B. F. Huntley Furniture Company

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IN THE MATTER OF B. F. HUNTLEY FURNITURE COMPANY COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. IS OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2508. Oompl!Unt, July 30, 1935-order, Nov. 1, 1985 Consent order requiring respondent corporation, its agents, etc., in connection with the sale and offer in commerce among the several States and in the District of Columbia of certain household furniture, to cease and desist from- ( a) Advertising or in any way otherwise representing, directly or by implica· tion, by advertisements, advertising literature, stickers attached to the articles of furniture, or in any manner or by any means whatsoever that articles of furniture manufactured or sold by the respondent and not made from wood derived from the genus Juglans, of the tree family known as Walnut or Juglandaceae, are "walnut" or "oriental walnut"; or (b) Using the word "walnut" either independently or in connection with the word "oriental", or with any other word or words, in its advertising matter of whatever character, so as to represent, import, imply, or have the capacity or tendency to confuse, mislead or deceive purchasers into the belief that said articles of furniture are manufactured, either in whole or in part, from wood derived from trees of the Walnut or Juglandaceae family, when such is not the fact. Mr. J. T. Welch for the Commission.

Manly, II endren & lV omble, of 'Vinston-Salem, N. C., for respondent.

Complaint Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purposes", the J!'ederal Trade Commission, having reason to believe that B. F. Huntley Furniture Company, a corporation, hereinafter designated as respondent, is now, and has been, using unfair methods of c0m· petition in commerce, as "commerce" is defined in said act, anrl it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues it~ con·.plaint stating the charges in that respect as follows: . PARAGRAPH 1. Respondent, n. F. Huntley Furniture Comr-any, iR now, and has been at all times mentioned herein, a corporation organ· ized, existing and doing business under and by virtue of the laws of the State of North Carolina, with its office and principal place of business in the city of 'Vinston-Salem in said State, and is now, and has been at all times mentioned herein, engaged in the business of B. F. HUNTLEY FURNITURE CO. 453 452 Complaint manufacturing, distributing and selling household furniture to wholesale and retail dealers in such furniture. PAR. 2. Said respondent, being engaged in the business of manufacturing, distributing, and selling household furniture as aforesaid. causes said furniture, when sold to wholesale and retail dealers located in various cities in the several States of the United States, to be transported from its principal place of business in the State of North Carolina, to the purchasers thereof located in other States of the United States and in the District of Columbia, and there is now, and has been at all times mentioned herein, a constq,nt current of trade and commerce in said household furniture, manufactured, distributed and sold by respondent, between and among the various States of the United States and the District of Columbia. PAR. 3. Said respondent is, and has been at ah times mentioned herein, engaged in substantial competition with other corporations, partnerships, and individuals engaged in commerce among the several States of the United States and in the District of Columbia, in the manufacture, distribution, and sale of household furniture. PAR. 4. Respondent, in the course and conduct of its business as detailed in paragraphs 1 to 3, inclusive, is now and has been, manufacturing, offering for sale, and selling, as and for "walnut" or "oriental walnut", certain household furniture made from woods other than walnut wood, but which resemble walnut wood in some characteristics and in general appearance. In advertisements, paper stickers attached to the various articles, circular letters, correspondence with purchasers and prospective purchasers, invoices, price lists, catalogs, and trade literature said respondent has represented, and still represents to said wholesale and retail dealers and the public generally that said household furniture is manufactured or constructed of "walnut" or "oriental walnut" wood, when in truth and in fact, said household furniture is not manufactured or constructed from walnut wood as that term is known, used and understood by the trade and the public generally. · PAR. 5. The word "walnut", when used either independently or in connection or conjunction with the word "oriental" or with any other word or words of similar import, in connection with or descriptive of household furniture means, and the trade and consuming public understand, and for many years have understood, it to mean that the said furniture, so referred to or described, is manufactured or constructed from wood obtained from the genus J uglans of the tree family known as "Juglandaceae".

PAR. 6. A substantial portion of the purchasing public has indicated, and has, a decided preference for household furniture manu- 454 FEDERAL TRADE COIIIMISSION DECISIONS Complaint 21F.T.C.

factured or constructed from genuine walnut wood obtained from the J uglans genus of the tree family known as "J uglandaceae" over household furniture manufactured or constructed from other woods resembling walnut wood in certain of its characteristics and general appearance but that cannot properly be designated as "walnut". PAR, 7. The aforesaid representations made by the respondent, as set out in paragraph 4 hereof, were and are calculated to, and had and now have the tendency and capacity to, and did and now do mis~ lead and deceive a substantial portion of the purchasing public into the belief that the respondent manufactures, distributes, and sells household furniture manufactured or constructed from genuine walnut wood and that all of the furniture manufactured and sold by ·the respondent Ul)der the description and representations above set out is constructed of walnut wood and to purchase said household furniture in such belief.

