Sentronic Controls Corporation

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

SENTRONIC CONTROLS CORP., ET AL. 197 197 Complaint

IN THE MATTER OF

SENTRONIC CONTROLS CORPORATION, ET AL.

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

Docket C-3150. Complaint, Feb. 21, 1985—Decision, Feb. 21, 1985

This Consent Order, among other things, requires three Chicago, Ill. corporations and three individuals engaged in the advertising, sale and distribution of an ultrasonic pest control product called the "Pest Sentry," to cease representing that the Pest Sentry or any other ultrasonic pest control device will eliminate cockroaches, rats, mice, and other such pests from a home or place of business; eliminate them within a specified period of time; prevent them from entering or remaining in an area where the product is being used; and serve as an effective alternative to the use of conventional pest control products. The Order further bars respondents from making any performance or effectiveness claims for ultrasonic pest control devices unless they possess and rely on competent and reliable substantiating evidence when making those claims.

Appearances

For the Commission: Edwin Dosek.

For the respondents: Alvin Becker, Beerman, Swerdlove, Woloshin, Berezky & Berkson, Chicago, Ill.

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 Sentronic Controls Corporation, a corporation, International Marketing & Manufacturing, Inc., a corporation, Unigraf, Inc. a corporation, Stanley Stewart and Anne K. Stewart, individually and as officers of said Sentronic Controls Corporation and of International Marketing & Manufacturing, Inc., and Richard Muller, individually and as an officer of said Sentronic Controls Corporation and of Unigraf, Inc., hereinafter sometimes referred to as respondents, have 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. Respondents Sentronic Controls Corporation (SCC and International Marketing & Manufacturing, Inc. (IMM) are I

Complaint 105 F.T.C.

linois corporations with their offices and principal places of business located at 730 North LaSalle Street, Chicago, Illinois. Respondent Unigraf, Inc. (Unigraf) is an Illinois corporation with its offices and principal place of business located at 60 West Erie Street, Chicago, Illinois. Respondent Stanley Stewart is an officer of SCC and an officer of IMM. Respondent Anne K. Stewart is an officer of IMM. Respondent Richard Muller is an officer of SCC, and an officer and director of Unigraf. As such, they formulate, direct and control the policies, acts and practices of said corporations, including the acts and practices hereinafter set forth. Their addresses are the same as those of said corporations. The aforesaid respondents cooperate and act together in carrying out the acts and practices hereinafter set forth. PAR. 2. Respondents manufacture, advertise and offer for sale, sell and distribute ultrasonic pest control products under the brand name of Pest Sentry. PAR. 3. Respondents, at all times mentioned herein, have maintained a substantial course of business, including the acts and practices as hereinafter set forth, which are in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act. PAR. 4. In the course and conduct of their business, and for the purpose of inducing the purchase of the Pest Sentry ultrasonic pest control product, respondents have disseminated, directly and through their marketers and distributors, various promotional materials, including "suggested advertisements", sales brochures and promotional pamphlets, which contain statements respecting the performance of the Pest Sentry ultrasonic pest control product. Examples of such promotional materials are attached hereto as Exhibits A through C. PAR. 5. Typical statements in said promotional materials, but not necessarily inclusive thereof, are

A. NOW—ELIMINATE—FLYING and CRAWLING PESTS - RATS - MICE - ROACHES - MOSQUITOES - FLIES - WATERBUGS ULTRASONICALLY. B. PEST SENTRY eliminates flying and crawling pests . . . safely, economically . . . in 2-6 weeks. WITHOUT . . . calling in expensive pest control services or spending your valuable time using poisonous powders, messy sprays, dangerous chemicals or unsightly traps. C. You will notice results in a few days and within 4 to 6 weeks you will be free of he entire list of crawling and flying, pests as long as PEST SENTRY "stands guard". D. THE PEST SENTRY protects indoor facilities from:

• Rats • Mosquitoes • Mice • Waterbugs • Flies • Chipmunks • Roaches • Squirrels

SENTRONIC CONTROLS CORP., ET AL. 199

197 Complaint

and other kinds of crawling and flying pests. Research data available upon request from manufacturer.

E. SAY GOOD-BYE TO ANNOYING PESTS! Let Pest Sentry eliminate roaches, rats, mice, mosquitoes, flies, water bugs, and other crawling and flying pests from your home. F. NOW . . . YOU CAN PROTECT YOUR HOME AND FAMILY FROM FLYING AND CRAWLING PESTS with an all-new Sound Solution to Pest Control! G. One Pest Sentry covers a very large area, 1500 - 2000 sq. ft. (16,000 cubic ft. for 8 ft. ceilings). The Pest Sentry sound will penetrate doors, drywall and plastered rooms. H. PEST SENTRY eliminates setting unreliable traps, using messy and often dangerous chemicals and hard-to-control poisonous sprays. I. [T]he PEST SENTRY is a professional answer for homes, restaurants, warehouses, schools, farm buildings . . . garages, retail stores, hospitals, nursing homes—any indoor location where flying and crawling pests are a problem. J. Ultra - Effective Pest Eliminator.

