C. J. Ozment

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IN Tlle MATTER OF C. J. OZMENT, INDIVIDUALLY AND DOING BUSINESS UNDER THE TRADE NAME AND STYLE, OZMENT'S IN- STRUCTION BUREAU COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1014 Docket 181!. Complaint, Nov. S, 1930-Deciswn, Mau11, 1931 Where an individual engaged in the sale of correspondence courses of instructions for civll-service examinations, purporting to qualify applicants tor success therein; in describing its courses in advertisements in newspapers, magazines, and elsewhere, and in printed circulars, letters, and otherwise-- (a) Made such statements as "Wanted Immediately-IS-55, Men-Women, qualified for permanent Government positions, $105--$250 a month," "Wonderful Jobs with U. S. Government !or Men-Women, 18-55. $125--$250 a month," etc., "Government Positions $35 to $75 weekly. Age 18-U5," together with list of places Including such positions as railway mail clerk, forest ranger, R. F. D. carrier, etc., facts being salaries for some of positions were not as high as $250 a month to commence with, and some were not avallable to persons over 50 years of age, or had maximum age limits considerably below 55;

(b) Represented that a large number of e::tnmlnations would be held soon, that "if you can get started right away, we can have you ready for one or more examinations within three or four weeks from now," that "civil-service examinations are held in almost all towns and cities of 3,000 population and upward," and that "It Is not necessary for anyone to go far in order Ul enter an examination," etc., and that "U. S. Government stenographers and typist examinations are announced to be held In almost every large city throughout the United States a.about every 60 days," facts being that no examinations were to be held soon for some of the positions, while for others only a small number were to be l1Cld or likely to be h~ld soon, examinations are held in comparatively few towns and cities of 3,000 population and upward, and examinations for Government stenographers and typists were held or announced to be held only once or twice yearly in many of the large cities instead of each sixty days in almost all such cities;

(c) Represented that "there are good Government positions in almost every town, and in the larger cities there are thousands and thousands of places," and that "in the smaller towns and clues there are places such as postmaster, assistant postmaster, post-office clerk, city carrier, vlllage carrier, rural carrier, etc_, while In the larger clues there are many kinds," fact being that the number of Government positions avallable in the larger cities is very much less than represented;

(4) Stated in connection with the description of duties and compensation of forest rangers that examinations were usually held in a large number o! States specified, but that it was not necessary to be a resident thereof Oomplalnt ltiF.T.O.

though such residents were given preference where practicable, facts being very few appointments were made to said position, and appointment in practically all Instances Is Umlted to residents of State in which forest ill situated with very little, It any, opportunity for appointment for those pass· ing examinations who do not live in States with natural forests; (e) Made such statements tn describing compensation, duties and privileges of railway mall clerks as "the position • • • with all the splendid advantages of travel, interesting stimulating change of scenery, nevv friends, new opportunities," etc., " • • • you work four or six days then you are of! duty four or six days. Free to spend almost all your time as you please, ball games, fishing," etc., and "on Fuu. PAY STRAIGHT THnouoH," some arranging "to engage in some other employment during the uays off the road" and making " almost enough that way to meet personal expenses," and inquiring whether "$225 per month for fifteen days, ($15 for each day you actually work), with allowance for meals and hotel bills, a railway pass or commission and an annual vacation with pay appeal to You," facts being many clerks must serve several years in a terminal station before being allowed to travel, with no allowances during such a period for meals or hotel bills, allowances for hotel expenses are limited to actual expenses and such expenses, not exceeding $3 a day, do uot begin until clerk has been on road ten hours, at least 50 per cent of employees receive no such allowance since employed on short runs or at tenninals or transfers, and employees are required to average 8 hours work a day for BOG days a year, and at least one-third of entire force Is employed at terminals and transfers, or In offices, for 8 hours a day, with no time off;

(f) Set forth so-called "Money Rack AGREEMENT," In which he agreed to refund full tuition paid, should applicant not secure Government position after completing course and taking the three Government examinations for which It prepared him, with privilege, however, if desired, of concentrating on one examination only, fact being that In absence of any specified time within which tuition money was to be refunded, years might elapse before refunds could or would be made, With capacity and tendency to mlsleau and deceive publlc and prospective subscribers into erroneous bellef that said statements and representations were true and Induce such persons to apply for and subscribe to such courses In reliance upon and by reason of their belief in the truth and accuracy thereof, and thereby divert trade to him from competitors anu with effect of so doing:

Held, That such practices, under the circumstances set forth, were all to the prejudice of the public, and competitors, and constituted unfair methods of competition.

