Mentholatum Company, Inc

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

THE MENTHOLATUM CO., INC. 757

757 Complaint

IN THE MATTER OF

THE MENTHOLATUM COMPANY, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3047. Complaint, Oct. 22, 1980—Decision, Oct. 22, 1980

This consent order requires, among other things, a Buffalo, N.Y. producer of denture cushions to use advertisements which are consistent with labeling information included with the product concerning health, safety or efficacy; to disclose, in those instances where the firm makes claims of duration of use, such labeling warnings in a clear and conspicuous manner; and, further, to affirmatively state that its product is intended for short-term use only.

Appearances

For the Commission: Leslie Fax.

For the respondent: Samuel Magavern, Magavern, Magavern, Lowe, Beilewech, Dompkins & Fadale, Buffalo, N.Y.

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 The Mentholatum Company ("Mentholatum"), a corporation, hereinafter referred to as respondent, has violated the provisions of the Federal Trade Commission Act, and that a proceeding with respect to such violations would be in the public interest, hereby issues its complaint, setting forth its charges as follows:

PARAGRAPH 1. Mentholatum is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business located at 1360 Niagara St. in the city of Buffalo, New York.

PAR. 2. Respondent Mentholatum is now, and for some time last past has been engaged in the production, advertising, offering fo: sale, sale and distribution of denture cushions designated by th trade name "Snug Denture Cushions." This product, as advertised, i a "device" within the meaning of Section 12 of the Federal Trad Commission Act, 15 U.S.C. 52.

PAR. 3. In the course and conduct of its business, responder Mentholatum causes and has caused the said products, when sold, be transported from its place of business in one State of the Unitu

Complaint 96 F.T.C.

States to purchasers thereof located in various other States of the United States and the District of Columbia. Respondent Mentholatum maintains, and at all times mentioned herein has maintained, a substantial course of trade in Snug Denture Cushions in or affecting commerce.

PAR. 4. In the course and conduct of its business, respondent has disseminated or caused the dissemination of various advertisements for Snug Denture Cushions across state lines by various means in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, including advertisements inserted in magazines and newspapers and also advertisements broadcast on national television networks. The purpose of all these advertisements has been to induce, directly or indirectly, the purchase of Snug Denture Cushions, and it is likely that these advertisements have succeeded in inducing consumers to purchase this product. PAR. 5. Typical, but not all inclusive, of the statements and representations in said advertisements are those found in Exhibits A-G attached to this complaint, including such representations as the following:

a. Newspaper and magazine advertisements:

(1) ELIMINATES DAILY DENTURE "FIXINGS" FOREVER— Snug Cushions hold dentures comfortably tight for weeks.

(2) HOLDS DENTURES FIRM WITHOUT DAILY "FIXINGS"—Snug Cushions hold dentures comfortably tight for weeks.

(3) NEW FREEDOM FROM DAILY DENTURE "FIXINGS"—Snug Cushions hold dentures comfortably tight for weeks.

b. Television Advertisements:

(1) Sara: Didn't I tell you about Snug? It's different—you don't need to apply it every day . . . Snug lasts for weeks. And it'll hold your dentures firm and comfortable. . . . [At a point later in time] Sara: Didn't you switch to Snug Helen Sure . . .

(2) Thousands of denture wearers have long suffered with loose, wobbly, uncomfortble plates. Now many use Snug Brand Denture Cushions . . . .

PAR. 6. Through the use of said advertisements and others similar hereto not specifically set out herein, disseminated as aforesaid, espondent has made or is making the following representations:

(a) that Snug Denture Cushions are appropriate for long-term use; (b) that Snug Denture Cushions are for use other than temporary e only until a dentist can be seen.

PAR. 7. In fact, the labeling on Snug Cushions states:

THE MENTHOLATUM CO., INC. 759 757 Complaint

(a) On the package:

Caution: Long term use of an ill-fitting denture, reliner, pad or cushion may lead to swelling, faster bone resorption, or continuing irritation. Use Snug temporarily until you can see your dentist.

(b) On the package insert:

(1) Snug Denture Cushions are for temporary use only . . . (2) Dentures that do not fit properly cause irritation and injury to the gums and faster bone loss which is permanent and may require a completely new denture. Changes in the gums caused by dentures that do not fit properly may require surgery for correction. Continuing irritation and injury may lead to tumors in the mouth. Use of denture reliners, pads, and cushions may temporarily decrease the discomfort. However, their use will not make the denture fit properly. Special training and tools are needed to fit properly. You must see your dentist for a new denture or a repair as soon as possible.

