NAB reports (Jan-Dec 1940)

Treasure Keseareh — Findley Haile, trading as Treasure Re¬ search, San Bernardino, Calif., has entered into a stipulation with the Federal Trade Commission in which he agrees to discontinue certain representations in the sale of an instrument known as Aztec Mercuroid Earth Needle recommended for locating gold, gold ore, silver, silver ore and buried treasure. According to the stipulation, the respondent agrees to cease representing that his device will enable one to locate gold, gold ore, silver, silver ore, other veins of ore, and buried treasure. (02620) Wonder Products Company— Werner Walter, trading as Wonder Products Company, 334 Si.xth St., N. E., Canton, Ohio, stipulates that he will discontinue representations that his cleaner and water softener known as “Wonder Glo” is manufactured by himself ; contains no caustic soda or lye ; is a most excellent anti¬ septic or germ destroyer ; will eliminate the necessity of rubbing clothes when used in a tub of wash, or has any particular value as a shampoo other than to soften hard water. (2907) CEASE AND DESIST ORDERS Commission has issued the following cease and desist orders during the past week: Lambert Pharmacal Company, St. Louis, has been ordered to cease and desist from violating the Robinson-Patman Act in the sale of its “Listerine Antiseptic” and allied products by allow¬ ing to certain customers compensation for sales services or facilities furnished by them without making such payments available on proportionally equal terms to all other competing buyers of the Lambert products. Commission findings are that the respondent company granted to certain wholesalers and retailers compensation for either carrying warehouse stocks or furnishing selling services and facilities, or both, as follows: To one group of wholesalers, a sum equal to 10 per cent of the respondent’s net billing prices of Lambert products sold by such wholesalers during the previous month. To another group of wholesalers, five per cent of the previous month’s purchases. To a group of retailers, 10 per cent of the previous month’s purchases. To another group of retailers, for services and facilities less exten¬ sive than those supplied by the 10 per cent retailers, a sum equal to five per cent of the previous month’s purchases. It was found that the respondent corporation failed and refused to make available or pay compensation for similar services and facilities offered by other wholesalers and retailers competing with those dealers receiving the Lambert company’s compensations. It was further found that some of the respondent corporation’s cus¬ tomers who received compensation equal to five per cent of the previous month’s purchases claimed that they were able and willing to furnish services and facilities for which the Lambert company paid their competitors 10 per cent of their previous month’s purchases, but that the respondent corporation refused to accept their offers or to pay them the 10 per cent compensation. In failing and refusing to pay the compensation requested in these instances, the respondent corporation, according to findings, failed to make such compensation available to all of its customers competing in the distribution of its commodities, on proportionally equal terms, thereby violating section 2 (d) of the Clayton Act, as amended by the Robinson-Patman Act. The Commission’s order specifically forbids the granting or allow¬ ing of the 10 and S per cent compensations to the wholesale and retail groups aforementioned unless such payments are made on proportionally equal terms to all competing buyers. The order also generally prohibits the allowing of any compensation to any customer for services or facilities furnished, unless such payments are made on proportionally equal terms to all competing buyers. The Commission’s case relates to operation of the respondent corporation’s plan as it was in effect on March 29, 1939, the date of the Commission’s complaint. (3749) Monarrii China Company — R. Frank Yancey, trading as The Monarch China Company, 703 Chestnut St., Greensboro, N. C., has been ordered to discontinue the dissemination of misleading repre¬ sentations in the sale and distribution of earthenware products in¬ cluding dinnerware sets designated by the respondent as “chinaware”. The Commission’s order prohibits the respondent from repre¬ senting that he is a manufacturer, or that he manufactures any of the products sold by him. The order further forbids representations by the respondent that the prices at which his products are offered for sale con¬ stitute special or reduced or “clearance sale” prices, when they are in fact the customary and usual prices at which such products are sold in the normal course of business. The respondent was also forbidden to represent, by the use of purported samples or otherwise, that his products are of a quality or value different from the actual quality or value of such products. (3410) Stroiuberg Ipiition Company — Henry 0. Striker, trading as Stromberg Ignition Company, 14819 Charlevoix Ave., Detroit, has been ordered to discontinue the dissemination of misleading repre¬ sentations in the sale of an automotive device designated as “ ‘Stromberg’ Condenser” and as “ ‘Stromberg’ Master Con¬ denser.” Findings of the Commission are that the respondent uses the word “Stromberg” as a trade name or brand for his product, such name being used without the authority or consent of the favorably known Stromberg Carburetor Company and Bendix Stromberg Carburetor Company who since 1907 have built up and enjoyed a valuable good will in the name “Stromberg” with respect to its automobile devices. Further findings are that the respondent misleadingly represents that his device is capable of increasing the power of the motor; that its use eliminates spark plug trouble and saves the user oil and gasoline; that its users are able to drive up to 2,500 miles or more on a change of oil ; that the use of his device reduces carbon and makes easier starting for the motor; that manu¬ facturers of automobiles and gasoline motors have neglected the advancement and development of the ignition systems and that his product puts the ignition system in keeping with the other improvements made in motors; that an offer made to purchasers and prospective purchasers is a special thirty day offer which will expire at the end of that time and is more advantageous than that generally made, and that his device is approved and endorsed by a recognized automotive association which is equipped with laboratories for testing and approving various automotive equipment. The Commission’s order prohibits the respondent from making these representations and from using the name “Stromberg” or any other name similar in spelling or phonetic sound, as a trade name for doing business or as a brand name in designating his product. (4064) Trippe Manufacturing Company, 564 West Adams St., and Trippe Sales Company, 600 West Jackson Boulevard, Chicago, were ordered to discontinue certain misleading representations in the sale of an electric auxiliary light known as “Trippe Safety Light” and “Trippe Speed Light.” The order forbids representations by the respondents that their light will penetrate and conquer fog, regardless of its density ; that fog close to the ground is thin and less dense in all cases, or that their light cuts under and stays under the fog blanket in all cases. Further representations forbidden by the order are that the respondents’ light gives adequate illumination in fog, rain, mist or snow, regardless of the density, or that it affords the user 1,000 feet of visibility ahead under all conditions. The order also prohibits the respondents from making claims that their light has been purchased or used by the United States Coast Guard officially, or by any other agency of the United States Government. (4037) Trippe Sales Company — See Trippe Manufacturing Company. August 23, 1940 — 4539