Mr. Richard P. Whiteley for the Commission. SYNOPSIS OF Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, a resident of St. Louis, engaged in the sale of correspondence courses for preparing subscribers for success in OZMENT'S INSTRUCTION DUBEAU 105 103 Findings competitive civil-service examinations for positions in the Govern- :rnent service, with advertising falsely and misleadingly as to prospects and probable results of service offered, and money-back guarantee, in violation of the provisions of section 5 of said act, prohibiting the use of unfair methods of competition in commerce. Respondent, as charged, engaged as above set forth, makes state- :rnents in his advertisements in newspapers, magazines, and elsewhere in printed circulars, in letters, and otherwise which are false or misleading as to age limits, the places in which examinations are to be held, the frequency and pendency of examinations, the demand for employees in various classes and places, the possibilities of employ- :rnent and the perquisites and other advantages of certain places and the compensation to be paid, and sets forth a misleading money-back agreement, in which provision for refund is made only in case subscribers have taken "at least three Government examinations and have failed to secure a position in the Government service," which in most instances prevents said applicants or subscribers from securing said refund.1 Respondent, further as charged, "enrolls and/or retains as stu· dents after enrollment, certain applicants for or subscribers to his courses of instruction as eligible for or fitted, physically or mentally or otherwise, for appointment to certain positions in the Government service, and notifies said applicants or subscribers that they are eligible for said positions when he is without knowledge of their :mental or physical fitness and when, in truth and in fact, said applicants or subscribers are not eligible for or fitted, physically or men· tally or otherwise, for appointment to said positions." Said acts and things, as charged, are to the prejudice of the public and respondent's competitors and constitute unfair methods of competition.

Upon the foregoing complaint, the Commission made the following REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an act of Congress approved September 26, 1914, the Federal Trade Commission issued and served a complaint upon the respondent C. J. Ozment, doing business under the trade name and style, Ozment's Instruction Bureau, charging him with the use of unfair methods of competition in commerce in violation of the provisions of said act. Respondent having entered his , appearance and filed his answer herein and having entered into a 1 The various advertisements charged In the complaint as bcln~t m!Hleadlna, are Nt forth In the findings, as Is the " money back agreelllilnt." Findings 15 F. T. 0.

stipulation as to the facts in which it was agreed that the said :facts might be taken in lieu of testimony and that the Commission might proceed upon said statement of :facts to make its report, stating its findings as to the :facts (including inferences which it might draw from the said stipulated :facts) and its conclusion based thereon, and enter its order disposing of the proceeding without the filing of briefs or the presentation of argument, thereupon this proceeding came on for final hearing and the Commission having considered the record and being fully advised in the premises makes this its findings as to the facts and conclusion drawn therefrom:

FINDINGS .AS TO THE F.ACTS PARAGRAPH 1. Respondent C. J. Ozment is a resident of the city of St. Louis, State of Missouri, with his office and principal place of business in said city and State, where he is and has been for more than two years last past doing business under the trade name and style, Ozment's Instruction Bureau. The said business of respondent consists in furnishing courses of instruction by correspondence sent by him through the United States mail to applicants :for or subscrib· ers to said courses of instruction purported to qualify them for and enable them to succeed in competitive examinations with credits suffi· cient to entitle them to be appointed to positions in various depart· ments of the Government service of the United States. For this instruction the respondent charges a :fee of $9.75. PAn. 2. The respondent during the said times referred to is and hils been sending the aforesaid courses of instruction by mail :from his place of business in the city of St. Louis, State of Missouri, in com· merce to, into, and through other States of the United States and the District of Columbia to the individuals, the said applicants :for and subscribers to said courses of instruction, who paid the respondent in money therefor.

PAn. 3. During the times above mentioned other individuals, firms, and corporations, located in the various States of the United States, have been engaged in the business of furnishing courses of instruction by correspondence sent by them through the United States mail to applicants and subscribers who have paid their money therefor, lo· cated in the various States of the United States other than the States from which the said courses were sent and the District of Columbia, and during the aforesaid times the respondent was, and still is, in competition in commerce with the said other individuals, firms, and corporations so engaged.

