Afta Solvents Corp

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IN Tile MATTER OF AFTA SOLVENTS CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2591,. Complaint, Oct. 23, J9.J5-Dcci.9ion, Nov. 20, 19.'16 Where a corporation engaged in the manufacture and sale of a liquid cleaning fluid under the designation ''Afta" or "Afta Spot Remover," for use in cleaning fabrics, automobile upholstery, rugs, etc.ltepresented, on labels and orally, as the case might be, that said preparation was n spot remo,·er and would remove foreign matter and leave no spot or ring, and would not Injure the color or the material of the fabric; facts being that, applied to cottons dyed with either of three dyes in commercial use, 1t caused some of the color to be dissolved and to run, and, applied to silk, caused a spot or ring to appear where thus applied; With effect of deceiving and misleading purchasers, wholesale and retailllenlers, and members of the public who use such fluids for aforesaid purposes, into believing that such representations were true, and into purchasing its said cleaning fluid instead of the preparations of competitors, in reliance upon said belief, and of thereby diverting unfairly to it trade in such fluids froin Its competitors; to the substantial injury of competition in commerce: Held, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Charles F. Diggs, trial examiner. Mr. Edward E. Reardon for the Commission.

Complaint Pursuant to the provisions of an Act of Con~ress 1\ approved September 26, 1914, entitled "An Act to create a Federal Trade Com· mission, to define its powers and duties, and for other purpose!':," the Federal Trade Commission, having reason to believe that Afta Solvents Corporation, hereinafter referred to as the respondent, hns been and is using unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent, Afta Solvents Corporation, is a corporation organized under the name Afta Chemical Corporation, on or about April 22, 1930, under the laws of the State of New York. On February 11, 1932, the name of the respondent was changed from Afta Chemical Corporation to Afta. Solvents Corporation, and aJ all AFTA SOLVENTS CORP. 963 1lG2 Complaint times since its organization the respondent had and now has a place of business in the city of New York, and it is and has been during all the times since the date of its orga~1ization, engaged in the business of the manufacture and sale of a liquid cleaning fluid under the trade or brand name "Afta" or "Afta Spot Remover," for use in the cleaning, among other things, of fabr:es, auto upholstery, both fabric and leather, rugs, carpets, draperies, gloves, hats, and furs. PAR. 2. During all the times above mentioned the respondent has caused its cleaning fluid to be sold both to members of the public for use and to wholesale and retail dealers therein for resale to the public, purchasers thereof, located in the various States of the United States other than New York or the State of origin of the shipment. The respondent has caused its cleaning fluid, when so sold by it, to be transported from New York, or from the State of origin of the shipment, to, into, and through States other than New York, or the ~tate of origin of the shipment, to the purchasers located in said other ~states.

PAR. 3. During all the times above mentioned, other individuals, firms, and corporations, hereinafter referred to as sellers, located in the various States of the United States, have been engaged in the business of the manufacture and of the sale of various liquid cleaning fluids for the same purposes of use, as set forth in paragraph 1 hereof, and they have, respectively, sold the same both to members of the public for use and to wholesale and retail dealers therein for resale to the public, purchasers thereof, located in the various States of the United States other than the State of the seller, or the State of origin of the shipment.

The sellers, respectively, have caused their cleaning fluids, when so sold by them, to be transported to, into, and through States other than the State of the seller, or the State of origin of the shipment, to the purchasers located in said other States. PAn. 4. The respondent during all the times above mentioned and referred to is and has been in substantial competition in interstate commerce in the sale of its cleaning fluid, above mentioned, with the other individuals, firms, and corporations, referred to as sellers in paragraph 3 hereof.

PAR. 5. During all the times above mentioned the respondent has Bold or caused its product called "Afta" or "Afta Spot Remover" to be sold and transported, as set forth in paragraph 2 hereof, in containers on which the respondent caused labels to be placed, containing statements and representations to the effect, among other things, that by the use of the product, foreign matter referred to as "spots~' will 78035'"-39-vol. 2~-63 Complaint 23F.T.C.

be removed from fabrics or other articles and that after its use to remove such spots no "ring'' is visible or appears in the place from which the foreign matter was removed; and also to the effect that the use of the product in cleaning fabrics or other articles does not injure the material of which they are made or their color. During all said times the respondent has also caused similar statements and representations of its said cleaning fluid to be made verbally, through its officers, agents, and salesmen, and to be published in newspapers and periodicals which circulated among the public of the various States, and in circulars which it caused to he distributed among the dealers and members of the public, sellers and users of liquid cleaning materials.

