, the - federal trade commission advice is being peddled to the american people, ... the commission...

$: , the - Federal Trade Commission advice is being peddled to the American people, ... The Commission further advised that its vie,v of ... he may refuse to deal with those \\'ho do$
ADVISORY OPINION DIGESTS'"

No. 157G Paying advertising allowances in selected trade area.

The Commission rendered an advisory opinion in which it advised amanufacturer of a household product that it would be permissible topay advertising allow'ances to all customers in a limited trading areawi,thout offering the allowance to all of its customers.

In its opinion , the Commission said that it was a well settled prin-ciple of 'law that if a supplier offers advertising allo\vances to onecustomer, he is required by Section 2 (d) of the Robinson-Patman Actto make those allowances available to those customers who competein the distribution of the product for which an allowance is beingpaid. Under these circumstanoes, it follows ithat the supplier can limitthe area in which the promotional allowance will be paid , as long asthe allowance is made available on proportionally equal terms to allcustomers who compete in the distribution of the product beingpromoted.

This means '~ the Conul1ission concluded

, "

that if there are cus-

tomers located on the periphery of the selected trade area who in factcompet.e with the favored customers , they must also have the oppor-tunity of participating in Ithe promotional program on proportionallyequal terms.

Concluding its opinion , the Commission said:

Assuming that you selected a reasonable trading area, even though limited,and assuming that you confine the duration of the program within the strict timelimits absolutely necessary for you to determine the efficacy or feasibility of theprogram , we do not believe that your action will run afoul of any law admin-istered by this Commission.

(File No. 683 7035 , released Jan. 4 , 1968.

No. 158. Proposed trade association adoption of a pricing manualfor common use by electronics servicemen members.

The Commission rendered an advisory opinion with respect to thelegality of a trade association preparing and distributing a standardrate and service pricing mmll1al for common use by electronics service-men in dealing with the general public.

*In ('onformit~. with polic~' of the Commission. ad,isory opinions are confidential andare not :1Yailable to the public , onl~' digests of ad,isory opinions fire of public recorrl.Digests of adyisDry opinions are currentl~' published in the Fe(leral Register.

12R9

418-345--72----

1290 FEDERAL TRADE; CO::\IMISSIO:\' DECISIONS

It was represented that a major problem in the industry is the lackof guides by,,~hich the publie ean determine whether prices chargedfor various repair services are fair and eqnitable. This lack has led tomany eustomer complaints and to fraudulent operations by unethicalrepairmen. The assoeiation took the. position that a standard rate sehecl-nle would protect the public and free ethical servicemen from unjustneeusa tiOllS.

The Commission advised thalt it. could not give its approval to theproposed common use of a standard rate and service prieing manualby competing electronics servicemen. "\Vhile the adoption and dis-semination by the association of sneh a manual may be motivated by apurpose to remove evils affecting the industry, it appears to go fnl'therthan is reasonably necessary to aecomplish the desired result. Eventhough use of such manual be accompanied by disclaimers, there isimplicit therein too grave. a danger that it ",ill sen"e as a del-ice throughwhich Ben- ice rates and fees would become uniform and stable through-out the industry. \Vhile adoption of a means likely to create competi-tive uniformity in terms of service pricing may be a convenience totrade association members , this faetol' is fa r out,yrighec1 b? the benentsto the public of the intense corn petition between competing servicemen;and it is this competition ",hich the la" protects. (File No. 683 7045

released Jan. 4 , 1068.

No. 159. Advertising offering sale of treatment fOl' athlete s foot.

The Commission rendered an ac1,-isor~T opinion in ",hich it declinedto give approval to advertising which offered to sell information as a method of treatment "hich "\',ns represented to effect a cure forathlete s foot.

For a stated sum of money, the acln?rtisement in question offered tosend prospective purchasers complete information detailing a simpleinexpensive cure for athlete s foot "",ith two products probably atpresent in your medicine cabinet." The treatment in question involvedwashing the feet with "ateI' and alcohol and then applying it commonhousehold sah-e. The Commission advised that it could not give itsappro-nll to any achertising which represents that this method oftreatment "\yill effed a cure for nthlete s foot or to any achertising

which 9.'oes beyond cJitims that the treatment "ill afford temDorarvrelief from the itching and burning associated ,,-ith athlete s lOOt.

The O )inion went on to state that the la 'VB ar:' ainst deceDtive acl.:er-

'-

tisillg apply equally to those who nre selling advice or information andto those 1\'110 are selling products. In either ease , in the. Commi:3sionview the test is whether the advice (or product) being offered "ill infact achieve the results claimed for it in the advertising. If the advicereeommends the use of a product, the emcaey of the product for the userecommended must of course also be considered.

ADVISORY OPINION DIGEST 1291

Finally, the Commissionadvisec1 that the opinion in no way relatedto the question of whether the proposal "Iould constitute the practiceof medicine nor to the legality of the requesting party doing so. (FileNo. 6837047 , released Jan. 12 , 1968.

No. 160. Advertising promoting sale of information and a product.The Commission issued anach'isol'Y opinion today in regard to the

legality of proposed adyertising promoting the sale of informationwhich in turn advocated the purchase of anallegec1 stomach remedy.The individual requesting the opinion had no financial interest in orcontractua.lright to advertise the product in question.

The initial advertise.1nent offered the sale of information for 20 cents

and elaimed that the information '.-vonld enable one "to get that nervousstomach functioning properly again. " Based upon the scientific infor-mation available to it, the CO1:llnission ruled that the pl'oduet beingac1,-oeate.d in the information being sold "as not in fact a cure or

treatment for nervous stomach or any other stomach ailment. Underthe eircumstances, the Commission concluded that the claim in theinitial advertisement "as deceptin:.

Itsopinioll conducTed "ith the. following statement:

'The la'ys ngflim:t dee-eptiye flchertising apply equally to those who fire sellingadvice or information and to those who are selling products. In either case thetest is whether the ndviee (or product) being offered will in fact achieve theresults claimed for it in the ad,-ertising. If the ac1Yice recommends the U:3e of aproduct, the effie-Hey of the pro:~ue:t fol' the use rec01ll1l1endeclll1ust of course alsobe considered.

This opinion in no WilY relfltes to the question of ",hether your proposal ",ouldconstitute the practice of medicine 01' to the legality of your doing so.

(File No. 663 7009 , re.leased Jan. 12 , 19G8.

No. 161. Advertising promoting sale of infol':nmtion and a product.

The Commission issued its advisory opinion concerning proposedadvertising offering for s.ale for $1 a pamphlet which (1) advises amethod ror curing athlete s foot and (2) recommends the use of aspecific proprietary product for this purpose. The aclvertif:er has nofinancial interest in the product in question. He does not. himself pro-pose to sell the product.

The Commission stated th~t use of the proposed ach-e.rtising \\01l1c1

be violative or Sections ;) anc11:2 of the Feeleral Trade Commission ...in that it implies , contrary to fact that an cases of athlete s foot can

be eliminated 01' cured by use of the advertised method and product"ithin a very short time:: and ,yith "patience and a little care. " The

Commission believes that the proposed advertising implies, contraryto fact , that through it some new faets as to the care and cure of athlete

1292 FEDERAL TRADE CO::\IMISSION DECISIONS

foot are now 'available which have hitherto been withheld fronl thepublic.

Its opinion concluded with the following statement:The laws against deceptive advertising apply equally to those who are selling

advice or information and to those who are selling products. In either case thetest is whether the advice (or product) being offered will in fact achieve the re-sults claimed for it in the advertising. If the advice recommends the use of a prod-uct, the efficacy of the product for the use recommended must of course also beconsidered.

This opinion in no way relates to the question of whether your proposal wouldconstitute the practice of medicine 01' to the legality of your doing so.

DISSENTING OPINION

By ELUA N 0 0 17L?nis sioner

He does not agree that selling advice is in the same category asselling ,a product. Recog11izing that a good deial of foolish and worth-less advice is being peddled to the American people, and not merelyin the field of Inedicine or health Commissioner Elman does notbelieve that Congre.ss intended that the Federal Trade Commission

or any other government agency should set itself up as a board ofreview exa:nlining into the validity or worth of ideas, opinions , beliefs,and theories dissemina:ted to the public. (File No. 673 7028~ relensed

Jan. 18 , 1968.

No. 162. Exchanging wage rates among association members.

The Commission rendered an advisory opinion in regard to the

legality of a trade ,association s proposed statistical reporting plan.Specifically, the Commission was asked to rule upon the question of

whether it would be ,permissible for the members of an association toexchange copies of their labor contrads.

The Commission ruled that it had no objection to the proposed planitself , provided it was not used for some illegal purpose. If the planis used as 'a means for fixing or tampering with the price of milk , orfor some other illegal purpose, the Commission stated it would ofcourse have serious objection to the plan. Pointing to the antitTIlsthazards inherent in such a plan , the Commission said:

Statistical reporting plans which involve the collection and dissemination ofdata related to future prices are not illegal per se. However, experience inother cases indicates that an association s price reporting plan which involves

future or advance prices, particularly when that plan invites an industrywidepricing policy, may ,proYide the basis for an inference of an agreement or com-bination to fix: prices in Yiolation of Section 5 of the FTC Act. Since labor costsre-presenta very significant element bearing upon the future price of milk, anagreement among competitors as to wage rates would be illegal , since it wouldhave the effect of fixing the price of milk. In essence it is the potential dan~er

ADVISORY OPIXIOK DIGEST 1293

inherent in the reporting plan which is related to future prices that promptsthe Commission to suggest that it be used with extreme care.(File No. 683 7051 , released Jan. 27 , 1968.

No. 163. Publication of dealer sales standards announcing a policyof not selling to dealers who advertise sale prices.

The Federal Trade Commission rendered an advisory opinion stat-ing its objection to a propos'al by a seller of photographic products toannounce to the trade its policy to sell only to dealers who advertise ina manner which will not damage the prestige of the seller , avoiding theuse of characterizations such as "Sale

" "

Bargain

" "

Close-OutClearance" or other similar terminology.The seller advised that it propose,d to implement the standards b:y

deIivering a copy to each existing dealer, not for the purpose of termi-nating any presently unsatisfactory dealers , but to upgrade them to asatisactory level. This the seller proposed to do by having its repre-sentatives work ',,"ith the dea.lersto see that they observe the sta,ndardsand contended that. ,this is permissible since this is simply an advertis-ing restriction , not mi effort at resale price. maintenance. It 'Tas furtherargued that although the price at 'which its products are sold is theprerogative of the de,aler, the seIler has a legitimate business interestin the manner in which its products are advertised by those dea.lel's.The Commission also noted that the standards con eluded witll thestatmnent that evaluation of the progress of dea,lers 'IiI be made fromtilne to time and those who are not keeping pace will be discontinued.

The Commission advised that it could not give its clpproval to thisproposal for the reason that its implementation as outlined would belikely to result in :an illegal restraint of trade. In the first place, theCom.missionaclvisecl that it could not vie.w the proposal as a simplerestriction on advertising apart from the effect which that restrictionwould have on the pric.e at \\'hich those dealers sell. ,Vhile there isa difference between this and a policy of selling only to dealers whomaintain the prices suggested by the seller, in that the dealers areostensibly left free to sell -at any price they choose, still a restrictionon their 'abality to advertise sale prices is certainly a grave handicapon their ability to seJI a,t prices below those suggested. Hence the pro-vision, if not designed to maintain suggested prices, is one whichwill seriously laffect those prices.

The Commission further advised that its vie,v of the pr€;sent stateof the law in this area was that a seller not acting to Cl"elate or maintain

l11onopoly may make a unilateral announcement of his policy to those with whom he will deal , including policies affecting: price, andhe may refuse to deal with those \\'ho do not observe. that poJic.y. 11o\\'-ever, when the seller s actions , as they would under this proposal , go

1294 FEDERAL TRADE CO::\1MISSION DECISIONS

beyond a meTe announcement of his policy and the sirD.pIc refusal tode:al , a.nel he employs other me'ans which effect adherence to his policy,he is in seTious danger of having put togelther a combination in viola-tion of the antitrust laws. Thus, the Commission stated , the line be-i\-veen legal and illegal conduct here is a very narrow one and if theseller chooses to walk that line., he must do so at his peril. (File :No.683 7063 , released Jan. 31 , 1968.

No. 164. Premerger clearance: No anticompetHive effects fore-seeable.

The Commission issued an aclvisory opinion on :l\lay 1:1:, 1964:, inwhich a request for premerger clearance from liability uncleI' Section 7amended Clayton Act , was a.pproved permitting acquisition of a dis-tributor by the manufacturer of products distributed.

A franchised distributor of electrical equipment sought. cle,arance ofits acquisition by the manufacturer or product:3 he distributed. Thsrelationship bet,,-eeJl the fil' ll1S had existed for many years

, '

-ras can-cellable on 90 days notice , t11e trend In the line of business inyolyeclwas to direct sales from manufacturer to purchaser and no substantia adverse competitive eire,ds \Vere foreseeable.The Commission advised the requesting party that the acquisition

,yould not vioh, te Coramission ac1ministerec11aw: hO\YeveJ.'~ he ,YD.') ad-vised that the opinion was predic.ated on the understanding (1) tIll, tcompeting c1istributOl's would not be foreclosed Il'Grl1 supplies he c1i~~-

tributed and (2) that preexisteclrelationships between him and saidsupplier would not be altered ,,-ithont prior Commission a.ppro-':.-lL(File X 0. 643 '7c.

\')

, released Feb. 13 1968.

No, 165, Premerger clearance: Deteriorating financial condition,The Commission issued an advisory opinion on July 30 ~ 196-:1:: in

whic.h a request for premerger clearanc.e from liability under Section, amcl1.ded Clayton Ad

, ",-

as lapproyec1 perm.itting acCluisition of

deteriorating competitor.

A national manufaetllre.r and distributor or COl1::mmer r!,'oocls soll~drt

~-

clearance of its propo:'3ec1 acquisition or a smaller manufacturer anddistributor of the same products. ~iost of the businGs:3 of the sma.IIeI'firm was in fl, limited geographical area. The industry involved couldbe entered ,-..-ith a relatively modest S11m of 111one:\ . The firm to he ac-quired had experienced declining sales, a cletel'ionlting, nol1.viable, fi-nancial situation , personnel problems and had made reasonable butunsuccessful efforts to sell to others.

The Commission advised that basing its belief on the informationcurrently available to it that the. proposed tl'allsactjon ~ if consummated,probably ,youlcl not violate any of the laws ,yhich the, Commissionadministers. (File. K o. 66:j 7003 , reh~ased Feb. 13 1968.

ADYISORY OPIXIOX DIGEST 12,

No. 166. Premel'ger clearance: Declining industry.

The Commission issued an ach'isory opinion July 30 , 1964 , in ,yhicha request for premergel' elearance from liability under Section 7,amended Clayton Act, was approved permitting acquisition of a failingcompany in a declining industry.

A single- line manufacturer of a byproduct of the cotton industrydesiring to be acquired by a multiproduct company in the chemicalindustry sought clearance of its proposed acquisition. The firms ,yerecompetitors but demand for the product. was declining due largely towide fluctuations in priee. There was a,lso increasing production orcompetitive products made from wood pulp which could be used forthe smne purpose:: , fl.li(1 reH~:onable but unsuccessful attempts had beenmade to sell to others.

The Comrnission , basing its belief on the inrormation thc:m before it,advised that the proposed sale probably I', olllcl not violate any of thelaws it administers.

The Commission added tlwt. the opinion shoulc1not be com:trllec1 as

in any ,yay affecting any other matter involving the rcl:luesting pnl'ty

or the purchaser which the Commission ,yas then or might thereafterinvestigate. (File No. 6437036 , released Feb. 13 1968.

No, le,7. Premel'ger c1earance: Deteriorating industryc

The Commission issued an advisory opinion on August 18 , HJG-d: , inwhich a request for premerger clearance. from lift bility under Section aE1C'llded CbytOll Act, "\yas appl'oyecl permitting acqnisitioll of afa,iEng competitor.

One of the lan?:el' mannfnch~l' rl' s of industrial clay nrodncts sOlw:htc-. ,. .1. elearanc3 to acquire a. smaller manufacturer of the sarnc:. product, . The

smaller nmnufactnrer did not have as extellsiye t"t product li:ae as the

lal'f:' er COli1i)ftl1V. The col11Danies liHl'tifdlv C'onmetec1 in a limited f!.eo-L.' ~ ... .1. .1. graphical area; hOlYEwer the Slllallcl' firm had been unable to replace1\:e'v nersol1nel flEd the trend in it;:; fmancial condition "yas dOlYIH' al'(1.

Further , its empJoyees , comprising about 20 percent of the "\york fOl'

in a small community, faced loss of jobs if the smaller eompany "'-BUG

out of business. IJastly~ the other party ,vas the only availablepurchaser.

Basing its belief on the information the,n before it , the Com1l1is~;ioll

advised the, proposed sale probnbly "\yol1lcl not. yiolate any of the lH',YS

\\-

hi('11 it administers. (File :No. 653700;3 , released Feb. 13 , 1968.

No. 168. Premerger clearance: Imminent insolvency.

The Commission issued an advisory opinion on October 27 , 1964 ~ in

whieh a request for premerger clearance from liability under Section.amended Cla,yton Act, ,vas a pprovec1 permitting acquisition of a fail-ing competitor in financial distress.

1296 FEDERAL TRADE CO:;\fMISSION DECISIONS

A firm in a local service business requested clearance to merge witha competitor, with whom it was aligned in its activities , and to forma new corporation. The service firm had experienced declining earningsfor the past eight years and there was strong competition from otherservice businesses in the area in which both did business. The request-ing party had experienced an increase in operating costs and expensesin relation to sales , was in a critical financial condition and apparentlycould not long continue to operate as a solvent and going concern. Anational chain was the only other possible purchaser.

The Commission basing its belief on the information then availableto it advised that the transaction 'would not yioJate any of the Jawswhich it administers. (File No. 653 7025 , released Feb. 13 , IDtiS.

No. 169. Premerger clearance: Financial distress.The Commission issued an advisory opinion on ~Iay 26 , 1965 , in

which a re.quest for premerger clearance from liability under Sec-tion 7 , amended Clayton Act, was approved permitting acquisition ofan integrated competitor in poor financial eondition.

A large diversified manuracturer of closures with less than 3 percentof its total sales a,ccounted for by a spec.iaJty closure product sought toacquire the second largest integrated manufacturer of such products,in an inc1ustl,y dominated by another fully integrated company. Thefirst four firms in the industry nccounted for about 55 percent or thema,rket. The company to be acquired was in poor financial conditionand it "as doubtful whether its credit standing could support the newfinancing necessary for plant improH'J11ent and extension of productlines which were needed to improve its competitive position.

The Commission basing its opinion on the information available toit advised (1) that it would not challenge the acquisitio:a if consum-mated , but (2) that such advice "as given without prejudice to theright to reconsider in the event anticompetitive effects causally con-nected to the acquisition \\ere manifested in the future. (File No. 6537058, released Feb. 13 , 1968.

No. 170. Premerger clearance: De minimis competitive effect.

The Commission issued an advisory opinion on June 8 1965 , in whicha request for premerger clearance from liability under Section 7amended Clayton Act, was approved permitting acquisition of a c.om-petitor s unprofitable operating division.

large manufacturer of a diverse line of aeronautical supplies

sought Commission approval for the disposition of one of its operatingdivisions which ",vas an unprofitable part of its total business. The pro-posed purchaser was another diversified corporation also engaged to asmall degree in the same line of commerce. It was evident that although

ADVISORT OPIXION DIGEST 1297

these bvo companies ranked high in market shares , there were manyothers in the business, and that restrictive licenses ,vere often used bycustomers to e.xercise an effective consumer-control of the survey mar-ket. The total dollar value of the business being sold was small andit appeared there \\ould be a liquidation of the assets if the sale was notmade.

The applicant was advised that based on the available information aproceeding would not be initiated by the Commission to challenge theacquisition. The Commission added that the advice was being givenwithout prejudice to its right to reconsider the questions involved inthe event substantial anti competitive effects attributable to the acquisi-tion ",ere manifested in the future. (File No. 653 70GO, released Feb. 1;31968. )

No. 171. Premel'ger clearance denied: Adverse competitive effectsprobable.

The Commission issued an advisory opinion on June 10, 1965 , inwhich a request for premerger c.learance from liability under Section 7amended Clayton Act, was denied because of the existence of probableadverse competitive effects.

A manufacturer/retailer of consumer leather goods requested clear-ance for its proposed acquisition of a major regional reta.iler of prod-ucts produced by the manufacturer. The horizontal and verticalimplications of this proposed merger were similar to those which weredeclared unla,wful in the case of United States v. B7'orwn Shoe 370

S. 294 (1962). However, the Inarket shares \\ere smaller and prob-able adverse competitive ejl'ects somewhat less than were present in theB To'wn Shoe case.

The Conllnission advised there existed a substantial probability thatthe proposed acquisition would be a violation of the Clayton and Fed-eral Trade Commission Acts. The application for premerger c.lear-

ance was denied.Thereafter, the aequisition was consmnmated. A complaint issued

and a consent settlement effected whereby the acquiring companyagre.ed to nlake no further acquisitions of retailers or manufacturersof the pToduct involved for a peTiod of several years without priorCommission approval. (File No. 653 7051 , released Feb. 13 , 1968.

No. 172. Premerg"el' clearance: Adverse competitive effects notdiscernible.

The Commission issued an advisory Opll1l0n on J uly 23 ~ 1965 , inwhich a request for pre-merger clearance from liability under Section 7amended Clayton Act, was given limited HVlwoval because it did notappear that the acquisition would result in the requisite ach-erse

competitive effects.

1298 FEDERAL TRADE COMMISSION DECISIONS

A diversified proeessor, wholesaler and retailer sought clearance forits proposed acquisition of an independent food supplier which solda major portion of its products to a subsidiary of the acquiringcompany. The isolated transaction did not appear to have the requisitesubstantial adverse competitive effects called for by the statute, butin view of pending investigations of additional acquisitions by theRequiring company, an unrestricted clearance could not be approvedby the Commission.

The Conllnission advised that it would take no action 30 1el~' as to theproposed tra.nsaction if it was consummated. The Commission addedthat it. conditioned its adviee on assurances that by ftccepting and act-ing upon the opinion , the acquiring company ,'Iould not use the opinionas precedent or argument in the investigation , or in the formal or in-formal hearings , of any matter involving the acquiring company thenpending or which might come. before the Commission or any othercourt or agency.

The Commission added that if at some ruture elate. the ac.quiring com-pany was required to divest the subsidiary which I'las actually takingover the independent company, the parent company 'i'\oulc1not objectto diyestiture or the independent food supplier on tenDS set by theCommission or other court or agency. (File No. 653 7057, releasedFeb. 13 , 1968.

No. 173. Pl'emel'gel' ch:al'ance denied:information.

The Commission issued an advisory opinion on October 29 , 1965 , inw hic.h a request for premerger clearance. from liability under Sec-tion 7 mnended Clayton Act~ was denied for lack of competitiveinformation concerning competition in the line of commerce involved.

A. leading manufacturer of dispensing machines sought apprm"a.lof its proposed purchase or a smaller, family held manufacturer ofdispensing mac.hines which were complementary to the product line ofthe acquiring company.The Commission declined to rendm' an opinion becau:~e. of (1) the

pa.ucity of competitive information concerning competition in the lineof commerce with which the acquired companis machine Iyas identi-fied , and (2) the. short time period available between the date of therequest and the closing date agreed upon between the parties. Thisshalt time precluded a. more complete investigation and anal~Tsis. (FileNo. 663 7014 , released Feb. 13 , 19G8.

Lacl( of collupetitive

No. 17 L Pl'emerger !Clearance denied: Vertical merger wouldraise questions.

The Commission issued an advisory opillion September 8 , 1966 , inwhich a request for premerger clearance f1'0111 liability under Sec.-

ADVISORY OPISION DIGEST 1299

tion 7, amended Clayton Act, was denied because the competitive im-plications of the acquisition would raise economic questions resolvableonly by investigation.

A leading construction material producer applied for clearance its proposed acquisition of a diversified company having a large shareof a regional market in the sale of raw materials such as sand , graveland stone , which were complementary to its principal product line. Therequesting party offered to dispose of certain producing plants now op-el' ateel by the company, and to continue approprinte leases of othersuch plants as the company owned.The Commission advised the requesting party that the competi-

tive implications of the integration of construction material distribu-tors with sources or raw materials IVere such that an investigation toassess the economic effects of the acquisition, if it was consummatedwould be necessary. (File No. 673 7004 , released Feb. 13 , 1968.

No. 175, Interpretation of request for pre merger clearance:Declining industry.

The Commission issued an opinion October 8 , 1965 , in connectionwith a request for advice by two respondents as to whether a proposedmerger, if consu111mated , IVoulcl be in violation of an outstanding orderprohibiting them from, among other matters, uniting facilities so asto eliminate competition.

One respondent, a small company in the coin operatec1machine busi-ness, desiring to be acquired by the other, a larger COl!11)imy in the sameindustry, applied for clearance of the proposed acquisition under Com-mission established procedures. It was reported that the smaller re-spondent was in financial difl1culties to the point where it was ap-proaching failure. Further reasons advanced to support the proposedlnergel' IVere that demand for the product \ins on the decline, theindustry easy to enter, and reasonable efforts to locate another pur-chaser had been unsuccessful.

OIi the basis of available information, the Commission advised thatif the smaller respondent sold its business to any company, the Com-mission did not intend to initiate proceedings with regard to such sale.

(File :0;0. D-612cl , released Feb. 13 , 1968. ) (Opinion issued under au-thority of Section 3.61 (c) of the Commission s Rules of Practice(1967).

No. 176. P:remerger clearance: De minimis competitive effects.

The Commission issued an advisory opinion on November 29 1966,

in "hich a request for premerger clearance from liability uncleI' Sec-tion 7 , amended Clayton Act , was approved permitting aequisition ofa company in financial distress.

1300 FEDERAL TRADE CO::\E\IISSION DECISIONS

A dairy products processing company in financial difficulty desiringto be acquired by a larger company in the same field applied for clear-ance of the proposed acquisition. The companies competed to a, limitedextent; ho"\lever the applicant had losses for a number of years , couldnot obtain long term fulancing and had made numerous unsuccessfulattempts to sell to others.

The requesting party was ach-ised that, relying on his representa-tions as to the hopeless financial eondition and unsuccessful efforts tosell , the Commission would not ehallenge the proposed acquisition it were consummated. (File No. 671 0615, released Feb. 13 , 1968.

No. 177. Compliance interpretation of request for premergerclearance: Imminent insolvency.

The COll11nission issued an opinion February 14, 1964, in connec-tion with a request for advice as to whether a proposed merger, if con-sllll1Jnated , ,youlcl be in ,-iolation of fill outstanding order prohibitingthe acquiring cOlnpany from makiilg certain acquisitions.

A small company manufacturing food products applied for cJeaTaneeof its acquisition by a larger produeer engaged in operations in thesame product line. The larger producer was subject to a Commissionorder prohibiting certain acquisitions for a designated period of time,yithout prior Commission apprm-al.

Both producers competed in the same general trading area. It "\Ias prese.nted that the smaller company 'Tas in imminent danger of in-sohency and that it had exhausted every possibility of locating anotherpurc.haser withant success.

On the basis of aT ail able information , but primarily beeause. of theequities affecting the smaller eompan;(s position in the industry, theCommission gaTe its apprm' al to the proposed acquisition. (File No.

6651 , released Feb. 1:3 , 1968. ) (Opinion issuedlmdm' authority ofSection 3. 61(c) of the Conllnission s Rules of Practice (1967).

No. 178. Compliance interpretation of request for premergerclearance: Denied, other purchasers available.

The Commission issued an opinion April 2 , 1964 , in eonnec.tion witha request for advice. as to whether a proposed merger~ if conslUl11nated,Tould be in violation of an outstanding order prohibiting the 'acquir-ing company from making certain acquisitions.

A large company in the food products field applied for clearance, ofits proposed acquisition of a smaller company engaged in operationsill the. same product Ene. The larger company wns subject to a. Com-mission order prohibiting certain acquisitions for a designated periodof time "\Iithout prior Commission approval.

Both companies ,,-ere in substantial competition in the saIne generaltrading area. It was determined that other prospective purehasers were


available and that the smaller company was of considerable size wheneomparecl with other regional produoers.

The Commission advised that the proposed m~erger could not beapproved under the circmllstances. (File No. 6495 released Feb. 13

1968. ) (Opinion issued under a.uthority of Section 3. (j 1 (c) of the Com-mission s Rules of Practice (1967).

No. 179. Compliance interpretation of request for premergerclearance: Imminent bankruptcy.

The Commission issued an opinion October 28 , 1964 , in collllectionwith a request for advice from a small company as to whether its pro-posal to merge with any other company in the same field would , if con-summated , be in violation of Section 7, amended Clayton Act.

small food products mmlufacturer applied for advice from theCommission regarding the possibility of selling out to any other com.pany operating in the SaIne field, particularly to a large processor inthe same products line. The larger producer was subject to a, Commis-sion order prohibiting such acquisitions for a clesig11ated period of timewithout prior COll1Jllission approval.

It ",Tas presented that the requesting compa.ny had made reasonablebut lUlsuccessful attempts to locate a purchaser otller than the largercompany, and moreoyel' 'Tas on the verge of bankruptcy.

On the basis of a.vailable information , but primarily because of theequities affecting the requesting compa.ny s position in the industry,

the Commission a.dvised that an acquisition by another producer in thesame field would not. be in viloation of Section 7; amended ClaytonAct, and in the event a sale is made tOR conlpany which is under Com-mission order requiring approval of such acquisition, said approvalwould be granted.