COUNT I

Pest Elimination Claims

Alleging violations of Section 5 of the Federal Trade Commission Act, the allegations of Paragraphs One, Two, Three, Four and Five are incorporated by reference herein. PAR. 6. Through the use of the statements referred to in Paragraph Five and others not specifically set forth therein, respondents have represented, and are now representing, directly or by implication, that use of the Pest Sentry:

1. Eliminates rats, mice, cockroaches, and other pests from a purchaser's home or place of business. 2. Eliminates rodent and insect problems from a purchaser's home or place of business within two to six weeks. 3. Prevents rodents and insects from entering or remaining in an area in a purchaser's home or place of business where the Pest Sentry device is in use. PAR. 7. The representations set forth in Paragraph Six are false because use of the Pest Sentry does not:

1. Eliminate unwanted rats, mice, cockroaches, or other pests from a purchaser's home or place of business. 2. Eliminate rodent and insect problems from a purchaser's home or place of business within two to six weeks. 3. Prevent rodents and insects from entering or remaining in an area in a purchaser's home or place of business in which such product is in use. Therefore, the representations set forth above constitute deceptiv and unfair acts or practices.

Complaint 105 F.T.C.

COUNT II Ability To Control Pest Claims Alleging further violation of Section 5 of the Federal Trade Commission Act, the allegations of Paragraphs One, Two, Three, Four and Five are incorporated by reference herein. PAR. 8. Through the use of the statements referred to in Paragraph Five, and others not expressly set out therein, respondents have represented, and are now representing, directly or by implication, that the Pest Sentry:

1. Controls effectively rats and mice in the home or place of business.

2. Controls effectively insects, such as cockroaches, in the home or place of business.

3. Eliminates the need to use, in the home or place of business, alternative rodent or insect control products such as traps, powders, sprays or other chemicals.

PAR. 9. In truth and in fact, contrary to the representations made by respondents set forth in Paragraph Eight, the Pest Sentry: 1. Is ineffective for controlling rodents in the home or place of business. Any reaction by rodents to the Pest Sentry would, at best, only be of short duration. Rodents habituate to ultrasound and will return to their chosen nesting or feeding habitats even in the presence of such ultrasonic products.

2. Is ineffective for controlling insects in the home or place of business.

3. Does not eliminate the need to use alternative pest control products such as chemicals, sprays, powders, or traps in the home or place of business.

Therefore, the representations set forth herein constitute deceptive and unfair acts or practices.

COUNT III Area Coverage Claims Alleging further violation of Section 5 of the Federal Trade Commission Act, the allegations of Paragraphs One, Two, Three, Four and Five are incorporated by reference herein. PAR. 10. Through the use of the statements referred to in Paragraph Five, and others not expressly set out therein, respondents have epresented, and are now representing, directly or by implication, hat the Pest Sentry will effectively cover an area of 1500 to 2000 quare feet in the home or place of business.

SENTRONIC CONTROLS CORP., ET AL. 201

197 Complaint

PAR. 11. In truth and in fact, contrary to the representations made by respondents alleged in Paragraph Ten, the Pest Sentry will not effectively cover areas of 1500 to 2000 square feet in the home or place of business because among other reasons, ultrasound:

1. Loses intensity as it travels;

2. Is absorbed by soft objects such as carpeting, curtains and drapes; 3. Is reflected by hard surfaces such as partitions, appliances, furniture, cabinets and shelving creating sound "shadows"; or 4. Is unable to penetrate to places of nesting and feeding that are behind and within recesses of walls, under floors or within cracks or crevices. Therefore, the representations set forth herein constitute deceptive and unfair acts or practices.

COUNT IV

Reasonable Basis - Substantiation

Alleging further violation of Section 5 of the Federal Trae Commission Act, the allegations of Paragraphs One, Two, Three, Four and Five are incorporated by reference herein. PAR. 12. Through the use of the statements referred to in Paragraph Five, and others not expressly set out therein, respondents have represented and are now representing, directly or by implication, that at the time of making the representations respondents possessed and relied upon a reasonable basis for those representations. In truth and in fact, at such times, respondents did not possess and rely upon a reasonable basis for making such representations because, among other reasons, respondents had not conducted appropriate tests or had improperly applied results of tests done by others. Therefore, said representations constituted and now constitute deceptive and unfair acts or practices. PAR. 13. The use by respondents of the aforesaid representations, as set forth in Count I-IV, and the placement in the hands of distributors and retailers of promotional materials through which others may have conveyed those representations, have had the capacity and tendency to mislead consumers and to induce the purchase of respondents' ultrasonic pest control products. PAR. 14. The acts and practices of respondents, as herein alleged, constituted, and now constitute unfair and deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act. The acts and practices of respondents, as herein alleged, are continuing and will continue in the absence of the relief herein requested. Chairman Miller dissented.

Complaint 105 F.T.C.

EXHIBIT A-1

NOW ELIMINATE... FLYING AND CRAWLING PESTS • RATS • MICE • ROACHES MOSQUITOES • FLIES • WATERBUGS ULTRASONICALLY

The all-new, high technology PEST SENTRY is a compact (7 1/8" W x 7 3/8" D x 3 3/4" H) electronic solid-state system that broadcasts high intensity ultrasonic waves on a continually changing frequency. The ultrasonic waves seriously affect the auditory and nervous system of rates, mice, roaches, flies, mosquitoes and other crawling and flying pests. PEST SENTRY will eliminate "resident" pests in 2-6 weeks and

no new crawling or flying pests will enter a PEST SENTRY protected area (1500-2000 sq. feet) Developed for indoor use, the PEST SENTRY is a professional answer for homes, restaurants, warehouses, schools, farm buildings (chicken coops, barns, outbuildings, storage silos), garages, retail stores, hospitals, nursing homes — any indoor location where flying and crawling pests are a problem.

Complaint EXHIBIT A-1 (CONT'D)

PEST SENTRY simply plugs into any 110 volt AC outlet. It uses only 4 watts of power—making it an economical as well as professional way to eliminate crawling and flying pests.

PEST SENTRY will not harm people household pets, farm animals, birds, plants, flowers.

