing people don't have to be fie @ subjected to those huge. old-fashioned boxes with dangling ii wires and battery packs. The Dahlberg Hearing Aids of fi iB today are tiny beyond comprehension — why, THEY'RE fig DOWNRIGHT GOOD-LOOKING! -— Yet, they're many 8% g) times more powerful than Rearing aids used to be. H There's a Dahlberg aid to fil every need - whether it’s @ A for looks, type of hearing loss, or The Pocket Boo! P.O. Box 549 m Minneapolis, Minnesota 55440 YES! Tell me how t may be able to hear again without Pail ‘ using hearing aids that have wires, tubes or cords. oe MA 37 2COL.X 8Olines (160 11.) {de ciements in Cy mat aay dy med m loca 303) ‘the locally cttsing Bae fag au, Complaint 88 F.T.C.

oe > | NEWSPAPER ADVERTISING MIRACLE-EAR neanwe nibs BASIC ADS sUTHORIZED DEALER F Hear with nothing in your ear.

a.

These are the new kind of glasses that help y car—and who'd ever guess? Because there’s noth:

ing in the ear. No 3s. No cords, No lubes. No buttons, What you see here is all there ix to sce. Simply slip them on, and the tiny electronic system built ¢ sidepicces picks up and Iransmits sound directly to your innee ear through the principle of bone conduction. It's called Touché*—by Dahlberg Electronics, makers of the famous Miracle-Ear? hearing aid. Mail the coupon if you'd like more information. Ask your doctor about it. It wasn't designed to solve everyone's hearing prablem, but it may very well help yours.

Tovend DAHLRERG ELFCTRONICS NEPT.0000 . PO BOX Nae MINNEAPOLIS, MINN. 53440 Yes, Vd like to know more about how the Touche hearing aid may help me to hear with nothing in my car. I understand there is no Obliion.

z H I now use g (check one) | 11 Cand tyne 1] Rehind the car type \ Cj Allin the car type ONoaid § MA 38 wane I anon 1 COL. X 110 fines (110 Hi.) ments in this mat may be ved lo local vided the focal etlsing 4 Manual POLIS, MINNESOTA 55427 PAGE DAHLBERG ELECTRONICS, INC. 329 319 Complaint ATTACHMENT (1) Seeing...and hearing...is believing! ! ® TOUeIE The astonishing glasses that help many to hear...

with absolutely nothing in either ear.

Touché eyeglass hearing sid — from Dahlberg, Electronics, makers of the famous Mirscle-Eas® hearing aids.

