NAB reports (Jan-Dec 1941)

called “Rap-A-Pak,” a novelty holder for cigarette packages, is charged, in a complaint with misrepresentation. In magazines and periodicals having an interstate circulation, the complaint alleges, and to potential representatives, the re¬ spondent has represented that “A man should make $75 to $100 commission weekly,” and Earn $75 to $100 commission weekly.” Through use of the foregoing statements and others of similar import, the complaint continues, the respondent represented that agents and salesmen selling the respondent’s device customarily earn from $75 to $100 per week in the usual and normal course of business. The complaint alleges that these representations are grossly ex¬ aggerated, false and misleading, and that it is impossible for agents and salesmen selling the device to earn, in the usual and normal course of business, $75 to $100 per week or any amount approxi¬ mating either of such figures. (4430). CEASE AND DESIST ORDERS Commission has issued the following cease and desist orders : x\llred Brothers Candy Company — Two North Carolina candy distributors have been served with orders directing them to cease and desist from the use of lottery methods in the sale of candy. The respondents are Jesse W. and Robert A. Allred, trading as Allred Brothers Candy Co., Charlotte, N. C., and J. T. Tarlton, trading as J. T. Tarlton Candy Co., Marshville, N. C. The orders prohibit the respondents from selling or distributing any merchandise so packed and assembled that its sale to the public may be made by means of a lottery ; from supplying others with assortments of merchandise, together with push or pull cards, punch boards or other lottery devices, or separately, which devices may be used in selling or distributing such merchandise to the public by means of a game of chance; and from selling or otherwise dis¬ posing of any merchandise by means of a game of chance, gift enterprise, or lottery scheme. (4244-4256). Augusta Knitting Corporation, manufacturer and distributor of knitted garments, with its place of business in Utica, N. Y., and sales office at 180 Madison Ave., New York, has been ordered to cease and desist from certain misrepresentations concerning its products. The Commission finds that the respondent has falsely represented the constituent fiber or material of which the various products sold and distributed are made, by means of false representations on labels attached to its products. Typical of such acts and practices, the Commission finds, is that the respondent represents that certain ladies’ knitted undergarments manufactured and distributed by it are composed of a mixture of silk and wool, by means of labels, tags and markers attached to the garments which designate and describe the products. One of such labels reads: “50% SILK AND WOOL” Another label reads: “50% SILK AND WOOL 27% 27%” The word “and” on the above labels is printed in minute type and in such a manner as to be illegible to all practical intents and purposes. On the second label the notation “27%” appearing underneath the words “silk and wool” is in much smaller type than the “50%” appearing above the words “silk and wool,” By means of the above labels, the Commission finds, the purchasing public are misled into believing that the undergarments so labeled are composed entirely of silk and wool in the proportion of 50 per cent silk and 50 per cent wool. The use on certain labels of “27%” in fine print is according to findings, contradictory to the label itself and would not be noticeable to the purchasing public or understood by them. In fact, the Commission findings continue, the knitted under¬ garments so labeled are not composed entirely of silk and wool, but contain a cotton content ranging from 45 per cent to 57 per cent. In addition, the Commission finds, the respondent fails to dis¬ close by appropriate labels all the fiber constituents from which 22 — January 3, 1941 its garments are made, and fails to disclose the existence of cotton as a substantial constituent of the garments. The respondent is ordered to cease and desist from representing, in any manner or by any means, that its products are composed of fibers or materials other than those of which such products are actually composed; from using the term “silk” or the term “wool” or any other terms indicative of^either silk or wool to describe or designate any fabric or product which is not composed entirely of silk or entirely of wool, provided that in the case of a fabric or product composed in part of silk or wool and in part of materials other than silk or wool, such terms or similar terms may be used as descriptive of the silk or wool content, as the case may be, when immediately accompanied by a word or words accurately describ¬ ing and designating each constituent fiber or material thereof in letters of equal size or conspicuousness in the order of its pre¬ dominance by weight, beginning with the largest single constituent. The order further directs the respondent to cease representing in any manner or by any means that the fabrics or products offered for sale or sold by the respondent contain wool or silk in greater quantity or percentage than is actually the case and to discontinue representing that the respondent’s products have longer wearing qualities than garments of equivalent price and quality ordinarily and customarily sold in the usual course of business; or that the quality, grade, material or character of the respondent’s products are superior to or different from the actual quality, grade, material or character of such products. (4162) Minetree Brokerage Company — T. A. Ward, Carr Ward and Wilma Ward, trading as Minetree Brokerage Company, Poplar Bluff, Mo., have been ordered to cease and desist from violation of the brokerage provision of the Robinson-Patman Act in the sale of merchandise, particularly foodstuffs. Commission findings are that the Poplar Bluff Wholesale Grocery Company, Poplar Bluff, Mo., in which the respondents, T. A. and Wilma Ward own 88 per cent of the outstanding capital stock and of which they are officers, places orders for a substantial portion of its merchandise requirements, particularly foodstuffs, with sellers through the respondent brokerage firm of T. A. Ward, Wilma Ward and Carr Ward, trading as Minetree Brokerage Company. Sellers delivering the goods ordered by Poplar Bluff Wholesale Grocery Company, the findings continue, transmit and pay to the respondent brokerage firm substantial brokerage fees or commis¬ sions amounting to a certain percentage, usually from 2J4 to 5 per cent, of the sales price of the grocery company’s purchases. In ail of these transactions, the findings continue, the respondents have acted for and on behalf of the Poplar Bluff Wholesale Grocery Company. The Commission order directs the respondents, individually and trading under the firm name of Minetree Brokerage Company, to cease and desist from accepting or receiving from sellers, directly or indirectly, in connection with the purchase of commodities in interstate commerce by the Poplar Bluff Wholesale Grocery Com¬ pany, under the facts and circumstances as found, any brokerage fees or commissions, or any allowance or discount in lieu of brokerage, in whatever manner or form they may be offered, allowed, granted, paid or transmitted. The order also directs the respondents to cease and desist from accepting or receiving, directly or indirectly, any brokerage fees or commissions, or any allowance or discount in lieu of brokerage, in whatever manner or form they may be offered, allowed, granted, paid or transmitted by sellers on purchases of commodities in inter¬ state commerce, by any person, partnership, firm or corporation where all or any of the respondents are subject to the direct or indirect control of such buyer or act for or in behalf of such buyer. (4285) Patent Specialties Uompaiiy — George W. Brenner and John M. Kurtz, trading as Patent Specialties Company, 4020 Tenth Ave., New York, engaged in the manufacture and sale of two devices, the “Magic Wand Welder” and “Super Magic Wand Welder,” in¬ tended for use in W'elding different kinds of metals, using electric current as the heating agency, have been ordered to cease and desist from certain misrepresentations of their products. The Commission finds that in advertisements in trade publica¬ tions and other media, the respondents represented that the Magic Wand welding device is a “genuine” heavy-duty device which, when connected with an ordinary automobile storage battery, will weld all base metals in any form, and that it is practical for such use in home tinkering and shop production, and that the respond