In clearlllg the proposed sale the Comll1ission pointed out that theapproval might be reconsidered , revoked or rescinded if it subsequentlyappeared the facts submitted were lllaccurate, incomplete or that theyhad changed at the time a sale was made. (File No. D-6652, releasedFeb. 13, 1968. ) (Opinion issued lUlder authority of Section 3. 61 ( c) the Commission s Rules of Practice (1967).

No. 180. Compliance interpretation of request for pl'emergerclearance: Imminent insolvency.

The Conmlission issued all opinion September 24 , 1965 , in COllllec-

tion with a request for advice as to whether a proposed merger, if con-summated , would be in violation of an outsta.nc1ing Commission orderprohibiting the acquiring company from making certain acquisitionsfor a designated period of time without prior Commission approval.

A small food products manufacturer applied lor olearanee of its pro-posed acquisition by larger company unde-r Commission order andwhich was much more extensively engaged in the same product line.

1302 FEDERAL TRADE CO::YIMISSION DECISIONS

The requesting company "Was experiencing a decline in annual profitsto the point of insolvency. It was reported that refinancing was notavailable and the smaller company was not, for a number of reasons,a viable concern in the context of the particular market. Exhaustivec:lIorts to locate another purchaser had been unsuccessful.

On the basis of available information , the Commission gave its ap-proval to the p:roposed acquisition. (File No. D-6651 , released Feb. 13,1968. ) (Opinion issued under authority of Section 3. 61 (c) of the COIn-

mission s Rules of Practice (1967).

No. 181. Compliance interpretation of requests for premergercJearance: De minimis competitive effects; one requestdenied.

The Commission issued opinions on February 9 , 1966 and Janu-ary 26 , 1967 , in connection with requests for advice as to whether sev-eral proposed mergers , if consummated , ,\Quld be in violation of anoutstanding Commission order prohibiting future acquisitions by re-

spondent for a designated period of tinle ,,'ithout prior CommmissionapPl'oyal.

A large automatic machine company under Commission order soughtappI' o;-al for the proposed aequisition of hro snlaller , local companiesenQ' ed in the same line of business. In O11e l1letl'onolitan a r('f( l'rsponc1-

'- '---' ~

eut and the first smaller company ITere in competition , and in theother trading area respondent and the second slnal1er company did notcompete to any significant degree. In the first area there "rere a snb-stantinl number of local ::mc1national competitors involvec1~ and in theother area. fl. substantial number of local competitors and one nationalcompetitor were involved.

In these t'TO instances the Commission approved the proposedacquisitions. In it third recmest for achice involving: fl. different trac1inQ' area. the.

'- '

respondent sought clearance for the proposed acquisition of a smallerlocal company engaged in the same line of business in direct competi-tion with the larger company. There was a concentration in the line ofcommerce involved. The Commission denied the request for clearancebecause it was incompatible with the objectives of the order prohib-iting such acquisitions. (File No. 809 , released Feb. 13 1968. ) (Opin-

ion issued under authority of Section 3. 61 (c) of the. Commission

Rules of Practice (1967).

N Co 182. Compliance interpretation of request for premergerdearance: Liquidation probable.

The. Com.mission issued an opinion J\ia.y 24 , 1066 , in connection "itha request for advice as to whether a proposed acquisition , if consmn-


mated , "\yould be in yiolation or an outstanding order prohibitingrespondent. from making certain acquisitions for a designated periodof time without prior Commission approval.

large manufacturel' or food pl'oclncts sol1g'ht clearance of itsproposal to acquire a smaller manufacturer engaged in the samegeneral line of commerce. The reclue-sting manufacturer "" , and isnow , subject to a Commission order prohibiting, among other thingsthe making of certain acquisitions for a designated period of timewithout prior Commission approval The b,o manufacturers "l\ere

not in competition in the same ge.ogrftphical trading area , but to avery limited extent the requesting manufacturer was a supplier to thesmaller company.

The smaller manufacturer had made reason:1 ble but unsuccessfulattempts to sell to others in the industry and in the circmnstancesliquidation appa,l'ently "l\as the only alternative to the proposed sale.The Commission advised that, in reliance on the information sub-

mitted by the parties, if the proposed acquisition was made, the

Commission ",ouldnot proceed against the acquiring company. (FileR o. D-7880 , released Feb. 13 , IDG8. ) (Opinion issued uncleI' authorityof Section 3.61(c) of the Commission s Rules of Practice (lD67).

No. 183. Compliance interpretation of request for p:remergerclearance: Denied, competitive considerations.

The Commission issued nn opinion July 20 , 1966 , in connection \Iitha request for advice as to whether a proposed merger, if consummated

\\'

onld be in violation of an outstanding order prohibiting the acquiringcompany from making certain acquisitions.

A large manufacturer or industrial products sought clearance forits proposed acquisition of a smaller compnny in the same ftS 'yell asin a complementary product line. The requesting manllfact~ll'er 'Y:1Sand is now , subject to a Commission order prohibiting, among otherthings , the making of certain acquisitions for a designated period ortime without prior Commission approval.

Both manufacturers ",ere competitors and the smaller was quitecapable of gl'o"\\-ing and developing ill the industry. Further , no effortshad been made to locate other possible purchasers.

The. Commission advised that apprm"al for the proposed acquisitionwould not be in the public interest because it would entail the acquisi-tion of n. competitor and further increase concentration in the industry.(File No. 6608, released Feb. 13, 1968. ) (Opinion issued underauthority of Section 3. 61 (c) of the Commission s Rules of Practice

(1967).

1304 FEDERAL 'TRADE CO1.ll\IISSION DECISIONS

No. 184. Compliance interpretation of request for premergerclearance: Bankruptcy imminent.

The Commission issued an opinion September 1 , 1966 , in connec-tion with a request for advice as to whether a proposed merger , ifconsummated , would be in violation of an outstanding order prohibit-ing the acquiring company from making certain acquisitions.

small processor of food products applied for clearance of itsproposed acquisition by a larger processor engaged in operations inthe same general product line. The larger processor was , and is nowsubject to a Commission order prohibiting, among other matters , themaking of certain acquisitions for a designated period of time withoutprior Commission approval.

The requesting processor "'as on the verge of bankruptcy and hadmade reasonable but unsuccessful attempts to locate another purchaserwithin the industrv. The Commission advised that, in reliance on the information and

data supplied, it would approve the request lor clea.rance of the pro-posed acquisition. (File No. D-6651 , released Feb. 13 , 1968. ) (Opinionissued under authority of Section 3.61 (c) of the Commission s Rulesof Practice (1967).

No. 185. Compliance interpretation of request fOl' pl'ernerg'el'clearance: De minimis competitive effect.

The Cormnission issued opinions September 29, 1966; and Janu-

ary 26, 1967, in coilllection with requests for advice from a smallcompany as to whether a proposal to merge, if consummated , wouldviolate an outstanding order prohibiting either purchasing companyfrom making certain acquisitions.

A small processor of food products which was tightly held, havingdeclining profits, increasing expenses , a loss of key personnel, a planttoo small to compete efficiently, and an owner-manager who wasdetermined to sell, applied for clearance for its proposed acquisitionby either of two larger processors in the same general line of com-Inerce. Both of the larger processors were subject to a Commissionorder prohibiting certain acquisitions for a desig1lated period of timewithout prior Commission approval.

On the basis of supplied information, the Commission cleared therequest for acquisition by either of the two larger processors. Sub-sequently, however, partial acquisition by a third processor was ap-proved, as was a partial acquisition by one of the larger concerns.(File No. 6651 and D-6632 , released Feb. 1:3 , 1068. ) (Opinion is-sued under authority or Section 3.61 (c) of the Commission s Rulesof Practice (1967).


No. 186. Compliance interpretation of request for pl'emergel'clearance: De minimis competitive effect.

The Commission issued an opinion December 23 , 1966 , in connectionwith a request for advice as to \\'hether a proposed n1erger , if consum-mated , would violate an outstanding order prohibiting the purchasingcompany from making certain acquisitions.

The estate of a very small retailer of food products applied forcler.,ranee of its proposed aequisition by a larger processor engagedin operations in the same general product line. The larger companywas , and is now , subject to a Commission order prohibiting certainacquisitions for a designated period of time without prior Commissionapproval. The retailer, a negligible factor in the industry and in therelevant geographieal market, was not capable of development inthe estate status.

The Commission cleared the proposed acquisition. (File No. 6651released Feb. 13 , 1968. ) (Opinion issued under authority of Section

61 (e) of the Commission s Rules of Practice (1967).

No. 187. Compliance interpretation of request for premel'gerclearance: Imminent insolvency.

The Commission issued an opinion September 25 , 1964, in connec-tion with a request for adviee as to "hether a proposed merger, if

consummated, would be in violation of an outstanding Commissionorder prohibiting the purchasing company from making certainaequisitions.

A large integrated company manufacturing commercial productsapplied for clearance to acquire a smaller company engaged in opera-tions in the same product line in the ,Vestern States. The larger com-pany "as , and is now, subject to a Commission order prohibitingcertain acquisitions for a designated period of time without prior

Commission approval.Both manufacturers were in direct competition in the geographic.al

trading area. However , each held a relatively small share of the marketinvolved. It \Vas representeel that the smaIl concern had exhausted allother possibilities of selling to another purchaser, save to one or moreof the other integrated manufacturers in the industry. The seller, whowas suffering personal harelshi ps because of illness in his family, hadto leave the business and the area \Vhic.h is served.

On the basis of the information and data supplied , the Col1llnissioncleared the l'equest for cleara.nee of the proposed r. cql1isition. (File No.

751 , released Feb. 13 , 1968. ) (Opinion issued under authority ofSection 3.61 (c) of the Commission s Rules of Practice (i967).

418-345--72-

1306 FEDERAL TRADE CO::\Il\fISSIOX DECISIONS

No. 188. Premerger clearance denied: l\ferger of firms in sameindustry would raise questions.

The. Commission issued advisory opinions on September 27. 1962,::\1nrc11 28 , 1068, and September 12. J f)();\ in ,..,.hich C'ommuhwl request8for premerger clearance from liability under Section 7, amendedClavton Act. bv a small dair~; in financial difficulty "ere denied as to

.. . ..

acquisition by a. larger company in the same industry. but ",erefinaJlyapproved permitting acquisition by diversified corporation inanother industry.

..-\.

small c1air~c in financial difficulty desiring to be acquired by alarger company in the same field applied for clearance of the proposedacquisit.ion. The la rger compallY~ an int8~2'rated processor and distl'ib-utOI' of dairy liroc1llcts, "'as the re~ponclE'nt in n. complaint in litiga-tion ,,-ith the Commission,

The applicant ~.Yas advised the proposed acquisition "ould raisequestions similar to those involved in the proceeding: and that the pend-ency of the proct'edings made it inappropriate to express any furtherviews. Be.consideration was requested. In response, the Commissioninformed the fl pplicnnt of the decision in the Foremost Dairies case.Docket 640;') and again ach-isecl that the flcquisition would raise sprionsquestions under Section 7 of the Clayton Act. Further. the Commissionpointed out that it recognized the problems of small dairies and sug-gested further efforts to sell to a local or regional purchaser.

Later, the smfll1 dairy requested consideration of its proposed ac-quisition by a large. diversified corporation in the food industry. TheCommission advised it ",oulc1 contemplate no action if the transaction',flS consmnmated. The Commission added its nell-ice should not construed as affecting any position it hac) previously taken against theacquiring corporation nor as in an~' 'yay prejudicing nn~. pending 01'

future action it might take against the acquiring corporation regard-ing other acquisitions. (File Xo. 633 7016. released Feb. 13 , 1968.

No. 189. Premerger clearance: Precarious financial c0ndition.

The. Commission issued an adyisory opinion on ~Iarch 20. 10(;3. in\';hich a request. for premerger dea rflllce from liability under Section mne.nded Cla~ion ..:-\.ct. "'as npproyecl permitting: acquisition of a CO111-

lX1ny on the vel'Q'c of insolyenc\:., LmHnufachll'el' of consumer Q:oocls desiring: to be acC1uired by e- C

larger proclncel' in the sam.e field requested cJeal'ance of the proposedacquisition. I-lis compnn~- had sufi'ered declining sales for n number ofyen 1'5 and ",as in a precarious Jinancial condition to the point of being:on the vel'ge of insoln'ncy. Further. reflsonn ble attempts to sell toothers had been made but there "'ns no other purchaser ",hich couldpresen' e the competitive. force. possessed by the. requesting manu-facturer.

ADVISORY OPI?\ION DIGEST 1307

The requesting: pa l'ty "as achispd that if f"lw sale "ere C'cmsmnmatedthe. Commission would contemplate no action based on this trans-action alone. The Commission added that its decision was based on rep-resentations that the smaller finll "as in such dire financial straits thatit faced impending bankruptey. Further, the Commission stated it "asexpressing no opinion regarding prior acquisitions 01' on restrictivepractices , if any, by the purchaser or any other company "hich mayhave contributed to the requesting party s failing condition. (File No.(;:1~3 70-10, released Feb. 1i3 , 1968.

No. 190. Randompurchase.

The Commission in an advisory opinion stated that the randominclusion of "bonus c(,ltificates~' in egg cartons would be violatiye ofSection

;')

of the Federal Trade Commission Act.The seller proposed to include "bonus certificates" in cartons of ep:gs

offered for sale. TIle, certificates were described as being worth "many eQ' s or $:'5 in cash. " They ,yould be l'andom1\' distributed so that. L.L- .som(~ cartons "ould contain eggs plus a bonus certificate of yalue,yhi1e others "ould contain eggs onl~' . 01' eggs plus n r('rtificnte of littleor no value.

The Collnnissioll "as of the yie,,' that this "ould be merchandisingb~' lottery. a practice "llich the Commission has long helel to be llnfair"ithin the llwaning of Section;) of the :Federal Trade Commission ~-\.ct.

(File Xo. GS:) 70G;). released Feb. 1(). 196S.

distribution of "bonus certificates with

No. 191. Advertisements which appeal' in news format.The Commission rendered an advisory opinion inyolving the quC's-

tion of ",hether it is deccptire to publish an achel'tisement in the for-mat of a news article, ",ithout disclosing it is an achel'tisement, asrequired in. the. Commission s press reknse of Xon~mbcr 28. 1967.

The. fac.tun 1 situation presented to the Commission involved thepublication of n column in n nt'\"spapE'r \,- 11ic11 nchel'tisC'll tJ11.' cnisiJH'

fncilities of several restnm' ants. ,Yritten in 11 al'l'f:.t iyc form , tho ,';rit(,1111

about each restaurant usual1~' idt'ntifiec1 the chef and/or head '\,nit('r

L.!:a

y\'

n. brief description of how n ('elta in Ineal is prqw, recl. anel con-tained other factual information conce1'ninQ: the hours durin!::: ,yhich

,-

meals are Sl'ITect ,yhdhel' dancing is permitted , ",bethel' cocktailsan~ servecL and some general indication of the price range of the meal.

In its opinion the Commission concluded:

'" '" the column l1:.;e~ tllP format and hfl~ the general appearance nf ;1 118\'.".':;fen t11re a nd/ nr n rtide for l'U t,lic infnrma tion ,Yl1ieh purports to give an inde-pendent. imp;ntial and l1nl,ia~ed Yie\y of the cuisine facilities of a particularrestaurant. Since the column in fact com:ists of a series of commercial messages


which are paW for by the advertisers, the Commission is of the opinion that itwill be necessary to clearly and conspicuously disclose it is an advertisement,as outlined in the aforementioned press release. This conclusion would not benlterecl even though the column carried the exact cost of each meal beingadvertised, or if it listed the price range of the various meals.

(File No. 6837080 , released Feb. 16 , 1968.

No. 192. Clearance denied for merger of competing milk com-panies.

The Commsision rendered an advisory opinion in which clearancewas denied to an applicant to sell its milk processing and dairy prod-ucts distribution assets to a la.rge, integrated food producing~ proces-sing, wholesaling and retailing concern. The proposed purc:haser hasa dairy products subsidiary in actual or potential competition withthe applicant in the same market..The. Commission noted that the proposed merger would combine

the firm now appearing to rank fourth in sales in the market ,lith theeighth to result in a. firm in second 01' third position. It also appearsthat the present top four firms have a.bout forty percent of the sales inthe market and therefore the proposed merger 'would further increasethe market concentration.

Because the proposed merger raises such serious questions of possibleviolations of Section 7 of the amended Clayton Act, the Commissionadvised the applicant that premerger clearance cannot be granted. TheCommission further stated that , if the merger occurs , the Commissionmay take the action it deems necessary to protect the public interestnd prevent antic.ompetitive effects. (File No. 683 7078~ released

Feb. 20 1968.

No. 193. Substitution of merchandise unlawful even though equiv-alent in grade, quality, and appearance to that ordered bycustomers.

The Commission was requested to render an advisory opinion 'lithrespect to the legality of substituting, on c.ustomer orders for a par-

ticular fabric, a fabric. produced by another manufacturer ,,-ithoutnotifvinp' c.ustomers of the intended substitution.J 0

It was represented that c.ustomers had long been supplied ,,-ith aspecific fabric and that sample display cards had been distributed toth6111 advertising the availability of this fabric. The supplier recentlydiscontinued production of the fabric and another supplier ,yas locatedwho will furnish a similar product said to be identical in pattern andof better quality. It was proposed to supply customers with the newproduct without resampling their display cards or otheT\\ise advisingthem of the substitution , the cost of which , it was asserted , would beprohibitive.

ADVISORY OPI:\'ION DIGEST 1309

The Commission advised that it could not give its approval to thisproposed business practice. A foreseeable result of substituting theproduct of one manufacturer for that of another ,yould be to misleadcustomers into purchasing an artic.le which they might not ,yish orintend to )urehase and which they miQ'ht or miQ'ht not nurchase if

'-' '-'

.1.

they ,,-ere informed as to its origin. Nor would the prejudiee thus en-gendered be confined to customers; other distributors and manufac-hirers of a competing product would be injured when orders thatwould normally have eome to them if the fabric. "ere rightly namedare diverted to the offending firm. (File No. 683 '7081 , released Feb. 201968. )

No. 194. Use of uniform delivered pricing system effected bydeducting freight allowances from f. b. price.

T,he Commission advised 'a west coast manufacturer of industrialparts that it would not be illegal to use either a conventional uniformdeli vered pricing system based on average cost factors or a uniformdelivered pricing system which will be effected by granting so-calledfreight allo,,'anc.es to be deducted from the manufacturer s f. b. fac-

tory price.

The ifacts with respect to the second alternative were that the manu-fac.turer proposed to establish an f. b. factory pric.e of , for purposesof illustration , $99.50. Actual freight to west coast customers may be$0.50 and such customers ,yould receive no allo,yance. Thus they wouldpay the manufacturer $99.50 and the carrier $0. , making a total of$100. Then, again using hypothetical figures for purposes of illus-tration , actual freight to a Denver customer may be $1. The manu-facturer would Q,Tant such a customer a. $0.50 freight allowance to be

'-' '-'

deducted from the f. b. price , thus leaving the customer paying themanufacturer a price of $99 and the carrier $1 , making a. total off $100.Continuing east, ac.tual freight to a. Kansas City customer may be$1.50. The freight allo"ance would be $1 , leaving the customer payingthe manufacturer $98.50 and the carrier $1.50 , for a total again of$100. This would continue in graduated steps across the country towhere an east coast customer wiHl actual freight costs of $3 ,, ouldreceive an a.llo\Yance of $2. , leaving him also paying a tota.l of $100.The manufac.turer advised that it was considering this alternative foradministrative reasons, since it wishe.d to pass title to the customersupon delivery to the carrier and have the customers ha.ndle all freightbills.

,Vith repect to the first question , the Commission advised that it wasof the view that there could be no question of the manufacturer s rightto unilaterally employ a uniform delivered pric.ing system , since iff eachbuyer pays the same delivered price no question under the Clayton


-,tcL as amended by the Hobinson-Patlllnn Act , ,yould arise. ",Yhile thefactual situation under the, second alternative, is sollle,yhat more com-plieated , the Commission was further of the view that it also would notresult in a violation of law if implemented exactly as outlined above.In the Commission s vie.\Y~ the ditIerence between the two systems isone of form rather tlhan of substanee and that it ,yould make no le~!:nJ

differenee ,yhether the manufacturer computes its factory price flllc1

adds to it an amount equal to the average freight costs for deliveringto all customers , as is done in the usual uniform de1i "ered pricing sys-

tem , 01' "hether it accomplishes the snme result by deducting anamount from the factory priee whieh would haye the efi'ect of leavingeach buye-r paying an amount roughly equal to the same freight fac-tor. In either event. it would seem thnt the malHtfacturel' would have1nade freight a part of the price~ so that eneh buyt'r s out-of-poc.krtcosts ",ould be exactly thes,111H'

The COlnmission further ea utioned~ hO\Ye\' el'. that since this opiniondeals in a projected manner ",ith hypothetieal figure's chosen for illus-trati\' e purposes. the cornpub1tiolls Intel' to be made based upon actualcost factors must in practice achieve the n~sult clnillJl'cl in that eachbuyer ",ill pay exnctl:.y the sanw net price inelucling the freight. -\11Y

othel' result. the Commission stated ~ 'Hmlc1 be outside the seorH:' of thie;

opinion. (File :Ko. GS:JTOii. released Feb. :2-1, l!)()S.

No. 195. Notice to magazine dealers as to availability of displayallowance.

Tlw 11 ederal Trade Commission achised a ~eller of magnzi11t's thatit could see no objection to its proposed method of notifying ch'alers ofthe nva,ilability of a displny nllmyalH'e program on thc) fiSSUri\nCe t)UltnIl dealers ,youldrl'ceiye notice by the llwtl1Ocl selpct('c1.

rnder the proposal , t he display al1O\nmce plan "-ou Id he oHerec1 toalll'etailel's on the same, basis. rnder tlw method of notification pro-posed, an achertisement ,yould be published in ,\ trade publiention ofgenerill circulation among: dealers announcing: the main deb i ls of theproposa 1. A one inch reminder aclYertisenwnt ",ould tlwl1 be publishedin three subsequent issues. Then the seller proposed to ,york with thec1istrilmtor of tlhe publications and the ",holesalers to reach PH'ry l'()tailer competing: in the distrilmtion of the publications.The Commission advised that "hill' Section :2 (d) of the amended

Clayton ..,-\..ct does not specifically require that fill competing customerslw indiTiclually notilled regarding the particulars or a promotionalprogram , it has repeatedly held that the statute contemplates that allcompetitors shall be accorded equal opportunity to particiate. This('onstruction has been incorporated in the Commission s Guides forAdvertising allo"ances , "here sellers are adyised that they shouldtake some action to inform ~ll customers competing "ith any partici-

ADYISORY OPI~IOK DIGEST 1311

pating customer that the plan is available. This may be done by anymeans the seller chooses , including letter , telegram , notice on invoicessalesmen , brokers , etc. 'Vhile the Guides do add that if a. seller "wantsto be able to show that he did make an offer to n certain customerhe is in a better position to do so if he made it in ,vriting, the (' om-mission added that it is clear that other methods are pe,rmitted ifnotice to all competing customers is given.The Commission concluded that it could see no objection to the

proposed program of notification based on the assurance that it willreach all competing dealers of the publications. In this connection

hO\vever, the Commission further advised that whenever sellerselc'ds any method of notification short of actual notice to each dealerhe bears full responsibilty under the la,v for seeing that the methodselected gives each dealer the notice to ,vhich he is entitled. (File X o.683 7082 , released Feb. 24 , 1968.

No. 196. Commission holds not objectionable the advertisingphrase " It works

:~ :;.

or we ll fix it free.

The Commission rendered an aelYisor:v opinion 'v hereby it con-cluded that a proposed phrase " It ,yorks . . . or ,vc n fix it free:' is notobjectionable and thus may be used in advertising, and on boxes con-taining, products of a certain l1lC11ll1factnrer, The Commission tookacconnt of information that the particnlar manufacturer does , in factJ'E.Tnir ,vithont question and ,vjthout charge oJ any kind (e.

(j..

101'

parts , labor

, "

handling," or return postage) all of its products sent toit directly by owners or through retailers. (File :K o. 683 708n , releasedeh. 27, 1968.

No. 197. Use of term "Hand Made" to describe boot ,,\lith a sealedsole.

The Commission rendered an advisory opinion to the cft'ect that theunqualified term "Hand ~Iade" could not be used to describe a boot,,'ith a sealed sole.

The requesting party is currently selling a completely hand madeboot in ,vhich all parts are cut by hand and stitched together to formt 11(-' uppers. It is hand lasted and then the sole is built up and stitchedtog-pther by hand. The boot is labeled "Hand ~Iade. " The seller is no'"considering putting on a sealed sole to replace the leather sole. Otherthan that all operntions ,,-ill be identieal including the hand sewingof the heel counter. An opinion "' as requested as to ,vhether a boot soconstructeel could still be labeled "Hand ~Iade.

The opinion aehised that in the Commission s view the seller couldnot use the unqualified term "Hand ~Iade to describe a boot "ith a

sen led sole. 1-1e ('oulet hO\Yexel'~ use the term to describe the partor p~rts which are sewn by hand in such manner as to make it clear

1312 FEDERAL TRADE COM11ISSION DECISIOXS

by use of an appropriate disclosure, that the sealed sole is not handsewn. (File No. 6S3 7087 , released Feb. 27 , 1068.

No. 198. Truckload discount for quantity purchases.The Commission rendered an adyisory opinion involving a 5 per-

cent discount that a manufacturer proposed to offer to all customerspurchasing in truck-lot quantities. The manufacturer requesting theopinion is subj ect to a cease and desist order prohibiting price dis-crimination under Section 2 (a) of the amended Clayton Act.

The manufacturer operates a single factory located in the :J\1idwest

and ships its products on a. uniform delivered price basis to ,yholesalecustomers located throughout the continental United States. Themanufacturer desires to pass on to its customeTS cost sayings due tolower freight rates for full truckload-lot quantities, by means of auniform discount applicable to all truckload orders. For a recent six-month period , the manufacturer determined that its average freightsaving on such orders ",as in excess of 5 percent. It thereupon requestedan advisory opinion as to whether the Commission would approve aunifonn 5 percent truckload discount.

The Commission adyised the manufacturer that it could notapprove the proposed 5 percent discount for truckload-lot orders

because, based on the submitted data , the proposed discount would notappear to be uniformly cost justified. Accordingly, the use of such discount could result in violation of the order in question , by produc-ing price discriminations between customers qualifying for thediscount and competing customers not able to qualify for it. The Com-mission noted that the alleged cost savings depend upon averaging thesavings in the freight rates for truckload-lot shipments to all of themanufacturer s truckload customers in the United States and thatalthough the freight saving increase with the distance of customersfrom the manufacturer s plant, the freight savings on sales to nearbytruckload customers is considerably less than 5 pereent. (File No.

7851 , released :Mar. 5 , 1968. ) (Opinion issue.d under authority ofSection 3.16(c) of the Commi.ssion s Rules of Practice (1067).

No. 199. Agreement by processors to sell at prices higher thanminimums set by State r~gulation.

The Commission rendered an advisory opinion advising a Stateofficial that it would be illegal to hold a meeting at which the proces-sors of milk within the State would agree to sell at prices higher thanthe minimum prices set by the State milk control agency.

The official pointed out that the State milk control agency had per-formed its function of setting minimum prices pursuant to State lawbut that it was felt that it would be difficult for many processors to


maintain a profitable operation at these mini111ums in the outlyingareas and towns due to hig'her deliveTV costs. The oiIicial also advised

'-

that this proposed action would not be taken pursuant to State lawbut would instead be as a result of voluntary agreement among theprocessors involved.

The opinion advised that it was the Commission s consideredopinion that such an agreement among the processors would be subjectto serious question under well-settled principles of antitrust law. TheCommission stated the law is clear that a State may, in the exercise ofits sovereign power, itself conduct such regulation of business activi-ties within its borders as its own legislature shall properly demllnecessary in the public interest. So long as the resulting regulation isa State as opposed to individual activity, those subject to the regula-tion would not be subject to a charge of violating the antitrust lawsby reason of their compliance with the State s orders , including orderssetting minimum prices for milk.

:Here it appeared that the State., spea.Idng through its milk controlagency, had already performed its regulatory function and set mini-mum prices for milk within its borders. "\Vhile any individual proc-essor may sell at higher prices if he so desires, for them to combinetogether to agree to sell at higher prices ,vould , in the Commissionview , present an entirely different question and would be a situation,vhich would enjoy no part of the immunity aft'orded by State regula-tion. The prices to be c.harged within the State may be raised orlo"'ive.red only by the. State itself, the opinion added. They may not bealtered by agreement among those subject to the State s regulation"'ivithout being fully subject to the antitrust laws , under which no prin-ciple is more firmly established than that which holds that any agree-ment among competitors as to the prices at which they will sell isillegal per se. (File No. 683 7085 , released :Mar. 5 , 1968.

No. 200. Pl10motion and sponsorship of price catalogs by tradeassocia tion.

The Commission was requested to render an opinion with respectto an outstanding order to eease and desist "'ivhich , among other things,proscribed agreements to suggest resale prices. The issue involved thelegality of a covered Trade Association s sponsorship of catalogs forits member-dealers, ,vhiGh catalogs ,"ould contain 111anufacturerssu$w' estedl'esale )rice.

