Carpet Bazaar, Inc., and Aden R. Greenberg

Page 8

Title 16— Commercial Practices <8 CHAPTER I— FEDERAL TRADE COMMISSION [Docket No. C-2498] PART 13— PROHIBITED TRADE PRACTICES Carpet Bazaar, Inc., and Aden R. Greenberg Subpart—Advertising falsely or mis­ leadingly: § 13.10 Advertising falsely or misleadingly; § 13.155 Prices; 13.155-15 Comparative; 13.155-35 Discount sav­ ings; 13.155-40 Exaggerated as regular and customary;

13.155-70 Percentage savings; 13.155-75 Product or quantity covered; 13.155-100 Usual as reduced, special, etc. § 13.175 Quality of product or service; § 13.180 Quantity; 13.180-35 Offered; § 13.285 Value. Subpart—Fail­ ing to maintain records: § 13.1051 Fail­ ing to maintain records;

13.1051-20 Adequate:

Subpart— Misrepresenting oneself and goods—Goods:

§ 13.1715 Quality; § 13.1720 Quantity; § 13.1775 Value—Prices: § 13.1785 Comparative; § 13.1805 Exaggerated as regular and customary; § 13.1825 Usual as reduced or to be increased.

(Sec. 6, 38 Stat. 721 (15 UJ5.C. 46). Interprets or applies sec. 5, 38 Stat. 719, as amended (15 U.S.C. 45) [Cease and desist order, Carpet Bazaar, Inc, et al., Berwyn, III., Docket C - 2498, Mar. 20, 1974]) In the Matter of Carpet Bazaar, Inc., a Corporation, and Allen R. Green­ berg, Individually and as an Officer of Said Corporation Consent order requiring a Berwyn, HI., retailer and installer of home carpeting, among other things to cease misrepre­ senting the price at which it will carpet a home and the prices of carpet rem­ nants; that its prices are sale or reduced or that savings will be afforded to pur­ chasers; and to cease its failure to main­ tain adequate records to support savings claims.

The order to cease and desist, includ­ ing further order requiring report of compliance therewith, is as follows: It is ordered, That Carpet Bazaar, Inc., a corporation, its successors and assigns, and its officers, and Allen R. Greenberg, individually and as an officer of said cor­ poration, and respondents’ agents, repre­ sentatives, and employees, directly or through any corporation, subsidiary, or other device, in connection with the ad­ vertising, offering for sale, sale or dis­ tribution of carpeting and floor cover­ ings, or any other article of merchan­ dise in commerce, as “commerce” is de­ fined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Advertising or otherwise represent­ ing that respondents will carpet an en­ tire home, regardless of the number of rooms, for “$549” or any other stated amount, unless such is the fact. 2. Using the word “Sale,” or any other word or words of similar import or mean­ ing not set forth specifically herein un­ less the price of such merchandise being offered for sale constitutes a reduction, in an amount not so insignificant as to be meaningless, from the actual bona fide price at which such merchandise was sold or offered for sale to the public on a reg­ ular basis by respondents for a reason­ ably substantial period of time in the recent, regular course of their business. 3. (a) Representing, directly or indi­ rectly, orally or in writing, that by pur­ chasing any of said merchandise, cus­ tomers are afforded savings amounting to the difference between respondents’ advertised sale price and respondents’ former price unless such merchandise has been sold or offered for sale in good faith at the former price by respondents for a reasonably substantial period of time in the recent, regular course of their business.

(b) Representing, directly or indi­ rectly, orally or in writing, that by pur­ chasing any of said merchandise, cus­ tomers are afforded savings amounting to the difference between respondents’ advertised sale price and a regular price for said merchandise in respondents’ trade area unless a substantial number of the principal retail outlets in the trade area regularly sell said merchandise at such regular price.

(c) Representing, directly or indi­ rectly, orally or in writing, that by purchasing any of said merchandise, cus­ tomers are afforded savings amounting to the difference between respondents’ advertised sale price and a regular sell­ ing price for comparable merchandise, unless substantial sales of merchandise of like grade and quality are being made in the trade area at the stated regular price or a higher price and unless re­ spondents have in good faith conducted a market survey or obtained a similar representative sample of prices in their trade area which establishes the validity of said regular price and it is clearly and conspicuously disclosed that the regular price is applicable to merchandise of like grade and quality.

4. Advertising or otherwise represent­ ing a regular price or compare value price for carpet remnants or rugs (a) unless the carpet remnants or rugs being advertised are of the same grade and quality as the carpets with which such advertised prices are compared ; and (b) without disclosing in immediate con­ junction therewith that the regular sell­ ing price or compared value price is based on the wall-to-wall price of carpeting of the same grade and quality. 5. Representing, directly or by impli­ cation, orally or in writing, that pur­ chasers of respondents’ merchandise will save any stated dollar or percentage amount without fully and conspicuously disclosing in immediate conjunction therewith, the basis for such savings representations.

6. Failing to maintain and produce for inspection or copying for a period of three (3) years, adequate records (a) which disclose the facts upon which any savings claims, sales claims and other similar representations as set forth in Paragraphs One, Two and Four of this order are based, and (b) from which the validity of any savings claims, sale claims and similar representations can be deter­ mined.

It is further ordered, That respond­ ents shall maintain for at least a one (1) year period, following the effective date of this order, copies of all advertise­ ments, including newspaper, radio and television advertisements, direct mail and in-store solicitation literature, and any other such promotional material utilized for the purpose of obtaining leads for the sale of carpeting or floor coverings, or utilized in the advertising, promotion or sale of carpeting or floor coverings and other merchandise. FEDERAL REGISTER, VOL. 39, NO. 87— FRIDAY, M AY 3, 1974

Page 9

RULES AND REGULATIONS 15385 It is further ordered„ That respond­ ents, for a period of one Cl> year from the effective date of this order, shall provide each advertising agency utilized by respondents and each newspaper pub­ lishing company, television or radio sta­ tion or other advertising media which is utilized by respondents to obtain leads for the sale of carpeting or floor cover­ ings and other merchandise, with a copy of the Commission’s News Release set­ ting forth the terms of this order. It is further ordered, That respond­ ents shall forthwith distribute a copy of this order to each of their operating divisions.

It is f urther ordered, That the individ­ ual respondent named herein promptly notify the Commission of the discon­ tinuance of his present business or em­ ployment and of his affiliation with a new business or employment. Such notice shall include respondent’s current busi­ ness address and a statement as to the nature of the business or employment in which he is engaged as well as a descrip­ tion of his duties and responsibilities. It is further ordered, That respond­ ents notify the Commission at least 30 days prior to any proposed change in the corporate respondent such as disso­ lution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidi­ aries or any other change in the corpo­ ration which may affect compliance obli­ gations arising out of the order. It it further ordered, That the respond­ ents herein shall within sixty (60) days after service upon them of this order file with the Commission a report in writing setting forth in detail the manner and form of their compliance with this order. Issued: March 20,1974.

By the Commission.

I sealJ C h arles A . T o b in , Secretary.

[FR Doc.74-10169 Filed 5-2-74;8:45 am]