The aforesaid representations made by the respondent, as set out in paragraph 4 hereof, were and are calculated to, and had and now have the tendency and capacity to, and did and now do mislead and deceive a substantial portion of the wholesale and retail dealers in household furniture into the belief that the respondent manufactures, distributes and sells household furniture manufactured or constructed from genuine walnut wood and to purchase said household furniture manufactured or constructed by the respondent in the belief that _the said furniture consists of walnut wood and to resell the said articles of household furniture to the general consuming public as and for furniture manufactured or constructed of walnut wood. Further, the aforesaid representations, in said advertising literature hereinabove referred to, especially in catalogs, paper stickers attached to the various articles, invoices, price lists and trade litera~ ture, and the placing of all of said literature, containing said repre~ sentations, in the hands of wholesale and retail furniture dealers, enables unscrupulous dealers to mislead and deceive customers into the belief that the furniture products manufactured and sold by the respondent are composed of and constructed from genuine walnut wood.

As a direct consequence of the mistaken and erroneous beliefs, in~ duced by the acts, advertisements and representations of the respond~ ent, as hereinabove detailed, a substantial number of wholesale and retail dealers in furniture and a substantial number of the purchas~ ing public have purchased a substantial volume of respondent's hou[>ehold furniture products, with the result that substantial injury has been done to substantial competition in commerce among the va~ rious States of the United States and the District of Columbia. B. 1<'. HUNTLEY FURNITURE CO. 455. 452 Order PAR. 8. There are among the competitors of respondent many who have manufactured, constructed and sold, and who now manufacture, construct and sell, household furniture made of walnut wood and who rightfully and truthfully represent their said household furniture t.o be made or constructed of walnut wood; and there are among the competitors of respondent many who have manufactured, constructed and sold, and now manufacture, construct and sell household furniture not made of walnut wood, and who rightfully and truthfully represent said household furniture not to be made of waln:ut wood and rightfully and truthfully represent and designate the wood or woods used in the construction of said household furniture, and the alleged acts, practices and representations of the respondent divert a substantial volume of trade from, and otherwise prejudice and injure a substantial number of said competitors. PAR. 9. The above and foregoing acts, practices, and representation of the respondent have been, and are, all to the prejudice of the public and respondent's competitors as aforesaid, and have been, and are, unfair methods of competition within the meaning and intent of Section 5 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". ORDER TO CEASE AND DESIST B. F. Huntley Furniture Company, the respondent herein, having filed its answer to the complaint in this proceeding and having subsequently made application to withdraw the answer heretofore filed and tendering in lieu thereof a consent answer, in which answer respondent states that it desires to waive hearing and not to contest the proceeding, consenting in and by its said answer that, as provided in paragraph (b) of Rule V of the Commission's Rules of Practice, the Commission may, without trial, without evidence and without findings as to the facts or other intervening procedure, make, enter, and serve upon said respondent an order to cease and desist from the methods of competition alleged in the complaint. And the Commission having considered the complaint and said answers, and being fully ad vised in the premises- It is now ordered, That the respondent, B. F. Huntley Furniture Company, be, and it is hereby permitted to withdraw the answer heretofore filed by it and to file consent answer in lieu thereof, and the substituted answer tendered is received and filed. It is also ordered that the respondent, B. F. Huntley Furniture Company, its agents, servants, representatives and employees, in connection with the sale and offering for sale, in commerce among and between the . Order 21 F.T. C. several States of the United States and in the District of Columbia, of certain household furniture, cease and desist from: (1) Advertising or in any way otherwise representing, directly or by implication, by advertisements, advertising literature, stickers attached to the articles of furniture, or in any manner or by any means whatsoever that articles of furniture manufactured or sold by the respondent and not made from wood derived from the genus J uglans, of the tree family known as '\Valnut or J uglandaceae, are "walnut" or "oriental walnut".

(2) Using the word "walnut" either independently or in connection or conjunction with the word "oriental", or with any other word or words, in its advertising matter of whatever character, so as to represent, import, imply, or have the capacity: or tendency to confuse, mislead or deceive purchasers into the belief that said articles of furniture are manufactured, either in whole or in part, from wood derived from trees of the 'Valnut or Juglandaceae family, when such is not the fact.

It is further ordered, That respondent shall, within 60 days from the date of service upon it of a copy' of this order, file with the Commission a report in writing, setting forth the manner and form in which it has complied with the order herein set forth by the Commission.

GOTHAM SALES CO., ETC. 457 Complaint