PAn. 4. Respondent offers his said courses of instruction to the pub· lie and to the aforesaid applicants and subscribers in advertisement& OZMENT'S INSTRUCTION BUREAU 107 103 Findings in newspapers, magazines, and elsewhere, and in printed circulars, in letters sent by him through the mail, and otherwise, in which he has made the following statements and representations: INSTRUCTION Wanted imnledfately.-Men-women, 18-55, qualify for permanent Govern· ment positions, $105--$250 month; experience not required; vacations with full pay; common education; many needed. Write, Instruction Bureau, 248, St. Louis, 1\Io.

The above-quoted advertisement. or representation is untrue or misleading and deceptive in that the salaries established for some of the Government positions referred to are not as high as $250 per month to commence with, and further in that some of the said Government positions referred to are not available to persons over 50 years of age. Wonder("~ job~ with U. S. Government for men-women, 18--55. $125--$250 month. About 40,000 openings yearly. Are you eligible? We advise you free. Write. Instruction Bureau, 364, St. Louts, Mo. The above-quoted advertisement or representation is untrue or misleading and deceptive in that the salaries established for some of the Government positions referred to are not as high as $250 per month to commence with, and further in that some of the said Government positions referred to are not available to persons over 50 years of age. GOVERNMENT POSITIONS $35 TO $75 WEEKLY Men-women, age 18 to 53 Railway mall clerk, Immigrant Inspector. Forest ranger. Seamstress. R. F. D. carrier. Auditor. Special agent (investigator), Steno-secretary. City mall rarrler. U. S. border patrol Meat inspector. Chauffeur-carrier, P. 0. clerk. Watchman. File clerk. lf!killed laborer. General clerk. rostmaster. Matron. Typist. Steno-typist.

Instruction Bureau, 316 Arcade Bldg., St. Louis, 1\Io. Send me free pnrtlcu· Iars how to qualify for positions marked "X." Salaries, locations, opportunl· ttes, etc. All sent free.

The above-quoted advertisement or representation is untrue or misleading and deceptive in that it overstates or misrepresents the actual or probable earnings available to persons appointed to many 108 FEDERAL TRADE COMMISSION DEOISlONS Findings lif.T.C.

of the positions stated, and further in that for the positions named in the list the age limits vary, and for many of them the maximum age limit is considerably below 55 years. The advertisement or repre~ sentation was used by respondent in the exact form as stated above up to about June 1, 1927, upon which date the position of "forest ranger " was taken from said list.

A large number or examinations will be held soon, and i! you can get started right away, we can have you ready for one or more examinations within three or !our weeks !rom now. You may mark three positions If you wish, and we wlll lnl:ltruct you for all three at the same time, and for the one fee of only $9.71!, and that's all you pay; or you may confine all your efforts to one or two 1f you prefer to do so. Our object is to help you get your Government position just as quickly as possible. · The above-quoted advertisement or representation is untrue or misleading and deceptive in that for some of the positions to which it refers no examinations were to be held soon after the issuance of such advertisement or representation, and for others, only a small number of examinations were to be held or likely to be held soon after its issuance. The said advertisement or representation was discontinued by respondent on or about January 26, 1931. PLACES OF EXAMINATIONS.

Civil service examinations are held at almost all towns and clues of 8,000 population upward, and 1t is not necessary for anyone to go far in order to enter an examination. We keep our applicants advised as to how to keep in touch with the places and dates of examinations.

The above-quoted advertisement or representation is untrue or misleading and deceptive in that civil-service examinations are not held at almost all towns and cities of 3,000 population upward, but are held in comparatively few of such towns and cities. The above advertisement Ol' representation was discontinued by respondent on or about February 16, 1931.

U. S. Government stenographers and typists examination are announced to be held in almost all large cities throughout the United States about every 60 days. The demand for stenographers and typists has been good for several years. The above-quoted advertisement or representation is untrue or misleading and deceptive in that examinations for Government stenographers and typists are not and have not been announced to be held in almost all large cities of the United States about every 60 days, but in many of said cities only one or two examinations for said positions are or have been announced to be held yearly. The above advertisement or representation was discontinued by respondent several months prior to the date of the issuance of the complaint herein, and ha-s not been used by him since that time, OZMENT'S INSTRUCTION BUREAU 109 103 Findings There are good Government positions in almost every town, and in the larger cities there are thousands and thousands of places. In the smaller towns and cities there are places such as postmaster, assistant postmaster, post-otnce clerk, city carrier, village carrier, rural carrier, etc., while In the larger cities there are many kinds of places.

