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12/8/36
continuities for all programs wherein linked hook-ups are used involving two or more affiliated or member stations.
"Producers of electricaltranscription recordings sub¬ mit regular weekly and monthly returns of typed copies of the commercial portions of all recordings manufactured by them for radio broadcast. As the actual broadcast of a commercial records* ing is not always known to the manufacturer of a commodity being advertised, the Commission's knowledge of current transcrintion programs is supplemented by special reports from individual sta¬ tions from time to time, listing the programs of recorded trans¬ criptions with essential data as to the names of the advertisers, and the articles sponsored.
"The combined material received from the individual stations for specified periods, from the weekly returns on regional and national network broadcasts, and from the special transcription reports, furnishes the Commission with representa¬ tives and specific data on the character of radio advertising which has proven of great value in its efforts to curb false and misleading trade representations.
"During the last fiscal year, the special board received copies of 299,334 commercial broadcasts by individual radio stations and 38,l09 commercial broadcasts by networks, or chain originating key stations. The broadcasts from the inde¬ pendent stations averaged 1-g pages each and from the networks lo pages each.
"The special board and its staff read and marked about 947,000 pages of typewritten copies during the year, an average of 3,105 pages every working bay. Of these, 19,572 commercial, broadcasts were marked as containing represent? tions that appear¬ ed to be false or misleading. These broadcasts were assembled in 1,314 prospective cases for further review and procedure in instances that appeared to require it.
"In its examination of advertising, the Commission’s purpose is to prevent false and misleading representations. It does not undertake to dictate what an advertiser shall say, but rather indicates what he may not say. Jurisdiction is limited to cases which have a public interest as distinguished from a mere private controversy, and which involve practices held to be un¬ fair to competitors in interstate commerce."
Stipulation procedures were instituted in only 823 cases for both printed and broadcast advertising. The FTC negotiated 247 stipulations, and settled and closed by its various methods of procedure a total of 883 cases. The special board recommended that complaints be issued in 35 cases for fail¬ ure to execute stipulations and in 9 cases for violating stipula¬ tions. In eight cases the board recommended that complaints be issued without giving the advertisers an opportunity to stipulate because of gross deception or danger to the public involved in the practices in which they were engaged.
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