Real Products Corporation

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IN THE MATTER OF REAL PRODUCTS CORPORATION AND REALFLEX PRODUCTS CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2261. Complaint, May 9, 1935 1-order, Dec. 81, 1935 Where a corporation engaged in the manufacture of automotive and metal specialties, including spark plug cable sets, spark plugs, and porcelains therefor, and in the sale of said products among the various States and territories and in the District of Columbia, had long applied designation ••champion" to its aforesaid products, and through use thereof in its -corporate name and on its stationery and cartons, and in its advertising matter, had caused said word to signify and mean to trade and purchasing public that automotive and metal specialties thus designated were its products; and thereafter two companies, engaged under common control in manufacture of similar specialties, including spark plug cable sets, without consent of said corporation, used and continued to use trade designation and name "Champion" for their aforesaid products on their cartons and in their price lists and advertising matter; With effect of deceiving retail dealers and purchasing public into believing that their aforesaid products were those of said corporation, and with tendency and capacity so to do, and unfairly to divert trade to them from competitors who do not use such deceptive and misleading names for their products:

Held, That such practices, under the conditions and circumstances set forth, were all to the injury and prejudice of the public and competitors and constituted unfair methods of competition. Defore Mr. Ed1.oard lll. Averill, trial examiner. Mr. John lV. Hilldrop for the Commission. Col\lplaint 1 Pursuant to the provisions of an Act of Congress approved Sep· tember 26, 1914, entitled "An Act to create a Federal Trade Corn· mission, to define its powers and duties, and for other purposes", the Federal Trade Commission having reason to believe that the Real Products Corporation and Realflex Products Corporation, hereinafter referred to as respondents, ·have been and are using unfair methods of competition in commerce, as "commerce" is de· fined in said act, and it appearing to said Commission that a pro· ceeding by it in respect thereof would be in the public interest, 1 Amended and supplemental.

REAL PRODUCTS CORP. ET AL. 715. 714 Complaint hereby issues its amended and supplemental complaint stating its charges in that respect as follows :

PARAGRAPH 1. Respondent Real Products Corporation is a corporation organized, existing and doing business under and by virtue of the la vs of the State of New York, with its principal office and place of business located in the city of Brooklyn in saiu State. Respondent Realflex Products Corporation is likewise a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located in the city of Brooklyn in the State of New York. The above named corporate respondents are engaged in the same business, and manufacture, sell and distribute in interstate commerce the same and identical commodity, and the treasurer of respondent Real Products Corporation is Martin J. Goldstein, who has complete charge of and controls the business and affairs of respondent Realflex Products Corporation; and Fedrral Trade Commission charges on information and belief that he owns the assets of respondent Real Products Corporation as well as the assets and the capital stock of respondent Realflex Products Corporation, and that the two corporations are engaged in joint enterprises in the conduct of the business hereinafter described and set out. PAR. 2. Respondents are now and for so1r1e time past have been ~ngaged in the manufacture of automotive and metal specialties Including spark plug cable sets, and the sale 11.nd distribution of said products between and among the various States of the United States, the territories thereof and in the District of Columbia. They now cause and for some time past have caused such automotive and metal specialties, including spark plug cable sets, when sold by them to be transported from their places of business in the city of Brooklyn aforesaid to the purchasers thereof located in the various States of the United States, the territories thereof, and the District of Columbia; and there is now and for some time past has been a constant current of trade and commerce by said respondents in said automotive and metal specialties including spark plug cable sets between and among the various States and territories of the United States and in the District of Columbia. In the course and conduct 0.f their said business the said respondents are now and for some hme past have been in substantial competition in commerce between and among the various States and territories of the United States and the District of Columbia with other corporations and with per· sons, firms, and partnerships engaged in the manufacture and in the sale of automotive and metal specialties including spark plug cable sets.