PAR. 8. The representations referred to in Paragraph Six are inconsistent with, negate, and contradict the labeling on respondent's product as set forth in Paragraph Seven hereof. Such inconsistency, negation, and contradiction has the tendency and capacity to mislead and deceive purchasers of said product as to its proper duration of use, and to negate the import and purposes of and to detract from the effectiveness of the warnings, cautions, limitations and instructions for use found in the labeling. Therefore, the advertisements, acts and practices, referred to in Paragraph Six above were and are unfair and deceptive. PAR. 9. Furthermore, in its advertising for Snug Denture Cushions, respondent has been and now is making claims as to the duration of use of said product without clearly and conspicuously disclosing to the purchasing public that the labeling for Snug Denture Cushions states that said product should be used only on a temporary basis until a dentist can be seen. PAR. 10. The existence and substance of the above-mentioned labeling warning is a material fact in light of the representations set forth in Paragraphs Five and Six regarding duration of use, in that disclosure of the warning to consumers would be likely to affect their decisions of whether or not to purchase said product and of how properly to use it. Respondent's failure to disclose this material fact has the tendency and capacity to mislead and deceive consumers into the mistaken belief that no such warning exists. Therefore, the advertisements, acts and practices referred to in Paragraphs Five and Six above were and are false, deceptive, and unfair. PAR. 11. In the course and conduct of its business as aforesaid, and

Complaint 96 F.T.C.

at all times mentioned herein, respondent Mentholatum has been in substantial competition in commerce, with corporations, firms and individuals in the sale of products of the same general kind and nature as those advertised and/or sold by respondent.

PAR. 12. The aforesaid unfair and deceptive acts and practices of respondent have had and now have, the capacity to induce members of the purchasing public to purchase substantial quantities of said product.

PAR. 13. The aforesaid acts and practices of respondent, as herein alleged, were and are all to the prejudice and injury of the public and of respondent's competitors and constituted and now constitute, unfair and deceptive acts and practices and unfair methods of competition in or affecting commerce, in violation of Sections 5 and 12 of the Federal Trade Commission Act. The acts and practices of respondent, as herein alleged, are continuing and will continue in the absence of the relief herein requested.

Complaint

SNUG DENTURE CUSHIONS

SNUG DENTURE CUSHIONS

SNUG BRAND DENTURE CUSHIONS

Ever-soft Plastic Cushions

For Upper or Lower Plates

Snug makes loose false teeth fit firm and tight Soothes sore gums due to loose-fitting dentures Harmless to plate Easy to apply or remove Caution Long term use of an ill fitting denture, reline, pad or cushion may lead in hastening faster bone resorption, or continuing irritation Use SNUG temporarily until you can see your dentist

Contents 2 Cushions

THE MENTHOLATUM CO., BUFFALO, N.Y. 14213

[illegible]

336-345 O - 81 - 49

Complaint

Masius, Wynne-Williams, Street & Finney, Inc. EDITORIAL DEPARTMENT

IDENTIFICATION NO. DATE August 22, 1969 ADVERTISER The Mentholatum Company JOB NO. 100TV33 As filmed: 8/19/69 FOR SNUG DENTURE CUSHIONS As recorded: 8/22/69 "POWDERS & STICKUMS" (A) (#SN-11-302)

VIDEO AUDIO

1. OPEN ON CAN OF ADHESIVE POWDER, POURING 1. ANNCR: (VO) Some people with l POWDER ONTO LINED SURFACE. wobbly dentures:___

2. PULL BACK - ACTION CONTINUES. 2. ANNCR: (VO) use adhesive powde every morning and

3. HAND SETS CAN ON SURFACE BEHIND SPRINKLE 3. ANNCR: (VO) every night. OF POWDER.

4. BESIDE PILE OF POWDER, RIBBON OF 4. ANNCR: (VO) Others use cream ADHESIVE CREAM IS SQUEEZED OUT ONTO LINED SURFACE.

5. TUBE OF CREAM IS SET DOWN BEHIND 5. ANNCR: (VO) day after day. RIBBON. NOW BOTH PRODUCTS AND THEIR CONTENTS ARE SEEN SIDE BY SIDE.