THINK ABOUT IT! If you're already wearing ginsece, you won't be adding a single item to you “personal accessories” by turning to ‘ouché® for hearing help. Nothing to carry in your pocket! Nothing in your ear! (Thanks to the principle of bone conduction.) DAHLBERG ELECTRONICS, INC. AN euchd ln en De answer fr 22 types of beara las. bat ys may be fen Be tartrate fae who may Onjey Ue that 6 hoarse { 5 1 26 1 1 3 844 1912 87 18 23.606369 BUSINESS5 1 26 1 1 4 937 1909 55 16 95.170891 REPLY5 1 26 1 1 5 999 1907 41 15 95.170891 MAILS 1 26 1 1 6 1051 1898 5 48 74.052658 |2 1 27 0 0 0 908 1955 137 16 -1 3 1 27 1 0 0 908 1955 137 16 -1 4 1 27 1 1 0 908 1955 137 16 -1 5 1 27 1 1 1 908 1955 137 16 17.428345 ‘Petagn5 1 27 1 1 2 962 1949 15 28 19.893303 oH5 1 27 1 1 3 985 1949 13 28 84.855858 bo5 1 27 1 1 4 1004 1949 24 28 33.325813 pes5 1 27 1 1 5 1032 1949 17 28 60.086479 Or2 1 28 0 0 0 785 1926 381 17 -1 3 1 28 1 0 0 785 1926 381 17 -1 4 1 28 1 1 0 785 1926 381 17 -1 5 1 28 1 1 1 785 1926 381 17 95.000000 2 1 29 0 0 0 801 1994 228 70 -1 3 1 29 1 0 0 802 1994 223 66 -1 4 1 29 1 1 0 802 1994 135 24 -1 5 1 29 1 1 1 802 2000 54 18 88.032494 Dept.5 1 29 1 1 2 869 1994 68 18 45.360607 DFL-334 1 29 1 2 0 804 2019 93 18 -1 5 1 29 1 2 1 804 2015 29 30 30.823067 P.O.5 1 29 1 2 2 840 2015 25 30 90.191597 Bon5 1 29 1 2 3 872 2015 28 30 65.391136 5484 1 29 1 3 0 801 2033 228 31 -1 5 1 29 1 3 1 801 2033 99 31 67.957062 Minneapolis,5 1 29 1 3 2 906 2033 71 31 13.530457 Wicrnaects5 1 29 1 3 3 984 2033 45 31 72.531372 564602 1 30 0 0 0 1212 831 51 1245 -1 3 1 30 1 0 0 1212 831 51 1245 -1 4 1 30 1 1 0 1212 831 51 1245 -1 5 1 30 1 1 1 1212 831 51 1245 95.000000 2 1 31 0 0 0 1061 1791 111 283 -1 3 1 31 1 0 0 1061 1791 111 283 -1 4 1 31 1 1 0 1061 1791 111 283 -1 5 1 31 1 1 1 1061 1791 111 283 42.125084 WMO2 1 32 0 0 0 1239 1510 586 595 -1 3 1 32 1 0 0 1239 1510 586 595 -1 4 1 32 1 1 0 1239 1510 586 595 -1 5 1 32 1 1 1 1239 1510 586 595 95.000000 2 1 33 0 0 0 657 2905 218 27 -1 3 1 33 1 0 0 657 2905 218 27 -1 4 1 33 1 1 0 657 2905 218 27 -1 5 1 33 1 1 1 657 2912 85 20 92.087364 223-2395 1 33 1 1 2 752 2911 16 17 68.443359 O5 1 33 1 1 3 779 2919 9 3 88.999992 -5 1 33 1 1 4 798 2908 23 16 89.045349 775 1 33 1 1 5 833 2916 9 4 54.553230 ~5 1 33 1 1 6 852 2905 23 17 96.988144 22 Complaint 88 F.T.C.

ATTACHMENT (2) These astonishing glassesnot * only help you.

see...

they help youhear \\~ ‘with nothing in your ear. \ No wires! No tubes! iy, No earpiece! ‘ dust your glasses! If you can hear but have trouble distinguishing words, discover how the Touche™ hearing aid may help you hear more clearly. Thanks to the principle of bone conduction and the precision workmanship of the Touché, you may enjoy the thrill of good hearing again. One unit serves as glasses and hearing aid.

There's nothing to wear in your ear.

Act nowt For the full story on this comfortable way to 3 fuller life, simply mad the card below. There porno aiatal is no obligation. FILL OUT, TEAR OUT AND MAIL THIS POST- AGE-PAID CARD FOR FREE INFORMATION ON THE DAHLBERG ELECTRONICS remenef ‘Yen. [4 the tw brow mere stout Row the Toc may hate me few van nottorg 1 my aor (Therde to he ormciots of bene conaucnon } | underatand there © ne obapreen fj = DAHLBERG ELECTRONICS, INC. 331 819 Decision and Order DECISION AND ORDER The Federal Trade Commission having issued a complaint which charges respondent Dahlberg Electronics, Inc. with violating the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid complaint, a statement that the signing of the agreement is for settlement purposes only and does not 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 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 3.25(d) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order: 1. Respondent Dahlberg Electronics, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Minnesota, with its office and principal place of business located at 7731 Country Club Dr., Minneapolis, Minnesota. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of respondent, and the proceeding is in the public interest.

