NAB reports (Jan-Dec 1948)

Noncommercial Educational WI>OE — Cleveland City Board of Education, Cleveland, Ohio ( Cha rles II. Lake. Siipt. ) — iloditicatioii of construction permit ( B2-PEII-71, as modified I wliich authorized changes in noncommercial educational broadcast station to change completion date. FTC ACTIONS Administrative Interpretation in Regard to Use of Word "Free" to Describe Merchandise The Federal Trade Commission has formulated and adopted an administrative interpretation with reference to the use of the word “free” and words of similar import in advertising to designate or describe merchandise sold or distriluited in interstate commerce. This interpretation, which will be published in the Federal Register, follows ; "The use of the word ‘free,’ or words of similar import, in advertising to designate or describe merchandise sold or distributed in interstate commerce, that is not in truth and in fact a gift or gratuity or is not given to the recipi¬ ent thereof without requiring the purchase of other mer¬ chandise or reiiuiring the performance of some service inuring directly or indirectly to the benefit of the adver¬ tiser, seller or distributor, is considered by the Commis¬ sion to be a violation of the Federal Trade Commission Act.” For a numlier of years prior to the adoption of this admin¬ istrative interpretation, tlie Commission had given this mat¬ ter consideration in connection with a number of its pro¬ ceedings. As a result of the Commission’s actions in these jiroceedings, which involved man.v varied circumstances and factual situations, numerous inquiries were received by the Commission from Better Business Bureaus and representa¬ tives of affected industries reqiiesting for their guidance an administrative interiu'etation in this regard. After giving the matter the fullest consideration, analysis and study, and because of the widespread interest therein, the Commission decided that, in addition to pul)lication in the Register of the interpretation itself, a public release regarding the mat¬ ter was desirable and necessary in order to advise all inter¬ ested parties and to protect the public interest. Commissioners Freer and Mason voted in the negative on the (juestion of the adoption of the administrative interpre¬ tation. STIPULATIONS Earl Products Co. — A stipidation to cease and desist from selling or otherwise disposing of merchandise by means of a game of chance, gift enterprise or lottery scheme has been executed liy Earl RTd)y Ruhenstein. trading as Earl Products Co.. 221 North Cicero Ave., Chicago, and approved by the Commission. (76G4) (iluckiiiaii and Straiicli, Inc. — The Commission accepted from Glnckman and Stranch, Inc., 0(1 Grand St.. New York, and its officers a stipulation to cease and desist from repre■senting contrary to fact that the cigarette tulies they sell are made in France or any other foreign country, that they are e(iuipped with cotton lilters or that they are made from imported paper. (7661) Sonora Radio & Television Corp. — The Commission ap¬ proved a stipulation in which Sonora Radio & Television Corp., Chicago, agrees to cease and desist from representing that any radio receiving set contains designated tubes or is of a designated tube capacity when one or more of the tubes referred to are devices which do not perform the recognized and customary functions of radio receiving set tubes in the detection, amplification and reception of radio signals. (7662) T-Lax Products Co., 1722 First Ave. North, Birmingham, Ala., entered into a stipulation with the Commission to dis¬ continue certain representations concerning a medicinal preparation designated “K & K.” (7663) Union Pharmaceutical Co., Inc. — The Commission accepted from Union Pharmaceutical Co., Inc., 12 Roosevelt Ave., Bloomfield, N. J., a stipulation to cease and desist from rep¬ resenting that a medicinal preparation designated “Saraka” derives its laxative effect solely from its bulk forming prop¬ erties ; that its use gives natural relief of constipation ; and that it is effective in directly relieving rectal irritations. (7665) CEASE AND DESIST ORDERS Paradise Seed Co., etc. — An order to cease and desist from misrepresentation in connection with the sale of garden and flower seeds has been served by the Commission on William A. Frew, Paradise, Pa. The respondent operates under the trade names Paradise Seed Co., Lancaster County Seed Co., Garden Seed Company of America, National Investigators and W. Andrew, maintaining an office at Paradise and a mailing address at Kinzers, Pa. (5499) Frank L. Singer Fur Co. — Frank L. Singer, trading as Frank L. Singer Fur Co., has been ordered by the Commis¬ sion to discontinue misleading representations with respect to his maintenance of places of !)usiness anywhere in the United States other than at Peekskill, N. Y. (5288) Cases Closed Briarwood Corp. — The Commission closed without preju¬ dice its case in which the Briarwood Corp., Cleveland, was charged with misleading advertising of tobacco pipes. (2255) Ex-Lax, Inc. — The Commission closed without prejudice the case growing out of its complaint which charged Ex-Lax, Inc., Brooklyn, and its advertising agent. The ,Jo.seph Katz Co., Baltimore, with disseminating false advertisements con¬ cerning Ex-Lax, a laxative preparation. (5007) International Trading Corp. — The Commission has closed without prejudice its case in which International Trading Corp., 814 Second Avenue Building, Seattle, and its presi¬ dent, George W. Nelson, were charged with disparaging two of their competitors. The respondents are engaged in the import and export business, including the importation of Asiatic hardwoods. (4896) Saks and Co., etc. — The Commission closed without preju¬ dice five cases in which the complaints alleged mispresentation in the sale of merchandise made of synthetic plastic materials of glass-like appearance. Respondents affected by the closing orders are Saks and Co. (4619), New York; Hickok Manufacturing Co. (4680), Rochester, N. Y. ; Pioneer Suspender Co. ( 4681 ) , Philadel¬ phia ; A. Stein & Co. (4698), Chicago; and Rohm & Haas Co., Inc. (4750), Philadelphia. FEBRUARY 2, 1948 -9S