'-'-

The Commission advised that under an outstanding Commissionorder covering the Trade Assoc.iation and its members such sponsor-ship by the. Association may ,yell yiolate. said order. (File No. D-5979released 1\la1'. 11 , 1968. ) (Opinion issued under authority of Section

61(c) of the Comll1ission sRules of Practice (1907).

1314 FEDERAL TRADE CO~nIISSIO:\ DECISIONS

No. 201. Specialized automotive repair association wants to pub-lish flat rate manual for its members.

'Ill(' Commission issued an achisory opinion stating that. it cannotappro\' p the publication by a specialized automotive repair associationof a fiat. rate repair manual for use by its members in cletermin inglabal' charges.

The Commission commented that there is implicit too grace a dan-ger that. the association ~s manual ,yollld fncilita te price fixing bet\\'ecncompeting' repair shop operators. The Commission pointed out the 'Y(' 11-

establish('d antitrust. principle that price fixing by competitors is il-legal pel' Be. The public expects to derive benefits from different. IH'icesotl' erecl by competing service operators. (File Xo. 683 7000, l'elea~ec1jlaT. 11, 1068.

No. 202. D~finition of jobbers and wholesalers for functionalpricing purposes.

The Commission issued an ach'isory op111lOn to nIl :1pplieant who( 1) asked for a definition of the \yol'cls ;' jobber

~~

and ;" rholesaJel';; nil (:2) asked the Com111 ission s vil'\rs as to the propriety of :1 pl'opo~('c1l'l'Ti~ion in price, lists.

In response the Commission stah'cl :

.-\.~ n \y()rking: rullo', one llli,g' l1t sUVIHISE' tllat, in a tllree 1pyel ~ystf'lll, \'.'1101esnlpr8;H' P clo~t'r to producer:,; and joblH:'rs Hl'(~ closer to rt'taiJers ill tlle di~trilH1tiol1 of

llrodueE'l"s goods, Trnc1itionnllr, IH' odueer" sell to w1101es:1ler8 who iiell ;1 t flllhdwr pricE' to joblwrs \yI1O seii ..1 t a lligher priC'e to retailers,

The C'ontrolling element in ~-I)ur problem. ho\\"eYer, as in similn1' prulJ1f'1l1s;lrisillg 111)(1E'1' tllE' nlllellclpd ClnytoJl -\('t, is \\'l1ptlH-'r 01' not res:!le (' llm)l\:'titinJ1:letl1nlly exists ns bet\\'ePIl aDd among these \'CHious resellers rnt11er tIlall tIleJl;1!lle~ they U~P to desC'l'ibe tlwmsdn's, If ill fact n 80-C'alled \Yll01esniE'r com-11ej' 88 \\'it'h n so-called jobber in the redistribution of gnods, the cliffen'jJeE' innflnw" is (If no ('onsE'Cjuenc' e: tlle fold of C'omlletition is,

III

("

Rlllie/'0id, 34:3 r, 8, 470, (10:)2) tlle Supreme COUl't ~tl't's8ed tholt:1d,lloll C'IJmlH:,tition in re~alp operoltions i~ r1~'cisiYp rntlwl' tbnn JIllllH'nclatul'Pnllcl aplIl'nH'c1 tllE' Commission di~l'Pgl1rd of "ambiguous Inlw1~ , \,l1ic'l1 mi;.:'I11:

11(:' usel1 to donI;: c1isC"ril1linl1 tor;l di~counts to fayorec1 eustomers,\'1,'11;: t you 1I1a11 . ns we understand it. is to sell ;lour mic1lllemen, ,Yllether

w1)(11esalers" or "joblwrs, " nt OJW I1J'iC't' , wllile selling ct 'ltain selec'tec1 l'dailIOll'sat ;1 lligher price,

In tlle C'irC'umstanC'es ;Ion pre~ent, ~' oU ma~- 111' oper1;: do this Ill'oYich'cl tlle\\,11010s;-;,ler8 " ;111(1 "jol'JJ'lers " :ire fnnc,ti()lJin~~: nt. rIle SnlllE' clistrilmtillJl l('\'el nnd

nre not tlwm~el\'es en:.m~:E'tl in retail opt'rnrioJls (' OIl1PE'titiH' \\'itll tl1p selededI'l'tflilers,

(FiJe Xo. (;83 700:2 1't'h' l1secl ~Ial'. 1+ , IDfj8,

No. 203. Common selling organization.TJIC' Commission achi:3pct it !tl'onp or ~:!:eographic(-:1Jy ~C'aHrl'ed , l'ela-

tiyeh- small 1)11b1i(' \n1!'C'1;ol1SN\H' n tJH,t it l,i'Olllc1nnt obiect if they "-ere

ADVIS'0RY OPI:\'ION DIGEST 1315

to establish 11 jointly o'Ylll'd sel1ing agency under the conditionscleseri bed.

The Commission understands that. the identified public warehouse-men propose to establish , as a separate corporation , a single serviceorganization, nation",ide in scope. Eaeh participating public ware-houseman would periodically provicle the sen'ice organization ",ithinformation about the kind of storage space he has available , wheresneh sp,l('e is nn1ilable. the times at \\'11ic11 such space might be avail-able and the terms and conditions under ,vhich such space would beavailable. The information provided is to be processed by electronicclatR processing equipment for use by storage space salesmen em-ployed by the service. ol'gnnziation. Only generalized information cle.eloped by the sen'ice organizntion will be made available to partici-

pants jointly.Each partic.ipating public warehouseman is to retain and affir111a.-

tivelv maintain local autonomv in administration. storaQ:e, rates. and.f 0' /

~. ,

customers to be serviced. The Commission notes that , uncleI' the statutesit. administers , eac'h particip;lting public ,val'ehouseman is requiredindependently to set hi8 own rates and his mYll terms and conditionsof sa.Je. Any nse of the service organization to e1Iect concert of actiona::; to rates , terms , 01' conditions of sale ,vould expose participants to

n charged violation of Section r) of the Federal Trade Commission"-C'L

TIle Commission \yould not object to the establishment of a. coop-crntin' enterprise. as abon~ desC'ribed operating as above. set forth.

The. following proyiso~ hO\ven'l' , \vas added to the opinion:rnJE'8B the Commission has pr€Yiously rescilH1ed this approyal , yon are (li-

rectrd that nt the end of three years from the date of this opinion to submitto the Commission 11 complete report on ~'our membership, terms find conditionsunder which the cooperatiye is operating'. including' fl st:Hement for eneh mem-ber on the s3les territory of suchl1lemher, the \"olume of business flnd percentageof snC'hl1lembers business,

(File So. G8:3 7088 released :Mar. 14 1068.

No. 204. Use of terms "unconditional" and "lifetime" guarantee.In an adyisory opinion rendered to a, watch manufacturer , the Com-

mission ruled that. a guarantee ,vhich has conditions and limitationsother than as to time , may not be represented as an " nncollcbtiona 1"guarantee. It also achisecl the requesting party that a guarantee ",hic11lasts for only three yeaTS cannot be described as:1 ;; lifetime" Q:uarantec.

.' '-'

)Iol'C:'oYel' ~ the Commission objected to the gnar,lntee being clescl'ibe(lns " E\'

,yjt11 respect to the claim ;; l1nconditional," the, Commission said thatit \,"ould be propel' to elaim that a product is '; l~ncon(litiollally guar-anteed for three years " if in fact 110 other conditions exjsted. l-1:o\"enl1'

:.-


where there are conditions other than time~ such as were present inthe case presented for revi6\Y , the Commission said that it would beimproper under Sec. 5 of the FTC Act to claim that the guaranteeis "unconditional" The reason for this , it vms coneluded , is that theterm "unconditional" Ineans there are no conditions attached , and itis a contradiction in terms. rather than an attempt at modificationto permit use of the claim "unconc1itionaF' provided the conditionsare diselosed.

Under the terms of the guarantee which 'yas the subject of the Com-mission s opinion , the purchaser of the ,yatch had the option to renewthe original guarantee which expired at the end of three years bypaying a service fee of $5 on an annual basis. By having to pay the service fee, the Commission said , the purchaser no longer has a " life-time guarantee" but la service or insurance policy which is renewableat his expense. on an annual basis.The Commission also ruled that it is necessary to diselose the life

being referred to whenever it is claimed that the duration of the guar-antee is for a "lifetime." For example, is it the life of the original pur-chaser, the original user, or the life of the product, etc. ? Thus , evenif the requesting party resolved the first objection and offered a guar-antee for life rather than for three years , it would still be necessary todiselose clearly and conspicuously the life to which reference was beingmrac1e.

In the opinion the Commission also objected to the term " Eve.rbecause, contrary to fact, the product was not guaranteed forever.

Finally, the Commission stated that it was not ruling upon thewaterproof" elaim because it currently has under consideration a

possible revision of trade practice rules relating to the term ",Yater-proofing" as applied to watches. (File No. 683 7058 , released Apr. 31968. )

No. 205. Use of a computer system to collect and disseminatemarketing data.

The Commission issued an advisory opinion conc.erning the legalityof a proposal to employ computer and data processing equipment tocollect and disseminate c.ertain information in connec.tion with mar-ket-ino' of ice- Jack broilers. Sellers would feed into the system theirasking prices and quantities available , and later report on aetual salesgiving the pric.es and quantities sold. This information would be avail-able to subscribers of the servic.e, ,,-hether the subscribers are sellersbuyers , or members of the public. Subscribers ,yould obtain the infor-mation by c.alling in to the central computer. Identity of all parties(sellers and buyers) ,yould be kept sec.ret from each other and fromthe public.


The Commisison 'advised the applicant that it has no objection to theproposed plan, provided it is not used for some illegal purpose. Ifthe pl'Rll is used as a means for fixing or tampering with the price ofpoultry, or for some other illegal purpose, then the Commission wouldof course have serious objection to the plan.

The Commission continued:

Statistical reporting plans which involve the collection and dissemination ofdata related to future prices are not illegal per se. Howeyer, experience in othercases indicates that a price reporting plan which iIwolyes future 01' advanceprices, particularly when that plan invites an industrywide pricing policy, mayproyide the basis for an inference of an ugreell1ent 01' combination to fixprices in violation of Section 5 of the FTC Act. In essence, it is the potentialdanger inherent in the reporting plan ,'.'llich is related to future prices thatprompts the Commission to suggest that it be used with extreme cure.

Unless the Commission has previously rescinded this approval , you are di-rected, at the end of three years from the date of this opinion , to submit to theCommission a complete report on the actual operation of the program, describ-ing how identity protection was maintained, and to include copies of yourprintecl-out periodic reports and audits.

(File No. 6837103 , released April 3 , 1968.

No. 206. Marldng requirements for apparel of U.S. componentsassem bled abroad.

The Commission advised an apparel manufacturer that Section4 (b) (4) of the Textile Fiber Products Identification Act would re-quire an affirmative disclosure of the particulars of foreign originunder the following fact8

The fabric of "\yhich the apparel will be made is entirely of domesticorigin. This fabric will be cut into shapes and forms. The cut fabrictogether with buttons , trimmings , threads , labels , in short all findingsalso of domestic origin , will be shipped abroad to be assembled andsewn into the product. The assembled product will be returned to theUnited States where it will be finished , pressed , folded , and packaged.

The Commission advised the requesting party that a label or othermark denoting the particulars of foreign origin would be required inthe following terms: "Assembled and sewn in Lname of foreign coun-try where assembled and sewnJ of American-made materials. " (FileNo. 673 7095 , released Apr. 4 , 1968.

No. 207. "Made in U. " label on answering machine composedof domestic and foreign made components.

The Commission rendered an advisory opinion today in response toa question concerning the origin of a telephone answering machine

which was composed of both domestic and foreign made components.The basic machine is manufactured in a foreign country, but modi-

fications to be performed in the U. , including both labor and parts

1318 FEDERAL TRADE CO:MMISSIO~ DECISIO~S

will l'(' present approximately 70 percent of the total cost of the finishedprodnct. N umerically~ approximately half of the components are do-mestic and the remaining half are imported.

Concluding that such a product should not be unqualifiedly markedas " :JIade in U. A., " the Commission said:

* * * a "Made in 1'.

.\..

" mark would eon::;titute an affirlllatin~ representa-tion tlll1t the finished product was made in its entirety in the Cnited States.Sillef' the end product would in fact e(lntain foreign made cllmpOIwnts of a sub-stantial nature, it \yould he improper to describe the finished product as "~Iadein L8,

.\.. " ,,'

itbout 11 deal' and eonspieuous diselosul'e of the identity and foreigncountn- of origin of the imported C'omponents.

(File No. 6887093 , released ApI'. 4 , 19G8.

No. 208. Disclosure of origin of golf clubs made in this countryfrom imported parts.

T1w Commission was requested to render an ac1yjsOl'Y opinion COJl-cc\rning' the proper labe1ing as to origin of golf clubs nwde in thisOlmtry llsing imported componcnt parts. The cost of materials and

lnhol' in this country with respect to the foul' clubs in cpH'stion "I'll np:(' hom a 1m, of G:i percent to a high of 92 percent.

The opinion nchisec1 that in the ahsC'llce of any affirmahYc) l'cpresC'n-tat ion that the products are made in tbe rnitc,c1 States. 01' any ot h('l'

ln' psC'ntation thHt might mislead the public as to the C'Olllltl'~' oforigin. and in the absence of any other facts incbcating actual cle('('p-hon. tIll:' Commission "as of th('opillion that. under the facts as pre-s(\ntc\cl. the failure to mark the origin of these golf clubs 'yillnot bel'eg' arc1ecl by the Commission as c1eeeptin~. AcC'orc1ingly~ no marking isrequired on these clubs ,yith l'e.fel'ences to the country of origin. (F' i1e1\~ o. G7:3 TlOD , released A pro 4~ 1968.

:N o. 209. Disclosure of foreign origin of component used indrawer slide assembly.

TI1P Commission ,yas asked to render an achisory opinioil as to thela1wling requirements applicable to a sJide assembly for cabinet anddc's1\: drawers ,yhich "ill be made in this country using an imported railnwm1x'r. Tlw imported COmpOllPnt wilJ make IIp Jess than half the costof 1) )(' compl('tpd ass('mbJ~'

TIll' opinion ad yisec1 that in tIlt' absence of an~' affinna ti "e J'('resentation that the product is made in the l~nited States , or any otherrqn' C'sc' ntabon that might mislead Cllst01l1E'l'S as to the coulltr~' ofol'igin ~ the Commission was of the opinion thaL uncler tJJe facts aspresented. the failure to mark the origin of the product "ollld notbe-' l'('gardec1 as deceptiyc.

JIO\H' l" the Commission ,yas a Iso of the opinion that it. ,yould notbe proper to describe the completed slide assembly as " :Jlade in U.

AD'\'ISORY OPE\IOK DIGEST 1319

since that would constitute an affirmative representation that the en-tire assembly ,vas made in this country, which is not the faet~ unlessof conrS0 , the fact is also disclosed in a clear and conspicuons mannerthat the rail member is imported. (File No. 6S3 70D5 released Apr. +

1 fiGS. )

No. 210. Disclosure of foreign ongln of imported mechaniealpencil action.

The Commissioner rendered an advisory opinion in regard to thefInestion of ,,'hether it is necessary to disclose the origin of importedmechanical pencil actions ",hich are to be assembled with an .:\111l'l'ican

made barrel and clip.In the nbsence of any affirmative representation that the proclnct is

mnc1e in the Fnited States. 01' any other representation that mightmislead the. public as to the connb'y of origin. and in the absence ofot her facts indicating actual deception. the Commission expressed theopinion that , under the facts as presented , the failnre to marL: theorigin of these goods ,vin not be. regarded by the Commission as dccep-ti\' e. (File. No. 673 7002 , released A_pl'. "1 1968.

No. 211. Disclosure of country of origin of imported Fl\1 tuners.

The Commission ",vas requested to render an ach' isoJ'Y opinion con-c('rning the propel' marking of small FjI tuners imported from aforeiQ' n country. The tuners are disassembled in this country and nnumber of domestic components a 1'e installed to replace their foreigncounterparts to change the tuning frequency and narrow the bandpass.

,Yith l'l' garc1 to the proposal to omit. any statement on the label CO11-

cprning the origin of the prodnct.. and instead to include a brochurewith each unit that would accurately explain its origin , the Commis-sion belie-yes that such proposal would not violate any of the Ja ,vs

administered by it. (File X 0. 68;3 7010 , released Apr. 4 , 1968.

No. 212. No foreign origin disclosure required of imported shmverhead components.

The Commission rendered an advisory opinion concerning thepropel' labeling as to the origin of shmver head components to beimported from a foreign country. rnder the terms of the proposal theimportpd components will represent approximately -de0 percent of thetotal cost of the completed unit , with ~\..merican Jabor and materialrepresenting the remaining 60 percent.

In the absence. of nn:v affirmatin' n"presentation that the product ismncle in the l-:-nited States. 01' any other representation thnt mjg:ht.mislead the public as to the country of origin. the Commission ex-


pressed the opinion that, under the facts as presented, the failure toinark the origin of these goods will not be regarded by the Commissionas deceptive. Accordingly, the Commission ruled that no marking isrequired on the imported shower head components beyond what isimposed by the Bureau of Customs. (File No. 6637015 , released Apr. 41968. )

No. 213. Country of orig-in disclosure on bicycles assembled withsome imported parts.

The Commission was requesteel to render an advisory opinion con-

cerning the proper labeling as to origin of bicyeles ,yhich "ere to beproduced in the Virgin Islands using parts to be imported from a

foreign country together with other parts from the United States.The value of the imported parts in relation to the total value of thefinished bicycle will be around thirty-five Dercent.

", .'

The opinion advised that in the absence of any affirmative repre-sentation that the. product is made in the United States , or any otherrepresentation that might mislead the public as to the country oforigin , the Commission is or the opinion that , under the facts as pre-sented~ the failure to mark the origin of these bieycles will not beregarded by the Commission as deceptive. (File No. 673 7056 , released

Apr. 4 1968.

No. 214. Country of origin labeling on lamp containing animported wooden base.

The Commission rendered an advisory opinion coneerning the properlabeling as to the origin of lamps eontaining a wooden base importedfrOlll Japan , which represents approximately 20 percent of the totalcost of the completed unit. The remaining c.omponents will be ofAmerican origin mid the lamps will be assembled here in the UnitedStates.

Two questions ,vere ruled upon by the Commission in the advisoryopinion. First, would it be proper to bbel the lamps as "~lade in

"? Second , if not, must the ,yooden base be labeled as ":Madein Japan

In response to the first question , the Commission said that the claim~Iade in U. " would constitute an affirmative representation that.

the entire lamp "as of domestic. origin. Sinc.e a substantial portion ofthe lamp would be of foreign origin , the Commission ruled it wouldbe improper to label the lamps as "~Iade in U. " without a clearand conspicuous disclosure in the label that the wooden base is madein Japan.

In regard to the second question the Commission said that, if thelamps are not labeled as ":Made in U. " and no other representation


is used whieh nlight mislead the public as to the eountry of origin, andin the absence of other fads indicating actual deception, under thefacts as presented the failure to mark the origin of the goods will notbe regarded by the Commission as deceptive. Accordingly, the Com-mission said that no marking is required on the imported wooden

. base with reference to the country of origin. (File No. 673 7077released Apr. 4 , 1968.

No. 215. IVHsl'epresenting hoist as "Made in U.The Commission rendered an advisory opinion today in response

to a questioll involving the origin of a hoist which is to be made inpart of both domestic and foreign made components.

Specifically presented to the Commission was the question of thepercentage of domestic material \Thich must be present in the finishedproduct in order for it to be properly described as "::Uacle in U.

In response to the foregoing question , the Comnlission said:'" '" :;: a "Made in FS.A." mark would constitute an affirmative representation

that the product Wfl s made in its entirety ill the United States, If the productwas made of foreign components and assembled in the United States, it would beimproper to describe the finished product as "Made in U, " although a legend

Assembled in U, A. (nnme of country) components " would be proper.

(File No. 683 7091 , released Apr. 4 , 1968.

No. 216. Affirmative misrepresentation as to origin of photo-graphic accessories.

The Commission rendered an advisory opinion toda.y in regard the proper labeling of the origin of photographic accessories whichare imported in whole or in part from a foreign country.

In the opinion the Commission ruled upon the following three ques-tions which were presented to it. First, what percentage of foreignmade components can a product contain and still be properly labeledas "jyIade in U. ? Second , in the absence of a "l\fade in U.cla-im, when is it necessary to disclose the foreign country of origin ofan imported product? Third , does the Commission ha-\Te a.ny specificregulations 'as to size , material anc1'location whenever it is necessa-ryto disclose the origin of an imported product?

In response to the first question , the Commission said:ok * * the "Made in U. " mark would constitute an affirmative representa-

tion that the product was made in its entirety in the United St'ates. If theproduct did in fact contain foreign made components of a substantial nature , itwould be improper to label the finished product as "Made in U. " without a

clear and conspicuous disclosure indicating the identity of the imported com-

ponents and the foreign country of origin thereof.

,Vith respect to the second question , the Commission stateel that it issomewhat hypothetica.l in that it does not involve a specific proposed

418-345-72----

1322 FEDERAL TRADE CO?dMISSIOX DECISIO?\S

course of action, and therefore it is not the propel' subject for anad ,-isory opinion.

In regard to the third and final question , the Commission stated tha it had no specific. regulations as to the exact size, etc. , of the disclosure.The Commission said that it would have to state the rule in generalterms becanse the facts of each case may be different. The basic. reqllire-ment the Commission said , is that the disclosure must be of such con-spicuousness as to be likely observed by prospecti,-e purchasers mnkingcasual inspection of the merchandise and of such degree of permanencyso as to remain thereon until consummation of the consumer salethereof. (File, Xo. G83 7084 , released..:-\.pr. 4 , 1968.

No. 217. :Manufacturer may not mark "Made in U. " on im-ported blades of cutlery finished and assembled in the UnitedStates.

The Commission issued another ad\-isory opinion in 11 series con-cerning commodities of partial or total foreign origln.

The Commission ach' ised a manufacturer in this country, the appli-cHnt for an ach-isory opinion , that he may not mark ;; l', IADE IX

" on impol'ted b1ndes of cutlery to be finished and asse,mbledin the 1~nitecl States. The Commission noted that a blade is a significantcomponent of cutlery. The Commission cal1eel attent,jon to the dangerthat the contemplateclmarking might yiolate Section 6 of the FederalTrade Commission Act. (File Xo. 6837038 , releJased Apr. 4 1968.

No. 218. Country of origin labeling on food machinery containingimported components.

The Commission rendered an advisory opinion in regard to repre-sentations concerning the origin of goods which are produced domes-tieal1y but \yhich c.ontain imported components.

Specifically, the Commission ruled that food machinery may not 1)('

represented afrirmMin'ly as being of domestic origin unless it is madein its entirety in the rnited States.

rnder the factual situation presented to the, Commission ~ the 1'('questing party proposes to produce a food machine here in the rn1teclStates which will contain some components imported from a foreigncountry. Specifically. t he requesting party wanted to k11o\y \y hat per-centage of the mac:hil1e. must be made in the rnited Stn te;.; before it en 11be. affirmati- ely represE'ntedns an American-made product.Althongh the Commission ruled that such 11 marhine could not

afrirmn ti "ely represented as being of domest ic ol'igin ~ it furt her ~tfl tedthe rnling does not. preyent the yenc1or from making: f\ f:1etual disc-lo-8111'E' of the percentage of American-made partsns contrnstefl ,yith thepercentage imported , shonlcl the yenclol' desire to make such a repre-sentation. (File Xo. GS:3 700D released Apr. 4, 1DG8.

ADVISORY OPIXION DIGEST 1323

No. 219. Disclosure of foreign origin of contents on packagebearing name suggesting domestic origin.

The Commission issued an a.(1I'i80r3' opinion dealing ,vith the failureto disclose the foreign origin of imported s"\vitchpJates. The packagescontaining the. s"\vitchplates was labeled with a company name suggest-ing that the product was of domestic. origin.

linc1er these c.ircumstances , the. Commission required that the foreignorigin of the producit be disclosed in conjunction with the companyname. (File No. 6723717 , relea.sed ~~\..pT. 4 , 1968.

No. 2:20. Foreign country of origin disclosure on imported tools.The. Commission rendered an advisory opinion in regard to the

propel' labeling of the country of origin of certain imported tools.Specifica.lJy, the requesting party ,,-anted to know whether it ,youlcl

llc necessary to disclose. the. country of origin on the tools. and inH cl \' er'tising.

In the achisory opinion ",hich ",as issued , the Commission concludedthat. it ,yould be. neCeSSRry to disclose the foreig'n countrv of orig"in of

~ '--' .' ,-.

the tools in a. clear and conspicuous manner at the point of sale.. It alsoruled that it would not be nec.e.ssHry to disclose the origin of the tools.in acl\' ertising. (File Ko. 6637034 , released Apr. 4 , 1968.

No. 221. Foreign country of origin disclosure on imported meta!spring clamps.

The Commission rendered an a,chisory opinion in rega-rcl to theprope,r marking of metal spring Clall1pS imported from a. foreign coun-fry. The. clamps are. to be. impOlted in bulk , prepackaged and resold inthe. Fnitecl States. They "'ill be. used to hoJd glass to the backing offrames~ on cardboards and other ac.cessories, in temporary book-hjnc1il1gs~ office ledgers, etc.

The. Commission ad \Tised the peTson requesting the Rchisory opinionthat it. would be necessaTY to mark the. imported clamps with the for-eign country of origin in H. clear and conspicuous manner. (File No.()/g /0:26 , released Apr. 4 , 1968.

No. 222. Disclosure of foreign origin of component part of icecream spade assembled in this country.

The Commission "as reque.sted to renckr an a.c1visory opinion "ithrespect to the. necessity for disclosing the country of origin of theimported ll1etnl portion of an ice. cream spade manufactured in thiscountry.

The opinion advised that in the Commission ~s view the country oforigin of the imported metal portion of the ice cream spade should bediscl()~' ec1 ,Yhereyel' the name of the company appears and that it should


be disclosed in a clear and conspicuous manner on the package or theice cream spade itseJlf. (File No.. 6737070 , released Apr. 4 , 1968.

No. 223. Necessity for disclosing foreign country of origin ofimported gloves.

The CD1nmis'sion ",as requested to furnish an advisory opinion as

the necessity for disclosing the country of origin of imported gloveswhich will be packaged in this country.

The opinion advised that in the Commission s view it will be neces-

sary to disclose the Colmtrv of origin of the gloves in a clear and con-0.1

'-

spicuous manner at the point of sale. (File No. 683 7072, releasedApr. 4 , 1968.

No. 22'~1. Domestic origin mal'king for product containing- foreignmade components.

The Commission issued an advisory opinion dealing .with the pro-priety of using the, marking "J\iADE IN U. " on a product, a sig-nificant component of which is in fact manufactured or produced in aforeign country.

'-

The Commission was of the opinion that the proposed marking,\'oulcl constitute an affinnative claim that the product was entirelyof domestic origin and such claim ,yould be manifestlv incorrect and

'-

0.1

actionable.An article asse.1nbled or processed in the United States as above de-

scribed , however, might properly be maTked "~iADE IN U. " if

the ma,rking is accompanied by appropriate qualifying words (e.g.of 'X' country eomponents " or "of 'X' country materials ) providedthis additional disclosure is made as conspicuously as the clainl~IADE IN U. " and in close proximity thereto. (File No. 6837013

released A Pl'. 4 , 1968.

No. 225. Labeling of material composed of leather fibers importedin their entirety.

The Conllnission rendered an advisory opinion in regard to thelegality of the following five terms to label material composed of pul-verizedlea.ther :

1. Pulverized Le,ather.2. Reconstituted Leather.3. Imported Bonded Leather-Fibres.4. Bonded Leather-Fibres.5. 100% Leather-Fibres.Imported from Europe, the material "ill be sold to manufacturers

of luggage, handbags and various other leather goods. The pulverizedleather will be bonded with an adhe,sive and coated either with SOllletype of la,cquer or vinyl co.ating.


In its opinion , the Commission ruled that it had no objection to' labels

which describe the nlaterial as "Pulverized Leather" or "BondedLeather-Fibres." It rejected, however, the tenn "ReconstitutedLeather" since the word "Reconstituted" creates the impression thatthe material is le.ather which has been reprocessed in some lnannerwhen in fact it is nothing more tha,n pul verizedleather held togetherby an acUlesive.

,Vith respect to the third proposed label , the COnlll1ission expressed

the opinion that it would be deceptive t0' use the word "imported"without disclosing the specific country of origin of the material. Eventhough the word "imported" is not used, the Comnlission said that would still be necessary to disclose the origin of the material since itis entirely inlported.

According to its opinion, the Commission also ruled that it wouldbe improper to represent that the material consists of "100 percent"leather fibres, since it contains a substantial amount of adhesive as,\yell as being coated either with a lacque-r or vinyl coating. The re-questing party was further advised , however, that there would be no

objection to using a, percentage figure which factually portrays themnount of pulverized leather present in the material.

,Vith further reference to the fifth and final proposed label , the Com-mission stated that the words "Leather-Fibres" either standing aloneor when coupled with the leather appearance of the material , couldcreate the impression that the material is wholly the hide of an animalor at least something more than pulverized leather. To dispel thiserroneous impression , the COnlll1ission said it would be necessary touse qualifying language , such as "Bonded Leather-Fibres. " "Leatherfibres and an adhesive " etc. , in connection with the "words "Leather-Fibres.