ORDER PART I It is ordered, That Dahlberg Electronics, Inc., a corporation, its successors and assigns, and its officers, and respondent’s representatives, agents and employees, directly or through any corporate or other device in connection with the offering for sale, sale or distribution of hearing aids, do forthwith cease and desist from: 1. Disseminating or causing the dissemination of any advertisement, by means of the United States mail or by any means in or affecting commerce as “commerce” is defined in the Federal Trade Commission Act, which (a) Represents, directly or by implication, that: (1) Respondent merchandises a hearing aid which is a new invention or involves a new mechanical, engineering or scientific concept or principle in hearing aid capability unless [1] respondent possesses and relies upon competent and reliable scientific or medical evidence which Decision and Order 88 F.T.C.

establishes that respondent merchandises such a hearing aid which is a new invention or involves a new mechanical, engineering or scientific concept or principle in hearing aid capability; [2] the invention, concept or principle represents a significant benefit to users of the hearing aid; [3] respondent clearly and conspicuously describes the new invention, concept, or principle, and the significant benefit to the user of the hearing aid, in the advertisement; and [4] respondent maintains in its records, subject to reasonable inspection by Commission staff members, the competent and reliable scientific or medical evidence upon which it relies to support such claim until three (8) years after the last dissemination of any such claim.

(2) Respondent’s hearing aid or its shape, design or any other model feature is new, or that respondent merchandises a hearing aid which is a new invention or involves a new mechanical, engineering or scientific concept or principle when such hearing aid or its shape, design or any other model feature or invention, mechanical, engineering or scientific concept or principle has been marketed in the United States for a period greater than one year. Provided, however, that such one-year time period shall not begin to run during the test marketing of such new model or feature where such test marketing program does not cover more than fifteen percent (15%) of the population, does not exceed six (6) months in duration, and is conducted in good faith for test purposes only.

(3) Respondent’s hearing aids will be beneficial to persons with a hearing loss regardless of the type or extent of loss. (4) Use of respondent’s hearing aids will enable all persons with a hearing loss to consistently distinguish or understand speech sounds in noisy situations.

(5) Use of respondent’s hearing aids will enable all persons with a hearing loss to consistently distinguish or understand speech sounds in group situations.

(6) Respondent’s hearing aids will help all or most persons to discriminate speech sounds where they hear but do not understand. (7) Respondent’s bone conduction hearing aid glasses will be beneficial to persons with hearing loss unless in immediate conjunction therewith it is clearly and conspicuously disclosed that such aids are primarily designed for conductive hearing loss. (8) Respondent’s hearing aids will restore natural hearing to wearers or will enable wearers of such devices to hear sounds naturally. (9) Use of respondent’s hearing aids can reverse, halt, or retard the progression of a hearing loss.

(b) The disclosure required by Part I, paragraph 1(a)(7) of this Order shall be made as follows: In print advertisements. the disclosure shall DAHLBERG ELECTRONICS, INC. 833 819 Decision and Order be displayed in type size which is at least the same size as that representation which creates the requirement for such disclosure. In television advertisements, the disclosures shall conform in all respects to the Commission’s Statement of Enforcement Policy of October 21, 1970 (See Vol. 2 CCH Trade Regulation Reported Section 7569.09). The disclosure required by Part I, paragraph 1(a)(7) shall be made in immediate conjunction with the representation to which it relates. In all cases, the disclosure in print, radio and television advertisements shall be made in a clear and conspicuous manner and shall be presented in the language principally employed in the advertisement (e.g., English, Spanish).

(c) In the event the Federal Trade Commission promulgates a final trade regulation rule which omits a requirement or prohibition or whose requirements or prohibitions differ in any manner with respect to the representations dealt with in any sub-paragraph of Paragraph 1 of Part I, of this order, such omissions, requirements or prohibitions with respect to such representations imposed by the rule shall, on the effective date of the rule, supersede and replace or cause to be automatically deleted the corresponding and differing sub-paragraphs of Paragraph 1, Part I, of this order.

2. Making, directly or indirectly, any statement or representation in any advertising or sales promotional material as to any feature (excluding physical appearance), or performance characteristic of, or the uniqueness, superiority or efficacy of any of respondent’s hearing aids or any component part thereof, unless prior to the time of such statement or representation respondent had a reasonable basis for same, which shall consist of competent and reliable scientific or medical evidence.