PEST SENTRY will not interfere with electronic burglar and fire alarms, TV reception or other sophisticated electronic devices.

PEST SENTRY eliminates setting unreliable traps, and often using messy dangerous chemicals and hard-to-control poisonous sprays.

STORE NAME

DMV, INC.

Sentrionic Controls Corp.

AD # PS-100 4 Cols. X 16" B&W Ad

Complaint 105 F.T.C.

EXHIBIT A-2

PEST SENTRY PEST SENTRY The professional ultrasonic sound wave system The professional ultrasonic sound wave system PEST SENTRY The professional ultrasonic sound wave system PEST SENTRY The professional ultrasonic sound wave system PEST SENTRY The professional ultrasonic sound wave system The professional ultrasonic sound wave system

ELIMINATES FLYING AND CRAWLING PESTS...SAFELY, ECONOMICALLY ELIMINATES FLYING AND CRAWLING PESTS...SAFELY, ECONOMICALLY ELIMINATES FLYING AND CRAWLING PESTS...SAFELY, ECONOMICALLY ELIMINATES FLYING AND CRAWLING ELIMINATES FLYING AND CRAWLING PESTS...SAFELY, ECONOMICALLY PESTS...SAFELY, ECONOMICALLY ELIMINATES FLYING AND CRAWLING ELIMINATES FLYING AND CRAWLING PESTS...SAFELY, ECONOMICALLY PESTS...SAFELY, ECONOMICALLY

PEST SENTRY PEST SENTRY PEST SENTRY will not harm people, will not interfere with electronic eliminates setting unreliable household pets, burglar and fire traps, using messy farm animals, alarms, TV reception and often dangerous birds, chemicals and hardor other sophisticated to-control plants, flowers. electronic devices. poisonous sprays.

Complaint

EXHIBIT A-3

PEST SENTRY ELIMINATES FLYING AND CRAWLING PESTS... SAFELY, ECONOMICALLY... IN 2-6 WEEKS.

plugs into any 110 volt AC outlet uses only 4 watts of power

WITHOUT...

calling in expensive pest control services or spending your valuable time using poisonous powders, messy sprays, dangerous chemicals or unsightly traps.

will not harm people, household pets, farm animals, birds, plants, flowers. • will not interfere with electronic burglar and fire alarms, TV reception or other sophisticated electronic devices.

Complaint

EXHIBIT B-1-1

SENTRONIC CONTROLS CORP.

Suite 200 730 North LaSalle Street Chicago, Illinois 60610 telephone (312) 787-1511

NEW ULTRASONIC SOUND WAVE SYSTEM ELIMINATES

RATS, MICE, ROACHES, FLIES, MOSQUITOES AND OTHER FLYING & CRAWLING PESTS

The newly introduced PEST SENTRY (PS-1500) broadcasts high intensity ultrasonic waves on a continually changing frequency. This seriously affects the auditory and nervous systems of rats, mice, roaches, flies, mosquitoes and other flying and crawling pests.

While "resident" pests are completely eliminated in 2-6 weeks, PEST SENTRY will not harm people, household pets, birds, farm animals, plants or flowers, electronic alarms, TV receivers or related technical equipment. And...no new crawling or flying pests will enter a PEST SENTRY-protected area (1,500 to 2,000 sq. feet).

Using only 4 watts of power, the PEST SENTRY is an economical and professional way to eliminate crawling and flying pests without resorting to baiting and setting unreliable traps or spreading and spraying hard-to-control poisons and chemicals.

In addition...PEST SENTRY is easy-to-install and use. Just plug it into any 110 volt AC outlet, turn on the switch, and let PEST SENTRY introduce you to the benefits of utilizing this fully warranted, maintenance-free device that protects you from crawling and flying pests 24 hours a day. PEST SENTRY has a red indicator light and a low buzzing sound from the electronic components (not the ultrasound) to show that the unit is performing continuously. It is UL listed (85G4).

The PEST SENTRY can be adapted to DC operation and is available in various power supplies to meet export requirements. Suggested retail price is $99.95.

Developed for indoor use, the PEST SENTRY is a professional answer for homes, restaurants, warehouses, schools, farm buildings (chicken coops, barns, outbuildings, storage silos), garages, retail stores, hospitals, nursing homes -- any indoor location where flying and crawling pests are a problem.

We would be pleased to provide you with additional information.

Cordially,

SENTRONIC CONTROLS CORP.

Stanley B. Stewart

SBS/ss encs.

- over -

Complaint EXHIBIT B-1-2

7/5/82 Dear Sue I have a small single apartment on L.A.

Is it OK to leave the "PEST SENTRY" on continuously? It is not harmful is it? P.S. It really works.

Sincerely Jack A Wurtz JACK A. WURTZ 3519 Laurel Canyon Blvd.

N. Hollywood, CA 91607

Albert Bros.

PAINTS - HARDWARE - MILL SUPPLIES Wholesale & Retail 2207 BELLMORE AVENUE • BELLMORE, NEW YORK 11710 • SUnset 5-2262 Dear Mr. Stewart:

A month ago, we had a serious problem with rodents. We had mice in our main store and warehouses, they were destroying the packages of grass seeds and fertilizers. Since we installed the "Pest Sentry" Ultrasonic Soundwave Units, we have had no further problems with any rodents at all. We also noticed that the warehouses are free of insects. Please feel free to use me as a reference for any potential customers you may have.

Sincerely Mark Albert

Dear Mr. Stewart:

As you know, we had a serious problem concerning roaches and rodents. Since the installation of six of your "Pest Sentry" Ultrasonic Sound Wave System units, two months ago, we are happy to state that we have not seen any vermin in the affected areas in question.