Finally, if the seller decided not to reveal the composition of thematerial, the Comlnission pointed out that it would be necessary todisclose that it is not leather by such language 'as "Not LeatherImitation Leather ~' or " Simulated Leather. ~' The reason for this

the Conll11ission said~ is that the material has the appearance of leatherand in order to remove the potentilal deception inherent through itsappearance it is necessary to disclose the fact that it is not Ie,ather.

(File No. 6837055 , released Apr. 4 , 1968.

No. 226. Necessity for disclosing foreign country of origin ofimported honing stones.

The Conlmission was requested to furnish 'Rll advisory opinion asto the necessity for disclosing the country of origin of imported honingstones which will be affixed to plastic handles in this country. The nameof the applicant, an American company, \\ould appear on the handle.

1326 FEDERAL TRADE CO:\BIISSIOX DECISIONS

The opinion advised that in the Commission s view the country oforigin of the honing stone must be diselosed in a clear and conspicuousmanner on the product itself. (File X o. (-)7:37046 released Apr. 4 , 10G8.

No. 22'7. Necessity for disclosing- foreign country of orig'in ofrepackag-ed imported nails.

The Commission ,vns requested to furnish nn ncl\- isol'Y opin ion as tothe necessity for disclosing the countr)' of orig-in of imported nails,,'hich ,"rill he imported in bulk nndl'epacka c:ed in this country.

The opinion advised that in the Commission s vie\\' the country oforigin of these nails must be c1i:;:closeel in 11 clenr anel conspicuous man-ner on the package in which they are sold and that neither directly norindirectly could the importer imply that the nails are made in theUnited States. (File X o. H7:) 7017 , released A Pl'. 4, 1968.

No. 228. Country of origin labeling on bubble-packed importedswitchplates.

The Commission ,vas requested to render an ac1\-;80r)' opinion inregard to the propel' marking of the o1'1g'in of imported s,vitchplntes,vhich are to be pnckagec1in 11 plnstie Lmbhle and sealed to fl displnycarel for resale to the general public.

In the opinion the (' ommission acb' isecl the requestingparty that it,vould be necessary to ('lea rly and con~ri('uousl)' disc lose t 11(' foreig'

country of origin of the importee1 ~,vitchplntes on the front of thpclisplay care1. (File Xo. (-)7:1 700n , released ..\p1'. 4 , 1968.

No. 229. Country of orig-in disclosure of imported braids used inproduction of braided rug-so

The Commission was l'eqllested to render an adyisO1'~' opin ion wit 11espect to the necessity of disclosing the country of origin if importeelbraids ,yhich are stitched together in the rnited St,ntes to produce braided rug.

The. opinion achised that in the Commission s "ie", there should he aclear and conspicuous disclosure thf1t the rU9:5 ,yere assembled anc1

sewn in the rnited States of imported materia Is. (File X o. (;7:1 700:3

released Apr. 4 , 1968.

No. 230. Foreign country of origin disclosure on mounting- cardsdisplaying' imported eyelashes.

The Commission was requested to render an advisory opinion con-cerning the propel' labeling as to the foreign Collntl'~' of origin of

imported false eyelashes. All of the other cO1nponents, suell as themounting card, directions for use , plastic box , adhesi,' etc. ,yill bemade and printed in the United States.

ADYISORY OPIXIOX DIGEST 1327

In its opinion the Commission concluded that it ,yould be necessaryto disclose the foreign country of origin of the imported eyelashes.The Commission -also said that it ",ould be acceptable for the dis-closure. to be made on the back of the mounting card, provided thedisclosure is prominent and conspicuous. (File :No. 673 707;:') , releasedApr. -4:, 1968.

No. 231. Foreig'n country of origin disclosure on containers ofrepackaged imported chemicals.

An advisory opinion ,,-as rendered by the Federal Trade Commis-sion in regard to the. question of ",hether it is ne,cessary to disc lose theforeign country of origin on containers of imported chemicals ",hichare. repackaged in the, U.

In the opinion , the Commission ach-ised the requesting: party thatit ,,'ollld be necessary to disclose. the fore,i~' n country of ori~'in of theimported chemicals on the re'packaged containers in n clem' and con-spicuous manner. (File :No. G88 70(-)~) , released A pl'. - , 1GRR

No. 232:. Foreign country of origin disclosure of imported knifeblades,

The Commission rendered an ndvisory opinion concerning thepropel' marking of the origin of knife blades imported from ,I. foreigncountry. The imported blades ",ill be assembled ",ith handles of do-mestic origin.

The Commission advised the. party seeking the opinion that it ",QuIdbe necessary to make de'ar ,and conspicuous disclosure of the fnl'eigncountry of origin of the imported blades. (File Xo. 673 71\)\) , releasedApr. 4. 1968.

No. 233, Foreign country of origin disclosure of imported radiosat point of sale.

The Co.mmission rendered an achisory opinion in regard to thequestion of whether it is necessary to disclose the foreign country oforigin on the container ofnn importeel h"o-way radio. The equipmentitseH ",i11 be stamped or labeled to denote. the foreign country oforIgIn.

Citin~: the. ~'eneral rule in m-atters of this nature. the Commis::.ioll

,.

8tatec1 that a. clear and conspicuous disclosure. of the foreig'l1 origin the product must be made. at the point of ~f1le. Thi~; means , the Com-mission added , that it may be necessm' y to make, the disc Josure on eachinc1iyic1ua,1 container, if the prospediyc. pl11'Chnsel' does not haye the

opportunity to inspect the merchnndi se prior to purchn se thereof inorder to be apprised of its origin. (File Xo. (;8:1 7018 , re1easrc1 Apl'. +1968. )


No. 234. Labeling partially imported product as "Made in U.The Commission rendered an :advisory opinion in regard to the

question of whether it would be permissible to label the container ofa polishing cloth as "Thlade in U. " if .approximately 38% of thecost of the finished product is imported from a foreign country, theremainder being of domestic origin.

The polishing cloth is c.omposed of two separate cloths sewn to-gether, one which is impregnated and is used forpolising and theother is untreated flannelwhic.h is used as a finishing-off c.loth. It isthe impregnated dath whic.h will be imported , 'and the untreated flan-nel will be obtained from la domestic. source. Beea use the greater portionof the c.ost of the fulishecl product is of domestic origin , the requestingparty seeking the opinion wanted to know whether it would be properto label the container 'as ":Made in U.

In its Rdvisory opinion, the Commission said:

~. * *the claim

, ';

:\Iade in U. A.," would constitute an .affirmative representa-Hon that the entire polishing cloth was of domestic origin. Since a substantialportion of the finished product is of foreign manufacture , it would be improperto label the container as ":Made in U. S. " However , if you wish to do so, youmay make the follo\\ing claim: "Made in U. A. of impregnated cloth importedfrom * * *(File No. 6837071 , rele,ased Apr. 4 1968.

No. 235. American manufacturer may not place labels "Made in" on garments manufactured in this country from

im,ported cloth.The Commission issued another advisory opinion among several

recently dealing with products of foreign origin or containing sig-nific.ant components originating in foreign countries.

In reply to :a reque,st, the Commission advised ail American manu-facturer that he may not plac.e labels "~lade in U. ~: on garmentslnanufactured in this country from cloth produced in a foreign c.ount-try. The Commission noted that the cloth isa signfica.nt componentof the finished garment. The Commission state(l that " l\lade in U.means made in the United States of America completely and accord-ingly cannot be applied'where a sig1lificant c.omponent originated in aforeig1l country. The Commission suggested that such labels on theproposed garme.nts might violate Seetion 5 of the Federal Trade Com-mission Act. (File :No. 673 7102 : released Apr. 4 1968.

No. 236. Foreign country of ol'igin disclosure of imported picturecom pOllen ts.

The Commission rendered an advisory opinion eonce,rning theproper marking of the origin of various imported picture components.The opinion involved two spec.ific. factual situations.

ADVISORY OPli"\TION DIGEST 1329

In the first situation, the frame is imported from one foreig11 coun-try, the picture is from another and the glass , mat nnd other finishing

of the product motif is of S. origin. Second , all of the componentsare of domestic origin , except the pichu' e motif 'Which is imported.

In the absence of any affirmntive representation that the finished

product is made in the United States, or any representation that mightmislead the nublic as to the countrv of orig-in. the Commission ex-J.. ~

,--, ,

pressed the opinion that , under the facts as presented, the failure tomark the origin of the imported components in either of the twofactual situations 'wollldnot be regarded by the Commission as decep-tive. Accordingly, the Col1ll11issiOli ruled that no ma,rking is requiredon the imported components beyond what is imposed by the Bureauof Customs. (File No. 663 7061 , released Apr. 4, 1968.

No. 237. Foreign disclosure on containers of repackaged toy kits.The Commission rendered an advisory opinion in regard to the

question of whether it is necessary to disclose the foreig11 origin the conta.iner of various importeel toys packaged therein.

Under the factual situation presented to it, the requesting partyimports plastic articles in bulk w hich are whenever possible, markedas to their foreign origin. :Moreover, the imported articles are repack-aged in the United States for resale, and sometimes domestically madecomponents are added , and at other times components frO1ll anotherforeign country are also added. The imported conlponents come prin-cipally from two fore.ign countries. There is no fixed percentage ofimported components in each kit and the amount may vary as muchas 1-75 percent, and only a few of the toy kits contain wholly im-ported components. The toys are sealed in the container and prospec-tive purchasers cannot examine the goods prior to the purchasethereof in order to be apprised o,f the foreig1l origin markings thereon.

Based upon its understanding of the facts and because of the specialcircumstances presented by the product and the packaging thereofthe Commission expressed the opinion that it would be appropriateto mark the container in substance as follo\\s: "Some items or com-ponents of items are made in (Name of foreig1l country) and (Nameof foreign country)." (File No. 663 7038 , released Apr. 30 , 1968.

No. 238. Clearance denied for proposed mel'ger of substantiallocal independent producer of a food product and a leading

national processor and distributor of the same product.In an advisory opinion the Federal Trade Commission denied clear-

ance to a substantial local independent producer of a particular foodproduct to sell its assets or ca:pital stock to a leading national proeessorand distributor of the same product.

1330 FEDERAL TRADE COMMISeIO::\ DECISIONS

The Commissicn noted t hat

~ \\'

11ile. the hvo companies do not noy\ selltheir product in each other s markets , they appeal' to be potential com-petitors of each other. The nntional company appears to rank as fourthlargest clistribntor national1y of the product. iu'i' olved , and first insen' ra 1 cities with very substantial shares of the mnrkets. The localcompany ranks second among al1 sellers of this food product. in oneprincipn metropolitan market , first there. among the inclependents andhas enjoyed a, snbstnntial share of the market for many years. Themerger 'yould be. a (geographic) market extension for the. nationalcompany. eliminating each as a potential conlpetitor of the other andremo\"ing the local independent from competition. The proposedlnergel' "'ould appeal' to violate Section 7 of the C1nyton Act ~indcOlFeqnently the Commission must refuse to grant the premergerclearance. requested. (File No. 68;3 7107, released Apr. gO , 1968.

No. 2'39. Net weight labeling of mesquite chips.The Commission rendered an ach' isory opinion to n mnnufacturer

of me~:CJl1ite chips, a product designed to fta"Ol' fcocl cooked ",itheharcoill.

In the nch-isory opinion ~ the Commissiondenlt ,yith tv.-o questions.TIll' first question in'i'oh'ed Sec.

;")

of the FTC Act and the proprietyof such claims in lnheling as ",lwther t1w pl'oduct \\' ill il1lpnrt ;;real'i"e~tel'n bal'beqne ~' fla'i' or to food and whether it ma~' pl'operl~' belnl)elec1 ns mesquite chips. Second~ uncleI' SeC'. -1 of the :Fnil' Pnckngingand Lnbeling Act , is it propel' to state t 11(' net ,,-eight as ;' :\:2 OZ, (:2LB~. " if the ,vei!2'ht may 'i'ary as 11111eh ns:2 onnces eith~' r "',n- nfter' c.it is shipped into interstate COll11Jlel'Ce , depending upon the presenceai' ah:::ellces or ll11midity, and the package in fact contains :1~ ounces

hen ii- is packec1'Pns~ing upon the first question ~ the Commission said that it had no

objection to the proposed claims in the labeling insofar as Sec. 5 ofthe FTC

..:-

~ct is concerned.,Yith respect to the second qnestion , the Commission ruled that the

proposed declnration of net ",eight complies with Sec. ~1 of the FairPnC'kclg-ing and Labeling Act and comes within the yariations in stated

\\-

eight permitted under Sec. i. )O(). ~:2 (b) of its regulations. This sectionpermits:

Yal'i;ltilII1S from tl1p stated wpigl1t , , , ,",'hen (' Hll:':P(1 b~' (' ustonwr~' and orc1i-nnl'r (IXIJfhlll'e. aftpr tIlE' (' Oll111lOc1it~' i~ introc1ueec1 into interi::tGte coIl1meree, to

e()n(1itiol1~ \yhiel1 no1'lllallr oe-cur ill good distrilmtioll prc1e-tic-e aIH1 \Yl1ic,l1 1111-

nY()ic1ahJ~' 1'pi::ult in change of \yeight 01' measure,

In Hniying at this conclusion , the Commission said that. it has as-sunwd thnt Qood distl'ibution practices ",ill be follO\yed in the market-c...

ing of the product ",hich unaYoidabl~' result. in the change of ,,'eight


in 11 relatively small percentage of cases~ and that an overage IS asikeJy to OCCllI' as often as a. loss in \\eiQ:ht.The Commission s opinion also ad Yised the requesting party of

certain tecllllieal requirements of its regnlations, such as the locationof the declaration of net ,yeight , the exact size of the dec.1uration inrelation to the area of the principal display panel and other informa-tion relating to the identity and location of the manufacturer of theproduct. (File No. G83Tlll , released ...\..pr. 30 , 1968.

No. 240. Use of symbols and names having fur-bearing animalconnotations in labeling textile fiber products.

The Commission yras reqnested to render an opinion ,vith respect tothe labeling of textile fiber products manufactured so as to simulatea. fur 01' fur product.

The requesting party proposed to nse 11 'yorcl closely resembling thename of a Inr-bearing anima1. the inr of which is commonl~T used inthe manufacture of g:arments~ in a::sociation ,yith a pile fabric sinm-

lnting that fur.In the Commission ~s "ie"" the use of the proposed term to describe

such a fabric. would be yiolative of that part of Section ;'5 of the Fed-end Trade Commission -\..ct whieh makes cleceptiye acts 01' practicesin commerce llnlcn'dul. (File X o. fiS:j 7100 , released Apr. 30 , l0GS.

No. 241. Proposed promotional allowance program based onpyramiding sales of customers rejected.

The Commission advised a requesting party that yiolation of Sec-tion 5 of the Federal Trade Commission Act ,youlc1 result from theadoption of a proposed sales promotion plan described in essence asfollmys:

\ c(,l'tn1n sum of m()jH' ~' \'\cmlc1 be l'esE'l'\' rd from the proceeds of sale to a first customer. That customer, if he wished to participatein t he sales promotion program would be. paidllp to one quarter of the1't'SelT('(l SU111 11S commission on sales to ten additional customers. TIle'first customer ,,"ould also be paid up to one. quarter of the, reseryedSUIll on snles made by his customers to ~Tet another generation ofcustomers and so thrOllQ:h a fourth !2'eneration.c. c.-

The tabulation distributed to potential purchasers of the request..ing party s merehandise sho\yec1 that the original participant , intheory. mip:ht brnefit from the efforts of 11.100 sa lrspersons.

1"11jsin the Commission s judp:nwnt ,yas be~70nd the realm of possi-bility. The return to any given participant wouldunquestionabl~7 be aQ,Teat deal less than the theoretically achirynble amount set forth:more often than not it would he negligible. The initia purchaser ",,"ouldnot surely benefit beyond that amount. if any. ,yhich he, can Q:ain

. ,. , .


through his own efforts. Any rurther amount which he mii!'ht re-ceive would acerue to him sheerly through chance. (File X o. 683 7116released IHay 7 1968.

No. 2~12. Necessity for disclosing the country of origin of irn:portedink.

The Commission was requested to render an ach-isory opinion withrep.:al'd to the necessity for disclosinQ' the foreign origin or ink 'which

~ ~

is imported from Germany. The ink is imported in 50 liter drumsand resold to the consumer in 311: and :2 ounee bottles.

The opinion advised that in the Commission s view the country

or origin of this ink must be disclosed in a clear and conspicuousmanner on the bottles in which it is sold and , if the ink is packagedin separate boxes , on the boxes themselves in such a manner as tobe readily seen by prospective purchasers. The opinion added thatneither directly nor indirectly could it be implied that the ink ismanufactured in the United States. (File No. 683 7114, released:May 7 , 1968.

No. 243. Receipt of discount in lieu of brokerage by respondentwholesale food distributor.

A wholesale food distributor under order for having violated Sec-tion :2 (c) of the amended Clayton Act has been advised by theFederal Trade Commission that if he received or accepted a dis-

count offered by one of his suppliers for rendering certain "specialservices " he would be in violation of order entered against him.

The Conllnission noted that the 5 percent discount offered to thedistributor was equal to commissions normally paid by the supplier tobrokers; the services to be rendered by the distributor were servicesnormally performed by brokers in connection with sales to other

distributors; other circumstances and statements dearly indicated thatboth parties to the transaction considered the discount as compensa-tion for elimination of brokerage expense , and the discount thereforeamolUlted to an allowance in lieu of brokerage.

COlmnissioner Elman did not concur. (File No. 0-1201 , released

:Ma.y 7, 1968. ) (Opinion issued under authority or Section 3.61 (c)

of the Commission s Rules of Practice (1967).

No. 244. Disclosure of foreign origin of nasal cannula required.

The Commission advised a requesting party that a medical device

Inanufactured in a foreign eountrv from domestic designs and mad~on domestic machinerv furnished bv the U.S. seller should be markedclearly and conspicuously with the name or the foreign country.The marking could be on the device itself or on the package but inany event the disclosure must be made or attaehed with such perma-

ADVISORY OPINION DIGESI' 1333

nence to remain on the product or container until bought by the ulti-mate purchaser. (File No. 683 7104, released j)Iay 15 , 1968.

No. 245. Commission denies approval of proposed joint venturecorporation composed of five competing manufacturers tobid on prime contract to furnish products of uniformspecification.

The Commission issued an advisory opinion denying approval ofa proposed joint venture corporation to be composed of five manu-facturers to bid on a large contract that would require more extensivefacilities than possessed by anyone of them. The actual work on thecontract would be performed by the five participating companiesand by others on a subcontract basis; The five are now actual or poten-tial competitors.

In the opinion of the Commission , the proposed j oint venture cor-poration composed of the competing companies would appear to illegal under Federal antitrust laws as a combination to fix~prices incontract bids. (File No. 6837118 , released :May 15 , 1968.

No. 246. Trade association publication recommending proceduresfor freight prepayment by manufacturers.

The Commission rendered an advisory opinion informing a tradeassociation of wholesalers that it could not give its approval to aproposal to conduct a study of various policies for prepaying freightbeing used by manufacturers and to publish the results as a recom-mended procedure for prepaying freight.

The Association advised that a certain number of manufacturerswho sell to its members have a "paid freight" policy whereby they ",ill

. pay the freight , on one of a number of bases , on orders above a certainquantity which are shipped to the members. l\Iany manufacturers donot have such a policy. Among those that do, there are fifteen totwenty different procedures for handling payment, most of whichinvolve a lapse of time of from sixty days to six months before theIV holesaler can collect the allowance. The Association is interestedin conducting a study of these practices with the ultimate view ofreducing the fifteen or twenty procedures now in effect to perhapstwo or three and also to reduce the time period for the recovery ofthe funds to no more than sixty da.ys , thus eliminating the long periodin which capital of the members is tied up in what is supposedlyprepaid freight.

The Association stated that these efforts are not in any way in-tended to coerce manufacturers into giving" freig"ht allowances they

'--' '--' ~-

do not care to give , but are solely to reduce the complexity and costof doing business. It definitely plans to publish the results as a "rec-ommendecl procedure for prepaying freight " but does not plan any

....

1334 FEDERAL TRADE CO::VIMIS8IOX DECISIONS

efforts to enforce this recommendation or to put any pressure on themanufacturers to adopt the recommendation beyond the simple pub-lication of the results of the, study and the recommended procedure.

The Commission advised that even though the study and publishedrecommendation may be motivated by a purpose to remove C'Tils affect-ing the industry, it appears to go further than is reasonabl~r necessaryto accomplish such result. Even if unaccompanied by an~' intentto force the. manufacturers to adopt the policies set forth in the rec-ommendation , there is implicit in such reeommendntion b~r the ",hole-salers too grave a. danger that it will sen-e as a device ,\hel'eb~T theconcerted po"er of the members of the. J,,-ssoeiation is brought bear to coerce the manufacturers to conform their pricing policiesto the restrictive standards of the recommendation , or at the vel'

least as an invitation to enter into agreements among themselves todo so. The Commission 'would , ho"ever, ha n~ no objection to thepreparfltion b~T the Association of fln objective study of these pl'ac-tices for the members of the ~~"-ssociation prm-ided the. stud~- did notcontain any recommendations. (File Xo. 683 7106. released :\Iay L\1968. )

No. 247. Disclosure of origin of crib mattresses, etoe., made in thiscountry using imported outside covers.

The Commission "as requested to render an ach-isol'Y opinion con-cerning the propel' Jnbeling ns to origin of crib 111nttresses , pIny penpads and bumpers ",hich ",ill be manufactured in this country using-imported outside COlTers. The manufactun?r advised that the reJatiycmanufacturing cost of the imported part to the ~\merjcan parts ",illbe. iI' om ~,~) to and that a comparison of the cost of the importedsheeting to the selling price \"i11 run about ~:7 to ~ii2'

The opinion advised that in the absence of nJl~- affirmntivp rcpr(LsE'ntntion that these products tHe made in the l-nitecl States , 01' anyother representation that might mislead tll(' public as to the countr~'

of ori!2'in, the. Commission is of the opinion thaL under the fact:=;

as presented , the fnilnre to mark the Ori(X11l of the~(' ~~'00ds \"ill notbe l'e~!.'nl'Clec1 b~- the Commission flS c1ec('ptin' (Fil(' X 0, (;8:1 711l'),

released ::.\Ia~- 1;\ lOGS.

l~;O, 248. Validation of guarantee-time requirement.1'11(' Commission interpreted for a requesting party one nspect n

thc' Commission s Gnides Against DeceptiTe Ach-ertising of Gnnr-antprs. These Guides, in general , prm-ide that any p:narantee usedin tlchertisinp: sha 11 c learl~' and conspicuously disclose (a) the nat1ll'and extent of the !2'1larantee: (b) the manner in ,yhich the guarantor",ill perform; and (c) the identity of the guarantor.

ADVISORY OPISIOX DIGEST 1335

The language proposed for the guarantee of a product sold by mailwas: "If for any reason you are not satisfied ",ith your purehase~ re-

turn it to us at onee . . . .

~~

In the Commission s view the expression ;'onee" was too vague and aecordingly the proposed guarantee did not

. eonform to the Guides.The Commission approved the proposed guarantee "hen it was

modified to read: "If for anI' reason YOU are not satisfied with yourpurchase , return it to us within x days

~~ " ~~

being a number of dayseertain. (File No. 683 7101 released :May 15 ~ 1968.

No. 249. Trade association code providing that members will notadvertise sales below cost.

The Commission rendered an advisory opinion informing a tradeassociation that there eould be no objection to its proposed "Guide toEthical Advertising Practices

~~

with the exception of one provision

relating to advertising of sales belo,y cost.The Guide set forth a number of prohibitions of various advertising

praetiees which the Commission deemed to be in aeeord with applieablea'" and the Commission also noted that the association did not eon-

template any efforts of its O\yn to enforce the Guide , but instead plan-ned to publish it solely for the education and guidance of the members.The one provision questioned by the Commission provided that sineebelow cost pricing is predicated on additional snles members shall notadvertise merchandise. 01' services or a combination of both belO\y theirtotal cost.

The opinion advised that ,yhile the mere adoption and dissemina-tion of this Guide b~' the association ma~' not be, considered the eqni v-alent of an agreement not to ach-ertise belm" cost prices , shll if it hadthe eHE'd of persuading substantial numbers of the members of the as-soeintioll to refrain from so advertising, it ,yould , the opinion statedraise a serious inference of such an agreement and hence ,yonld be ofquestionable propriety under the antitrust In ws. Since sales belo\\' costean be a legitimate method of eompetition , depencling' upon the cir-eumstances , an~' agreement among competitors to refrain from suchadvm'tising to that extent restricts competition. I-renee~ it ,vas statedthat any provisions ,yhieh ,yduld haTe a tendency to bring about thatresult eould not meet ,,"ith Commission approval.

The Commission further advised that this conclusion ,,"auld not inany way be altered bv the existence, of the many State b,,"s on the

..

subject. These 18.',"s vary greatly in their coverage and application andin any event ,,"auld not provide a legal basis for an agreement amongthe members of an industry to refrain from the prac6ce in question.(File Xo. 6Si3 7097 , releasec1 :Jlay 21 , 19G5.


No. 250. Formation of local trade associations by statewide tradeassociation.

In an advisory opinion disapproving a proposal by a State tradeassociation desiring to establish a statewide network of loc.al clubs ortrade associations in the same industry the Commission advised thaton the basis of presented facts, it was unable to determine with anydegree of accuracy their precise purpose and objectives.

The advisory opinion pointed out that the Commission does notgenerally disapprove the proposed formation of industry groups ortrade associations for purposes which are not anticompetitive. If thepurpose for such formation is the dissemination of information on.local or State legislation, the improvement of individual businesses

or the establishment of sound accounting principles and bookkeepingpractices or similar activity, the CoII11nission would voice no objection.

, however, the purpose or effect of such groups and their policiesis the unlawful suppression of competition, the promotion of unlawfulprice stability or so-called orderly marketing practices, their forma-tion could not be approved under any circumstances.

Since these latter effects would not be inconsistent with the generalstatement of purpose submitted with the factua.l presentation, theComnlission disapproved the proposal in its present form. (File No.6837099 , released :l\Iay 21 1968.

No. 2'51. Disclosure of country of origin of imported fasteners.The Commission was requested to render an advisory opinion with

respect to the nec.essity for disclosing the colUltry of origin of metalfasteners whic.h will be imported from Japan. The fasteners willeither be imported in bulk and repackaged in small cardboard cartonsin this country or will be packaged in individual c.artons in Japan.

The opinion advised that in the COlnmission s view the country oforigin of these fasteners must be disclosed in a clear and conspicuousmanner on the package in which they are sold and that neither directlynor indirectly could the importer imply that they were made in theUnited States. (File No. 6837120 , released :May 21 , 1968.

No. 252. Location of foreign origin disclosure.Responding to a request for an advisory opinion, the Commission

said that the disclosure of the foreign c.ountry of origin of importedfishing reels must be made in a location where it would be readily ob-served by prospective purchasers.

Under the factual situation presented to it in the advisory opinionthe imported fishing reels are plainly marked as to their specific for-eign country of origin. It is anticipated , hO\1;"eyer , that the reels will bepaekaged for resale in the lTnited States in a vinyl zipper case and

ADVISOHY OPI:c\IO~-i DIGEST 1337

then placed inside u. cardboard Garton. Information fiS to the. exactmanner in which the reels will be dispbyed at the point of sale wasnot nxailable.

The question presented to the Commission "\rns ,vhether it "\vould belleee,ssarv to make the IoreiQ:n origin diselosure of the reels on the case

., ' '--'

or the ontside of the earc1board cal'ton or on both.tfter pointing out that it could not give a speeific answer as to the

exact location of the foreign origin disclosure because it had not beenndyisec1 of the. exact rnanner in which the reels would be displayed atthe point of sale , the Commission stated:

",\'

hew'n' r an afIjrmntin' dis(:III~l1l' t' of IIrig:ill is reql1in,(l in order to )Jre,' ent(leceptioll, the general rule is that the marldng must be legible 11nc1 must. lJeplaced in a loci! tion ,"\'here it would be readi!)- oh8(,1'\'ed 11 ': pro811E~ctiye 1)111'(:hnsers mn king' it casun 1 inspection of tlw lllerdullldi8(' prior to , and 11M afternw IJ1ll'c11:1Se thereof. This lJH?flll:': , !If (:o11l'~~e, thnt if tl1C' reels are displayed at th~point of 8nle in a carc11Joard (:;11'(- 011, 11 ('on81')icnO118 c1i8closn1'e would bn ye to be111;1(le OIl the outside of the e:1l'tnn, A ~imil:ll' (1i~elosul'e ,YO111d he required on tlJevinyl case, if the reel s a l'P c1ispln ~- ed onl~- ill (he en Sf', On the 01-1181' hand it follo\ystha t the c1isC;iosu1'E:' on the reel s \Youl d be ~ntiicien t, vrovic1ec1 tllat tlle reels are(lispla:-ed n t tilt' jJoint of ~;l1e in s11cll n 11l:11lnl':'1' that jlrospediye Imrclla~el's couldre;lc1il~' ol,sl'rye tIll' c1is(:losnre tl10r\:'lin lido!' tl) tIle pnl'C'l1nse of tIlE' mE'l'C'hilndis!:',

(File K o. G8B 71:21 , l'ele,lsec1l\fny :21 10(;8.

No. 253. Extended credit tel'H1S for ne\vly established stores inimpoverished urban areas appl'oved.