6. THE CAN AND PILE OF POWDER POPS OFF. 6. ANNCR: (VO) But some never both

7. THE TUBE AND RIBBON OF CREAM POP OFF. 7. ANNCR: (VO) with daily fixing--

8. CU PKG OF SNUG. 8. ANNCR: (VO) they line their de: with Snug Brand De:

Cushions.

9. PULL BACK AS HAND REMOVES CUSHION 9. ANNCR: (VO) One lining lasts fo WITH BOTH LINERS ON FROM BOX.

SUPER: "LASTS FOR WEEKS". weeks.

10. WITH ONE LINER ON BACK, SHOWING SNUG 10. ANNCR: (VO) Apply Snug at home CUSHION ON TOP, HAND BEGINS TO CUT SHAPE OF DENTURE. minutes.

757 Complaint

IDENTIFICATION NO. DATE August 22, 1969 ADVERTISER The Mentholatum Company JOB NO. 100T733 FOR SNUG DENTURE CUSHIONS As filmed: 8/19/69 As recorded: 8/22/69 "POWDERS & STICKUMS" (A) (#SH-11-3CC) Page 2.

VIDEO AUDIO

11. NOW "U" SHAPE OF DENTURE IS HELD IN 11. ANNCR: (VO) It holds dentures HAND, WHILE BACKING LINER IS REMOVED. tight SUPER: "HOLDS DENTURES TIGHT".

12. HAND FLEXES CUSHION. 12. ANNCR: (VO) and cushions the gum lasts for weeks

13. CUT BACK TO SET UP OF POWDER AND 13. ANNCR: (VO) without daily fixing CREAM WITH CONTAINERS.

14. POWDER IS POPPED OFF. 14. ANNCR: (VO) Try the no-mess

15. CREAM IS POPPED OFF. 15. ANNCR: (VO) no-bother way ...

16. CU SNUG PACKAGE. SUPER: "HOLD 16. ANNCR: (VO) get Snug to hold DENTURES TIGHT". THEN POP ON:

"2 CUSHIONS $1.50". dentures tight.

Complaint 96 F.T.C.

SNUG DENTURE CUSHIONS TELEVISION COMMERCIAL, 1976-77 "SPOKESMAN"

1. SPOKESMAN: (DV) What do you use to hold loose wobbly dentures comfortably tight?

2. Powder?

3. Cream?

4. Or long-lasting Snug Brand Denture Cushions.

5. Snug is a cushion -

6. not only holds plates tight, but makes them feel so comfortable.

7. (VO) Easy to fit...

8. Snug sticks to your plates...

lasts for weeks...

9. so no daily fixing...no mess... no after taste.

10. Easily cleaned or removed.

11. (DV) To hold dentures comfortably tight for weeks ...

12. (VO) get Snug Denture Cushions!

THE MENTHOLATUM CO., INC. 765 757 Complaint

MASIUS, WYNNE-WILLIAMS INC.

CLIENT THE MENTHOLATUM COMPANY TITLE "SPOKESMAN" (C) (ØMVSN2123) SNUG DENTURE CUSHIONS :30 TV COMM'L. As Produced: 8/30/72 DATE 70 w As Filmed: 8/17/72 SEPT. 15, 1972

OPEN ON CU SPOKESMAN SPOKESMAN (OC): What do you use to hold loose, wobbly dentures comfortably tight?

CUT TO CU AS HE SHAKES POWDER ON HIS PALM Powder?

CU AS HE SQUEEZES CREAM ON PALM Cream? Or long-lasting

CUT TO CU SNUG PKG AS HE PICKS IT UP Snug Brand Denture Cushions.

HOLD CU AS HANDS SLIP OUT SNUG Snug is a cushion --

PULL BACK TO MCU MAN not only holds plates tight...but makes them feel so comfortable.

CUT TO CU MAN'S HANDS CUTTING SNUG INTO SHAPE WITH SCISSORS Easy to fit...

DISS TO HIS HANDS FITTING U-SHAPED SNUG ONTO CLEAR LUCITE U-SHAPE Snug sticks to your plate lasts for weeks...so no daily fixing...no mess..

no after-taste.