CO~IMISSION DECISIONS716 FEDERAL TRADE Complaint 21 F. T. C. PAR. 3. The Champion Spark Plug Company is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business in the city of Toledo in the State of Ohio. It is now and for more than 15 years last past has been engaged in the manufacture of automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, and in the sale thereof between and among the various States and territories of the United States and in the District of Columbia, causing such automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, when sold to be shipped to the purchasers thereof located in the various States of the United States and territories thereof and the District of Columbia, and there is now and for more than 15 years last past has been a constant current of trade and commerce by said Champion Spark Plug Company in said automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, between and among the various States and territories of the United States and in the District of Columbia. PAR. 4. For approximately 15 years last past the aforesaid Champion Spark Plug Company has applied the word and trade designation "Champion" to automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor made and sold by it and by the use by it of the word "Champion" for such products, on its stationery, as a part of its corporate name, on its cartons and on printed and advertising matter distributed by it in interstate commerce, has caused the word "Champion" when used as a name for automotive and metal specialties including spark plug cable sets, spark plugs and porcelains therefor, to signify and mean to the trade and to the purchasing public that such automotive and metal Sl)ecialties including spark plug cable sets, spark plugs and porcelains therefore, are the products of said Champion Spark Plug Company. PAn. 5. In the couree and conduct of their business described in paragraphs 1 and 2 hereof, respondents Real Products Corporation and Realflex Products Corporation, without the permission or consent of said Champion Spark Plug Company have used and continue to use the trade rlesignatiol). and name "Champion" for the automo-· tive and metal specialties, including spark plug cable sets made and -sold by them; and without the consent or permission of said Champion Spark Plug Company have used such name and designation "Champion" on their price lists, cartons and advertising matter of such automotive and metal specialties, including spark plug cable sets. 'The aforesaid use by the respondents of the word "Champion" in the manner set forth herein is false, deceptive and misleading to the REAL PRODUCTS CORP. ET AL. 717 114 Findings trade and purchasing public and tends to and does divert trade to respondents from their competitors who do not use such deceptive and misleading names for the products manufactured by them and sold by them in interstate commerce; thereby substantial injury is done by respondents to substantial competition in interstate commerce.

PAR. 6. The above acts and practices of respondents are all to the prejudice of the public and of respondent's said competitors, and constitute unfair methods of competition in commerce 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", approved September 26, 1914. REPORT, FINDINGS AS TO THE FACTs, AND ORDER Pursuant to 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", the Federal Trade Commission, on the 12th day of December, 1934, issued and served its complaint in this proceeding upon the respondent, Real Products Corporation, a corporation, charging it With the use of unfair methods of competition in commerce in violation of the provisions of said act; and thereafter, to wit, on the 9th day of 1\fay, 1935, the Federal Trade Commission issued and served upon respondent, Real Products Corporation, a corporation, and respondent, Realflex Products Corporation, a corporation, its amended and supplemental complaint in this proceeding, charging them with the use of unfair methods of competition in commerce in Violation of the provisions of said act. After the issuance of said complaint and the filing of respondents' answer thereto, testimony ~nd evidence in support of the allegations of said complaint were llltroduced by John w·. Hilldrop, attorney for the Commission, before Edward 1\f. Averill, a trial examiner of the Commission theretofore duly designated by it, and in defense of the allegations of the complaint by Irving Beck, President of Real Products Cor- Poration, and :Martin J. Goldstein, Secretary of Realflex Products Corporation, the respondents herein, neither of which were represented by. attorneys; and said testimony and evidence were duly recorded and filed in the office of the Commission. Thereafter, the Proceeding regularly came on for final hearing before the Com- Inission on the said complaint, the answer thereto, and the testimony, evidence, and briefs in support of the complaint and in defense thereto. No counsel appearing to argue the case, and the Commissio·n having duly considered the same, and being duly advised in the 718 FEDERAL TRADE CO:Ml\IISSION DECISIONS Findings 21 F. T. C.' premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Real Products Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located in the city of Brooklyn in said State. Respondent, Realflex Products Corporation, is likewise a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located in the city of Brooklyn, in the State of New York. The above named corporate respondents are engaged in the same business, and manufacture, sell and distribute in interstate commerce the same and identical commodity, and the treasurer of respondent, Real Products Corporation, is Martin J. Goldstein, who has complete charge of and controls the business and affairs of respondent Realflex Products Corporation, and the two respondent corporations herein are engaged in joint enterprises in the conduct of the business hereinafter described and set out. PAR. 2. Respondents are now and for some time past have been engaged in the manufacture of automotive and metal specialties including spark plug cable sets, and in the sale and distribution of said products between and among the various States of the United States, the territories thereof and in the District of Columbia. They now cause and for some time past have caused such automotive and metal specialties, including spark plug cable sets, when sold by them, to be transported from their places of business in the city of Brooklyn aforesaid to the purchasers thereof located in the various States of the United States, the territories thereof, and the District of Columbia; and there is now and for some time past has been a constant current of trade and commerce by said respondents in said automotive and metal specialties including spark plug cable sets between and among the various States and territories of the United States and in the District of Columbia. In the course and conduct of their said business the said respondents are now and :for some time past have been in substantial competition in commerce between and among the various States and territories of the United States and in the District of Columbia with other corporations and with persons, firms, and partnerships engaged in the manufacture and in the sale of automotive and metal specialties including spark plug cable sets.