The. Commission acl\' i80l1 fin ftpp~ll'ellllallufuctll1'el' that under the('jrC'1l1llstances de::;cl'ibed his proposed phn ",ould not likely contravenebws adminj~Jc' r0cl b:' the Commission,

The m~mnfilC'tln'er proposes to gi'-e extended cl'edit tenus to one,class of his custO1ll(1 1'~ , excl !lc1ing other classes. Thn~,e to ,\'hom l'X-tenf!,) (l ('l't) lit ' l'(' 1"0 , O'i\- ("l'l 'n

'~(

1 '

~ ~

oll o1',-, t ~' 1."

" '

- L',_ i \"(1) The bnsiness is ~1 llewl~' established hn~illess located \\ ith.ill nIl

nl'hnn inner core. gl10tto- tYl)(', ,Hen(:2) The proprietor 01' pri ncipill owner OT the business is :l l'esic1ent

oJ the l1rbml , irm01' corE' , gJ)(~tto- type area "\\'ithin which the business islocH tecl.

(:3) In Jight uf its O\\' llE'l'ship, 1\1~tllngt'1l1ellt. and locnticill the /.)U::::1-

J)PSS ~tnlld.s a l' pn~Ollablc chmwC:-' of sln'\'iYa1.To such C'ustomcl'S the Ioll()"\\'ing extended cl'(:,clit terms will be

nilereel :(1) One :' ;11

-:';

C'redjt un ol'Ch'1'splaced chll'ing the J11'~;t ll$J1lth

($ j"

/ l

' ,

1.

(:2) :~ix mont11:;; ('redit on nll orders pJn\'ed thereafti:~l'TIle C'xh'lldecl credit

tl'iH'l1 is to he limitc'cl to the first fin~ years of it!lc',\' stOl'('.::, op('J' ~ltiol1~, It WitS :1180 1)J:oposecl that such new firms begin'll on an intl'oclllct()l':~ basis cel't:lin in-stOl' !2 and point-oJ-sale nd-

-I:),'; ::-

"'-

7:!- --_n_ f;,

1338 FEDERAL THADE CO~llVnSSIOX DECISIONS

crtising llwteriais. not. to exceed in total "nIne (i. (O. cost to tIll'l'(-' questing pH l'ty) ~ t hI:' sum of $500.

The Commis~ion Jelt th,~t there IVoulcl be little , if any substantialcompetition ))('t",('e11 the. favored nnd c1isfa\.orl'Cl customers.The Commission announced that it \Hmlc1 not , currently nt least

challenge the. reque'::ting party s proposa1.The Commission noted further that if changed circumstances

required a. change in the Commission ~s present views , the l'equesting'party would be given ample opportunity, as provided by the COlll-

mission s Rules of Practiee~ to modify or abandon, "ithout pennlty.

the pl'\.'sently approved proposal.One year subsequent to the initiation of this program the l'cllLlesting

party was requested to submit to the Commission a report describingthe (letails of the implementatioll of tIlt", plan together "ith anyobjections it may hnye. 1'('('e1\,(-'(1. (File l.\ o. G8:3 711;3. released ::.\Iay :2;\InG8, )

No. 254. Operation of exclusive check~cashing concessions inretail stores.

The Commission rendered an advisory opllllon to the effect thatit would not be. illegnl for a company to operate a. proposed c.heek-

cashing program pursuant to ,yhich it would function as the chec1\:-

cashing concessionn ire \" it hill sul)sc'l'ihinQ' retail e~:tn b li::-J1111flJL:

Under the plan as present(:'d : the company \yould charg(~ check-cashing customers n ten cent fee for all cheeks clnl\\n for sums gl'eatel'

than the amount of the purchase' and "ould pay to the subscribingC'tailel's a portion of that fee as eonsidcration for the grant of conees-

sion rights 0 The company ,,'auld assume the C'11tire burdcn of hac1-

check l'i8ks and C'olJectlon eJiorts.The subsC'rihinp: retailers and their employees ,,'onlc1 net as agents

of thl' company by performing the actual check-cashing functionfollO\yillg proced11l'l's required by the. c.ompany utilizing the CO111-

p,m~' s in:ronnation system. ::'.1oney used in cashing checks for sumsgreater than the amount of the purchase ,youlc1 be the retnilers moneyand the retailers ,yon ld deposit n 11 checks and fees collected by tlJl'lll ill

their OI"n banks. Out of the fees so collected and deposited. the sub-scribers ,yould l'C'Jnit to the company seven cents pel' checl: c,lshedincluding checks ch'n'Yll in tlw amount of the purchase , although nofee ",ould be chn rg(~d the. cnstOl11n for snch cheeks. The company

,,\'

ould pay the subscriber the full n1ll0unt of all bad checks and wouldassume the :runction and risks of attempting to collect 011 such cheeks.

The subscribing l'rtfli1ers would retain the diffel'l' I1Ce between the,

il11l0lmt paid the C01llp,11lY nnc1 the agog-regate, fees collected as their

basic collsicIernbon for gl'nnting the concession rights and couldrealize. addition:! 1 consideration from a reSPITe to 110 maintained by

ADVISORY OPISION DIGEST 1339

the company. The company Yi'ould run its own credit check of allapplicants for and holders of check-cashing courtesy cards, issue

curds inscribed with the retnile.r s name , keep the credit information11P to date and operate , using moneys and employees of the subscriberfind at locatjons w'ithin subscriber s outlets , check-cashing concessionswhich ,yould be furnished with on-line telephone. reports of informa-tion contained in the companis records.

The agl'eeme.nts to be ext' l'uted "with the subscribers ,vould give thecompany the exclnsin' cheek-cashing concession rights "\vithin thestores for a pel'iod of tYlenty-four months , subject. to nn initiall'ightof cancellation by the subscriber at the. end of the first iin~ months.The only cost to the subscriber in exercising this biter privilege

"\'

oulc1 b(~ the loss of the initial setup charge paid upon installation

the concession in the store. After the expiration of the t,yenty-fourmonths period the agreements \youlcl be j'enmyable for one yenr periodsat the option of the parties. The CO11lpnn~\~ n1so advised that to itsknowledge no one else is presently enga~:'('cl in opfrnting s11eh eheck-cashing concessions.The company expressed prillmry concern ,yith hro legal issues

created by this proposed plan. The first had to do "\yith whether thecompany s separate agreements ,yith subscribers , each providing forthe collection or a ten cent fee~ ,yould be. deemed a horizontal price-fixing conspiracy. Seconc1 ~ the company inquired as to whether theexclusive aspect of the agreements makes them objectiont( hIe under~('ctiOll r) oJ tho Federal Trade Commission . ct.

'Vith respect to the first question~ the opinion advised that in the

Commiss10n ~s vie" , based upon the faets presenteel , the only priceinvolved is the compnn:' s o,yn price for the serViCE\ rendered andhence no question of a price fixing ,1greement should m'ise. 'Vithregnrd to the second question , the Commission was of the opinionthat the time periods invohcd in these exclusive ngn:ements shouldnot result in unreasonable restraints of trade considcrinr" the' factthat this is a small C0111nanv seekini?o to ("stnblish itself in a nC"" Heldor endeavor ",1wr(' thel'(~ nn~ no existing eompetitOl's and 11'11('1'('. a

substantial outlay of capital and the' assumption of considerable riskwill be. required. I-Ien' , the Commission ,yns influenced by the fact thatsubscribers han; the opportunity to terminate the arrangement atthe end of the first fivE' months and again at the expiration of the'

t\yC:'nty- rour months pcriod Hnd that renc\yn Is ,yill be for Oll.e year

1wriods only.The Commission also cautioned t1u~t this opinion was being ren-

dered in the. li~:'~jt-. of the (' ompl'titi\'(~ situntioll "yhjeh HOlY pxists cl1lcl

that in that light it. coul(l sel' )10 ob:iectioll to the. Jorm of the. ngrl-'e"lnents and the Pl'oposecl mnnnel' oJ irnplementlllg th(~ pl'ograrn. TheCo1!111rissioll co111c1noL or C011l'SP, -forse' !? in an pnl'tienliH' 8 t1wimpnct

13~ FEDEHAL TRADE CO~nlISs.ro:\' DECISIONS

of this program upon future colllpetitiye conditiolls .which might con-ceinl.bly require a. different view of the exelusive provisions eontn,inec1therein. (File No. 683 712;3, released 1\13Y 30~ 1968.

No. 255. fdisl'epl'esentation as to origin of flatware.The Commission rendered an a dy isol'Y opinion toclny in regard to

the proper marking of the origin of flatware which is imported insubstantial part. Speeifically~ thc\ follO\\ing three questions ,"ere ruledupon by the Commission.

First , can flat,ya re ",11i('11 is gal d plated in thl:: L';"nited State's he.marketed ,yithol1t disclosing the foreign origin of the imported stain-less steel blanks. if it is sold under a trade name consistin!!. of C'O1npany name suggesting domestic origin hyphenated ,yith the ,yordAmerican

:: '

1 (The gold phting ",ill co~~t from :10-;\0 percent oJ thetotal cost of the finished product.

Second : if the tnl(1e name refel'l'ec1 to above in the first question isllOt, used. wiIl it- thou he IwcessalT to c1iscloscJ the foel'ign origin of theimported stalnle8s steel bJallks?

Third, if a disclosure is rcr1l1ired : 1l1l1st it be stamped all the iiat,yareitsl'lf or can it be pbcecl on a sh'ing tag clthehec1 to the flnhl';ne or

the container ~

In response to the TIl'st qlleshon ~ the Commission said that the use.of the proposed trade narne would constitute an ftfl11'1native represen-tation: C'ontl'ftl'Y to fact : that the entire product was made in theUnited ~'tntes. Since a ::311 b:)Llllh;11 portion originates in it fol'('ign('onntry: it will then be J1Pcessary to c1en.rly disclose the country oforigin of the imported stninlpsB steel blanks in immediate connectionYi' ith thE' trade name ,vl1C1'cTel' it 1S llsed. both in ndyertising and1n lw1ing.

In response to the second anel third questions , the Commission saidtlw.t disclosure of the origin of the irnported components \\ould berequired eyen though the company l'lecteCl not to l1Htrkef, the flahyarennder the proposed trnclr mane. The Commission also stated that thedisclosure may be made 011 the fiat,ynn' itself. or on f\ strinp.: attachedthereto , or on the containl'r. pl'O\' ic1ccl tJw (li~:dosm' e js oJ th;lt rlrp,TcC'

of conspieuity and pu' maE~ ll(,Y as '."ill likely be obser\'ec1lJy- prospec-tive pnrC'haS01'S making a caSlUl1 inspection of the merchandise priol'

: not afteL the purchase. thC'reof. (File:N o. R83 7100 ~ l'elensed :JIay30. 19G5.

No. 2:56. Use of unqualified 'Yoi'd '~Diamond" to describe abrasivediscs containing other materials.

The Commission ,yns requested to n'nder an ndvisOl'Y opinion C:)ll-eerning tlw

j('

g:tlity oJ dpscriL)jlJg n1)1';\si\"(~ c1i;:.;C's (JI' lap:.;; eC:1\tnj 11 ill~:(lill11lf)))J ;mcl other al11' ;\81v('8 as ;: Dinmol1(l Discs.':

DVISORY OPIXION DIGEST 1341

The manufacturer presently produces diamond canting bps .whichnre a single layer of diamond he.1din a pInted nickel bond and uses onlydiamond as the clhi'asivC'. It JlO\V plans to produce a companion productline and add another abrasive pc1l'tjele as a filler. For example. , it ",ouldmix aluminum oxide. "\"ith the diamond. "\"ith the ratio of diamond toaluminum oxide being as low as one to ten and , in any event, the filler"\yould be more. than ;')0 percent.

The opinion advised that in the Commission s view such an abrasivedisC', or lap could not truthfull~~ be described as simply a "DiamondDisc.

~~

The opinion further adyised that nothing in the la", ",ould pre-yrnt use of the 'YOI'd '; Diamollcr' as part of a truthfnl description ofthe product, but that if the mannfaetm:cr did elect to U8e iL considpl'ing the Imv percentages of diamond "\vhich ,yen', contelllplat('d ~ itshould only be, used as a, part of n, full disclosure of all the abrasiycmaterials usec1 including the percentages of each. (File Ko. 68i) 7122l'eleasedlTune 11 ~ 1968.

No. 257. Legality of trade association suggesting rental rate forcontainers in which industry products are sold.

The Commission "\nlS requested to render an advisol'Y opinion con-cerning the JegaJity of a trade association suggesting a l'entalra.te forthe. containers in which the product of the industry is sold if such rate lower than the standard charge now being made.

The members of the association are enga2:ed in the sa Ie of a productjn returnable contaillC'l's m.any times the "alue of the product itself.The practice in the industry today is to charge a daily 01' monthly rentaJtal' the time dul'illQ.' which the. containers arc held beyond thirty days,L- '.

...

Some of the members would now like to go to a straight rental andfeel the best wny to do this ",yould be through the association.The Commission advised that implementation of this proposal by

the association w.ouJd be likely to resnlt. in a violation of law withoutregard to the ultimate. rental set~ "\yhether highe,!' 01' Jower than theexisting rate. I~ven though couched in the form of a suggestion , thenatural and probable result of such fin action woulc1 the. opinion statedbe to persuade substantial numbers of the memlwrs to charge the. ratesuggested~ thus le.aying an almost-inescapable inference. of an agree-ment among competitors to clunge a common rate. Such an agreementwould be. a clear restraint of trade under existing In\\' , the Commissionadeled.

It was the Commission s opinion that the rental rates to be churgeel

by the members should be detcrmilled by the natural forces of com-petition , not by concerted nctiTity on the part of the llwmbers actingthrough their trade association or othe.nyise. (File :N" o. 683 7130 , re-

kflSpcl Jl'!llC 11. lnG8,

1 9 FEDERAL TRADE CO:\L\HSSIO::\ DECISIONS

No. 258. Promotional assistance plan limited in value to per~centage of purchases.

The Commission approved. ,,-it 11 modifications. a pl'opmiec1 pro-motional assistance plan,

The requesting party "i' ill be, otTel'inp: coopE'l'ahn: ad H'J'tisingo ano\\'-

antes under the program in question for nlimitecl period aT time. 'Ill('dollar value of the a 11m\" a nee otlel'pcl is to be menS11l'ect at 1:2 percent.of the dollar value oJ a particular ac('onnt,

~;

pm'C'hasE's for the calendaryear 19G7. Certain He'y accounts 'iyill also be able to part-iei pnt(\ : if theywill. The 12 lJPl'cent limitation for new rlce-ounts will be bnsecl on anestimate. of the 11n111w1 clo11m' yol111ne of bllsiness l'ensonably to be-' ex-

pected from snch new accounts.The offer spec.ifieally proyic1es Jar all al1mval1c('. of ()() cents rWl' unit

purchased.The reqllesting party 'ivi11 l'NIU11'C the fall 0 , j ng pcrfoJ'n1aJ)('(' from

those accepting its oJ-fer:1. The product must be promoted ,,-ith f1n fleln' rtispc1 lI1'i(' 0 thnt i::;

1Ie10,,- normal shelf pricc'2. The ad must be at least 3 column inches.:j, The advertisement. must run in a 11 paid circll! ahem )W'iyspnpcrs

normally used by the )~..cconnt, and in no ('yrnl may those JJ(\ yspnperscoverless than 7;) percent of the ~\.C'C'onnt s marketing n ren.

4. Eligible advertising must he. an integra) part of tlw Acconnfsomnibus advertisement and not set apm'!: from t11(' regll1i11'

advel'tisement.f). Advertisement must run befol'C: a snpcifiecl date,

- .

.1.

G. Advertising placed under this agreement \vill not he ncceptecl nsperformance llnder any othel' cooppr,lti\' l' ~1(lq' l'tising' pl'ogrnrn for thl'same period.

7. If the account. is l1nnl)lC' to utilize nc~,YSpapC'l' ,1dn'1'tisillg~ a rqn'sentatiye should be contnctrcl to alTange for an alterndiyp proportion-ately eclllallnethod of pedOl'mmlC(\Proof of performnnce llndeT the' oHer ~\\'ill hc' l'equil'oel from

participants.X ot."\vithstanding till', statement. of the requesting: pint:; that the olJ'el'

will be DWelt' to "certain :: nr,\' flCC'O1.111tS , the Commission nnc1c)rstandstlwt the oit'er ,vill in fact. be made to all entitled cllstomers. FurtlJCr-more all customers ",ho in filet. ('omp(.te 011 the same fnndiowd lc\TP,",ill be afforded ,Ill opportunity to participate ,yhether they Im \' di1'

:from the requesting party 01' through an intel'medirn'The plan as abo\,'e outlined 'TrlS acceptable to the Commission pl'O-

yided promotional funds arc not disbursed in ex('('ss of the :lctual costoJ the advertising, ,Vithollt such a limitation larger pnltieip;uJts in thepromotion. buying- in large)' qllf\11tity. might enjo.'- n cns1! over,1f2'(' not

ADVISORY OPINION DIGEST 13,:13

a.vailable to smaller competitors thereby o('cHsicming possible violationof Sections :2 (a) and (d) of the amended C' layton Ad. (File No. GS:3

7117 , released ,June 11 ~ 1968.

No. 259. Commission has no objection to pl'opos~d :mel'ger of hvononcompeting' quarry and building materials companies.

The Commission issued an (\dvisory opinion telling applicants itlins no ohjectioll to their proposed merger.

According to the information submitted in connection ,,"ith the np-plication for an advisory opinion , the t;\yO companies do not sen to theSRrne customers nor do they sell in the same geographie mn l'kt'ts intheir distribution of certain building materinJs. Both companies :11'0

modest size. (File No. 688 7126 ~ releasec1.Jllne 2ti 1068.

G. 260. Synthetic ernel'alds.

Responding to a request. for an advisor::,- opinioll ~ the Commissiontook the position that it would be improper to use the tern! ';X GrownEmeralcls :~ ,IS clescTiptive of synthetic. stones.

In expressing the op1nion thnt the proposed phl'ilS(\ \youldllot con-stitute a propel' disclosure of the nntnl'C' of the product and the factthat it is not. a natural stone ; the Commission said:

1'11e conclu8ion is 11::1 sed upon the belief tlw t most consun1ers \Youlc1 probablyascribe to the word " g'1'o\\'n " its more collnnonl:- accepted meaning, nalllel~- , one ofnatural gro\\'tlJ , and Oms conclude, contrary to fact tl1at the product is a eul-hued stone, tinder the:'-:e circumstances, therefore, tlj(~ Cull1lnission is of theopinion that 118(" of the 1H'011OS('(1 term ,yould Hot he ill compliance \yitlJ See, ;)or tIle FTC ..:-\('1- l)ec'n11~:e the 8tolle~~ ,He :~:\nthetic, not C'l11tlll'ed,

(File No. GS:J, 7128 ; l'e leased .Tune 25 , 1968.

TABLE OF COMMODITIES

DECISIONS AND ORDERS

Air conditioning units h - -- -

- -- --- -- - - - - - - - -- - - -- --- - - - -- - - - -

_u- - -Aluminum:

Plastic- - - - -

- -- - - --- - - - ---- - --- - - - - - - - - - -- -- - -- - - - - -- - - - - - - - - -

272Si din g - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 491 , 516Apartment complexes-

- - - - - - -- - - - - - - - - - - - - - - - -

u u - ---- u -

- --

u- --- 938Appliances: Household -- - - u - - -

- - -- - - --

u - U - -

- - - --

u - - u - -

- -

u - - - - _u- - 287, 293Clothes dryers- - - - - -

- - - - - - - -- - - - - -- - - - - - -- - -- - - - - -- -- ~- - --

840Jlanges - - -- - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

840Jlefrigera tors - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

840VV ashe! s - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - -

840Athletic jackets , men s- _u uuu - -- - -- _u - -- -- ---_uu u_---_u- -

--

Automobile:New- - - - -

- - - - - - - -- -- -- - - - --- - - -- - - - - - - - - - - - -- - - - - - - -- ~- --- - --

1029Trailers - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

" 305, 724Transmissions - .

- - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

3991) sed - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

116Automotive:

Pa~s - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

305Products- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -,

846Batting, textile fiber

- - .,. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Blankets, wooL - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - 62, 65Blouses , ladies

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1229Books - -

- - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~

~ 287, 293Box springs -

- - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

523Brushes , varnish -

- - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

124Cameras - -

- - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 789

China dinnerware -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

578Chinchillas- -- - -

- --

uu ----

- -

--- u u --- u -_u -- ----- ----- ---- 47, 885, 963C~areUes- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

439Clips , woolen - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

455Coats:

GirlsTextile fiber -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - --

VV 001- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

LadiesTextile fiber - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

999VV 001. - -

-- - -- - -- - - -- - -- - - - - - - - - - - - -

u u - -- -- - - - - - - - - 452, 930, 999Colognes- - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Cookware, waterless, stainless steeL - - - - u - -

- -

u - - u - -

- - - - - - - - -- - - -- -

728

Page724

999999

I Commodities involved in dismissing or vacating orders are indicated by italicized page reference;

1845418-345--72----86


DECISIONS .AND ORDERSPage

Correspondence courses:IBM-

Key punch machine -- ---

- -- -- -- - -- -- --

u - - - -- - u u -

- - -

u - - - 1036Tabulation machine

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1036Curi os - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - -

128De bt collecti on forms -- - - -

- - - --

-- -- - u - -

- - - -- -- - - - -- - - - - - -- -

u - - - - 58, 134Dinnerware , (;hina- - - - u - - -

- - -

u - - -

- - - -

u - u - -

- -

u - - -

- - -

u - - -

- - - - - -

578Draperies -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - -

811Dresses:

Ladies

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Flammable - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Textile fiber - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Drug preparations- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

S. Tonic

" - - - - - " - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Encyclopedias -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Fabric:Flammable- ------_u_----_u---_u_------------ 269 488 513 882 947Textile fiber, quilted - - -- - - u - -

- - - - - -

u u - - u

- - - - - - - -

u - - - - - - - 508, 925VV 001- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - 565 , 793

Quilted -

- - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - -

- - - - - - - - - - - - - - 508, 925Flammable product::.;:;

Dresse::.;: , ladies

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

266

Fabric--_-_-u_--_u_----_u_--_uu_---------- 269 488 513 882 947

Hair pieces , ladies

' -- - -- -

---- - --- -- u -_u-- -- ---

- - -

u u --- -

- --- _

696Wearing apparel_, -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

269

Friction materials- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

610

Fruit , citrus- - - - - -- - - ---- - - u - - --- -- -- - -- u uu- -

-- --- --- - - - -

u --- Furniture - --

- - - -

u_--- ---- --- -

- - - --- -- -- - - - - --

u- -

- -

u u_--- - 35, 120 436

Upholstering - -- -

- - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - -

811

Fur products_---------------_u_---- 111 299 459,- 482 497 558 573 778 835

G if t ware - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

578

Grocery products_---_u_----_u_--------------_u--- 950 1049 1050 1056

Hair pieces , ladies , fiammable- - -- - u - - -

- - -

u - -- - u - - u - u - - - u - - -

- -

696

Heating units- - -

- -- - -

-_u - ---- -

- - --

----u---_u -

- - - ------- - ---- - --

724

Hosiery - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

444

Children s- - - - - - - - - - - - - - - - - - - u - - u - -

- - - - - - -

u - u - -

- - - - - - - - - - -

468

Nlens - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

468

Household appliances------

---

u__u_--------_u_--_u--u_-- 287 293 840

Hydraulic products- - - --- - --- -- - -- -

------ - - - - - -- -- ----- - -- - - - ------

610

IBM:Key punch machine, correspondence course- - - - - -

- - - - - - - - - - - - - - - - -

1036

Tabulation machine , correspondence course- - - -

- - - - - - - - - - - - - - - - - - -

1036

Insurance- -

- -- - - - -- - - -- -- - -- - -- - - - - -- -- - - - - -- - - - - - - --- - -

- -- - -- -- 699, 841

Ironized Yeast" tablets -

- - - - -

u - - u - - - - u - - u u - - u - - -- -- - -- -- - - - 979

Jackets , ski - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

309

Leather products , luggage- - - - - --

--- -- - - - - - - -

uuu

- - - - - - -- - - - -

u - - 1043

Lending service- - - - -

- - - - - - - - - - - - -

u - -

- - - - - - -- - - - -

u - - - - -- - - -- - -- 376 711

Linen , ren tal- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

815

Loans- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - 376 , 711

Luggage, leather - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1043

11acaroni products- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

313

:Material , quilting, wooL - -

- -- - -- - - - - - - - - - -

u - -

- - - - - - - - - - - - -- - - - -

u -

778266

100310261058213

TABLE OF COMMODITIES 1347

Page

~attresses- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

523

~Ieat products- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - 973 , 990

Men s athletic jackets , wooL -- - - - -

- - - -- - -- - - - -- -- - - - -- - - - - - - - - - - - - --

~ewspapers___- - - - - -

- - - - - -- - - - - - - - - -- - - -- - - - - - - - - - - - - - - - - -- -- - - - - -

971

~ovelties_

- -- - - - - - - - - - - -- - - - - - - - - - - - - -- - - -- -- - - - - -- - - - - -- - - -- - - - - -

128

Paint___- - - -- --

-- - - ------ ------ -- - - - - -- -- - - -- - - - - -- -- - - - - - - - - - - - - -

124

Parkas - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

712

Perfumes- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - 16 , 474

Philatelic stamps - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Photographs- - - -

- - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - -- -- -- -- -- - - -- - - - - -

893

Plastic aluminum, non-metallic- -- - -- - -

- - - -- -- -- -- - - - - - - - - - - - - - - - - - -

272

Publications- -

----------- --------- - ---- -- ---- ------ -- --- - - - ---

5, 213 , 971

Quilting material, wooL__-_-----------------

-----------------------

Eladi 0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

789

Sets- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

512

Elainwear, wool- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

452

!teal estate- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

440

!teservations- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

803

Eletail merchandise - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1026

Sauces- - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

313

Scarves-___- - - - - - - -

- - - -- - -- -- - - - - - - - - - - -- - - - - - - - - -- - - - - -- -- -- -- - -

Sewing machines- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

955, 1007

Siding, aluminum_--

_- --- -- --- -- -- - - - - ---- - - - - -- -- -- -- - ----- -

- -- - 491 516

Ski pants- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

712

Skip-tracing forms_- -- -- --

---------- -- -- - -- - - - - - -- -- - - -- -- -- -- -- - - -

134

Skirts:Textile fiber- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

W 001- ---

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Slacks, men , wooL - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Slimodex" weight reducing product- -

- - -- - - - - - - -- - - - - -- - - - - - - - - - - - --

Slip covers___-_-- --

-- ---- -- - - -- - - -- - - - - ---- - - - - - - - - - - - - - - - - - - - - -

Socks:Texti~ ftber

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1020W 001- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1020

Souvenir items- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - 40 , 128

Sportswear:Ladies

' - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1229

Textile fiber - -

- - - -- ------ -- -- -- -- --- - -- -- -- ----- - - - - - -- - -- - - - -

569W 001- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

569

S. Tonic," drug preparation- ---- --- - --

-- -- -- -- --- --- -- -- - - - - - --

1058

Stainless steel cookwa.re, waterless- - -- - - -

- - - - - - - - - - - - - - - - - -- -- - - - - - - -

728

Stamps, philatelic - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Super Ironized Yeast" liquid______

------------ ---------- ---------

979

Sweaters - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - 504 , 712

Tarpaulins___-- -

- -- ---- - --- - - -- -- - - -- - - - - -- - - - - --- -- --- - - - - -- -- -- -

934

Television:Eladio and phonograph combinations____----

------------ ---- -----

687

Sets- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 512, 687

Tents - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

934


569569478

811

1348 FEDERAL TRADE CO1\1MISSION DECISIONS

DECISIONS AND ORDERSPage

Textile fiber products__-------------------------------------- 448, 463 796Batting- - - -

- -- -- - - -- ---- -- -- -- -- ---- -- - - -- - - - - - - - - -- -- - -- - - - -

Coats:Girls

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

999Lailies

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

999Dresses- - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

778, 1003

Fabrics, quilted - - - - -- -

- - - - - - - -- - - -- - - -- -- -- - - - - --

-- - - - -- - - - - 508 , 925Scarves- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Ski j ackets- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

309Skirts- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

569Socks - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - -

1020

Sportswear - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

569Towels- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

T-shir~- -

~- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

VVearing apparel_---- - -

- -- - - - - -- -- -- - - - - - - - - - - -- -- - - - - -- -- -- - - -

Toilet preparations: Colognes - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Perlu~es- - -- - - -- -- - - -- -

- -- - - - - - - -- -- - - -- - - - - - - -- - - -- -- - - - - - ~ -

Tools- - - - - -

- - - - - - - - - -- - -- - - - - --- -- -- - - - - - - - - - - - - - - - -- - ---- -

- - -- 287 293

Towels- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Toys__- - - - - - - - -- -

-- - -- - - - - -- -- - - - - - - - - - - - - - - -- - - - - - - -- - - - - - - - - - - -

128

Trading sta~ps - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1099

Trailers, automobile__- ------------------------------------------ 305 724

Trans~issions, auto~obile- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

399

T-s~rts - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - -

Upholstering, furni ture- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

811

Vacuum cleaners- - - -

- -- - -- - ------ ---- -- -- -- -- --- - ---------- - - -- -

955

VV atches- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

872

Wearing apparel:Fla~~able- ~

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Textile fi ber - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

VV eight reducing products

, "

Sli~odex

" - - -- - - - - - - - - -- - - - - - - - - - - - - -- -

Wool products - -,

- - ----- -

--------- ----h--- -

---- -_.'---- ----- -- - ----

Athletic jackets , men s -- - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - -

- - - - --

Blankets -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Carpet yarns, -

- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - ---

Clips , woolen -

- - - -- - ------ ---- -- -- -- - - ---- -- - --- --- - ---- - - --- -

coats-Girls

' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

999

Ladies

' ,- - -- - - -- - - - -- -- -- - -- - -- - -- - - -- - -- - -

- -- - - - -- - 452, 930 , 999

Fabric. -

- - -- ---- - -- - -- -- -

---------- -------- ------ ----------- 565 793

Quilted - -- - -

- - - - - - - - - - - -- - - -- - -- - - - ---- - - - - - - - - - - -- - -

--- 508 , 952

Quil ting ~a teriaL - -

- - -- - - - - -- - - - - -- - - - - - - -- - - - - - - - - -- -- - - - - -- -

Flainwear -

- -- - - -- -------------- ------- -- ------ - ---- --- --- -----

452

Skirts - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

569

Slack::, men s -.