PAN AS HIS HANDS SCRUB SNUG ON LUCITE U-SHAPE, WITH TOOTHBRUSH UNDER RUNNING FAUCET Easily cleaned or remove

CUT TO CU MAN To hold dentures comfortably tight for weeks

CUT TO CU SNUG PKG get Snug Denture Cushion

Complaint 96 F.T.C.

SNUG DENTURE CUSHIONS TELEVISION COMMERCIAL "SPOKESWOMAN"

1. SPOKESWOMAN: (OV) Thousands of denture wearers have long suffered

2. with loose, wobbly, uncomfortable plates.

3. Now many use Snug Brand Denture Cushions and

4. are so grateful for the way Snug holds dentures tight...

5. and being a cushion, Snug makes dentures feel so comfortable.

6. (VO) Easy to fit _

7. Snug sticks to your plates...

lasts for weeks _

8. so no daily fixing _ no mess _ no after-taste.

9. (SFX) Easily cleaned

10. or removed.

11. (OV) To hold dentures comfortably tight for weeks...

12. (VO) get Snug Denture Cushions.

THE MENTHOLATUM CO., INC.

757 Complaint

MASIUS, WYNNE-WILLIAMS INC.

CLIENT THE MENTHOLATUM COMPANY TITLE "SPOKESWOMAN" (C) (#MVSN2133) SNUG DENTURE CUSHIONS :30 TV COMM'L As Produced: 8/30/72 DATE 75 w As Filmed: 8/17/72 SEPT 15, 1972

OPEN ON CU SPOKESWOMAN SPOKESWOMAN (OC): Thousands of denture wearers have long suffered with loose, wobbly, uncomfortable plates.

SHE PICKS UP SNUG PKG Now many use...

CUT TO CU PKG IN HER HAND Snug Brand Denture Cushion and are so grateful

CUT TO CU WOMAN for the way Snug holds dentures tight...and being a cushion, Snug makes dentures feel so comfortab:

CUT TO CU WOMAN'S HANDS CUTTING Easy to fit... SNUG INTO SHAPE WITH SCISSORS

DISS TO HER HANDS FITTING U-SHAPED Snug sticks to your plates. SNUG ONTO CLEAR LUCITE U-SHAPE lasts for weeks... so no daily fixing...no mess...

no after-taste.

PAN AS HER HANDS SCRUB SNUG ON Easily cleaned or removed. LUCITE U-SHAPE, WITH TOOTHBRUSH UNDER RUNNING FAUCET

CUT TO CU WOMAN To hold dentures comfortabl tight for weeks...

CUT TO CU SNUG PKG get Snug Denture Cushions.

Complaint

Snug FOR TEMPORARY USE UNTIL YOU CAN SEE YOUR DENTIST Snug [illegible] FOR CBS 10/20/78 [illegible] Exhibit D Page 1

Complaint

SNUG

[illegible]

Exhibit D Page 2

Complaint

Amazing soft plastic cushion holds dentures comfortably tight for weeks without messy "stickums"

[illegible]

No paste or powder holds dentures comfortably tight for weeks like Snug Denture Cushions [illegible]

[illegible] Printed in U.S.A.

DARCY, MacMANUS & MASIUS, Inc., New York

[illegible] Printed in U.S.A.

DARCY, MacMANUS & MASIUS, Inc., New York

Amazing soft plastic cushion holds dentures comfortably tight for weeks without messy "stickums"

[illegible]

No paste or powder holds dentures comfortably tight for weeks like Snug Denture Cushions [illegible]

[illegible] Printed in U.S.A.

DARCY, MacMANUS & MASIUS, Inc., New York

[illegible] Printed in U.S.A.

DARCY, MacMANUS & MASIUS, Inc., New York

THE MENTHOLATUM CO., INC.

Complaint

NEW FREEDOM FROM DAILY DENTURE "FIXINGS"

[illegible] SNUG [illegible]

NEW FREEDOM FROM DAILY DENTURE "FIXINGS"

[illegible] SNUG [illegible]

HOLDS DENTURES FIRM WITHOUT DAILY "FIXINGS"

[illegible] SNUG [illegible]

HOLDS DENTURES FIRM WITHOUT DAILY "FIXINGS"

[illegible] SNUG [illegible]

ELIMINATES DAILY DENTURE "FIXINGS"

FOREVER [illegible] SNUG [illegible]

ELIMINATES DAILY DENTURE "FIXINGS"

FOREVER [illegible] SNUG [illegible]

Complaint 96 F.T.C.