The above quoted adverti,sement or representation is untrue or misleading and deceptive in that the number of Government positions available in the larger cities of the United States is very much less than represented. The above advertisement or representation was discontinued by respondent on or about February 16, 1931. FOREST RANGE~r-$1,620 TO $2,500 PEB YEAB Forest ranger has direct charge of all work in his section, This is patrolUng forests, extinguishing fires, enforcing regulations, etc, It may also include supervising the grazing of stock, building of trails, etc. He Is also a deputy game, fish, and fire warden with power to make arrests. Commence $1,620 per year with possible promotion to $2,500 per year. Examinations are usually held in the following States, but it is not necessary to be a resident of one of these States, 1. e., Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Idaho, Michigan, lfinnesota, 1\Iontana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington, West Vlrglnla, Wyoming, Subjects of examination are practical questions, clerical tests, education and experience. Where practicable, residents ot. above States arc given preference.

· The above quoted advertisement or representation is untrue or misleading and deceptive in that there are very few appointments made to the position of forest ranger in the Government ,service, and such appointments that are made are in practically all instances limited to qualified citizens of the State in which the forest is situated, and there is little if any opportunity for the appointment to said service of persons passing the examination who do not live in States having natural forests. The above advertisement or repre,sentation was discontinued by respondent on or about June 15, 1921, and has not been used since by him.

If you want unusual advantages ot. travel, 4 to 6 days' work, 4 to 6 days' free-full-time pay-hotel expenses-vacations with pay and travel. Act now I Prepare for the rallway man. Railway mail clerks needed to fill openings In this gigantic branch of Government service frequently. Regular positions pay $1,900 to $2,700 yearly.

PAY lNCREASI!lS AGAIN GB.ANTED Rl!lOENTLY The position as railway mall clerk with all the splendid advantages of. travel, lnterestlng, stimulating change of scenery, new t.friends, new opportunities, can be obtained by this amazing short cut. With llfr. Ozment's coaching anyone having the equal of a grammar or common school education should pass th!JI exo.mlnatlon at a splendid grade.

110 FEDERAL TRADE OOMMISSION DECISIONS Findings lliF. T. 0. What Mr. Ozment has learned in his twenty years' experience in coaching thousands for choice positions, will stand you in good stead now. The work is unusually iRterestlng; something new, something different always, new friendship; you work four or six days then you are off duty four or six days, free to spend almost all your time as you please, ball games, fishing, bunting, work around home, whatever," you will, and on full pay straight through. Some arrange to engage in some other employment during the days off the road, and make almost enough that way to meet personal expenses and have all their salaries to deposit in the bank. The regular entrance salary is now $1,900 with promotions to $2,700 per year and a raise of at least $100 is granted through the successive grades will run to $225 per month. Railway mall clerks may also be promoted to a place as post-office inspector, or superintendent of a rahway mall division, which pay about $4,200 per year.

Does $225 per month for 15 days' work ($15 for each day you actually work), with an allowance for meals and hotel bills, a railroad pass or commission and an annual vacation with pny appeal to you? If you want one of these places enroll now for Ozment's coaching and go after it. One round trip in the service almost pays our fee. Moreover, Ozment's agreement insures your success or his coaching costs you nothing, as per his liberal agreement. Act now: enjoy one of these splendid places.

The above-quoted advertisement or representation is untrue or misleading and deceptive (1) in that many railway mail clerks are required to serve several years in a terminal station before being allowed to travel, and while working at said station no allowances for meals or hotel bills are granted; (2) in that there are no allowances for hotel expenses other than actual expenses up to a certain amount; (3) in that actual expenses, not exceeding $3 a day, do not begin until the clerk has been on the road ten hours; ( 4) in that at least fifty per cent of all railway mail clerks receive no expense allowances for the reason that they are employed on short run or at terminals or transfers; and ( 5) in that said clerks are required to average eight hours' work a day for 306 days a year, and at least one-third of the entire force of said clerks are employed by terminals and transfers or in offices for eight hours a day, with no periods of time off.

The above advertisement or representation was discontinued by respondent subsequent to the issuance of the complaint herein and prior to February 16, 1931.

MONEY BACK AGREEMENT Ozment's Instruction Bureau agrees to refund the full tultlon paid, provided applicant does not secure a Government position after completing the course and taking the three Government examinations for which it prepares him. Note.-Applicant is prepared for three examinations so that he may enter an examination and secure a position more quickly. It applicant desires to prepare for only one kind of examination and confine all el!orts to one, be ma1 do so.