_.. -- - -- - - -- -- - - -- - - -- - - -- - - - - - - - - -- - - -- - - -- -- - - -

478

Socks- - - - -- - -

----- ---- ------- --- -- -- - --- ----------- - ------ --

1020

Sportswear - -

- . -- -.- -- - -.- --- - - - - - -- -- - - - - - - - - -- -- - - - - -- - - - - -- -

569

Sweaters- -

- - '-- - ---- ---- - ------ --- ---------- ------- - - --- ------

504

Yarns - -- -- - - - - -- - - -- - - - -

- - -- - - -- - - - - - - -- - - - - - - -- - - - - -- - - -- - - -

283

Yarns , \voolen -

- . '- - -- - - - - - -- -

-- h - -

- - - - - - -- -- - - - - - - - -- - -- - -- - - -

- 283 , 463

269

778

46345.


ADVISORY OPINION DIGESTS*

Abrasive discs-

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,.

- - - - - -- - - - - - - (256)

Aeronautical supplies--- - -

- - - - - - - - - - - - - - - -

u - _u -- _u - - - u - - - -- (170)Athlete s foot remedy - u - U u _u - - u--- - u- u u- u (159) 1290, (161)Automatic machines--_- -

- - - -,. - - - - - - - - - - - - - - - - - -,. - - - - - - - - - - - -,.,.

(181)Automotive and equipmentu- u - - - u -- - - u u- -

- -

u uu - u - u - - (194)Automotive repair manuaL- -- u - - -- u - -

- - -- - - - - - - -- -- - - - -

u - - - (201)Bicycles- - - -

~ - - - - - - - - - -- - - - - - - - - - - - - - - - --- - - - - -- - - -- - - - - -

- -,. - (213)

Blades:Cutlery --- - - -

- - - - - - - - - -- - - - - -- --- - - - - - - - -- -- -- -- - - - - - - - - -

(217)Knife--_- - u u -

- - - - - - - - - - - - -

u - - -

- - - - - - - - - - - - -

u - - - - - - - - - (232)

Bonus certificates

" --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- -,. - - - - - (190)

Boots

, "

Hand Made

" -- - - - - - - - -

u -- U - U - - u U - - - u u - -- u u - - (197)Braided rugs- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,. - - - - -

(229)Brushes , shaving-paint_- - - - - - -- - -

- - - -,. - - - -- - - - - - - -- - -,. - - - - - - - -

(224)Building and construction--_- -

- - -- - - - - - - --- - - - - - - - - -,. -- - - - - - -- -

(259)Cabinet and desk drawers , slide assembly -- -

- - - - - - -

u" - u -

- - - - - --

(209)Ca talo gs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 200)Certificates , bonus- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - ( 190)

Check-cashing concessionaire

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(254)Chemicals- - - -- - - - -

- - - - - - - -- - - - - - - - - - - - - - ,. - - - - - - - - - - - - - - - - - - -

(231)Clamps , metal spring____- - - - - - - -- - - - - - - - -

- - - - - - - - -- - - - - - - - - - - -

(221)Clay products- ------

-- - - ---- -- -- -- ------ -- - --- -- -------- --

-- - (167)Closures- - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - ( 169)

Cloth , polishing - - - - -

- - - - - - - - ,. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (234)

Coin operated machines- - -

- - - - - - - - - - - - - - - - - - - -,. - - - - - - - - - - - - - -

- ( 175)

Computer and data processing equipmenL - - - -

- - - - - - - - - - - - - - - - - -

(205)

Concessionaire, check-cashing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 254)

Construction materiaL - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 174)

Consumer goods--- - -- - - -

- -

u - - -

- -

u - -- u u -- - u - -- (165) 1294, (189)

Cotton- - ---

--- --- - - - - --- ----- - - - ---- -- --- ------ -- - - - - -- - - -- -

(166)Crib mattresses - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - (247)

Cu tlery blades - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - ( 217 )

Dairy products--__-- _u--u__u---____ (176) 1299, (188) 1306, (192)Data processing equipment- - - -

- -

u - - -

- -

u U - - - u - -- u -- -

- -

u -- (205)

Dispensing machines- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - ( 173)

Electrical equipmenL - - - --

----- -

-- - _u_- - -

- - -- -- -- - - -- -

---- -- (164)

Eyelashes , false - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - -,. - - - - - - - - - - - -

(230)

Fabric - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 193) 1308, (206)

Fasteners , metaL - -

- - - - - - - - - -- - - - -

u - -- - -

- - - - - - - - - - - - - - - - -

u - - ( 251 )

F~hing ree~ -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 252)

Flatware- - - -

- - - - - - - - - - - -- -- - -- - - - - - -- -- -- - --" - - -- - - - - - - - - - - -

(255)

. The numbers in parentheses indicate digest numbers.

PaKe1340129612911302130913141320

132213271307131113261324134313181313130713381327132312951296132812991316133812981306129513341322130813161298129413261317133613361340

1349


ADVISORY OPINION DIGEST

FM tuners- -

- - - - - - - - - - - - - - - - -- - - - - - - - - - - -- - - - - - - - - - - - -

- - - - - - - (211)Food:

11achinery - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(218)Products-- _____--n_n----_n__-- (172) 1297, (177) 1300, (178)

(179) 1301 , (180) 1301, (182)

(184) 1304, (185) 1304 , (186)(238)

Freigh t- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

( 194) 1309, ( 246 )

General n1erchandise- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - (198)Gloves- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(223)Golf clubs- n - - -- -

- - -

n n nn ---

- - -- - - - - - - -- -

--- n n -- - - - - -- - (208)Grocery produc~- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - -

- - (243)Guarantees - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(248)Hand :Made" boots- - -

- -- - --

n n - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 197)Hoist- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(215)Honing stones- --

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(226)Household products__--- n- .--- -- .-___--_n_- -

- - - ----- -- - - -

--- (157)

Ice cream spade- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(222)Industrial products -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - . - - - .

- - - - - - - - ( 183 )Ink

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(242)Jewelry, synthetic stones- - -

- - -- - -.- -- - - -- ---- --- - -- - - -- - ~ - - - - -

(260)Job bel' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - . - - - - - - - -

(202)Joint venture- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -. - - - - - - - - - - - - -

(245)Jinife blades - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(232)Lamps , wooden- - - - -

---- - - - --- -- ----- ----- ----- -- -- ---- --- -

- - (214)Leather:

Goods - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 171 )Pulverized- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(225)Lighters___- - ------

- - ---- ------- -- -- - - - -- - -- -- -- - --- -- - -

- - -- - (196)Linen supply - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 168)

Lumber - -

------ -- - -.- - - -- --- - -- - --- - - - - -- - - -- - - - - - - - - - - - -- - -

(187)~1achinery, food____- -- - - -- - - --

--- -- ---- - -- - - ---- - - - - - - -- - - -

-- (218)Machines:

Automatic- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -. - - - - -

- - - (181)Coin operated- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - ( 175)Dispensing- -- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - ( 173)11agazines- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - . - - - - - - - - - - - - ( 195 )Manual:

Automotive repair -- -

- - -- - - - -- -

n_-. n__- --- -

- - --

n - - -- --- (201)Pricing- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 158)

Mattresses , crib - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - (247)Mechanical pencils--____--- --

------ -- -- - - -- -

--- --- - -- n - - -- --- (210)Medical device -

- - - - - - - - - - - - - - - - - . - - - - - - - - - - - - - - - -

- - - - - - - - - - - - ( 244)~Iesquite chips- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(239)Metal:

Fasteners - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - ( 251 )

Spring clamps__- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - (221)Milk- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - ( 162) 1292 , (199)N ails-- - -- - - - - - -- - - n - n - -

- -- -

n - - -- -- - - -

- - -

n - - -

- - - - - - - -

-- - - (227)Nervous stomach remedy -

- - - - - - --

n - -- - -- - -

- - - - - - - - -- - -

n - - - - - ( 160)Pencils , mechanical- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - ( 210)

Pai'e

1319

1322130013021305,

1329133313121324131813321334131113211325128913231303133213431314133313271320

129713241311129513051322

1302129912981310

131412891334131913321330

133613231312132612911319



Photographic:Accessories - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(216 )

Products__-- - - -- - -- - -- --

-- - - - - - -- - - - - - -- - - - - - -- - -

-- - -- -- - (163)Picture components__- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-- - - - - - (236)

Plan , promotional assistance -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(258)Play pen pads_--

~- -- - --- -- -- - - - -- - - - - -- - - - - - - - - - - - - - - - - - - - - - -

(247)

Polishing cloth - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(234)Pricing manuaL - -

- - - - - - - - - - - - - - - - - - - - -

-- - - - - - - - - - - - - - - - - - - - - - ( 158 )

Promotional assistance plan___- - - - - - - - -- -- - - - - - -- - - - -- - - - - -- - - - (258)

Publications- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

u - -

- - - - - - - -

(191)

Athlete s foot remedy___u_-_uu_uu_-_uuu (159) 1290, (161)Automotive repair manuaL- - -

- -- -- -

uu - u_- u -

--., - -

u - - -- (201)Catalogs___-- - - -- --

--- - - - - -- - - - -- - - - -- - - - -- -- - - - - -- - - - - --

(200)

11agazines- - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(195)Nervous stomach remedy --- - u -- - u - - u u - - u - - - u u- u - u (160)

Radios, two-way - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - (233)

Reels , fishing-- - -

. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

u - - - - - - (252)

Remedy:Athlete s foot___-_u_----------_u__u_------- (159) 1290, (161)Nervous stornach_- - - -

- - - - - - - - - - - - - - - - --- -- -- - -

- - -- - - - - - - - (160)

Rugs, braided_- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(229)

Sales promotion plan--_- -- - u - - u - _u -- - - u - - - --

--- - -- - -

- -- - - - (241)

Shower head components- - - u - - u- --- --- -

- - - - -- -- - -

u -- --- - - - - (212)

Slide assembly, cabinet and desk drawers-- - -

- - - - - - - - - - - - -

u - - - - - (209)

Switchplates- - - - u -- u u - - u -- u -- - -

- - - - - - -- - - - -

-- (219) 1323, (228)

Syn tlletic stones- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - -

(260)

Telephone answerin g machines - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(207)

Textile fiber products-- - -

- - -- - -- - - -

u - - -- u - - -- -

- - - - - - - - -

- - - - - (240)

Tools- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(220)

Toys- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(237)

Trade associations_____u_--------- ----- (249) 1335, (250) 1336, (257)

Tuners, FM_--_- - -

- - - - - - - - - - - - - -- - - - -- - - - - - - --- - - - - - - - --- -

- - - (211)

Warehouse, public- - - -

- -- - - - - ----- -- - -- - - - - -- - - - - - - - - - - - - - - - - -

(203)

Watches--_- - - -

- - - - - - - - -- - - - - - -- - - - - - - - -- - - - - - - - - - - - -- - - - - - - -

(204)

Wearing appareL_--_---------_u_---_u (2.06) 1317, (235) 1328, (253)Wooden larnps- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (214)

1351

Page1321129313281342133413281289134213071291131413131310129113271336

129112911326133113191318132613431317133113231329134113191314131513371320

INDEX


Acquiring corporate stock or assets: Clayton Act, Sec. 7__- 610 104-9 1050, 1056Adhesive qualities of product, misrepresenting as to strength___--__----- 272Advertising and promotional expenses, discriminating in price through.

~t See Discriminating in price.Advertising falsely or misleadingly:

Apartment availability, nonrestricted- - -

- - - - - - - - - - - - - - - - - -- - - - -

Business status, advantages , or connections-Connections or arrangements with others-

American Marketing Association-

- - - - - - -- -- -- - - - - - - - - - - -

213Concord Hotel Reservations Service/' etc--___---------- 803Hollywood Film Studios

" ----- - - - - - - -- - - -- - - - - - - - - - - -- -

893Kaiser Aluminum Company

- -- - - -- -- --- - - -- - - -- - - - - ----

516Parents

' -

Children s Institute

" --- -- - - - - - - -- - - -- - -- - -- - --

213Dealer being-manufactureL - -

- - - - - - -- - ---- - --

- - - -- - - - -- 474, 1043Individual or private business being- Guild" _____---------- 47 963Personnel or stafL --------------------------------------- 213 728Size or extent of business_ ___------------------------------- 213

Comparative merits of product-tar or nicotine content--____------ 439Composition of producL - - -

- -- - - - - -- - - - - - - - - - -- - - - - - - - - - - - - -- - -

687Fur Products Labeling Act- - -

- - - - - - -- - - - -

-- - - 111 , 299 , 482 , 558, 778Plastic Steel" - -- - -

- - - - - - - - -- - - -- - - - - - - - - - - -- -- - - - - - - - - - - -

272Textile Fiber Products Identification Act- - - - - - -- - - - -- - - - 30 , 778, 796

Condition of goods-factory rebuilt transmissions_--__----

---------

399Dealer or seller assistance______------------------------------- 885 963Demand for graduates___--_--------------------------

~--------

1036Distressed merchan dise

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1007Donations- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

213Earnings or profits--___----_h_-------------------------------- 213

Chinchilla breeding____-------_h_-------------------- 47 885 963En dorsemen ts- - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

213Financing_____------------------------------------ 116 376 711 1029Free goods or services-- - - - -

- - - -- - - - - - -- -

-- - - - - - - - 399 4-4-0 687, 803, 893Government approval , connections or endorsement- - - - - - - - - - - - - - - 439, 841

Department of Agriculture--_____- -------------------------- 973Guarantees_____-- 35 399 516 523 724 789 811 955 963 973 1007Individual' s special selection- - - -

- - - - - -- - - - - - - - -- - -- --- -

----- - 491 , 1036Jobs and employment__- -- - - -

--- - -- - - - - - - - - -- - -- -- - ----- -- - -- --

213Bait" offers___---

- --- -- -- - --- - - - -- -- -- -- -- -- --- - -- -------

1036Limited offers- -

- - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

440Loca tion of land- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

4-4-0

938

1 Covering practices and matters in\"olved in Commission orders. For index of commodities, see Tableof Commodities, References to matters involved in vacating or dismissing orders are indicated by italics.

1353



Advertising falsely or misleadingly-Continued Page

Old or used product being new-- -,----------------------- 482 789 1029Automotive parts and accessories- - -- - - - - - - - -

- - - - -- - - - -- - -- --

305Prices-

Additional costs unmentioiled- -- - -- -

- - - - - - -- - - - - - - - - - - - - - - --

399Bait" offers----___------------ 116 399 491 687 95. 973 990 1007

Catalog as retaiL___--__----------------------------------- 934Comparative_- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

990, 1007Demonstration reductions- - - -- - -- --

--- -- - -- - ---- -- - - - -

--- 491 516Exaggerated, fictitious as regular and customary -- - - - - - - - - - - - - - 35

, 213, 299 , 80~ 93~ 955, 1007 1029 , 1043Nationally publicized- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Percentage savings----__----------------------------- 111 299 516Savings- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1007 1043Stipulated- -- --- - -- -

- -- - ---- - - -- -- - --- - - - -- - - - - -- - - - - - -- - -

893Usual as reduced or speciaL___----_---------- 213 299 491 516 955

Prize contests- - - -

- - - - - - - - - - - - - ---- - -- - - - - - - -- - - - - - - - - - - - - - - - - -

955

Qualities or results of product-Adhesive strength- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

272Cooking utensils , waterless- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - -

728Durability or permanence- - -

- - - - - - - - - .. - - - - - -- - - - - - - - - - - - - - -

4911\'Iedicinal , therapeutic, healthful , etc_------ --- - --- -

- -- - - -- - - -

728lronized Yeast" tablets- - -

- - - - - - - - - - - - - - - -- -- - - - - - - - - -

979S. Tonic

" - - - -- - -- - - - - - - - - -- - - - - - - - - - - - - - -- - - - - - - -

1058

Quality of product___------------------------------------- 963 973 990Cont~ner- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Perfulne__- - -- -- - - -

- - -- --- - - -- - -- - - - -- - - - - - - -- - -- - - - -- -- - -

Quantity in stock_ _____------------------------------------- 687 1007Refunds__- - - - -

- - - - - - -- - - - - - - - - - - - - - - - - -- - - - - - --- -- - - -

- 803 973 , 1036Repairs , au tomotive- - -

- -- -- - - - - - - - - - -- - - - - - - - - - - - -- - - -- - - - - - - -

399Reproductive potentials of chinchillas-- - - - - - - - - - - - - - - - - - - - - - 47 , 885 , 963Scientific or other relevant facts___------------------------------ 439Services- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 399 , 803 , 885

Size or weigh t- - - - --

-- - - - -- - -- - - - - -- - - - - - -- - - - - - - - - -- - - - - - - - - - -

973Source or origin of product___----------------------------------- 558Special or limited offers- - -

- - - - - - -- -- - - - - - -- - - - --

-- -- -- - -- 491 , 893, 955Statutory requirements-

Fur Products Labeling Act. --

- - - - - - - - - - -- - -- - _

111 , 299 , 482, 558, 778Textile Fiber Products Identification Act- -- - -

- - - - - --

-- - - 30, 778, 796Terms and conditions- -- - -

- - - - - - - - - - - - - - - - - - - - -- - - - -- - - - - - - - - - -

893Insurance coverage- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 699, 841

Loans- - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - 376, 711

Sales contracts- --- - -- -

- -- -- -- - - -- - - --- --- - - - - - - _

491 516, 811, 955LJnauthorized- -- - - -- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- _

, 971

Value of land___-

---- - - - - - - - - -- -- - - - - - --- - - - - - - - - - - - - - - - - -- - - --

440Advertising matter, supplying false and misleading___- -47 272 724 , 728, 955, 973Allowances for services and facilities, discriminating in price through.

See Discriminating in price.American :Marketing Association , falsely representing connections with- --Apartment availability, misrepresenting as nonrestricted__-- -- - - - -

,.. - - ---

Associates " individual or private business falsely representing self asu_-

213938213

INDEX

DECISION S AND ORDERS

Assuming or using misleading trade or corporate name:Concealed subsidiary, fictitious collection agency

- - - - - - - - - - - - - - - - --

Connections or arrangements with others- Hollywood FilmStudios

" --- --- -- - --- --- -- -- - ---- ------ - - -- -- - - - - - -- - - - - - - - --

Dealer being-manufacturer - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Individual or private business being-Associates

" ---- ----- ---- -- - - - - - - - - --- - - - - - - - - - - - - - - - - - -

213

Guild" - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - 4 7 , 963

Western Coast Employers Assn.

" --- -- -- - -- - -- - -- - -- - - - -- - - -

Bait" offers, using to obtain leads to prospects-- -

- - - -- - - -- - - - - - -

- - -- - 116399 , 491 , 687, 955 , 973 , 990, 1007, 1036

Broadcasting equipment, discriminating in price through furnishing__---- 313

Brokerage payments and acceptances, unlawful, discriminating in pricethrough- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Buyers ' agents , discriminating in price through- -

- - - - - - - - - - - - - - - - - - - -

Catalog prices, misrepresenting as retaiL--__-_-----------------

-----

Catalogs , supplying false and misleading_-

- - - - - - - - - - - - - - - - - - - - - - - - - -

Claiming or using endorsements or testimonials falsely or misleadingly:Pron1inen t persons- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

United States Government, Federal Trade Commission___- - - - - - -

- --

Clayton Act:Sec. 2-Discriminating in price-

Sec. 2(a)-Illegal price differentials-Arbitrary discounts

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

840Credi t terms - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

313

Customer classification- - -- - - -

- -- -- - - - - - - -- - - - - - - -

120 436 840Fre~ goods - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

313

Freight allowances, ----- ----

--- - -- ------ - - --- - - --

_u--~ 313

Sec. 2(c)-:-Illegal brokerage payments and accepta.nres-Buyers ' agents- - - - -- -- - -

--- --- ------------ - ---- - -----

Sec. 2(d)-Allowances for services and facilities-Advertising and promotional expenses

- -- - - - - - - - - - - - - - - - --

Sec. 2(e)-Furnishing services and facilities-Broadcasting equipment, -

- ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sec. 2(f)-Indudng or receiving discriminations-Knowingly inducing or receiving discriminations___---- - 846 1026

Sec. 7-Acquiring corporate stock or assets---------- 610 1049 1050 1056Coercing and intimidating:

CustomerE' or prospective customers -

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Di~ributo~ - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Collection agency, fi ctitious -

- -- - - -- - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - -

Combining or conspiring to:Control allocation and solicitation of customers

- - - - - - - - - - - - - - - - - - -

Control marketing practices and conditions- -

- - - - - - - - - - - - - - - - - - -

Trading stamps distributor - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Eliminate competition to conspirators ' goods - -- - - - - - - - -

- - - - - - - - - --

Enforce or bring about Iesale price maintenance_-----------

------

Fix prices and hinder competition through-fixing and main-taining prices -

- - -- - - - - - - - - -- - - -- - - - - - - - --- - -

- - - - - - - - - - -- - - - 578 815Comparative merits of produ ct , misrepresenting as to -

- - - - - - - - - - - - - - - - -

439

Comparative prices, misrepresenting as tOn - - - -- - --

- - - -- - -- -- -- - -

- 990, 1007

1355

page

893474

950950934934

134

950'

313

313

1099

815815

1099815712


DE-CISIONS AND ORDERSPage

Composition of product, misrepresenting as to_------------------ 124 272 687Fur ProduL ts Labeling AcL -

- - - - -

111 , 299 , 459 , 482, 497, 558 , 573, 778 , 835Textile Fiber Products Identification Act____-----------------______. 30, 309 444 448 463 468, 508, 778 , 796, 925 , 1003, 1020 , 1229

Wool Products Labeling Act--___---------u__--_--_ , 30, 62, 65 , 283,452 455 463 478, 504 , 508, 565 , 569, 778 , 793, 925, 930 , 999, 1020

Concealing, obliterating, or removing law-required markings. See Substi-tuting nonconforming labels.Concord Hotel Reservations Service " misrepresenting connections or

arrangements with_- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Conditions of goods, misrepresenting transmissions as factory rebuilL_- --Connections or arrangements with others, misrepresenting as to:

American Marketing Association - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - -

Concord Hotel Reservations Service " etc- - - -

- - - - - - - - - - - - - - - - - --

Hollywood Film Studios

" -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - --

Kaiser Aluminum Company

------ -- - - - - - -- -- - -- - - - - - - -- - - - - - - - --

Labor union- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Parents Children s Institute" n- -- - -

- --- -- --- - - - -- - - -- - - - -- - ---

Contracts and agreements, maintaining resale prices throughn- - -

- -- - ---

Control allocation and solicitation of customers, combining or conspiringto - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - -

815Control marketing practices and conditions, combining or conspiring to- - - 815

Fix distribution of trading stamps- - -- -

- -- - --- - - -- - - -- - - -- - - - ----

1099Cooking utensils, waterless, misrepresenting through quality - - -

- - - - - - - - -

728Credit terms, discriminating in price through__h- -- -- -- -- -- -- -- -- -- - - 313Customer classification , discriminating in price through_n_-- - - -- - 120 436 840Customers or prospective customers, coercing and intimidatingh -

- - - - -- -

Cutting off supplies from franchisees_--___--------------------------- 578Cutting off supplies or service-threatening disciplinary action- -

- - - - - - - -

1099Dealer falsely representing self as-manufacturer--___-------------- 474 1043Dealer or seller assistance, misrepresenting as to- h -- - - -

- - - - - - - - -- -

-- 885 , 963Debt collection forms, supplying false and misleading- - - - - - - - - - - - - - - - - 58 , 134Demand for graduates , misrepresenting as to_n--___--_--------------- 1036Demonstration reductions, misrepresenting prices through - - - - - - - - - - - - 491 , 516Department of Agriculture , falsely claiming connections with- - - -

- - - - - - -

973Discounts, misrepresenting prices through- - - - - - - - - - - - - - - - - - - - - - 287 293 840Discriminating in price in violation of:

Sec. 2, Clayton Act-Sec. 2(a)-Illegal prie;e differentials-

Arbibary discounts- --

- -- -- - --- - -- - - - - ---- - - - - - - - - - - - - -

840Credit terms- -- - -

- - - - -- - - - - - - - - - - -- - - - - - -- - - - - - - - - - - - -

313Customer classification__----h------------------- 120 436 840Free goods -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

313Freight allowances

- - - - - - -- - - -- - - - - - - - -- -- - - - - - - - - - - - - - -

313Sec. 2(c)-Illegal brokerage payments and acceptances-Buy-

ers ' agents -- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Sec. 2 (d)-Allowances for services and facilities--Advertising andpromotional expenses

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sec. 2(e)-Furnishing services and facilities-Broadcastingequipment -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Sec. 2(f)-Inducing 01' receiving discriminations-Knowinglyinducing or re.:;eiving discriminations__--__-------------- 846 1026

803399

213803893516971213712

313

313

INDEX

DECISIONS .AND ORDERS

Discriminating in price in violation of--ContinuedSec. 5-Fedelal Trade Commission Act-Knowingly inducing and

receiving discrimina ti ons - - - - - - - - - - - - - - - - - - - - - - -

-. - - - - - - - - - - - -

1029Dismissal orders:

Complaint charging nine Arlington , Va. , apartment complexes withdeceptively advertising that their facilitie~ were available withoutregard to race , color, Ol" national origin dismissed -

- - - - - - - ~ - - - - -

Land development company older charging land misreplesentationdismissed - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

l\faj or food chain having divested all but one of required divestitures-Commission vacated the existing cear:,e and de~ist order - -

- -- - - - - - -

1049Order agaimt now dissolved mortgage loan company and its officers

dismissed - ,- - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - -

Order dismissing case against motor company for violation of Sec.2(a) of Clayton Act pmsuant to a decision of Court of AppealsSeventh Circuit- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Prot.,eeding against nine automotive parts distributors for allegedlyinducing discriminatory prices from suppliers dismissed - -

- - - - - - -

Radio and TV set distributor order c:harging failure to disclose coun-try of origin of certain parts dismissed -- - - - - -- - - - - -

- -

u - - - -- - - Distressed merchandise, falsely representing as- -

- - - - - - -

u - - u - -

- - - - ---

Distributor~, coercing and intimidating - --

- - - - - - - -- - - - - - - - - - - - -- -- - - --

Divestiture orders. See Acquiring corporate stock or assets.Domestic products, misrepl'esenting as imported___------------------ 124 128Donations, misrepresenting as to_---_u__u_-_u_----------_uu_-- 21:3Durability or permanence of product, misrepresenting through quality - - - 491Earnings and profits, misrepresenting as to- - -

- - - - -

u - - u - - - u u u - -- - 213Chinchilla breeiling- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - 4~ 885 , 963Eliminate competition to conspirators ' goods , combining or conspiring to- 815Endorsements, misrepresenting as ton - - u - u - - u - - - u - -

- - - - -

u - -

- - - -

213Perfurnes- - - - -- -- -

--- -- --- -- -- - -- - - - - - - - --- - - - - - - -- - - -- - - - - - - -

Endorsements or approval of product, falsely claiming:Federal Trade Commission -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Prominent persons__- - -- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - --

Enforcing or bringing about resale price maintellanceconcertedlY___h_--Federal Trade Commission Act:

Invoicing falsely undeL - -

- - -

u - u - - u - --

- - - - - -

u - - -- - - - 1 , 283, 455, 565Knowingly inducing and receiving discriminations- - -- -

- - - -- - - - - - - -

1026Fictitious collection agency -

- ..! - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Fictitious pricing__- 35 213 287 293 299 803 972 934 955 1007 1029, 1043Financing, misrepresenting as to----------_u_------------ 116 376 711 1029Fixing prices concertedly. See Combining or conspiring.Flammable Fabrics Act:

Furnishing false guaranties under

- - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - -

269Importing, selling or transporting flammable wear undeL_--

.,

u - - - - - 266269, 458, 513, 696, 882 , 947

Foreign odgin of product, misrepresenting as to- - - - - - - - - -- - - - - - - -- - - 444 478Free goods or services:

Discriminating in price through

- - -- - - - -- - - -

u - - h - -- - -

- -- - - - - - - -

313Misrepresenting as to - - u - - - -

- - - - - -

u - 58, 287, 293 399 440 687 , 803 , 893Freight allowances , discriminating in price through___

__-

r--_uu----- 31:3

1357

Page

938

440

711

840

846

51210071099

134

712



Furnishing means and instrumentalities of misrepresentation or deception

- -

287Advertising matter--_--___----_nn_n_------ 47 272 724 728 955 973Catillogs__- - -- -

---------- --------- -- ---- ---- - ----- - ---- ---- -

934Debt collection formS___n_n_--------_n_-----_n_--------_n 58 134Nondisclosure of-

DomestilJ origin of product- - - -- -- - -

- - - - - - - - - - - - - - - - - - - - - -

Foreign origin of producL - n n -

- - - -

n - n - - n n -

- - - - -

n n - --Old or used condition of product_--_-_nn_-_n_------------

Preticketing merchandise misleadingly

- - - - - - - - - - - - - - - - - - - - - - - - -

Tags, labels or identificatiolL - - n_- - --

- - -

n -- - -

- --- --

---- n -

- ---

Furnishing services or fa.cilities , Sec. 2(e), discriminating in price through-broadcasting equipment- - - - -

- -

n - - -

- - - - - - - - - - - - -

n n -

- - -

n - -

- - - --

Fur Products Labeling Act.:Failing to reveal information required b~' - - 111 , 299, 459, 482, 497 , 5;j8 , 573

778 835

False advertising underp_h___------------------- 111 299 482 558 778False invoicing under___-n_--------------_n- 111 459 497 558 573 835Furnishing false guaranties under -

- -

n - -

- -

n -- - -

- - - - - - - -

n - - - - - 482 , 497

Misbranding under - - - - - - - - - - - - - - - - - - 299 , 459, 482 497, 558 , 573, 778 , 835Genuine American Indian products, simulating as- -- - -

- - - - - --

n - -

- -

n - 128

Government:Documents , simulating as____---------nn-nnnn---nn----- 134

Falsely representing approval , connections or endorsement by - 134 , 439 , 841Department of Agriculture -

- - - - - -- - - - - -- - - - - - - - -

n n -

- - - - - - -

973

Guarantees, misleading_____ , 44, 47, 399, 516, 523, 724 , 788, 811 , 872, 95;j , 96:3

973 , 1007 , 1020

124128305

872

313

Guaranties, furnishing fals,e:Flammable Fabrics Act_- - - --

---- - - --- - -- -- -- ---- -- -- - - - --- - - - __

269

Ful' Products Labeling AcL - - -

- -

n __n__--nn -

----- -- -

- - n - 482 497Textile Fiber Products Identification Act_n_________n___- 309 468 1229Wool Products Labeling Act- - _n-- - nnn -

- -

n -- --- - -- __n- - - ;j65 930

Guild " individual or private business falsely representing self as- - - - - - 47 , 963

Hollywood Film Studios " misrepresenting connections or arrangementswith- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Identity of product, misrepresenting as to- - - n n -

- -

n - - n - - -

- - - - - - - --

Imported product, misrepreE'-enting as domestic - -- - -

- - - - - - - - - - - - - - - - -

Importing, selling or transporting flammable "'ear: Flammable FabricsAct____---------------------------------- 266 269 488 513 696 882 947

IndivIQual or private business falsely represented self as:Associates

" - - - - - - - - - - - - - - - - - - - - - - - - - - - -,. - - - - - - - - - - - - - - - - - - - - -

213

Guild" - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - 47 , 963Western Coast Employers Assn. " ___n - - n - - -

- - - - -

n- n n - - n - - - Individuill' s special selection , misrepresenting as to. -- - -- - -- 287 , 293, 491 , 1036

Inducing or receiving discriminations in violation of:Clayton Act, Sec. 2(f)_____----______n____n_____--_n_____- 846 1026

Federal Trade Commission Act, Sec. 5__--__ _-------------------- 1026

Insurance coverage, misrepresenting through terms and conditioDs.n_- 699 841

Interlocutory orders: See also Interlocutory orders with opinions.

