NAB reports (Jan-Dec 1941)

Record Details:

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Summit St., Toledo, to cease and desist from misleading repre¬ sentations in the sale of “Bowe’s Tablets”. Advertisements disseminated by the respondents, according to Commission findings, represented that some 20 ailments, including ulcers of the stomach, duodenum and intestines, are due to, or persist because of, hyperacidity or the presence of excess acid in the body, and that the respondents’ preparation is a cure or remedy for hyperacidity and consequently for the ailments mentioned. The Commission order directs the respondents to cease and desist from disseminating advertisements representing that ulcers of the stomach, duodenum or intestines, gas on the stomach, sour stomach, indigestion, heartburn, constipation, nausea, pains around the heart, muscular pains, nervousness, melancholia, colds, headaches, dizzi¬ ness, fatigue, lack of appetite, bad breath, or insomnia, are caused by, or persist solely because of, hyperacidity ; that the resi.)^ndents’ preparation constitutes a cure or remedy for any of these ailments or conditions, or for hyperacidity; or that such preparation pos¬ sesses any therapeutic value in their treatment in excess of such temporary and palliative relief as it may afford by the neutraliza¬ tion of gastric hyperacidity in those cases where gastric hyper¬ acidity is a contributing factor. The order also directs the respondents to cease representing that they are manufacturing pharmacists or that they manufacture the preparation they sell. (4373) Pioneer Specialty Coiupany — An order has been issued direct¬ ing Harry A. Greenberg, trading as Pioneer Specialty Company and as The Candyland Company, 38 Crosby Ave., Brooklyn, to cease and desist from lottery practices and certain misleading representations in connection with the sale of candy to the con¬ suming public through wholesalers, jobbers and retail dealers. The respondent is ordered to cease and desist from selling and distributing any merchandise so packed and assembled that sales of such merchandise to the public may be made by means of a game of chance, gift enterprise or lottery scheme; supplying to or placing in the hands of dealers packages or assortments of any merchandise which may be used to conduct a lottery; supplying dealers with lottery devices, either with assortments of merchandise or separately, which devices may be used in selling or distributing such merchandise to the public ; packing or assembling in the same package or packages of candy or other merchandise for sale to the public at retail, pieces of candy of uniform size and shape having centers of a different color, together with larger pieces of candy, or other merchandise, or separately, which larger pieces or other merchandise may be given as prizes to purchasers procuring a piece of candy having a center of a particular color; and selling or otherwise distributing any merchandise by means of a game of chance, gift enterprise, or lottery scheme. The Commission order also directs the respondent to cease using the word “Factory” in connection with his trade names, or other¬ wise representing that the respondent owns or operates a manu¬ facturing plant, or manufactures his products. (4381) Purex Corporation, Ltd., Southgate, Calif., has been ordered to cease and desist from making misleading representations in the sale of “Purex”, a chemical preparation intended for use as a germicide. The Commission order directs the respondent corporation to cease and desist from representing that a solution containing any amount less than 10 per cent of its preparation is a competent or effective germicide for the treatment of surface cuts or sores; that a solution containing two tablespoons of Purex to each gallon of water used is a competent or effective disinfectant or “disinfectant bath” for use on metal or wood surfaces, except in cases where the surfaces have been previously cleaned and thoroughly washed; or that a solution of these proportions is capable of killing all forms of bacterial life. (4074) W. E. Robinson & Co., Inc., Bel Air, Md., has been ordered to cease and desist from violation of the brokerage provision of the Robinson-Patman Act. The respondent, according to findings, has been engaged in the business of field broker, acting as the agent of sellers in transactions of sale and purchase of canned fruits and vegetables between sellers thereof and jobbers, wholesalers, retail chain stores and other purchasers. Commission findings are that the respondent has effected sales for the sellers both by direct transactions with the purchasers and through corresponding or local brokers employed by the respondent ; that for its services to the sellers the respondent has received from the sellers a brokerage fee or commission, usually four per cent of the price paid by the purchaser, and that in instances where such sales are effected through the aid and assistance of local brokers a portion of this brokerage fee is paid by the respondent to such local brokers for such sales assistance. Further findings are that where the respondent has effected sales for the sellers directly with the purchasers, an allowance or dis¬ count in lieu of brokerage is granted to such purchasers by the respondent, such allowance and discount usually being the equiva¬ lent of the brokerage paid by the respondent to local or corre¬ sponding brokers when sales are effected through them. This allowance or discount, according to the findings, usually amounts to 50 per cent of the brokerage fees or commissions paid by the sellers to the respondent. The Commission finds further that in connection with the re¬ spondent’s purchase of canned products for its own account for resale to jobbers, wholesalers, retail chain stores and other pur¬ chasers, it has received and accepted from the sellers and has granted and allowed to the purchasers on resale, substantial brokerage fees and commissions or allowances and discounts in lieu thereof. The order directs that the respondent cease granting or making any allowances or discounts in lieu of brokerage to any purchaser by selling commodities to any such purchaser at a price reflecting a reduction from the prices at which sales of the commodities are currently being effected by the respondent to other customers, such reduction being an amount representing, in whole or in part, brokerage currenlly being paid by the respondent to corresponding or local brokers for brokerage services or sales assistance rendered to the respondent in effecting sales of such commodities to other purchasers. The order also directs that the respondent cease granting or allowing, in any manner, directly or indirectly, any commission, brokerage or other compensation or allowance or discount in lieu thereof to any purchaser in such transactions. The order further directs that the respondent cease and desist from making purchases of commodities for its own account at a price or on a basis which reflects a deduction or reduction, or is arrived at or computed by deducting or subtracting, from the prices at which sellers are selling commodities to other purchasers thereof, any amount representing or reflecting, in whole or in part, brokerage currently being paid by sellers to their brokers on sales of commodities made for such sellers by, or by such sellers through, their brokers. The order also directs the respondent to cease accepting from sellers in any manner any commission, brokerage or other com¬ pensation or allowance and discount in lieu thereof on purchases of commodities made for its own account. (4294) I'liited Factoi-ies, Inc., 13th and McGee Sts., Kansas City, Mo., has been ordered to cease and desist from misleading repre¬ sentations in the sale of oil burners for installation and use in stoves and furnaces. The Commission order directs the respondent to cease and desist from representing that its oil burner is a new type invention in¬ volving a new principle of operation and furnishing more heat at smaller cost than other similar burners; that it burns cheap oil in a new way, performs perfectly, is automatic, or furnishes quick intense heat at the turn of a valve; and that burners are furnished to agents without cost and unconditionally for use in making demonstrations. Under the order, the respondent is further directed to cease representing that its burner is “guaranteed”, unless the terms and conditions of the “guarantee” are set out in immediate conjunction with the word “guarantee” or with any reference to such “guar¬ antee” and the terms and conditions are such that they may reasonably be complied with. (4379) L. S. .Air Seal, Iiic., Niles, Ohio, formerly of Girard, Ohio, has been ordered to cease and desist from making misleading repre.'^entations in the sale of “Air Seal”, an automobile accessory com¬ pound designerl to prevent blow-outs in tires. Commission findings are that use of the respondent’s product will neither cause tires to be immune from blow-outs, nor accom¬ plish other similar results claimed by the respondent. The Commission order directs U. S. Air Seal, Inc., to cease and desist from representing that use of its product will cause tires to be safe from blow-outs, or will prevent blow-outs caused bv large holes, tube punctures or broken beads; that its use will control a blown-out tire by retaining enough air in the tube for January 24, 1941 — 91