Sincerely, Steve Lombardo, Sr.

Steve Lombardo, Sr.

[illegible]enance Manager

Gentlemen:

It has now been approximately 6 weeks since we installed the "Pest Sentry" flying insect and rodent repeller in our fine chemical bottling room, an area that was mildly infected with cockroaches.

I am pleased to report that since the installation of the "Pest Sentry" we have observed no roaches or crawling insects in this area.

Very truly yours, PFANSTIEHL LABORATORIES, INC.

Edward S. Holstein Vice-President

Complaint EXHIBIT B-1-3

sentronic CONTROLS CORP Suite 200 730 North LaSalle Street Chicago, Illinois 60610 telephone (312) 787-1511

50 H. [illegible]EWOOD ROAD GRAFTON, WISCONSIN 53024 TELEPHONE (414) 377-6755

.arch 3, 1982

Gentlemen:

I would like to express our delight with the perfect results of our pest sentry. For over twelve years we have had field mice in our basement and each year hired a pest control service. After three months use of our pest sentry we have had no field mice, spiders or bugs in our basement area.

The results are phenominal. I can only applaud the fantastic results we have had with this new innovation in pest control. It is simple to use, neat and clean and most important rids the property of the rodents in a most efficient manner.

May we add our compliments and applause to this sensational device. It really works and solves the pest control problem.

Sincerely, Rick Wysocky

Feb. 5th, 1982.

Dear Mr. Stewart:--

We have a horrible infestation of roaches in our fifteen apartment building due to three dirty, lazy and belligerent men in one apartment.

After spending 375 in assorted spray liquid cans, powders, motels, bay leaves, bombs and Osage Orange, with no results, saw your ad in a December Sunday's paper made me run to the store immediately. Needless to say was plugged into work pronto and giving excellant results working twenty four hours without a stop.

Sincerely, Marie Cupic (Mrs. John Cupic)

23-38 31st Road, L.I.City, N.Y. 11106

Chery, Diamant rtinique 97223 ench West Indies

ecember 28, 1981

entlemen:

I purchased your Pest Sentry in New York, sometime in November of this year; and brought it down to my home in Martinique. Amazingly, I found it very workable; for there is a decided relief and difference between this and the past few years.

Very truly yours, Henry Hab[illegible]

Complaint

EXHIBIT B-1-4

February 12, 1982

Dear Mr. Steward:

I switched units with my mother and her unit seems to be eeping the pests away, and while we were waiting for the replacement units she did have a mouse come in and begin chewing in the walls when she plugged my unit in, it stopped, I then added a replacement unit to the other end of the house, and she has not had a problem since. It would seem that the furniture etc. were just absorbing too much of the sounds.

Sincerely yours, Charles V. Feeley Jr.

P. O. Box 43 Brookfield, Illinois 60513

P.S. I would like to buy another unit too, so possibly would a co worker

I recently bought One of your Pest Sentry from Kimble's Dept Store in New York City. I wish to purchase another One like the One I bought, but the store no longer have them in stock Please ship to My home COD

MYRA HANSHAW 133 W. 90th Street apt 5D NEW YORK 10024 NY.

S. It works VERY well.

Judith Leyden # 101 West 160th ST.

NY NY 10032

for us grow. It in use about 3 weeks and I have seen results. I live in a 2 family house, after six weeks or so do I have to keep leaving it on or can I turn it off.

Thank you Mrs. Marie L. Murakovic 2052-27th St Astoria N.Y.

11105

Complaint 105 F.T.C.

EXHIBIT B-2-1

PEST SENTRY congratulations! You have taken an important step toward eliminating crawling and flying pests in an economical, safe and professional manner.

A WORD OF CAUTION:

It takes 2 to 6 weeks to completely eliminate crawling and flying pests. Pests with favorite nests, hiding places and feeding stations will endure a high degree of pain before they give up their shelter, water and food sources. You will notice results in a few days and within 4 to 6 weeks you will be free of the entire list of crawling and flying pests as long as PEST SENTRY stands guard.

SENTRONIC CONTROLS CORP.

730 North LaSalle St.

Chicago, IL 60610

[illegible] ELECTRONIC CONTROLS CORP., ET AL.

Complaint

EXHIBIT B-2-2

TO INSTALL!!! [illegible]

HELPFUL HINTS!!! [illegible]

[illegible]

Complaint EXHIBIT B-3-1

PEST SENTRY NOW...YOU CAN PROTECT YOUR HOME AND FAMILY FROM FLYING AND CRAWLING PESTS...

with an all-new Sound Solution to PEST CONTROL!

Warranty/Repair POLICY...

The PEST SENTRY carries a 1 year limited warranty (see enclosed warranty card). In addition, any unit not in warranty will be replaced or repaired for a standard fee of $25.00 plus $3.00 for shipping and handling charges. Units with expired warranties should be returned to the manufacturer with check or concise return shipping instructions and an enclosed check to: Sentrionic Controls Corp. 1400 North Dayton Street Chicago, IL 60622

SENTRONIC CONTROLS CORP.

730 North LaSalle Street Chicago, Illinois 60610 (312) 787-1611

A Word of Caution [illegible] HELPFUL HINTS:

[illegible]

SENTRONIC CONTROLS CORP., ET AL.

Complaint EXHIBIT B-3-2

INFORMATION ABOUT THE PEST to install...

The PEST SENTRY (JS-1500) operates 24 hours a day to provide constant protection. It rids your home of mice, rats, cockroaches, flies, mosquitoes and other flying and crawling pests [illegible] [illegible] uses only 4 watts of power. [illegible] provides protection with little or no maintenance.