D'Arcy-MacManus & Masius 437 MADISON AVENUE NEW YORK, NEW YORK 10022

Television Continuity

The Mentholatum Co.

ACCOUNT Snug Denture Cushion PRODUCT "Movie"

TITLE :30 LENGTH MVSN 2153 SCRIPT NUMBER As filmed 11/28/77

VIDEO AUDIO

OPEN ON TWO WOMEN EXITING HELEN: They don't make movies lik MOVIE HOUSE ONTO STREET they used to.

WOMEN WALK DOWN STREET SARA: Let's have some of my peca pie, that never changes.

CUT TO HELEN'S FACE, LOOKING EMBARRASSED. HELEN: Uh-Uh...It's been a while s I fixed my dentures...they' loose again.

2-SHOT AS SARA TALKS TO SARA: Didn't I tell you about Snug? HELEN.

ECU OF SNUG PACKAGE. SARA: It's different -- you don't ne WOMAN'S HAND PULLS CUSHION OUT. to apply it every day.

SUPER: "FOR TEMPORARY USE UNTIL YOU SEE YOUR DENTIST."

CUT TO HAND HOLDING DENTURE SARA: It's a cushion you just shape. SHAPED LUCITE AS OTHER HAND PRESSES SHAPED CUSHION ONTO LUCITE.

PALM DOWN HAND PRESSES SARA: Snug lasts for weeks. And it AGAINST TOP OF LUCITE WHICH CLINGS TO HAND WITHOUT ANY hold your dentures firm and OTHER SUPPORT.

comfortable.

DISSOLVE TO SIMILAR SCENE AT SARA: Pecan pie? A POINT LATER IN TIME.

HELEN: Uh -- Uh --

THE MENTHOLATUM CO., INC. 773

757. Complaint

D'Arcy-MacManus & Masius 437 MADISON AVENUE NEW YORK, NEW YORK 10022

Television Continuity

The Mentholatum Co.

ACCOUNT Snug Denture Cushio PRODUCT "Movie"

TITLE :30 LENGTH MVSN 2153 SCRIPT NUMBER

VIDEO AUDIO

SCENE CONTINUES HELEN: Sure --

SARA: Well?

HELEN: I'm on a diet.

ECU SNUG PACKAGE

SUPER: SNUG LASTS WEEKS HOLDS DENTURES FIRM

Complaint

D'Arcy-MacManius & Masius Advertising CLIENT: MENTHOLATUM PRODUCT: SNUG TITLE & FILM NO: "MOVIE" - MVSN2153 FIRST USE: 3/7/78 LENGTH: 30 SECOND

1. HELEN: They don't make movies like they used to. SARA: Let's have some of my pecan pie, that never changes. 2. HELEN: Uh-Uh...It's been a while since I fixed my dentures...they're loose again. 3. SARA: Didn't I tell you about Snug? It's different - 4. you don't need to apply Snug every day. 5. It's a cushion you just shape.

6. Snug lasts for weeks.

7. And it'll hold your dentures firm and comfortable. 8. Pecan pie! HELEN: Uh - Uh - 9. SARA: Didn't you switch to Snug! 10. HELEN: Sure - SARA: Well? 11. HELEN: I'm on a diet. SARA: Oh.

12. (SILENT) SNUG LASTS WEEKS HOLDS DENTURES FIRM

[illegible] 757 Decision and Order

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 bureau 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, their attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a 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 required 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 a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order: 1. Respondent Mentholatum Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 1360 Niagara St. in the City of Buffalo, State of New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER

I.

It is ordered, That respondent, the Mentholatum Company, a corporation, its successors and assigns, and its officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device [hereinafter, "respondent"], in connection with the advertising, offering for sale, sale or distribution of any dental device or dental product, forthwith cease and desist

Decision and Order 96 F.T.C.

from disseminating or causing the dissemination of any advertisement by any means in or affecting commerce which makes any representation directly or indirectly that is inconsistent with, negates or contradicts any statement concerning matters of health, safety or efficacy set forth on the labeling of any such device or product or which in any way limits, qualifies or detracts from any such statement appearing on the labeling of any such device or product.

II.