OZMENT'S INSTRUCTION BUREAU 111 los Conclusion The above quoted advertisement or representation is deceptive and misleading in that there is no specified time within which tuition money paid respondent will be refunded to. applicants, and under said agreement years might elapse before the refunds could or would be made.

Pan. 5. The use as aforesaid of the advertisements or representations of respondent prior to their discontinuance by him, or prior to the changes made in the same by him, has tended to and has diverted traue from competitors of respondent.

PAR. 6. With the first letter sent by respondent to a prospective student or applicant for his course of instruction the following circular is enclosed :

PERSONAL lNFORllATION (SEND No MoNI!IY) No. -- These questions are given to determinet if you are eligible for a Government position, and the kind that ls best suited for you . .Are you a cltizen of tlJe United States? ------ .Age ------ Weight without overcoat ------ Height without shoes ------ Any defect of heart, lungs, ears, eyes, limbs, or speech ------ Any physical defects, If so, describe here ------ What grade did you reach ln school? ------ Have you taken a business course, it so what kind?_____ What ls your occupation?____ Where do you prefer a position? ------ Have you had mllitary service? ------ How soon do you w!::;h to complete course? ------ IIave you attended night school or taken a correspondence course? ------ Name the positions you prefer ------ Name ------ 1'. 0. ------ St. orr. F. D.------ State----- The above circular or questionnaire is filled out and sent to respondent before the prospective student or applicant enrolls and the respondent does not enroll students for courses of instruction for those positions which by reason of age or physical disqualifications they are manifestly ineligible.

Pan. 7. The statements and representations set forth in paragraph 4 herein are false and misleading, as indicated, and the use of said statements and representations by respondent, C. J. Ozment, in the manner and form made has the capacity and tendency to mislead and deceive the public and prospective applicants for and subscribers to said. courses of instruction into the erroneous belief that said. statements and representations are true and to induce persons to apply and to subscribe to said courses of instruction in reliance upon and by reason of their belief in the truth and accuracy of said statements and representations, and thereby to divert trade to respondent from competitors.

CONCLUSION The acts and practices of respondent under the conditions and circumstances described in the foregoing findings are to the prejudice Order 15F.T. C.

of the public and respondent's competitors and constitute unfair methods of competition within the intent and meaning of section 5 of an act of Congress entitled "An act to create a Federal Trade · Commission, to define its.powers and duties, and for other purposes." ORDER TO CEASE .AND DESIST This proceeding having been heard by the Federal Trade Commission on the complaint of the Commission, the answer of respondent, and the stipulation of facts entered into by and between the respondent and the chief counsel of the Commission, and the Commission having made its findings as to the facts and conclusion that respondent has violated the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," It is now ordered, That respondent, C. J. Ozment, his agents, representatives, and employees, do cease and desist from making statements and representations in advertisements in newspapers, magazines, and periodicals, and in letters, printed circulars, pamphlets, booklets, and other advertising literature, circulated and distributed in connection with the offering for sale and sale in interstate commerce of courses of instruction for positions in the Government service of the United States, as follows:

(1) That the salaries established for the positions are higher than they actually are and that the positions are available to persons over 50 years of age when such is not the fact;

(2) That the examinations for all positions for which respondent offers courses of instruction are to be held immediately or within a short time, when such is not a fact;

(3) That civil-service examinations are held at almost all towns and cities o.f 3,000 population upward, and that it is not necessary for anyone to get far in order to enter such an examination, when such is not the fact;

(4) That examinations for United States Government stenographers and typists are announced to be held in almost all large cities throughout the United States about every sixty days, when such is not the fact;

(5) That there are good Government positions available, and that in the larger cities there are thousands and thousands of such places, when such is not the fact;

(6) That appointments to the position of forest ranger are available and that it is not necessary to be a resident of the States within which the forest ranges are located in order to secure appointments to such positions, when such is not the fact; OZMENT'S INSTRUCTION BUREAU 113 103 Order (7) That railway mail clerks immediately upon appointment are allowed to travel with allowances for meals or hotel or other expenses and that they are off duty half the time with full time pay, when such are not the facts;

(8) That the respondent agrees to refund the .full tuition paid by applicants or subscribers without specifying the time in which such money will be repaid.

It is further ordered, That respondent shall, within 60 days after service upon him of a copy of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with and conformed to the order to cease and desist hereinabove set forth.

Syllabus l:i F.T. C.