[illegible] plugs into any 110 volt AC outlet and steady [illegible] [illegible] protects 1500 to 2000 square feet indoors when properly positioned.

1. Simply plug your PEST SENTRY into any AC outlet.

2. Turn the "ON and OFF" switch to "ON." 3. You will hear a very low buzz coming from the electronic tone. Someone this low frequency sonic sound provides the protection by eliminating [illegible] and the protected area. 4. Make sure the PEST SENTRY is [illegible] [illegible] times the protected [illegible] 5. The PEST SENTRY should be wall-mounted at [illegible] down possible and aimed into the unobstructed path, hallway or toward the center of [illegible] the wall away toward the center of [illegible] in the most expanded dependent area. Do not [illegible] future to avoid [illegible] not [illegible] be absorbed into the porous sound [illegible] [illegible] the PEST SENTRY will [illegible] HOW IT WORKS The PEST SENTRY broadcasts high intensity frequency waves on a continuous [illegible] waves affect the auditory and nervous system of mice, rats and crawling [illegible] insects and makes their existence [illegible] unbearable and drives them away [illegible] installation requires [illegible] [illegible] Protect the PEST SENTRY from being [illegible] splashed by water. [illegible] [illegible] about the best guarantee. [illegible] [illegible] effective for maximum protection. [illegible] it is highly recommended to [illegible] [illegible] producing and you should affect [illegible] [illegible] first and you should affect [illegible] [illegible] unit for total and positive effective control. PEST SENTRY PEST SENTRY PEST SENTRY UL

Complaint EXHIBIT B-4-1

PEST SENTRY eliminates FLYING and crawling PESTS...safely, economically...in 2-6 weeks..

The professional ultrasonic sound wave system

PS-1800

WITHOUT...

calling in expensive pest control services or spending your valuable time using poisonous powders, messy sprays, dangerous chemicals or unsightly traps. PEST SENTRY is a compact (7 1/8" W x 7 3/8" D. x 3 3/8" H.) electronic, solid-state system that broadcasts high intensity ultrasonic waves on a continually changing frequency. The waves seriously affect the auditory and nervous system of rats, mice, roaches, flies, mosquitoes and other crawling and flying pests. "Resident" pests can be totally eliminated in 2 to 6 weeks. And, you will be free of the entire list of "undesirables" for as long as you continue to use the PEST SENTRY. Plugging into any 110 volt AC outlet, the maintenance-free PEST SENTRY Ultrasonic Sound Wave System protects from 1500-2000 square feet in any indoor location. The PEST SENTRY operates on only 4 watts of electrical power. It's a professional answer to the age-old problem of pest control. The PEST SENTRY is perfect for homes, basements, garages, warehouses, factories, schools, retail stores, enclosed farm buildings, food service facilities, hospitals and nursing homes - any indoor location where crawling or flying pests are a problem.

sentronic controls corp.

Complaint

EXHIBIT B-4-2

PEST SENTRY simply plugs into any 110 volt AC outlet. It uses only 4 watts of power—making it an economical as well as professional way to eliminate crawling and flying pests.

PEST SENTRY will not harm people, household pets, farm animals, birds, plants, flowers.

PEST SENTRY will not interfere with electronic burglar and fire alarms, TV reception or other sophisticated electronic devices.

PEST SENTRY eliminates setting unreliable traps, using messy and often dangerous chemicals and hardto-control poisonous sprays.

THE PEST SENTRY Protects indoor facilities from:

• Rats • Mosquitoes • Mice • Waterbugs • Flies • Chipmunks • Roaches • Squirrels and other kinds of crawling and flying pests Research data available upon request from manufacturer

SPECIFICATIONS:

Dimensions ........ 7⅛" W x 7¼" D x 3¾" H Power Supply ............ 105-120 Volts AC 60 Cycle Power Consumption ............ 4 Watts Shipping Weight ............... 2 lbs Packed ................ 12 to master or individually Frequency Range .... Random frequency sweep 30,000 – 60,000 Hz

INSTALLATION:

Simply remove your new PEST SENTRY and plug it into any 110 volt AC outlet Turn the switch to "on" and make sure the red indicator light goes on. You will hear a very low buzz coming from the electronic components which is not the ultrasound that eliminates crawling and flying pests.

A WORD OF CAUTION:

It takes 2 to 6 weeks to completely eliminate crawling and flying pests. Pests with favorite nests, hiding places and feeding stations will endure a high degree of pain before they give up their shelter, water and food sources. You will notice results in a few days and within 4 to 6 weeks you will be free of the entire list of crawling and flying pests as long as PEST SENTRY "stands guard."

PEST SENTRY The Professional Ultrasonic Sound Wave System

SENTRONIC CONTROLS CORP. Suite 200 • 730 N. LaSalle St. • Chicago, IL 60610 • (312) 787-1511

This Product is Listed by UNDERWRITERS LABORATORIES INC.

and Bears the Mark: 85G4 Distributed by

Complaint 105 F.T.C.

EXHIBIT C-1

SHOP SUNDAY 10 AM TO 9 PM 10 AM TO 7 PM [illegible] SAY GOOD-BYE TO ANNOYING PESTS! Let a Pest Sentry help eliminate roaches, rats, mice, mosquitoes, flies, waterbugs and other crawling and flying pests from your home. (((PEST SENTRY)))

SENTRONIC CONTROLS CORP., ET AL.

Complaint EXHIBIT C-1 (CONT'D) Daily News, Sunday, December 13, 1981 99.95 GIMBELS PHONE TODAY CALL 736 5100 Model #PS1500.1 You will see results in 3-4 weeks! There will be an improvement in a few days and by six weeks time you will be free of annoying pests.