REAL PRODUCTS CORP. ET AL. 719 714 Findings PAR. 3. The Champion Spark Plug Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business in the city of Toledo in the State of Ohio. It is now and for more than 15 years last past has been engaged in the manufacture of automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, and in the sale thereof between and among the various States and territories of the United States and in the District of Columbia, causing such automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, when sold, to be shipped to the purchasers thereof located in the various States of the United States and territories thereof and tile District of Columbia, and there is now and for more than 15 years last past has been a constant current of trade and commerce by said Champion Spark Plug Company in said automotive and metal specialties, including spark plug cable sets, spark plugs and porcelains therefor, between and among the various States and territories of the United States and in the District of Columbia. PAR. 4. For approximately 15 years last past the aforesaid Champion Spark Plug Company has applied the word and trade designation "Champion" to automotive and metal specialities, including spark plug cable sets, spark plugs and porcelains therefor made and sold by it and by the use by it of the word "Champion" for such products, on its stationery, as a part of its corporate name, on its cartons and on printed and advertising matter distributed by it in interstate commerce, has caused the word "Champion" when used as a name for automotive and metal specialties including spark plug cable sets, spark plugs and porcelains therefor, to signify and mean to the trade and to the purchasing public that such automotive and metal specialties including spark plug cable sets, spark plugs and porcelains therefor, are the products of said Champion Spark Plug Company.

PAR. 5. In the course and conduct of their business described in paragraphs 1 and 2 hereof, respondents Real Products Corporation and Realflex 'Products Corporation, without the permission or consent of said Champion Spark Plug Company, have used and continue to use the trade designation and name "Champion" for the autonlotive and metal specialties, including spark plug cable sets made and sold by them; and without the consent or permission of said Champion Spark Plug Company have used such name and designation "Champion" on their price lists, cartons, and advertising matter of such automotive and metal specialties, including spark plug cable sets. The aforesaid use by the respondents of the word 113653m--ss--vo1.21----48 Order 21F.T.C.

"Champion" in the manner set forth herein is false, deceptive, and misleading to the retail trade and purchasing public, and has a tendency to and does deceive such retail dealers and the purchasing public by creating the impression that the automotive and metal specialties manufactured and sold in interstate commerce by respondents, including spark plug cable sets, are the products of and are made by the Champion Spark Plug Company of Toledo, Ohio, and has a like tendency and capacity to unfairly divert trade to respondents from their competitors who do not use such deceptive and misleading names for the products manufactured by them and sold in interstate commerce.

CONCLUSION The practices of said respondents under the conditions and circumstances described in the foregoing findings are all to the injury and prejudice of the public and respondents' competitors, and constitute unfair methods of competition in commerce 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", approved September 26, 1914. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answers of respondents, testimony and evidence taken before Ed ward M. Averill, an examiner of the Commission theretofore duly designated by it, in support of the charges of said complaint and in opposition thereto, briefs filed herein, and the Commission having made its findings as to the facts and its conclusion that said respondents have 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 ordered, That respondents, Real Products Corporation, a corporation, and Realflex Prodqcts Corporation, a corporation, their officers, agents, servants, employees, and representatives in the manufacture, sale and distribution in interstate commerce of automotive rmd metal specialties, including spark plug cable sets, do cease and desist from:

(1) Representing in any manner that the automotive and metal specialties, including spark plug cable sets, manufactured and sold by respondents are the products of or are made by the Champion Spark Plug Company, of Toledo, Ohio.

REAL PRODUCTS CORP. ET AL. 721 714 Order (2) Using the word "Champion" alone or in connection or conjunction with any other word or words in advertising, labeling, or otherwise, to describe or designate automotive and metal specialties, including spark plug cable sets, made by respondents, and from using any other word or words so as to import or imply that said J)roducts are made by the Champion Spark Plug Company, of Toledo, Ohio.

(3) Using and displaying the word "Champion" in the advertising of their said commodities on cartons, boxes, or other containers, ·or by any other method or means of advertising. (4) The use, by any method, manner or means of advertising or ·of any representation on cartons, boxes, cards, letterheads, and posters, and in advertisements in periodicals, newspapers, and cir- ·culars, of the device or picture of a spark plug at the bottom of which a simulation of electricity is displayed and containing the word "Champion" therein.

And it is hereby f-urther ordm·ed, That the said respondents, Real :Products Corporation, a corporation, and Realflex Products Cor- :poration, a corporation, shall within 60 days after the service upon them of this order to cease and desist, file with this Commission a report in writing setting forth in detail the manner and form in which they shall have complied with the order to cease :.and desist hereinbefore set forth.

Complaint 21 F. T. C~