NAB reports (Jan-Dec 1941)

and above the regular trade discount, but, since issuance of the Commission complaint in this proceeding, had discontinued the 5 per cent discount and allows to all its “competitive distributors” a 10 per cent discount over and above the regular trade discount. Commission findings are further that as compensation for mer¬ chandising, promotional and other selling services, percentage dis¬ counts or allowances have been granted by The American Crayon Company to some of its “special or promotional distributors”, and by the liinney and Smith Company to some of its “special or promotional representatives”. In some instances, the findings continue, this special compensa¬ tion has been granted without making it available on proportionally equal terms to other customers competing with these special classes of customers in the sale and distribution of the respondents’ proflucts of like grade and quality. To some of their “special or promotional” customers, the re¬ spondents, according to findings, had granted a 10 per cent dis¬ count as compensation for carrying warehouse stocks and furnish¬ ing promotional and selling services and facilities, and a 5 per cent discount to others of this class furnishing the same type but less extensive services and facilities. However, the Binney and Smitli Company, since issuance of the Commission complaint, has discontinued the 5 per cent discount and grants a 10 per cent dis¬ count to all “special or promotional representatives” for carrying warehouse stocks and furnishing selling services and facilities. The findings point out that other customers not receiving any compensation are able and willing to and in some instances do furnish the respondents the same services and facilities as do the “special or promotional” customers; that some of them have re¬ quested that they receive the special compensation, but that the respondents have refused to grant it on proportionally equal terms. The Commission orders direct that the respondents cease and desist from selling their commodities of like grade and quality to competing purchasers at uniform jirices and granting varying dis¬ counts therefrom in the manner and under the circumstances found, and that they cease granting or allowing compensation to any customers of an amount equal to 10 per cent or 5 per cent, rcsncctively, of either respondent’s net billing prices of the products sold by such customer, or any compensation to any customer, for services or facilities furnished by or through such customer in connection with the handling, sale or offering for sale of the resirondent’s products, unless such payments arc made available on proportionally equal terms to all buyers from the respondent who are competitors of such customer. (4142-4143) lEiill & IJjiekel, Inc., 241 37th St., Brooklyn, N. Y., engaged in the distribution of a depilatory designated “X-Bazin,” has been ordered to cease and desist from misrepresentation of its product. The Commission finds the respondent has represented in adver¬ tisements, among other things, that “The special formula of X-Bazin actually retards the growth of hair. When the regrowth docs come, it is much softer and less conspicuous than before. The skin is left smooth, soft and white. * =(= =1= Don’t Be an Airedale. In the merciless slang of Hollywood, a girl with hair on arms or legs is ‘an Airedale.’ That’s why film stars take hair off and keep it off with X-Bazin, the safe, efficient, and reliable hair remover. * * * No other process of removing unwanted hair so successfully combines ease and thoroughness with perfect safety.” d'lie Commission finds that the representations made by the respondent with respect to the properties, naiure and effect of its product when used are exaggerated, false and misleading, and that the product is a common depilatory and does not differ in its properties and effects from other chemical depilatories. In fact, the findings continue, X-Bazin does not discourage the growth of hair or delay its appearance for any material length of time, and the hair is not appreciably slower in returning or regrowing than it is following the use of other methods of hair removal. The respondent is ordered to cease and desist from representing that the product is not caustic or is in all cases entirely safe or harmless; that the product discourages the growth of hair or delays the appearance of hair for any substantial period of time, or that the hair is appreciably slower in regrowing after use of the respondent’s product than when the hair is shaved or other¬ wise removed; that the hair regrowing, after use of the respond¬ ent’s [iroduct, is softer or less coarse than the hair regrowing after shaving; that the results obtained from the use of the [iroduct differ essentialK' from the results obtained from the use of other methods of hair removal; that the