It is further ordered, That respondent, in connection with the advertising, offering for sale, sale or distribution of any dental device or dental product (except denture cushions as provided for in Paragraph 3), shall, in disseminating or causing the dissemination by any means in or affecting commerce of any advertisement which makes any representation directly or indirectly (other than those prohibited in I above) regarding duration of use of any such product, disclose clearly and conspicuously any labeling warning regarding duration of use of such device or product. It is agreed, for the purposes of this Order, that in the event a label or packaging warning regarding duration of use is no longer utilized for any such product, advertisements for said dental device or product need not bear a disclosure regarding duration of use.

III.

It is further ordered, That respondent, in connection with the advertising, offering for sale, sale or distribution of the product Snug Denture Cushions or any other denture cushion, when making any representation regarding the duration of use of said product (other than those prohibited in I, above), shall disclose clearly and conspicuously that said product is only appropriate for short-term use until a denture wearer is able to see a dentist for the adjustment of his or her loose or ill-fitting dentures. For the purposes of this Order, it is agreed that respondent may use the term "for weeks" in the advertising of denture cushion products so long as the terms "temporary" and "only until a dentist can be seen" are included, and the advertisement does not imply the product should be used on a long-term basis.

It is further agreed, for the purposes of this Order, that in the event that the Snug Denture Cushion product is no longer regarded y the federal Food and Drug Administration as suitable only for

THE MENTHOLATUM CO., INC. 777 757 Decision and Order short-term, non-regular use, the respondent may seek from the Commission amendment of this portion of this Order.

IV.

It is further ordered, That respondent shall forthwith distribute a copy of this Order to each of its operating divisions. It is further ordered, That respondent notify the Commission at least thirty (30) days prior to any proposed change in its corporate status such as dissolution, emergence of a successor corporation, the creation or dissolution of any subsidiaries, and assignment or sale of the business, or any other change in the corporate respondent that may affect compliance obligations arising out of this Order. It is further ordered, That respondent shall, within sixty (60) days after this Order becomes final, and annually thereafter for three (3) years, file with the Commission a report, in writing, signed by respondent, setting forth in detail the manner and form in which it has complied with this Order.

Modifying Order 96 F.T.C.

IN THE MATTER OF

ENCYCLOPAEDIA BRITANNICA, INC., ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT

Docket 8908. Decision, March 9, 1976—Modifying Order, Oct. 28, 1980

This order modifies Paragraphs II(A), (B), (D) and (E) of the original Commission order issued March 9, 1976 (41 FR 19301, 87 F.T.C. 421) against respondents. The modifications permit respondents, for a one-year period, to use alternative means of making prescribed disclosures regarding their sales solicitation activities. This action affords respondents further opportunity to propose provisions that will lessen any undue financial impact on them and to demonstrate to the Commission that these provisions will effectively communicate to prospective customers, the disclosures required by the previous order.

ORDER MODIFYING CEASE AND DESIST ORDER

On March 9, 1976, the Commission issued an Order in this docket against Encyclopaedia Britannica, Inc., a corporation, and Britannica Home Library Services, Inc., a corporation. The Order includes, nter alia, provisions (Paragraphs II(A) and II(B)) requiring responlent, Encyclopaedia Britannica, Inc., to disclose in certain advertisng and in a specified manner that persons who reply as requested nay be contacted by a salesperson for the purpose of selling espondent's products. Furthermore, the Order (Paragraphs II(D) nd II(E)) requires that when a sales representative of the responent visits the home or place of business of potential purchasers of spondent's products, such representatives shall, at the time lmission is sought, present a 3 by 5 card which identifies the sales presentative and discloses that the purpose of the visit is to sell spondent's products.

On August 2, 1979, the United States Court of Appeals for the venth Circuit affirmed and enforced the Commission Order in this ket. On March 17, 1980, the Supreme Court of the United States ied respondents' petition for certiorari. Accordingly, pursuant to tion 5(g)(3) of the Federal Trade Commission Act, as amended, Order of the Commission in this docket is now final. uring the time their certiorari petition was pending in the reme Court, respondents initiated discussion with the staff of the mission concerning possible modifications of Paragraphs II(A), 1, II(D) and II(E) of the Commission's Order. On March 18, 1980, graphs II(A), (B), (D), and (E) of the Commission's Order were