Denying-Dismissal on ground complaint counsel was late in filing appeal

notice; also granting respondents extension of time to file reply - - 1235

Motion to dismiss complaint and quash examiner s order for post-complaint investigation--__- - - -- -- -- - - -- -- -

- -. -- - - -- - - - - --

1250

893

512

INDEX 1359


Interlocutory orders: See also Interlocutory orders with opinions-ContinuedDenying-Gontinned Page

Request for issuance of subpoena duces tecum to president ofcorporate respondent____- - _u_- - -

- - - - - - - - - ------ - - - - - - - --

1238Request to remand case to receive evidence disproving certain

facts allowed on record by official notice._____-------------- 1239Respondent'

Appeal from examiner s order for subpoena duces tecum_

__-

1235Reqnest-

For reconsidation and alteration of final ordeL-- - - - u - 1285For withdrawal of case from adjudication for consent

order procedure- - - -

----- - -- -- --------------- - - --

1240That proceeding be withdrawn from adjudication__u - - 1268To file answer to complaint counsel' s affidavit regarding

hearing in more than one place--_____------------- 1282Gran ting-

Leave to file appeal from examiner s ruling relative to witness in-terview reports -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Respondents ' request to quash subpoena duces tecum directed topresident of corporation

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Several third parties permission to file one consolidated brief in-volving subpoenas directed to them___--__-------_hh_----

Order directing responder-ts and complaint counsel to file affidavits onquestion of holding hearings in more than one place____--_-------

Remanding-ComplaiDt counsel' s request for issuance of subpoenas ad testifi-

candum to hearing examiner -- -

- - - - - - - - --

h - - -

- - - - - - - - - - --

Request for consent order procedure for resuqmission to Commis-sion-Sec. 2. 34 (d) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - --

Respondent' s request for disclosure of certain documents to thehearing examiner to allow respondent to supplement its appli-cation_- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Reopening case and setting aside complaint and order as to corporaterespondent____- - - - - - -

-- - - - -- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - --

Interlocutory orders with opinions:

Denying-Appeal from examiner s order scheduling hearings in more than

one place - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

lVIotion-Of 14 third party cement companies to strike re, pondent'

appeal brief relating to subpoenas directed to them - - h --To dismiss complaint on grounds Chairman had prejudged

the case- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

To disqualify Commissioner Jones and for additional infor-ma tion and stay -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Petition to reopen proceeding for purpose of amending a prohibi-tion therein -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Respondents ' motion that Chairman be disqualified from.11earingthis caEe -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Third party

Appeal from examiner s refusal to quash subpoena duces

tecuD1- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - :- - - - - - - - -

Motion to quash subpoena directed toit on behalf of respond-en t- - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1288

1236

1284

1241

1288

1237

1237

1260

1259

1286

1242

12.

12.

1264

1247

1252


DECISIONS .AND ORDER!S

Interlocutory orders with opinions--Continuec1Granting-

Complaint counsel' s appeal from ruling against amending trialbrief as to cost justification______------------------------- 1269

Respondent' s request that they be furnished a list of acquisitionsof portland cement companies manufauturing ready-mixed

concrete from 1965 through 1968______-------------------- 1261Intimidating and coercing. See Coercing and intimidating.Invoicing products falsely:

Federal Trade Commission Act___----------------------- 1 283 455 565Fur Products Labeling AcL - - -- -- - - - - - - - - - - - -- 111 , 459 , 497 , 558, 573, 835

Ironized Yeast" tablets, misrepresenting quality or results oL -- - -

- - - - -

979Irregulars" or "seconds " hosiery, misrepresenting as first quality - - - u - - 468

Jobs and employment, misrepresenting as to-------------------------- 213Bait" offers_- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1036Kaiser Aluminum Company, misrepresenting connections or arrange-

ments with- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Knowingly inducing or receiving discriminations in violation of:Clayton Act, Sec. 2(0--------------------------------------- 846 1026Federal Trade Commission Act_- - - - --

-- - - -- -- -- - - - -- - -- - - - -- - - - -

1026Labor union , misrepresenting connections or arrangements with- - - -

- -- - -

971Limited offers , misrepresenting as to--------------------------------- 440Loans, misrepresenting through terms and conditions- - -- -

- - - - --

-- - - - 376, 711Location of land , misrepresenting as to-- -- - -

- -- -- - - - - - -- - -- - - -- - - -- --

440Maintaining resale prices:

Contracts and agreements- - - - u - - - - -- - -u -- -

- - -- - - -- -- - -- - -- - - -

712Price schedules and announcements____- ---

----- ---- --- - - - - - - -- - -

578IVlanufacturer , dealer falsely representing self as_----__------------- 474 1043l\-1edicinal , therapeutic , healthful , etc. , qualities of product, misrepresent-

ing as to - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Ironized Yeast" tablets- - - -- -

- - - - - -- - - -- - - - - - - - - -- - - -- - - -- - - --

S. Tonic

" - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Merger proceedings. See Acquiring corporate stock or assets.Mis branding or mislabeling:

Composition of product-Fur Products Labeling Act- - - - - - - - - - - 459 , 482 , 497 , 558 , 573, 778, 835Textile Fiber Products Identification Act- - - - - - - - - -- - - - - - - - - - - 12

309 , 444 , 448, 463, 468, 508, 778, 796 , 925, 1003, 1020, 1229Wool Products Labeling Ack____--_------------------------

30, 62 , 65, 283 , 452, 455 , 463 , 478 , 504 , 508 , 565, 569, 778, 793925 , 930, 999 , 1020

Prices -- - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Source or origin of productu -- -

- - - - - - - - - - - -- - - - - - - -- - - - - - - - --

Place-foreign origin of product-- - -

- - -- - -- -- -- -- -- - - -- -- -- --

Statutory requirements-Fur Products Labeling AcL - - - - - - 299, 459 , 482, 497, 558, 573, 778, 835-Textile Fiber Products Identification Act___------------------ 12

4~ 30~ 444 , 44~ 46~ 468, 50~ 56~ 778 , 79~ 92~ 99~ 100~ 102~1229

Wool Products Labeling Act-- -- - -

- -- - -- -- - - - - - - - - - -- - - - -- - -

30, 62, 65 , 283 , 452, 455 , 463 , 478, 504 , 508, 565, 569, 778, 793

925, 930, 999 , 1020

Page

516

728979

1058

299-558478

INDEX 1361

DECISIONS AND ORDERSPage.

Misrepresenting business status, advantages, or connections:Concealed subsidiary, fictitious collection agency

- - - - - - - - - - - - - - - - --

Connections or arrangements with others-American :Marketing Association

- -- - - - - -- - -- - -- -- -

Co

- - - -- - - - -

213Concord Hotel Reservations Service " etc-- - -- - --

- - - - - - - - - - -

803Hollywood Film Studios

" -- - - - - - -- -- - - -- - - - - - -- -- -- - -- - -- - -

893Kaiser Aluminum Company -

- -- - - - -- -- -- - - -- -- -- -- -- - - - -- - -

516Labor Union -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

971Parents Children s Institute

" -

n- - -- - --- - -- -- - --

---- - - - -- - -

213Dealer being-manufacturer - - - --- - --

---- - -- - -- - - - -- ----- -

- - - 474, 1043Individual or private business being-

Guild" --

---- - - --- - - - - - -- - - ------ -- ------ -- --- ---

-- - - - -- 47, 963Western Coast Employers Assn.

" --, -- - - - - - -- -- - - - - - -- -- - -- -

Personnel or staff ----------------- ;.-------------------------- 213 728Size or extent of business____----------------------------------- 213

Misrepresenting directly or orally by self or representatives:Business status, advantages or connections-

Concealed subsidiary, fictitious collection agency - -- -- - - - -- - -

---

Connections or arrangements with others-American Marketing Association - - - - - - -

- - - - - - - - - - - - - - - --

Kaiser Aluminum Company -

- - - - - - - - - - - - - - - - - - - - - - - - -

Labor union- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Parents Children s Institute

" - --- - - - - - - - - - - - - - - - - - - - - --

Dealer being-manufacturer - - - --

- - - - - - -- - - -- -- - - -- -- - -- - ---

Individual or private business being-Guild" u------------------------------------------- 47 963Western Coast Employers Assn. " -- u

---- --- --- -- - --- - - -

Personnel or staff _n----__-_----------------------------- 213 728Size or extent of business____------------------------------- 213

Com p osi ti on of product - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 124

Dealer or seller assistance_____-------------------------------- 885 963Demand for graduates- - -- - - ----------------_u_----------

----

1036Donations- - - - -- -

--- - - -- - - - - - ---- --- - - - - - --- -- - - ---- - - - - - - --- -

213

Earnings or profits--- - - -- - --

- - - - - - - - - - - - -- - - - - -- -- -- - - - - - - -- - - -

213

Chinchilla breeding_____------------------------____-- -47, 885 , 963Endorsements___- - - - - --

-- - - - - - - - - - - - - - - - - - -- -- - - ---- - - -- - - - - --

213

Perfurne- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Free goods or services----------------------------______ , 287 , 293 440Government approval , connections or endorsementn____----______ 134, 841

Guarantees_--_-_----------____--_ , 47 , 516, 523 , 811 , 872 , 955 , 963 1020

Identity of product___-- -

-- - - -- - - -- - --- -------- - - - - -- - - - --- - ----

Individual' s special selection- - - -

- - - - - -- ---- -- - - - - - -- - _

287 , 293 , 491 , 1036

Jobs and employment_-- ---- -

- - - - - -- - --- - - - - - - - --- - - - --- - - --- --

213

Bait" offers_- - - - - - - - - - - - - - - - - -

- - - - - -- -- - - - - - - - -- - - - - - - ---

1036

Limited offers-- - -- - -

- - - - - - -- - - - - - - - - - - -- - - - - - - - - ----- - - - - - - - --

440Location of land--_---__--------------------------------------- 440Old or used product being new---------------------------------- 789

Automotive parts and accessoriesu

- - - - - -- -- - - - - - - - - - - - - - - - - -

305

Prices-Bait" offers- - -- -- -

----- - ---- -'- -- -- - - --- -- - -- -

- - -- - -- -- -491 , 955

Demonstration reductions- - - - -

- - - - - - - - - -- - - - - -- - - - - - - -

- -- -491 , 516

Discounts- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - 287, 293

418-34~72----87

213516971213474

1362 FEDERAL TRADE COMMISSIO~ DECISIONS


Misrepresenting directly or orally by self or representatives-ContinuedPrices-Continued Page

Exaggerated, fictitious as regular and customary--_--__-------- 35,, 213, 287 , 293, 872, 955

Fictitious preticketing.,-- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Nationally publicized---

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Percentage savings--- - - -

- - - - - - - - - -- - - - - - -- - -- - - - - - - -- - - ---- .

516Savings___- - - - - - - u u -

- - - -

--- - - --- - u

--- - - - - -- - - -

287 293

- ------

Usual as reduced or speciaL__u___u______ 213 , 287, 293 491 516 955Prize contests__-----_u_----_u_----_u_------- --- - 287 293 955

- ----

Qualities or results of product-Cooking utensils , waterless_- - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

728Durability or permanence- -

- - - -- --- - - - --

-u --- --_u- --- --

--

491Medicinal , therapeutic , healthful , etc_- - - - - - - - - - - - - - - - - - - - - - - - 728

Quality of produet_- -------_u__u----------------------------- 872Container --- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Hosiery- irregulars" or "seconds

" - - - - - - - - - - - - - - - -- - - - - - - - - -

468Perfun1e- - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - -

Ftefun ds- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - -

1036Fteproductive potentials of chinchillas--____------------_____ -47 , 885 , 963Ser\~ces- - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

885Source or origin of product-

Domestic product as imported--_____------------

----______

124 , 128Foreign origin- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

444Special or limited offers___-

- --- ---- ------ - - - -- - - - - - - - --- --- - - -

A91 95;)Surveys____- - - - - - - - -- - - -

--- - - - - - - --- - -- --- - - -- - -- - - - -- -- _

213 , 287 , 293Terms and conditions-

Insurance coverage- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 699 , 841

Sales contracts- u- Uu - u _u-

- - --

u - u - u u- - ___ -491 , 516, 811 , 955Value of land-- - -- -- -- - u- - --

- ---- -- - -

u-- u u - - _u- - -

- - -

u - -- 440Misrepresenting prices:

Additional costs unmentioned_- -- u --- -

- - - - - - -- -- - -

u -- - - --

- - - - -

399Bait" offers___--u_----_u_u_---- 116 399 491 687 955 973 990 1007

Catalog as retaiL--uu - u u- u -- -- -- u _uuu -- u - - -

- -

_u -- - 934Comparative__- ---

-- -- - -

- -- -- _u - -

- --- - --- - -

- _u- - -

- -

-u _u 990, 1007Demonstration reductionsu - - -

- - - -

u - u u -

- - -- - - -- -

u U - U U - 491 , 516Discounts- - - - - -- -- -- u - - u u_- - - -- u_- --

----- - -- --

uu u -- - 287 , 293Exaggerated , fictitious as regular and customary

----- - - - -

u - - -

- - -

u 35, 213 , 287 , 293, 299, 803, 872 , 934 , 955 , 1007 , 1029 , 1043

Fictitious preticketing- -- - u - u - -

- - - - - - - - - - - -

u - - -

- - -

u - - -

- -

u - - 3;)

Nationally publicizedu- u -- u - u -

- - -

uu- --

- - - -

u -- - - - u - _u- - Percentage savings--___---_uu_---uu----_u_-_u---_u 111 299 516Savings- -- -- - -- u- --_u- u -- U - - - - -- - - u -- u _uu 287, 293 , 1007, 1043Stipulated _

: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

893Usual as reduced or speciaL - -- - -

- -- - - -

u - 213 , 287, 293 , 299, 491 , ;)16, 955Modified orders:

Chain grocery firm limited to acquisition of other chains with ;) ormore stol'e, ~ annual sales of $5 million and 5 percent of tradeshare- - -- - - - - - - - - - - - - - - - - - - -

- ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

1056Order against mail-order seller of photo enlargement" , modified by add-

ing prohibition against representing customers will receive colorenlal gements without added cosk - - - u - -- -- - -

- - - -- - - - -- - -

u - -- 893

INDEX 1363


Modified orders--Continm~dOrder prohibiting supermarket chain from inducing discriminatory

prices modified to include retailers who buy through wholesalers aswell as direct-buying retailers - -

- -

n n -- -

- -- -- - - - -

n -- n n -

- - - -

1026

Publishing firm s order against misrepresenting that it wa" affiliatedwith labor union modified to allow publisher of newspaper to showthat the paper is in fact so affiliated- u n -

- - - - - - - - - - -- - -

n - n --Respondent allowed to use trade name " Plastic Steel" if labels have

proper qualifying 1anguage- --

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Tobacco company allowed to compare tar and nicotine content of itsfilter cigarettes with that of other companies , based on governmentfindings- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -. - --

Mutilating or removing law-required labels: Textile Fiber ProductsIdentification AcL -

- - - - - - - - - - - - - - - - -

n - - -

- - - - - - - - -

n - n -

---- --

Neglecting, unfairly or deceptively, to make material disclosure:Composition of product-

Fur Products Labeling Act-- - -

- - - _

111 , 299, 482, 497, 558, 573 , 778 , 83;)

Textile Fiber Products Identification AcL - - - - - - - - - - - - - - - - - - - - 12, 463 , 468 , 508 , 778 , 796, 925 , 1003, 1229

Wool Products Labeling AcL--_n---_n_____

---______

A78 , 504 , 778

Guarantees - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

789

Old or used product being new_nn-------------_n_-----______ 482, 789

Automotive parts and accessories_- _ n -- un u- -

-- -- -

----- n - 305

Prices- -- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - 39~ S03

Qualities or results of product-Medicinal , therapeutic , healthful , etc. S. Tonic

---------

1058

Source or origin of product-domestic as imported_- - - u -- -- - -

- - -

128

Statutory requirements-Fur Products Labeling AcL - - _ 111 , 299, 459, 482, 497 , 558, 573, 778 , 835

Textile Fiber Products Identification AcL - u -- U - - - - - - - - - - - - - 12, 40 , 309 , 444 448 , 463, 468, 508, 569, 778, 796 , 925, 999 , 1003

1020 , 1229Wool Products Labeling Act- - n n n n -

- - - - - - - - - - - - - - - - - - -

n 1, 62 , 65 , 283 , 452, 455, 463 , 478, 504, 508, 565 , 569 , 778, 793

925 , 930 , 999 , 1020Terms and conditions-

Insurance coverage

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

699

Loans____- - - - - -

- -- -- - --- - - - - - --- - - - - - - - - - - ~ - - - ----- - - - - _

376 , 711

Sales contracts_nn_--_n__u_n_u uu_------_

_____

A91 , 811 955

New, misrepresenting old or used product as___--nu_______ 305 , 482 , 7S9 , 1029

Nondisclosure of:Domestic origin of producL - -

.;. -

_nn- - U - U - U U - - - - n - - --- - - -- 124

Foreign origin of product- - -

- - - - - - - - - -- -

-- - u - - -

- - - - -

u -- n n -

- -

128

Old or used condition of produck - -

- - -

u - -- - -

- - - - - - - - -- - - - - - -

u - 305

Old or used product, misrepresenting as new - - - - - - - - - - - - - - - - 30;5 , 482, 789 , 1029

Parents Children s Institute " falsely representing connections or ar.,

rangemen ts ~~ th- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

213

Percentage savings, misrepresenting prices through- - - -- - - -- -

- - - - _

Ill , 299 , 516

Perfumes, simulating through numerals, letters or symbols_u__nn_---- 474

Personnel or staff , misrepresenting as to

- - - - -

n - - -

- - - - -- - -

u - - u n - - - 213 , 728

Preticketing merchandise misleadingly - - - - - -

- - - - - - - - - - - - - - - - - - - - - -- - -

Price discrimination. See Discriminating in price,Price-fixing conspiracy. See Combing or conspiring.

Page

971

272

439



Price schedules and announcements , maintaining resale prices through- - - --Prices, misrepresenting. See Misrepresenting prices.Prize contests , misrepresenting through_--_____u_--_uu__u_u 287 293 955Prominent persons , falsely claiming endorsement or approval by u u - - u Qualities or results of product , misrepresenting as to:

Adhesive strength- - - - -- -

- - - -- - - - - -- - - -- - - -- - - -- - - -

u- - --

- - - - - -

272Cooking utensils, waterlessn--- - u - U - U

- - - - - -- - - - - - -

u - u - u - - 728Durability or permanence-- - - u- -

- - -

u- -

- - -

u - - u u uu -- - _u - - 491:Medicinal , therapeutic, healthful, etcnnu_uuu____U_Uh_UU 728

Ironized Yeast" tablets -- - - h U U - - - - - U U U - - U h U U U - - 979S. Tonic" --_h____--_-_h__U___--_-_UhU____-___h 1058

Quality of product , misrepresenting as to - h - - - -

- -

h h - - - - - - 872, 963, 973 , 990Container - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Irregulars" or "seconds " hosiery ---- - h U - - h - - - - - - U h - - h - -

- - -

468Perfume- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Quantity in stock, misrepresenting as to- U U - U - - -- h - - -

- - - - - - -

h - 687, 1007Rebuilt, factory, misrepresenting as tou__UUU_h_h____uuuuu 399Refunds, misrepresenting as to-__U__h__U_U_-----_u__u_- 803 973 1036Removing, obliterating, concealing law-required or informative mark-

ings. See Mutilating or removing law-required labels.Repairs, automotive, misrepresenting as to-- -- - U - h - U U - - - U h - U - - 399Reproductive potentials of chinchillas , misrepresenting as to_____h 47 885 963Sales contracts, misrepresenting through terms and conditions_-- - - U - - h 491

516 , 811 , 955Savings , misrepresenting prices through_____uuuh_uu 287 293 1007 1043Scientific or other relevant facts , misrepresenting as to---UUU__hUU 439Securing:

Information by subterfuge_____u_--_u_u_-_uu_---------- 58 134Orders by deception-- - - U - U - - U h U U - U U - U U U - U - U U U - 5, 44Signatures wrongfully --- - -- - - u- - -- - - -- - _U- _u - U- - -- - - - - - - - 399

, .

j16Services , misrepresenting as to_-_UU_----_UU_-_U_UU_---- 399 803 885Shipping, for payment demand , goods in excess of or without order - - - - - - 5 , 44

Stamps__- --

--- -- -- - - -- -- -- - -- - - - - - - - -- -- -- - - - - -- - - - -- - - - - - -- -

Simulating another or produl.;t thereof:Genuine American Indian products- - - h - - h -- - - - U - h - - - U U U - - 1~8Government documents -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

134Perfumes-numeral.; , letters or symbols- - - -- -- - -

- - - - -- - - - - --- - -- -

474Stainless steel-watch('.ases- - - - - - -- U U - - -- -- -- - - -- - - - U - - - - - -- - 872Watches

, "

Hormelton" -- -- - - - U - -- - - U - -- - - - -- - -

--- - - --- - - - - -- -

872Size or extent of business , misrepresenting as to--____UhU_U___----- 213Size or weight , misrepresenting as to - U h - - - - - - - U h - - - U - - - U - - h - - 973Skip-tracing forms , securing information by subterfuge through-- -- - U h 58, 134Source or origin of product, misrepresenting as to--_h I24 , 128 444 478 512 558Special or limited , falsely representing offers as__huu__u_______ 491 , 893 , 955

S. Tonic " misrepresenting qualities or results oL - - - U - - U U- - - - U 1058Statutory requirementi; , failing to comply with:

Fur Products Labeling A(',t-- - U - h Ill , 299 , 459, 482, 497 , 558 573 , 778 , 83.Textile Fiber Products Identification AcL h - U U - U - U - U - - h - U - 12

, 309 444 448 463 468 , 508 , 569 , 778, 796 , 925, 999, 1003

1020 1229Wool Products Labeling AcL U U U - - -- - - -- - - - U - - - - - - -- - - -'- - -- - 1

, 62, 65 , 283, 452, 455 , 463 , 478, 504, 508, 565 , 569, 778, 793, 925930, 999, 1020

Page578

INDEX 1365


Stipulated price, misrepresenting as to_----- -------------------------- 893Substituting nonconforming labels- - - -- - -- - --

-- -- -- - - -- - - - - - - -- -- - - - -

872Subterfuge, securing information by_____-------------- ---------------

Ski p- tracing f orms- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 58 , 134Surveys, misrepresenting as to_------------------------

--_____--

213 , 287, 293Tags, labels or identification: Substituting nonconforming labels- -

- - - - - -

872Television depictions, using deeeptive techniques through advertising- - - - 979Term s and conditions , ~isrepl'esenting as to -- - - -- -- - - -- -

- - -- - - - - - - - --

893Insurance coverage----_-------------------------------- .:.._--- 699 841Loans- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - 376 , 711Sales contracts__------------------------------------ 491 516 811 955

Te:'l.tile Fiber Produets Identification Act:Failing to reveal information required by

- - - - -- - - - - - -- - -- - -- -- - - -

- 12, 4L , 309 , 444, 448 , 463 , 468 , 508 , 569 , 778 , 796 925 , 999 10031020, 1229

False advertising under_--_ __----------------------------- 30 778 796Furnishing false guaranties under

- - - - - - - - - -- -

-- - - - - - - - - - 309, 468 , 1229l\Jisbranding under - -

------ -- -- -- ------------- ------- -

-- ---- - 12309 444 , 448, 463, 468, 508 , 778, 796, 925 1003 1020 , 1229

Mutilating or removing law-required markings under-- _____--------- 40Threatening:

Disciplinary action through cutting of supplies or service___-__-- - 1099

Suits, not in good faith--__-- ------------------------------------ 68

Trading stamp eompany ordered to cease conspiring with retail licenseesto set number of stamps dispensed and suppress exchanges with otherstarn ps - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - -

1099Unauthorized advertising, falsely representing--____---------------- 5 971Unfair methods or practices , etc. , involved in this volume:

Aquiring corporate stock or assests illegally,Ad vertising falsely or misleadin gly

Assuming or using misleading trade or corporate name.Combining or eonspiring.Discriminating in priee,Flammable Fabrics Act,Furnishing means and instrumentalities of misrepresentation and

deception,Guaranties , furnishing false,Importing, selling, or transporting flammable wear.Invoieing products falsely.:l\1aintaining resale prices,l\Ii.'3branding or mislabeling,Mi,srepresenting business status , advantages or connections.Misrepresenting directly or orally by self or representatives,l\:IiSl epresenting price,l\llltiJating or removing law-feqllired labels.Neglecting, unfairly or deceptively, to make material disc.1osure.

Preticketing merehandise misleadingly,

Seeming information by subterfuge.Securing ordets by deception,

Securing signatures wrongfully.

Simulating competitor or his product.Substituting nonconforming labels."Using misleading product name or title.

1366 FEDERAL TRADE CO).1MISSION DECISIONS


Unordered goods, shipping for payment demand--_uu_---------_uu-Stamps__- - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Using deceptive techniques in advertising-television depictions_- - - u - uUsing misleading product name or title:

Composition of product-All Pure Bristle " brushes_____u_---_u_u_------_u_-----Plastic Steel" - u - - u - u - - - u - u - -

- - - - - - - - - - - - - - - -

u - -

- - --

Factory rebuilt" transmissions

- - - - - -

u - - - - u - - - -

- - - -

u - u - -

- - --

Quality of product-II. ()" 1 ,

,,~

OSler)- lrre u alS or ::secon S -----_u---- -_u_---------Perfume - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Source or origin of product-domestic as imported___u__------_u-Using misleading trade or corporate name. See Assuming or using

misleading trade or corporate name.Usual prices, misrepresenting as reduced or speciaL__u_--_--_u_---_u 213

287 293 , 299 , 491 , 516 , 955Value of land, misrepresenting as to_- -

- - - - -- - - -

u - -- -- -- -- - -

- -- -

u - - - 4-40Watchcases , stainless steel , simulating as- - -- -

- -- - - - - - - - - - -- - ---------

872Watches

, "

Hormelton " simulating as- - -- -- --

- - -

u -- - -

- - -

u - -- - - - u - - 872Western Coast Employers Assn. " individual or private business falselyrepresenting self as- - - - - _u - - -u- ------ -

- - - -- - - - - - - - - -

uu - u- Wool Products Labeling Act:

Failing to reveal information required by - - - - - - - - - - - - - - - - - - - - - - - - - 1283 452 455 463 478 504 508 565 569 778 , 793, 925

930, 999 , 1020Furnishing false guaranties undern_____-----------u---

---

~--- 565 930Misbranding under - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1

, 62 , 65 , 283 , 452 , 455 , 463 , 478, 504, 508 , 565 , 569 , 778, 793 , 925930, 999 , 1020

Page-

979-

124272399'

468

124

ADVISORY OPINION DIGEST~'"

Acquiring corporate stock or assets:Clayton Act , Sec.