product permanenllv i radicates liair; or that it has been endorsed or recommended by scientists or jihysicians. (3389) 42 — January 10, 1941 Kongo Ciiemicitl ('oms)aii.v, Inc., 66 East 131st St., New York, engaged in the manufacture and distribution of a cosmetic prep¬ aration known as “Kongolene”, intended for use on the hair, has been ordered to cease and desist from certain misrepresentations. In advertisements circulated through the United States mails and in interstate commerce, the Commission finds the respondent has represented that “Kongolene is a purely vegetable product. * * * wall straighten the crirnpiest kind of hair, stops it from falling out, promotes a luxuriant growth of healthy hair, removes dandruff and keeps the hair soft and glossy * * *” “* * * it will benefit you for generations to come, if you are homely, likewise will be your offspring, if you are handsome, they wall be likewise” — all of w'hich representations, the findings continue, are exaggerated, false and misleading. The respondent is ordered to cease and desist from disseminating advertisements which represent that the preparation is a purely vegetable product ; will permanently straighten the hair or con¬ tribute to the straightening of the hair in any way other than bysoftening the hair temporarily; wall prevent hair from falling out or promote the growth of hair; will cure or permanently remove dandruff; that the preparation is the greatest discovery of the age, or that the use of the preparation will benefit the offspring of the user ; that the preparation is safe or harmless ; or wdiich advertise¬ ment fails to reveal that use of the preparation may result in severe caustic action upon the skin ancl scalp, wdth resulting burns. (4193) Pliiilp Morris & Co., ITd., Incorporated, New York, has been ordered to cease and desist from a number of representations in the sale of cigarettes in commerce. Commission findings are that the respondent company, a Virginia corporation, through the use of various legends, statements and depictions on its containers, has induced many persons to purchase its cigarettes in the belief that it is an English corporation holding a warrant entitling it to display the British Royal Arms; that it operates factories in London, Eng., Cairo, Egypt, Hamilton, Canada, and Richmond, Va., and warehouses all over the w'orld; that its “Philip Morris,” “English Ovals,” “Marlboro,” and “Piayer’s Navy Cut” cigarettes are made in England and that its “Player's Navy Cut” are the same cigarettes as those generally and widely sold under that name in England. According to Commission findings, the brands of cigarettes in¬ volved in this proceeding are made not in England, but in the United States; the respondent holds no warrant entitling it to display the British Royal Arms; it neither maintains w'archouses in many parts of the world nor operates factories in Hamilton or Cairo, but it does manufacture certain cigarettes in England through its wholly owned subsidiary, Philip Morris & Company, Limited. Findings are further that the belief by customers that the re¬ spondent is an English corporation is attributable in part to the substantially greater prominence given to the abbreviation “Ltd.” in its corporate name as set forth on certain labels, as compared to that given the w'ord “Incorporated” or its abbreviation “Inc.” The effect of this under-emphasis, the findings continue, is enhanced by the use of a device resembling the Royal ,4.rms and expressions such as “English Blend,” “English Ovals,” “London W” and “By Special .Appointment.” The Commission further finds that the sale of the respondent corporation’s American-made “Player’s Navy Cut” cigarettes in a package closely resembling the package in w'hich its Englis'n-made cigarettes of the same name are sold, has a tendency to engender the belief that they are of English manufacture, in the absense of an explicit disclosure of the actual country of manufacture. The Commission finds that the phrase “Established over 80 Years” as used by the respondent is not without justification; that although a number of English and American corporate entities have intervened between Philip Morris, the founder, who con¬ ducted a toliacco business in London as early as 1846, and the respondent, there has Iiecn an unbroken continuity in the commer¬ cial life of the enterprise. The Commission order directs Philip Morris & Co.. Ltd., Incor¬ porated, to cease and desist from using the phrase “Lonrlon W” or any other similar wording in connection with the advertising or packaging of cigarettes not made in England, and from using the word “English” or similar words to refer to the shape or blend of cigarettes manufactured elsewhere than in Englanrl, unless in immediate connection the place of manufacture is conspicuously set forth. The order also directs the respondent to cease using any depic