Cadence Industries Corporation

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

IN THE ATTER CADENCE INDUSTRIES CORPORATION, ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACf Doket 1918. Decis, May 1.9 1971-Modifyi:rlf Orr, May 1980 This order reopening and modifying an order to ceas and desist issued on May 13 1971, 36 FR 11912, 78 F. C. 990, substitutes the name Cadence Industries Corpration for Perfect Film & Chemical Corporation and replaces par.agraph 21 of the order with a new paragraph in keeping with orders issued against their competitors and the fact that some magazine publishers do not accept short term subscriptions transferred from the lists of discontinued publications. ORDER MODIFYING CEASE AND DESIST ORDER In their request fied on January 22 1980, the respondents petitioned the Commission, pursuant to Section 2.51 of its Rules of Practice, to reopen the proceedings and modify the order of May 13, 1971, entered in Docket Number C- 1918. IWspondents ask that the name Cadence Industries Corporation be substituted for Perfect Film & Chemical Corporation and that numbered paragraph 21 of the order be modified. The paragraph in question reads as follows:

21. Substituting, requesting substitution or permitting substitution, except at the request of the customer, at any time during the collection period of the contract, of any magazine or publication for any magazine or publication covered by the contract without first providing the subscriber an option in wrting, as state in the subsription contract to reduce his future payments by the pro rata portion of the remaining payments due on the cancelled magazine or other publication; provided, that respondents may offer to those subscribers with paid-in-full contracts ari option to either lengthen already existing subscriptions or to select from among all of respondents' then curntly offered magazines or publications, a magazine or publication as a substitute for the remaining period of the subscription.

In support of their request, respondents state that the name of Perfect Film & Chemical' Corporation was duly changed to Cadencc Industries Corporation on October 22, 1970, by filing said change with the Secretary of State of Delawarc. Respondents have also advanced a number of considerations intended to show changed conditions of fact since the ordcr was issued and to show that the public interest wil best bc served by granting their request. They allege that they cannot fully comply with paragraph 21 of the order because certain magazine publishers will not acccpt short term subscriptions transferred from the lists of discontinued publications. They point out that the proviso in paragraph 21 requires that they offer to subscribers with paid-in-fu! Modifying Order 95 F.

contracts the option to choose any magazine from among all their currently offered magazines or publications, and that, therefore, they are unable to execute a subscriber s choice, if it happens to be a magazine of a publisher that docs not accept short term subscriptions. They also point out that no similar proviso is to be found in the orders the Commission has issued against their competitors and they cite that as a competitive disadvantage. Finally, they claim that the requested modification will serve the public interest by enabling them to better serve their subscribers in offering them as possible substitutions, only magazines of publishers that accept short term subscriptions. Having considered the request, the Commission has concluded that it should be granted and that the modification wil safeguard the public interest. Therefore It is orde.red That (1) the name Cadence Industries Corporation be substituted for Perfect Film & Chemical Corporation in the style of this docket and throughout the order, where it appears; and that (2) n)1mbered paragraph 21 of the order quoted above, be replaced by the following new paragraph:

21. Cancellng a subscription contract for any reason other than a breh by the subscriber without either aranging for the delivery of publications already paid for or promptly refunding money on a pro rata basis for all undelivered issues of publications for which payment has been made in advance; and in the event of the discntinuance of publication, or other unavailability, of any magazines subscrbe for, at any time durng the life of the contract, failng to offer the subscriber the right to substitute one or more magazines or other publications, or the extension of subscription periods of magaines already selected.

It is further ordered That the foregoing modifications shall become effective upon service of this order.

BOC INTERNATIONAL LTD. 805 805 Dismissal Order