Consider this — The Pest Sentry is ideal for apartments, homes, schools, warehouses, restaurants and stores. We all know how high the cost of exterminating can be and how many follow-up visits it may take to solve your problem. Take an important step towards eliminating crawling and flying pests in an economical, safe and professional manner.

People, dogs, cats, birds, plants, and flowers are not affected. Nor are electronic systems like your TV, microwave oven and burglar alarm.

Only insects and rodents will hear the sound. And run from it! One Pest Sentry covers 1800-2000 square feet. The Pest Sentry covers an entire apartment, not just one room like other machines. The sound will penetrate doors, drywall and plastered rooms.

Pest Sentry is a revolutionary new concept in indoor pest control. A compact, (7-1/8x7-3/8x2-5/8") electrical solid state unit that broadcasts high frequency ultrasonic waves to drive pests away in droves. Ultrasonic waves cause pests discomfort. The ultrasonic waves affect the nervous and auditory systems of bothersome insects and rodents, causing them discomfort.

Rather than endure this, they leave. It's simple and economic to operate. It plugs into any 110 volt AC outlet. You can leave the Pest Sentry on day and night because it draws only 4 watts of power. The Pest Sentry is maintenance free, requires no messy chemicals, no emptying of closets.

Charge it on your Gimbels charge account. Mail and phone orders are accepted. Add $2.50 for delivery plus applicable sales tax. Sorry, no C.O.D.'s. Small Balance ID. 6711, Eighth Floor, Gimbels Broadway at 33rd Street (212)736-5100, Gimbels East at 86th Street (212)535-8100, Gimbels Westchester (914)682-5100, Paramus (201)843-3020, Roosevelt Field, Valley Stream, BAYN 2002.

Complaint EXHIBIT C-2-1

INTRODUCTORY OFFER ONLY $79.50 PEST SENTRY [illegible] PEST SENTRY simply plugs into any 110 volt AC outlet. It uses only 4 watts of power — making it an economical as well as professional way to eliminate crawling and flying insects.

THE PEST SENTRY Protect indoor facilities from • Rats • Mosquitoes • Mice • Waterbugs • Flies • Chipmunks • Roaches • Squirrels and other kinds of crawling and flying pests. Research data available upon request from manufacturer.

SPECIFICATIONS:

[illegible]

INSTALLATION:

[illegible]

A WORD OF CAUTION:

[illegible]

SAY GOOD-BYE TO ANNOYING PESTS! Let PEST SENTRY eliminate roaches, rats, mice, mosquitoes, flies, waterbugs and other crawling and flying pests from your home. PEST SENTRY [illegible] ONLY $99.95 A SERVISTAR STORE DENVILLE HARDWARE [illegible] 627-2980

NEUKAM & ROTHERT S&T Phone 536-3923 — Holland, Indiana So Much More Than A Hardware Store

PEST SENTRY

Complaint

EXHIBIT C-2-2

NOW ELIMINATE FLYING AND CRAWLING PESTS RATS MICE ROACHES MOSQUITOES FLIES WATERBUGS ULTRASONICALLY The PEST SENTRY is a compact, solid state system that broadcasts high intensity ultrasonic waves at changing frequencies. These waves seriously affect the auditory & nervous system of crawling & flying pests PEST SENTRY kills resident pests in 2 to 6 weeks & protects a 1,500 to 2,000 sq. ft. area from further pest invasions PEST SENTRY is for indoor use anywhere pests are a problem Ideal for restaurants, businesses and homes - Plugs into any 110 volt AC outlet - Uses only 4 watts of power Reg. $99.99 SALE $79.99 WITHOUT...

calling in expensive pest control services or spending your valuable time using poisonous powders, messy sprays, dangerous chemicals or unsightly traps. Will not harm people, household pets, farm animals, birds, plants, flowers, will not interfere with electronic burglar & fire alarms, TV reception or other sophisticated electronic devices True Value HARDWARE STORE HOURS M-F 8:30-6:30 SAT 8:30-6 SUN 10-2 7532 N. ARMENIA 933-1500 (Between Sligh and Waters)

NEW! Pest Sentry Ultrasonically eliminates flying and crawling pests. Protects Area 1500-3000 Sq. Ft. Uses only four watts of power. Will not harm people, dogs, cats and plants. Our PS 15 Reg. $99.95 SAVE $20 $79.88 Ea.

ULTRA-EFFECTIVE Pest Eliminator.

Pest Sentry eliminates flying and crawling pests without deadly chemicals, unsightly traps, or expensive [illegible] pest control services. It broadcasts high intensity ultrasonic waves that actually drive pests away by affecting their auditory and nervous systems. Flies, mosquitoes, [illegible] rodents and roaches gone completely in 2 to 6 weeks [illegible] And they'll stay away as long as Pest Sentry stands guard. It is safe for people, household pets, farm animals, birds, plants, and flowers. Won't interfere with TV reception, electronic fire or burglar alarms, or other sophisticated devices. Just plug it into any AC outlet. It draws only 4 watts. One ultrasonic unit is effective for an area of up to 2000 sq. ft. in homes, warehouses, stores, farm buildings, anywhere pests are a problem.

PS15000 $99.95

Complaint 105 F.T.C.

EXHIBIT C-2-3

Shop Hess's For Your Needs...

The Professional Ultrasonic Sound Wave System

PEST SENTRY

PEST SENTRY

SAVE $19! Pest Sentry Eliminates Flying and Crawling Pests Eliminate resident pests in 2-6 weeks. High intensity ultrasonic waves seriously affect the auditory system of rats, mice, roaches, flies, mosquitoes and other flying and crawling pests.