Adverse competitive effects-

Not discernible_-

- - - - - - - - - - - - - -- - - - - - -

-- -- --- - - --- (172)Pro bable- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - ( 171 )

Declining industry_

____----------------____

(166) 129.5, (175)De minimis competitive effect____----- - - -

- - -- - - - - - -- -

(170) 1296 , (176)(181) 1302, (185) 1304 , (186)

Denied-Competitive considerations- - -

- - - --- - -

- -- - - - - - - - - - - (183)

Other purchasers a vailable- - - - - - - - - - - - - - - - - - - - - - - - - ( 178)

Deteriorating-Financial condition - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 165)

Indusky - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - ( 167)

Financial distress--- - -

- - - - - - - - - - - - - - - - - - - - - - - - --

-- - - - - (169)Imminen

Bankruptcy -- - -

- - - - - - - - -- - - - - - - - - -- - - -

(179) 1301 , (184)Insclvency_- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(168)(177) 1300, (180) 1301, (187)

k f .ac - 0 competItIve 111 ormalOn_- -- - -

- - - - - -- - - - - - - - - -- -

(0)

Liquidation probable_-

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(182). l\lerger of-

Firms in same industry would raise questions- - - - - - - - (188)Two non-competing quarry and building materials

')"

compal1les, no 0 JeCIOIL - - -- - - - - --

-- -- -- - - - - - -- - -

No anti competitive effects forseeable___--__------_--___ (164)Precarious financial condition - - - - - - - - - - - - - - - - - - - - - - - - - - ( 189)

Vertical merger would raise questions_____---------_____ (174)Would-

Eliminate potential competition- - - - - - - - - - - - - - - - - - - (238)

Increase market concentration- - - -

- - - --

-- - - - - -- -- - - ( 192)Federal Trade Commission Act-

Joint venture denied

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (24;))

Advertising and promotional allowances , discriminating in pricethrough. See Clayton Act, Sec. 2.

Advertising falsely or misleadingly:Advertisement as news article_- -

- - - - - - - --- - - - - - -- - - - - - - - -- -

(191)Display cards , substitution of fabric without notification- - - - - - (193)

Guarantees- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (248)

Prices-Below cost- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(249)Sale " terminology restricted - -- - - - - - - - - - - - - - - - - - - - - - - - ( 163)

. The numbers in parentheses indicate digest numbers.

Page

129712971299

12991305

13031300

129412951296

1304129,

130512981302

1306

1343129413061298

13291308

1333

130713081334

13351293

1367

1368 FEDERAL TRADE COMl\HSSION DECISIONS


Advertising falsely or misleadingly--ContinuedQualities or results of product-

Medicinal , therapeutic , healthful , etc.Athlete s foot remedy_--___-------_____ (159) 1290, (161)Nervous stomach remedy - --

- - - - - - -

-- - - - - - - - - - - - - - - (160)Repair, without question-

~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (

196)SOUl ce or origin of product-nondisclosure of origin of imported tools

not deceptive- - - -

------------ ---- ----- - - - ------- -- - - - --

(220)Allowances for services or facilities, discriminating in price through. See

Clayton Act , Sec. 2.Athlete s foot remedy, misrepresenting quality or results oL-- - -- (1.59)

(161)Bonus certificates " lottery merchandising- - -- - -

- - - - -- - - - --- - -- -

(190)Brokerage payments and acceptances , discriminating in price through- (243)Clayton Act:

Sec. 2-Discriminating in price-Sec. 2(a)-Illegal price differentials-

Credit terms for stores in urban areas_____----___--_ (253)Jobbers and wholesalers- -

----- -- - -- - - - - - - -- - - - - -- -

(202)Uniform delivered pricing system--- - - - - - - - -- - - - - - - - ( 194)Uniform five percent truckload discoll11L_-- - - -- -- - - - (198)

Sec. 2(c)-Illegal brokerage payments and acceptances-Discount in lieu of blOkerage--___--_----------_____ (243)

Sec. 2(d)-Allowances for services or facilities-Advertising and promotional allowances- - -- - - - - - - - - - (157)Display allowances- - - -

------- ----- -------- --

- - - -- (195)Promotional assistance plan-advertising allowances- - (2,58)

Sec. 7-Acquiring corporate stock or assets-Adverse competitive effects-

Not discernible- -- -

- - - - - - -- - - - -- - - - - - - - --

-- - - -- -- - (172)Probable- - - -

----- --------- - ---- -- - ---------- --

- (171)Declining industry_- - - -- -

- - - - -- -- - - - - - - --

-- (166) 1295 , (175)De minimis competitive effecL__--_

-_-___--_

(170) 1296 , (176)(181) 1302, (185) 1304, (186)

Denied-Competitive considerations -

- - - - - - - - - - - - - - - - - - - - - - -

(183)Other purchasers available- - -

- - - - - - - - - - - - - - - - - - - - - -

(178)Deteriorating-

Financial condition- - -

- - - - - - - - - - - -- -

-- - - - - - - -- - - - - (16;j)Indu~ry - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 167)

Financial distress- -

- - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - ( 169)

Imminen Bankruptcy ---- - - -- -- - --- -

---- - --- - -

- (179) 1301 , (184)Insclvency- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 168)

(177) 1300, (180) 1301 , (187)Lack of competitive informatiOIL-- - -- -

- - -- - -- -- - - -- - - -

- (173)Liquidation probable_- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 182)

J\Ierger of-Firms in same industry would raise questions--____ (188)Two non-competing quarry and building materials

companies, no objectiOlL___-__-------------_____ (259)No an ticom peti tive efl' ects f ol'seeable- -- - - - - --

-- - -- - - - -

- - (164)

Page

129112911311

1323

1290129113071332

1337131413091312

1332

128913101342

129712971299

1299,1305

13031300

129412951296

13041295130512981302

1306

13431294

INDEX


Clayton Act-'ContinuedSec. 7-Acquiring corporate stock or assets--Continued

Precarious financial condition- - - -

- - --- -- - - - - - - --- - - ~ - --

(189)Vertical merger would raise question______---------_____ (174)Would-

Eliminate potential competition

- - - - - - - - - - - - - - - - - - - -

(238)Increase market concentration- - - - -- -

- -- -- -

--- - -- -- (192)Combining or conspiring to:

Fix prices-Between competing automotive repair shop operators- - - -- (201)Through computer system - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (205 )

Sell milk at prices higher than minimum set by Stateregulation- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(199)Common selling organization , warehouseman_- - - - - - -

- - - - - - - - - - - - -

(203)Component part of ice cream spade made on this country,

disclosure of source or origin required - - -- -

- - - - - - -- - -

-- - -- - - -- - (222)Composition of product, misrepresenting as to_----_ (197) 1311 , (225)

(256) 1340 , (2~0)Textile Fiber Products Identification Act__--_----------__

~__

(24-0)

Credit terms for stores in urban areas , discriminating in pricethrough - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - ( 253)

Dealing on exclusive and tying basis-operation of check-cashingconcessions in retail stores -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(254)Discoun ts , discriminating in price through- -- -- -- - - - - -- - - -- - - - - - - (198)Discriminating in price. See Clayton Act , Sec. 2.Display allowance, discriminating in price through_-- - - -- - -- - - - - - - ( 195)Domestic and foreign made components, misrepresenting source

or origin of product as domestic only

-- - -- - - - -- - - - - -- -- -- -- - -

- - (207)(215) 1321 , (216) 1321 , (218) 1322, (234) 1328 , (255)

Domestic fabric, misrepresenting as foreign- -

- - - - - - - - - - - - - - - - - - - -

(206)Exclusive dealings in operation of check-cashing concessions in

retail stores_- - -

- -- -- -- - - - - - - - - -- - - - --- - - - - --- - - - - -- - - -

--- - - (254)Fair Packaging and Labeling Act: Net weight or size on paekage or

container - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(239)Federal Trade Commission Act: Acquiring corporate stock or assets-

join t venture denied

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - ( 245 )

Fix prices concertedly. See Combining or conspiring.Foreign origin disclosure, misrepresenting through source or origin

location- - - -

- - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

(252)Freight, publication by trade association of recommendation to manu-

facturers of procedure for prepaying- - -- - -

- - - - - - - -- -

-- - - -- - - - - (246)

Guarantees, misleading_-- - - -- - - - - -- - - - - -- - - - - - -- - - - (204) 1315 , (248)

Imported products, disclosure of origin required:Braids used in product of braided rugs--__------------__--__ (229)

Chemicals - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 231)

Eyelashes - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - (230)

Gloves - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

(223)Honing stones-- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - (226)

Ink - - - - - -- - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - ( 242)

Knife blades - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(232)

1369'

Page13061298

13291308-

13141316

13121314

13231324

13431331

1337

13381312

1310

131713401317

1338

1330

1333

1336

13331334

132613271326132413251332"1327


ADVISORY OPINIOXDIGEST

Imported products , disclosure of origin required-Continued:Metal-

Fasteners- - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - ( 251 )Spring clamps- - -- - -

- - - - - -- - -- -- - - - - -- - -- - - - - - -- - - -

- - - ( 221)Nails -

-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - ( 227 )Nas~ cannu~- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - ( 244)Picture components- -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - (236)Pulverized leather

" - - - - - - - -- - - - - - - - -- - - - -- -- - - - -- - -

- - - - - - (225)Railios_- --- - -

- -- - -- - - - - - - - - - - -- - - --- -~- - -- - - - -- - - - -

- -- - - (233)Switchplates- - - -

- --- - -- - - - - - - - --- ---- - - - - - - - - - -- - --- - - -

- - (228)Toy components__- -

---- -- -- - --- - - - - - - -- - - - - - - - - - - - - - - - - - -

(237)Imported products, misrepresenting as domestic- - - - - - - (224) 1324 , (235)

Blades of cutlery - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - ( 217)Swi tchpla tes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 219)

Jobbers and wholesalers, discriminating in price betweenuu______ (202)Lottery merchandising -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - ( 190)Manual, misrepresenting prices through- - - - - - - - - - - - - - - - - - - - - - - - - ( 1;38)Manufacturers ' suggested resale prices , misrepresenting through- - - - (200)Medicinal , therapeutic, healthful , etc" qualities of product , mis-

representing as to:Athlete s foot remedy -- - -- - - -- - -

- -- ---- -

- --- - -- (161) 1291 , (159)Nervous stomach remedy

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

( 160 )

:Mesquite chips , misrepresenting quality or results of

- - - - - - - - - - - - - -

(239):Misbranding or mislab8ling:

Composition of product-Hand Made" sealed sole boots- - -

- - -- -- - -- - -- - - -

- - - - - - (197)Textile Fiber Products Identification Act- -

- - - - - - - - - - - - - -

(240)Qualities or results of product-mesquite chips- -- -- - - - - - - -- - - (239)Source or origin of product-

Disclosure of origin of component part of ice cream spade')00ma e In ' 1::, countr~ reqU1fe - - - -

- -- -- - -- - - - - - -- - - - - ---

Disclosure of origin of imported products required-Braids used in product of braided rugs___-----____-- (229)Chemic~s- - - -- --

--- - -- - -- - - -- - - - - -- - - - -- --- - -- -

- (231)Eyelashes- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 230)

Gloves - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - -

(223)Honing stonesn - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(226)Ink- - - -

- - - - - - - -- -- - - - -- - - - - ---- - - - -- - - - -- - - - - - --

(242)Knifu blades - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 232)

lVletal-Fasteners_- -- -- - - -

- - - - - - - -- - -- --- -- ---- -

- -- - - (251)Spring clamps_- -

- - - - -- - --- - - -

- - - - -- - - -- - - - - - - (221)N~ls- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - (227)Nasal cannula_- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(244)Picture components__- --- - --

--- - - - - - -- - - - - - - - - -- - -

(236)')0-u venze ea er -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - ........

Itadios- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - (233)Switchplates- - -

- - - - -- -- - - - -- -- -- -- - - - - - - - - - -- -

-- - (228)Toy components_-- - - --- - - -- u - -- -

- - - -- - - - - - - -- - - -

(237)

Page

13361323 .13261332132813241327132613291328132213231314130712891313

129012911330

131113311330

1323

1326132713261324132513321327

133613361326133213281324132713261329

INDEX


Misbranding or mislabeling---.ContinuedSource or origin of product-Continued

Domestic and foreign made product as domestic only--___ (207)(215) 1321 , (216) 1321 , (218)

(234) 1328, (255)Domestic fabric as foreign

- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(206)Imported product as domestic__--__-----____ (217) 1322, (219)

(224) 1324, (23;3)Location of foreign origin disclosure

- -- -- - -- - - - --

-- - -- - - - (252)Nondisclosure of origin, not deceptive-

Bicycles made in this country from imported parts____ (213)Crib mattresses, etc. , made in this country using imported

outside covers - n - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (247)Golf clubs made in this country from imported parts_-- - (208)Imported produc.ts-

Component used in drawer slide assembly_______ (209)Fl\J tuners -

- -- - - - - - -- - -- --- - - -- - --- - - - ---- -- -

(211)Nlechanical pencil action- - - -

- - - - - - - - - - - - - -----

(210)Sho.wer head components- --- - -

- --- - - - -- --- --- -

(212)Tools - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - -

(220)Lamps containing an imported wooden base- - - - - - - - - (214)

Statutory requirements-Textile Fiber Products IdentificationAct- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - ( 206 )Misrepresenting directly or oral1y by self or representatives:

Display card , substitution of fabric without notification--_

____

(193)Guaran tees - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 204)

Misrepresen ting prices:Below cost- - -- -

- -- - - - --- - - - - - --- -- -- -- - - - -- - - -- - - - - - - - - -

- (249)Manufacturers ' suggested resale price- - - -

- - - - - - - - - - - - - - - - - - -

(200)Sale " termin 01 ogy restri cted - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 163 )

Standard rate and service pricing manuaL - -- - -

- - - - - - - - - - -

u (158)Nervous stomach remedy, misrepresenting qualities or results of

- ---

(160)News article, misrepresenting advertisement as

- - - - - - - - - - - - - - - - - - -

(191)N ondisclosul'e of origin, not deceptive:

Bicycles made in this country from imported parts___----_____ (213)Crib mattresses, etc. , made in this country using imported out-

side covers__- - - - - - --

-- - - - - -- --- - -- --- - - ----- -- - - - -- - -- -

(247)Golf clubs made in this country from imported parts_- - -- - - - - - (208)Imported products-

Component used in drawer slide assembly

- - - - -- -- -- - - -

u (209)FNI tuners_- - - - - - - -

- - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - (211)

Mechanical pencil action - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( 210)Shower head components__- - - -- --

--- --- -- -- - - - - - - --

--- (212)Tools- - - - -- -- - - -

- -- - - - - - - - -- -- -- --- --- - - - - - - - -- - - -- -

(220)Lamps containing an imported wooden base_--__

_-------____

(214)Prices , misrepresenting as to. See IVIisrepresenting prices.Promotional assistance place. See Clayton Act , Sec. 2.Qualities or results of product, misrepresenting as to:

Medicinal, therapeutic , healthful , etc.Athlete ~ foot remedY_ ____---------_u____ (1;39) 1290 (161)Nervous stomach remedy --

- - -- - - - - - - - - - - - - - -- - - - - - - -- -

(160)Nlesquite chips_- -- -- -

--- - --- -- - -- -- --- - - - - - -- - - - -- -

-- --- - (239)

1371

Page13171322

13401317

1323,13281336

1327

13341318

131813191319131913231320

1317

130813Ei

133,13131293128912911307

1320

13341318

131813191319131913231320

129112911330



Remedy, misrepresenting qualities or results of:Athlete s foot_--_-------------------------_---- (159) 1290, (161)Nervous stomach- - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - ( 160)Repair , without question, misrepresenting as to-----------__----_ (196)

Sale" prices, terminology in advertising restricted- - - -

- - - - - - - - - - -

(163)Sales promotion plan rejected- -- -- - -- -

- -- -- - - -- - -- - - -

- -- - -- -- - - (241)Sell milk at prices higher than minimums set by State regulation

combining or conspiring to- - -- - -

- - - - - - - - - - -- - - - - -- - - - - - --

-- - (199)Source or origin of product, misrepresenting as to--------------___ (206)

(207) 1317, (215) 1321 , (216) 1321 ,. (217)(218) 1322 , (219) 1323, (221) 1323 , (222)(223) 1324 , (224) 1324, (225) 1324, (226)(227) 1326 , (228) 1326, (229) 1326, (230)(231) 1327 , (232) 1327, (233) 1327~ (234)(235) 1328, (236) 1328, (237) 1329 , (242)(244) 1332, (251) 1336 , (252) 1336 , (255)

Statutory requirements , failing to comply with-Tex~ile Fiber Prod:-ucts Identification Act- -

- - - -- - - -- -- - - - -- - - - - --

-- - - -- - -- -- - - - (206)Substitution of fabric without notification , disfJlav cards___--______ (193)Textile Fiber Products Identification Act:

Failing to reveal information required by

- - - - - - - - - - - - - - - - - - - -

(206)IvIisbranding under - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- ( 240 )Trade associations:

Code providing that members will not advertise sales belowcost_- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -

(249)Exchanging wage rates among association members- -

- - - - - - - - -

(162)Formation of local associations by statewide association- -- - - -- (250)Legality of association suggesting rental rate for containers in which

industry products are sold_--_--__------------------_____ (257)Promotion and sponsorship of price catalogs-- - - -- -- - - -- -- - - - (200)Publication of recommendation to manufacturers of procedure for

prepaying freight- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (246)

Uniform delivered pricing system , discriminating in price through- - (194)Using misleading product name or title:

Composition of product-Hand Ivlade" sealed sole boots -

- - -- -- - - -- - - - --

-- -- -- - -- (197)Pulverized leather

" - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (225)

'Y6lamon , a raslVe lSCS__--- - - - - - - - - - - - - - - - - - - - - - - - - -X Grown Emeralds " synthetic stones- -- -

- -- ---- - -- --

- (260)Wage rates, exchanging among association members----__---_____ (162)Warehouseman , establish a common selling organization- - - - - - - - - - - (203)Weight or size on package or container , misrepresenting as to -- - - - - (239)

Pag&

12911291131112931331

1312131713221323132.1326,1328,1332

1340

13171308

13171331

133512921336

13411313

13331309

1311132413401343129213141333

INDEX

ADVISORY OPINION DIGESTS

Paying advertising allowances in selected trade area

- - - - - - - - - --

Proposed trade association adoption of a pricing manual forcommon use by electronics servicemen members- -

- - - - - - - - - --

Advertising offering sale of treatment for athlete s fooL - - -

- - - --

Advertising promoting sale of information and a producL - -

- - --

Advertising promoting sale of information and a producL - -

- - --

Exchanging wage rates among association members- - -

- - - - - - - --

Publication of dealer sales standards announcing a policy of notselling to dealers who advertise sale pric8s- -

- - - - - - - - - - - - - - --

Premerger clearance: No anticompetitive effects foreseeable- - - --Premerger clearance: Deteriorating financial condition_-

- - - - - - --

Premerger clearance: Declining industry -

- - - - - - - - - - - - - - - - - - -

Premerger clearance: Deteriorating industry - - - -

- - - - - - - - - - - - --

Premerger clearance: Imminent insolvency

- - - - - - - - - - - - - - - - - --

Premerger clearance: Financial distress-

- - - - - - - - - ~ - - - - - - - - - - -

Prel1lerger clearance: De minimis competitive effecL

- - - - - - - - - --

Premerger clearance denied: Adverse competith' e effectspro bablen - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Premerger clearance: Adverse competitive effects not discernible-Premerger clearance denied: Lack of competitive information

- - -

Premerger clearance denied: Ver,tical merger would raise ques-ti on5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Interpretation of request for premerger clearance: Declining in-du~ry - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Premerger clearance: De minimis competitive effects--

---------

Compliance interpretation of request for premerger clearance:Imminent insolvency_- - -

- - - - -- -- -- - -- - - - - ---- - - - -- - - -- ---

Compliance interpretation of request for premerger clearance:Denied , other purchasers available__- - - - -

- - - - - - - - - - - - - - - - --

Com pliance interpretation of request for premerger clearance:Imminent backruptcy -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Compliance interpretation of request for premerger clearance:Imminent insolvency

-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Compliance interpretation of request for premerger clearance:

De minimis competitive effects; one request denied-- - -

- - - ---

Compliance interpretation of request for premerger clearance:Liquidation probableu - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Compliance interpretation of request for premerger clearance:Denied , competitive consideration- - -

- - - - - - - - - - - - - - - - - - - -

Compliance interpretation of request for premerger clearance:Bankruptcy imminentu - -

- - - - -- - - - - - - - - - - - - - - - - - - - - -- - - -

DigestNo, Page

157 1289

158 1289159 1290160 1291161 1291162 1292

163 1293164 1294165 1294166 1295167 1295168 1295169 1296170 1296

171 1297172 1297173 1298

174 1298

175 1299176 1299

177 1300

178 1300

179 1301

180 1301

181 1302

182 1302

183 1303

184 1304

1373

1374 FEDERAL TRADE COlVlMISSION DECISIONS


Compliance interpretation of request for premerger clearance:De minimis competitive effect_- -- -- -- -- - - -- --

-- - - - - -- - - - --

Compliance interpretation of request for premerger clearance:De minimis competitive effecL

- - - -- - -- -- - - - - - -- -- - - - -- --

Compliance interpretation of request for premerger clearance:Imminent insolvency

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Premerger clearance denied: Merger of firms in same industrywould raise questions - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Premerger clearance: Precarious financial condition- - - -

- - - - - - --

Random distribution of bonus certificates" with purchase- - - --Advertisements which appear in news formaL - - -

- - - - - - - - - - - --

Clearance denied for merger of competing milk companies- - -

- --

Substitution of merchandise unlawful even though equivalentin grade , quality, and appearance to that ordered by cus-tomers- - - -

- - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Use of uniform delivered pricing system effected by deductingfreight allowances from Lo.b. price_____--------------------

Notice to magazine dealers as to availability of display allow-

ance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - -~ - - - - - --

Commission holds not objectionable the advertising phraseIt works * * * or we ll fix it free

" - - - - -- -- - -- - -- -- - - - - - - --

Use of term "Hand l'vlade " to describe boot with a sealed sole__-Truckload discount for quantity purchases-- - - - -- -- - - -- -- -

- ---

Agreement by processors to sell at prices higher than minimumsset by State regulation- - - - -- - -- -

- - - - -- -- -- -- -- -- - -- - -- ---

Promotion and sponsorship of price catalogs by trade association_-Specialized automotive repair association wants to publish flat

rate manual for its members__

__-------------------------

Definition of jobbers and wholesalers for functional pricingpurposes- -- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Common selling organization- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - -

Use of terms "unconditional" and "lifetime" guarantee__--__---Use of a computer system to collect and disseminate marketing

data- - -- -- - - -- -- - -

- -- - ---- ---- - - - - - -- -- - - - ---- ---- - -- --

Marking requirements for apparel of S. components assembledabroad- -- - - -

- -- - - - - - -- -- - - - - - -- - ----- - -- - -- ------ - - - - --

Made in U. " label on answering machine composed of do-mestic and foreign made components--___------------------

Disclosure of otigin of golf clubs made in this country fromimported parts- - - --

------ - ---- -- -- ----- - - - -- -- - - - -- - - --

Disclosure of foreign origin of component used in drawer slideassem bly - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

Disclosure of foreign origin of imported mechanical pencil action_-Disclosure of country of origin of imported FM tuners- -

- - - - ---

No foreign origin disclosure required of imported shower head

components- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Country of origin disclosure on bicycles assembled with someimported parts- - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Country of origin labeling on lamp conta.ining an importedwooden base- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~

l\1isrepresenting hoist as "Made in U,

" -------- -----------

Dige"No. Page

185 1304

186 1305

187 1305

188 1306189 1306190 1307191 1307192 1308

193 1308

194 1309

195 1310

196 1311197 1311198 1312

199 1312200 1313

1314

202 1314203 1314204 1315

205 1316

206 1317

207 1317

208 1318

209 1318210 1319211 1319

212 1319

213 1320

214 1320215 1321

INDEX

ADVISORY OPINro~ DIGEST

Affirmative misrepresentation as to origin of photographic

accessories - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - -

Manufacturer may not mark "Made in U. " on imported

blades of cutlery finished and assembled in the United States- - -Country of origin labeling on food machinery containing importedcom p on en ts- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

Disclosure of foreign origin of contents on package bearing namesuggesting domestic origin - - - - - -

- - - - - - - - - - - - - - - - - - - - - -

Foreign country of origin disclosure on imported tools- -

- - - - - - --

Foreign country of origin disclosure on imported metal springclamps- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - -

Disclosure of foreign origin of component part of ice cream spadeassembled in this country --

- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Necessity for disclosing foreign country of origin of importedgloves - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Domestic origin marking for product containing foreign madecom p onen ts - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

Labeling of material composed of leather fibers imported in theirentirety - - - -- -- - - -- - -

- -- --- - - ---- - - - - - - - - - ----- - - -- -----

Necessity for disclosing foreign country of origin of importedhoning stones - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Necessity for disclosing foreign country of origin of repackagedim ported nails- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Country of origin labeling on bubble-packed imported switch-plates- -- --- - -

- - - - -- ----- - - - -- - - - -- - - - - - - -- - -- - --- -- - ---

Country of origin disclosure of imported braids used in pro-duction of braided rugs_-- -

- - - - - -- - -- -- - - - - - -- - -- -- -- -- - --

Foreign country of origin disclosure on mounting cards displayingimported eyelashes_- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - --

Foreign country of origin disclosure on containers of repackagedim ported chemicals - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Foreign country of origin diseIosure of imported knife blades_- -

- --

Foreign country of origin disclosure of imported radios at point ofsale- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -

Labeling partially imported product as " Made in U.

" - - --

American manufacturer may not place labels " :Made in U.on garments manufactured in this country from importedcloth_- - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Foreign country of origin disclosure of imported picturecomponents- - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Foreign origin disclosure on containers of repackaged toy kits- --Clearance denied for proposed merger of substantial local inde-pendent producer of a food product and a leading nationalprocessor and distributor of the same product- -

- - - - - - - - - - - --

Net weight labeling of mesquite chips-

- - -- - - - -- - -- - -- - - - -- - --

Use of symbols and names having fur-bearing animal connota-tions in labeling textile fiber products -

- - - - - - - - - - - - - - - - - - - --

Proposed promotional allowance program based on pyramidingsales of customer;:; rei ected

- - - - - - - - - -- - - - - - - - - - - -- -- - -- - - - -

1375

VigestNo, Page

216 1321

217 1322

218 1322

219 1323220 1323

221 1323

222 1323

223 1324

224 1324

225 1324

226 1325

227 1326

228 1326

229 1326

230 1326

231 1327232 1327

233 1327234 1328

235 1328

236 1328237 1329

238 1329239 1330

240 1331

241 1331


ADVISORY OPI~ION DIGEST

Necessity for disclosing the country of origin of imported ink- --Receipt of discount in lieu of brokerage by respondent wholesale

food distributor - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Disclosure of foreign origin of nasal cannula required- -- - -- --

- --

'Commission denies approval of proposed joint venture corpora-tion composed of five competing manufacturers to bid on primecon tract to furnish products of uniform specification - - - - -

- - --

Trade association publication recommending procedures forfreight prepayment by manufacturers- -- -

- -- - - - - - - - - -- - ----

Disclosure of origin of crib mattresses , etc" made in this countryusing imported outside covers-

- - -- -- - -- - - -- - - - - -- - -- - - - ---

Validation of guarantee-time requiremenL - - - -

- - - - - - - - - - - - --

Trade association code providing that members will not advertisesales below cost- - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Formation of local trade associations by statewide trade associa-tion_- - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --

Disclosure of country of origin of imported fasteners- - -- -

- - - - --

Location of foreign origin disclosure----------_---------------Extended credit terms for newly established stores in impover-

ished urban areas approved_h - - -

----- - - --- - --- - -- - ---- - --

Operation of exclusive check-cashing concessions in retail stores- - -Misrepresen tation as to origin of flatware- -

- - -- - - - - -- - - - - - - - --

Use of unqualified word "Diamond" to describe abrasive discscontaining other materials_- - - -

- - - - -- - - - - - - - - - - - -- --- --- --

Legality of trade association suggesting rental rate for containers

in which industry products are sold-- -- -

- - - - -- - - - - - - - - - - ---

Promotional assistance plan limited in value to percentage of

purchases- - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Commission has no objection to proposed merger to two non-competing quarry and building materials companiesu -

- - - - - --

.synthetic emeralds- - - -- -

- -- - -- - - - - -- - -- - - -- -- - -- - -- - - - - - --

Page242 1332

243 1332244 1332

245 1333

246 1333

247 1334248 1334

249 1335

250 1336251 1336252 1336

253 1337254 1338255 1340

256 1340

257 1341

258 1342

259 1343260 1343