3. Failing to maintain accurate and adequate records which may be inspected by Commission staff members upon reasonable notice: (a) which contain documentation in support of any claim included in any advertising or sales promotional material disseminated by respondent, or any of its divisions’ or subsidiaries’ officers or employees, which claim concerns any feature (excluding physical appearance), or performance characteristic of or the uniqueness, superiority or efficacy of, any of respondent’s hearing aids or any component part thereof; and (b) which provided the basis upon which respondent relied at the time any such claim was made.

Such records shall be maintained by respondent for so long as any such material is disseminated by respondent or any of its divisions’ or subsidiaries’ officers or employees, or by its dealers, distributors, licensees, retailers, representatives or agents thereof, in cooperation Decision and Order 88 F.T.C.

with respondent, and for a further period of three (8) years after the last dissemination of any such material.

4. Disseminating, or causing to be disseminated, by any means, for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase of hearing aids in or affecting commerce as “commerce” is defined in the Federal Trade Commission Act, any advertisement which contains any of the representations prohibited in paragraph 1 of Part I of this order.

PART fl It is further ordered, That Dahlberg Electronics, Inc., a corporation, its successors and assigns, and respondent’s agents, representatives, officers and employees, directly or through any corporate or other device, in connection with the advertising, offering for sale, sale, or distribution of hearing aids in or affecting commerce, as ““commerce” is defined in the Federal Trade Commission Act shall not: 1. Misrepresent, directly or indirectly, any feature or performance characteristic of any of respondent’s hearing aids or any component part thereof.

2. Supply any dealer, distributor, licensee, retailer, salesperson, representative or agent thereof, with advertisements, sales manuals, brochures, advertising mats, or any other advertising or sales aid materials for the purpose of inducing or which are likely to induce, directly or indirectly, the purchase of respondent’s devices, and which contain any of the false, misleading or deceptive representations prohibiced in this order.

PART III It is further ordered, That Dahlberg Electronics, Inc., a corporation and its successors and assigns, shall:

1. Within thirty (80) days after the effective date of this order, or within thirty (30) days after any dealer, distributor, licensee or retailer attains such status, distribute a copy of this order, by certified or registered mail, return receipt required, to each of respondent’s known dealers, distributors, licensees, or retailers, who are now or in the future become engaged in the advertising, offering for sale, sale or distribution of respondent’s hearing aids to the consuming public, except with respect to respondent’s hearing aids advertised, offered for sale, sold or distributed under a private label by a party other than respondent, this requirement shall be limited to sending a copy of the order to the person responsible for the advertising of respondent’s hearing aids under the DAHLBERG ELECTRONICS, INC. 335 319 Decision and Order private label at the principal office of the private label purchaser of respondent’s hearing aid.

2. Supply, upon request, proof of distribution to, and make available to the Federal Trade Commission for inspection and review, the names and addresses of those parties to whom respondent distributed a copy of this order as required by paragraph 1 of Part III of this order. 3. Inform each appropriate party described in paragraph 1 above that respondent shall not participate in any way in any advertisement which fails to comply with Part IJ of this order. 4. Not pay for, compensate for, print, mail or in any other way, directly or indirectly, through discounts, services, or any other benefit in lieu of direct payment, or otherwise participate in any manner in the preparation of, payment for, or dissemination of any of the advertisements of any party described in paragraph 1 above at any time if any such advertisement fails to comply with Part I of this order. 5. Within thirty (30) days after the effective date of this order, institute a program for reviewing any advertisement submitted by respondent’s dealers, distributors, licensees, retailers, representatives or agents thereof, pursuant to respondent’s cooperative advertising or similar program for advertising credit or other consideration. PART IV It is further ordered, That respondent submit to the Federal Trade Commission, within sixty (60) days from the effective date of this order, a detailed report describing the actions that respondent has taken in order to comply with said order.

In addition, respondent shall, for a period of three (8) years at oneyear intervals from the effective date of this order, submit to the Federal Trade Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order. It is further ordered, That respondent 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 any subsidiary or any other change in the corporate structure which may affect any compliance obligation arising out of this order. It is further ordered, That the respondent shall forthwith distribute a copy of this order to each of its operating divisions. Commissioner Dole did not parti¢ipate by reason of absence. Complaint 88 F.T.C.