$80 reg. 99.99 HARDWARE

• Will not harm people, pets, or plants . . .

• Will not interfere with electronic alarms or TV reception . . . • Eliminates unreliable traps, messy chemicals.

Complaint

EXHIBIT C-2-4

NOW Eliminate...

Flying & crawling pests, rats, mice, roaches, flies, mosquitoes, waterbugs & other pests... ULTRASONICALLY!

The PEST SENTRY is a compact, solid state system that broadcasts high intensity ultrasonic waves at changing frequencies.

These waves seriously affect the auditory & nervous system of crawling & flying pests.

PEST SENTRY kills resident pests in 2 to 6 weeks & protects a 1500 to 2000 sq.ft.

area from further pest invasions.

PEST SENTRY is for indoor use anywhere pests are a problem! PEST SENTRY Ideal for restaurants, businesses, offices & homes!

PEST SENTRY will not harm people, household pets, farm animals, birds, plants, flowers.

PEST SENTRY will not interfere with electronic burglar and fire alarms, TV reception or other sophisticated electronic devices.

PEST SENTRY eliminates setting unreliable traps, using messy and often dangerous chemicals and hard-to-control poisonous sprays.

only $88 88 at FOREST CITY West Side • 10800 Brookpark Rd.

• 8201 Day Drive • 2001 Center Ridge Rd.

East Side • 6420 Mayfield Rd.

• 436 Northfield Rd.

• 7630 Plaza Drive • 17903 St. Clair Ave.

OCTOBER 18, 1981 THE PLAIN DEALER TV WEEK 25

Complaint 105 F.T.C.

EXHIBIT C-2-5

SAY GOOD-BYE TO ANNOYING PESTS! Let PEST SENTRY eliminate roaches, rats, mice, mosquitoes, flies, waterbugs and other crawling and flying pests from your home.

PEST SENTRY

Pest Sentry is a revolutionary new concept in indoor pest control. A compact, (7"x7"x3 1/2") electrical solid state unit that broadcasts high frequency ultrasonic waves to drive pests away in droves.

Ultrasonic waves cause pests discomfort. The ultrasonic waves affect the nervous and auditory systems of bothersome insects and rodents, causing them discomfort. Rather than endure this, they leave.

It's simple and economic to operate. It plugs into any 110 volt AC outlet. You can leave the Pest Sentry on day and night because it draws only 4 watts of power.

People, dogs, cats, birds, plants, and flowers are not affected. Nor are electronic systems like your TV, microwave oven and burglar alarm. Only insects and rodents will hear the sound. And run from it!

One Pest Sentry covers a very large area, 1500-2000 sq. ft. (18,000 cubic ft. for 8 ft. ceilings). The Pest Sentry sound will penetrate doors, drywall and plastered rooms.

You will see results in 2-4 weeks! There will be an improvement in a few days and by six weeks time you will be free of annoying pests.

Consider this — The Pest Sentry is ideal for apartments, homes, schools, warehouses, restaurants and stores. We all know how high the cost of exterminating can be and how many follow-up visits it may take to solve your problem. Take an important step towards eliminating crawling and flying pests in an economical, safe and professional manner.

ONLY $99.95

Atlantic Aluminum Peddlers Village Manasquan, N.J.

Atlantic Aluminum Products Lavallette, N.J.

Energy Cove Forked River, N.J.

A's Garden Center Lanoka Harbor, N.J.

Hendrick's Equipment Co.

Howell, N.J.

Distributed by Elmco Distributors Inc., Parsippany, N.J.

Complaint

EXHIBIT C-2-6

NOW ELIMINATE FLYING AND CRAWLING PESTS · RATS · MICE ROACHES · MOSQUITOES · FLIES · WATERBUGS ULTRASONICALLY

[illegible]

PEST SENTRY

PEST SENTRY PEST SENTRY PEST SENTRY [illegible] Available now at these participating Dealers!

CAROL STREAM DOWNERS GROVE La GRANGE PLAINFIELD E-G Home Center E-G Home Center Gee Lumber Gee Lumber 110 E North Ave 1112 Ogden Ave 15 North Spring 215 Milan St DARIEN HINSDALE LEMONT VILLA PARK Handy Andy Home Improvement Center Gee Lumber Lemont Hardware Gee Lumber 7415 Cass Avenue 30 S Lincoln 102-106 Stephen Street 207 W St Charles Road

ULTRA EFFECTIVE Pest Eliminator.

[illegible] PS15000 $99.95

Decision and Order 105 F.T.C.

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 of Consumer Protection 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 respodnents, 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. Respondents Sentronic Controls Corporation and International Marketing and Manufacturing, Inc. are Illinois corporations with their offices and principal places of business located at 730 North LaSalle Street, Chicago, Illinois. Respondent Unigraf, Inc. is an Illinois corporation with its principal place of business located at 60 West Erie Street, Chicago, Illinois. Respondent Stanley Stewart is an officer of SCC and an officer of IMM. Respondent Anne K. Stewart is an officer of IMM. Respondent Richard Muller is a director of SCC and an officer and director of Unigraf. As such, the individual respondents formulate, direct and control the policies, acts and practices of said corporations, and their business addresses are the same as those for said corporations. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

