Itt Continental Baking Company, Inc

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IN THE MATTER OF ITT CONTINENTAL BAKING COMPANY, INC., ET AL. MODIFIED ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8860. Final Order, Oct. 19, 197!J-Modified Order. Sept. 16, 1977 This modified order to cease and desist replaces an order dated October 19, 1973, 38 FR 31827 , 83 F. C. 865, modified at 1105, 39 FR 1260, by adding a defense clause for the Ted Bates & Company, Inc., deleting Paragraphs I and III. and modifying Paragraph IV, to accord with the decision and judgment rendered by the Court of Appeals for the Second Circuit on March 1, 1976, 532 F. 2d 207 (1976).

Appearances For the Commission: H Robert Field.

For the respondents: Gordon A. Thomas and Alan Davis, Rye New York and Covington Burling, Washington, D.C. for ITT Continental Baking Company, Inc. Donald J Mulvihill, Cahill Gordon, Son nett, Reindell Ohl, Washington, D. C. and Elhanan Stone New York City for Ted Bates & Company. MODIFIED ORDER TO CEASE AND DESIST Respondents having fied in the United States Court of Appeals for the Second Circuit on November 5, 1973, petitions to review an order to cease and desist issued herein on October 19, 1973; and the Court having rendered its decision and judgment on March 1, 1976, affrming and enforcing the Commission s order with the deletion of Paragraphs I and III the modification of Paragraph IV, and the addition of a defense clause for respondent Ted Bates & Company, Inc.; and the time in which to file a petition for certiorari having expired without the parties having fied such a petition; Now. therefore, It is hereby ordered, That the aforesaid order to cease and desist be, and it hereby is, modified in accordance with the decision and judgment of the Court to read as follows: ORDER It is ordered That respondent, ITT Continental Baking Company, Inc., a corporation, and respondent, Ted Bates & Company, Inc., a corporation, their successors, assigns and respondents' officers agents, representatives, and employees, directly or through any Modified Order 90 F.

corporation. subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of any food product, do forthwith cease and desist from: 1. Disseminating, or causing the dissemination of, any advertise ment by means of the United States mail or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, which represents, directly or by implication, that any such product wil contribute to the rapid or proper growth of children by providing dramatic or substantial benefits for such growth or development unless such product, by itself, will, in fact, make a significant contribution to such rapid or proper growth. 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, purchase of any such product in commerce, as "commerce" is defined in the Federal Trade Commission Act, which contains any ofthe misrepresentations prohibited in Paragraph 1 above.

It is further ordered, That respondent Ted Bates & Comp'!ny, Inc. shall have a defense for false advertising representations under this order where it neither knew nor had reason to know that the representations were false.

It is further ordered. That respondents shall forthwith distribute a copy of this order to each of their operating divisions. It is further ordered. That each respondent notify the Commission at least thirty (30) days in advance, of any proposed change in such corporate respondents such as dissolution, assignment or sale resulting in 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 each respondent shall, within sixty (60) days after service of this order upon it, fie with the Commission a report in writing setting forth in detail the manner and form of its compliance with the order to cease and desist. vompmllt