SENTRONIC CONTROLS CORP., ET AL. 225 197 Decision and Order

ORDER

PART I

It is ordered, That respondents Sentronic Controls Corporation, a corporation, its successors and assigns, and its officers, International Marketing & Manufacturing, Inc., a corporation, its successors and assigns, and its officers, Unigraf, Inc., a corporation, its successors and assigns, and its officers, and Stanley Stewart, Anne K. Stewart and Richard Muller, individually and as officers of said corporations, and respondents' agents, representatives, distributors, and employees, directly or through any corporation, subsidiary, division of other device, in connection with the advertising, offering for sale, sale or distribution of the Pest Sentry (PS-1500) or any other pest control product in or affecting commerce, as "commerce" is defined in the Federal Trade Commission act, do forthwith cease and desist from:

A. Representing, directly or by implication, that respondents' Pest Sentry (PS-1500) or any such ultrasonic product will:

(1) eliminate cockroaches, rats, mice and other pests from a home or place of business; (2) eliminate rodent and insect problems from a home or place of business within two to six weeks, or within any other specified period of time; (3) prevent rodents and insects from entering or remaining in ar area where the ultrasonic product is in use in a home or place c business; (4) protect, from rodent and insect infestations, areas up to 150 square feet in a home or place of business, or within any other spe fied square footage area; (5) serve as an effective alternative to the use of conventio products such as sprays, powders, traps or other chemicals in prov ing protection from insect and rodent infestation. B. Representing, directly or by implication, any performance c acteristic of any pest control product unless at the time of ma such representation respondents possess and rely upon compe and reliable evidence which substantiates the representation. dence shall be competent and reliable only if tests, experiments lyses, research studies, or other evaluations are conducted objective manner by persons qualified to do so, using procedure erally accepted in the relevant professions or sciences to yiel rate, reliable, and reproducible results. C. Representing, directly or by implication, that any pest [illegible] is effective in providing protection from insect and

Decision and Order 105 F.T.C.

infestation in a home or place of business unless at the time of making such representation respondents possess and rely upon competent and reliable evidence which either directly relates to such home or place of business use conditions or which can properly be applied to such conditions.

PART II

It is further ordered, That for three years after the last date of dissemination of the relevant representation respondents shall maintain and upon request make available to the Federal Trade Commission for inspection and copying copies of all materials relied upon to support any representation covered by Part I of this Order, and copies of all documents in respondents' possession that contradict, qualify, or otherwise call into question any such representations, including complaints from consumers.

PART III

It is further ordered, That respondents shall for a period of three years:

A. Distribute a copy of this Order to all managerial employees, istributors, independent sales agents and retailers present and fuure.

B. Notify each present and future distributor or sales representare that the failure to comply with the Order may result in cancellan of the distributorship or other selling agreement with pondents.

'. Require all distributors, independent sales agents and retailers eport to respondents semi-annually all consumer requests to rel and their action taken in response to such requests.

PART IV

is further ordered, That for a period of ten years:

Respondents shall notify the Commission at least thirty (30) days to any proposed change in the corporate respondents, such as ition, assignment, or sale resulting in the emergence of a sor corporation, the creation or dissolution of subsidiaries, or her change in the corporation that may affect compliance obliarising out of this Order.

e individual respondents named herein shall promptly notify mission of the discontinuance of their present pest control business or employment and of their affiliation with any new trol product business or employment, stating the nature of ess or employment in which the individual is newly en--

SENTRONIC CONTROLS CORP., ET AL.

197 Decision and Order.

as well as a description of duties and responsibilities in connection with such new business or employment and the address of such new business and employment.

PART V

It is further ordered, That respondents shall, within sixty (60) days after service upon it of this Order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this Order.

Chairman Miller dissented.

Modifying Order 105 F.T.C.

IN THE MATTER OF CHEVRON CORPORATION, ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 7 OF THE CLAYTON ACT Docket C-3147. Consent Order, Oct. 24, 1984—Modifying Order, March 13, 1985 After a "Request For Termination of Hold Separate Agreement" (Request) filed by a respondent in a divestiture order isued on October 24, 1984, had been placed on the public record for ten days and no comments had been received, the Commission reviewed the Request and concluded that the public interest warranted modifying Paragraph II(c) of the Order, so that the Agreement To Hold Separate, attached to the Order as Appendix I, "shall continue in effect until such time as Gulf's stock interest in Colonial Pipeline Company has been divested." The Commission held that the Hold Separate Agreement had accomplished its primary objectives with the divestitures of Gulf's refining and marketing assets in the Southeast and of its interest in Colonial Pipeline Company, and the potential harm resulting from the costs of continuing the Agreement outweighed any further need to maintain it in effect.

ORDER MODIFYING DECISION AND ORDER ISSUED OCTOBER 24, 1984 On February 21, 1985, respondent Chevron Corporation ("Chevon") filed a "Request For Termination Of Hold Separate Agreement" 'Request"). Since Paragraph II(c) of the decision and order issued on ctober 24, 1984 ("the order") incorporates the Agreement To Hold parate, which is attached to the order as Appendix I, the Request, effect, seeks modification of the order to terminate the Hold Sepae Agreement. The Request was on the public record for ten days 1 no comments were received.

'aragraph II(c) of the order provides that the Agreement to Hold arate "shall continue in effect until such time as the Schedule A perties have been divested. . . ." As the Request notes, the Hold arate Agreement is not limited to the assets that Chevron is reed to divest pursuant to the order but is applicable to all of Gulf's estic oil and gas assets and operations. Chevron has now submitivestiture applications covering all of the assets it is required to t and the Commission has approved the divestitures with the tion of the divestiture of 51 percent of Gulf's interest in the West Pipeline Company. The latter divestiture proposal is awaiting ission action.

r reviewing respondent's Request, the Commission has conclud- : the public interest warrants reopening the order and modifyragraph II(c) so that the Hold Separate Agreement will