PAR. 6. When used for the purpose mentioned in paragraph 1 hereof on certain fabrics, the respondent's said cleaning fluid injures the fabric and its color, and the statements and representations, mentioned and referred to in paragraph 5 hereof, made and caused by respondent to be made on the labels of its product, to the effect that, by the use of its product, "Afta" or "Afta Spot Remover," foreign matter referred to as "spots" will be removed from fabric or other articles; and, after its use to remove such spots, no "ring" is visible or appears in the place from which the foreign matter was so removed; and, that its use in cleaning fabrics or other articles does not injure the material of which they are made or their color, are and they were each and all false representations of material facts concerning its said product and the effects of its use made by respondent, its officers, agents, and salesmen, to dealers and members of the public, users of liquid cleaning fluids, and the statements and representations referred to had the capacity and tendency to deceive and mislead dealers and members of the public into believing that they were true and in reliance on such belief into purchasing respondent's cleaning fluid instead of competitors' cleaning fluids and dealers and members of the public were deceived and misled thereby into believing that they were true and into purchasing respondent's product instead of the cleaning fluids of its competitors, and trade was thereby diverted to respondent from its competitors.

PAR. 7. The above acts and things done and caused to be done by the respondent were and are each and aU to the prejudice of the publio and of respondent's competitors and constitute unfair methods of competition in commerce within the meaning nnd intent 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.

AFTA SOLVENTS CORP. 965 Findings REPORT, Fn.'l)INGS 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" (38 ~tat. 717), the Federal Trade Commission, on October 23, 1935, issued lts complaint in this proceeding and caused it to be served upon the respondent Afta Solvents Corporation, charging it with the use of Unfair methods of competition in commerce in violation of the pro- Visions of said act. . After the issuance and service of the complaint and the filing of the respondent's answer thereto, testimony and other evidence in support of the allegations of the complaint were introduced by Edward E. Reardon, Esq., attorney for the Commission, before Charles ~·Diggs, Esq., an examiner of the Commission theretofore duly deslgnated by it, and in opposition to the allegations of the complaint by liarold Sigmund, president of the respondent, acting on its behalf; ~nd the testimony and other evidence were duly recorded and filed U1 the office of the Commission.

Thereafter, the proceeding regularly came on for final hearing before t\e Commission on the complaint, the answer thereto, testimony a:n~ o' her evidence, briefs in support of the complaint and in oppo- 81~1on thereto, and oral argument of counsel for the Commission and suld Harold Sigmund; and, the· Commission having duly considered the same, and being now fully advised in the premises, finds that this I>roceeding is in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO Tile FACTS PARAGRAPH 1. Respondent, Afta Solvents Corporation, is a corpo- ~ation, organized on or about April 22, 1930, under the laws of the tate of New York, and at all times since its organization as a corl>_oration, the respondent had, and now has, a place of business in the Clty of New York, where it is and has been engaged in the business ~f the manufacture and sale of a liquid cleaning fluid sold by it un- . er the trlJ,de or brand name "Afta" or "Afta Spot Remover," for use 111 the cleaning of fabrics, including automobile upholstery of fabric or leather, rugs, carpets, draperies, garments, gloves, hats, and furs. PAn. 2. During all the times above mentioned, the respondent has caused its cleaning fluid to be sold to members of the public for use, and to wholesale and retail dealers for resale to the public, purchasers thereof, located in the various States of the United States other than New York or the State of origin of the shipment, and Findings 23 F. T.C. the respondent has caused its cleaning fluid, when so sold by it, to be transported from New York, or from the State of origin of the shipment, to, into and through States other than New York, or the State of origin of the shipment, to the purchasers located in the said other States.

PAR. 3. During all the times above mentioned, other individual~s, firms, and corporations, hereinafter referred to as sellers, located 1n the various States of the United States, have been engaged in the business of the manufacture and of the sale of various liquid cleaning fluids for the same purposes of use as the respondent's cleaning fluid, and the sellers, respectively, have sold their cleaning fluids to meJD· hers of the public for use and to wholesale and retail dealers therein for resale to the public, purchasers thereof, located in the various States of the United States other than the State of the seller, or the State of origin of the shipment.

The sellers, respectively, have caused their cleaning fluids, when so sold by them to be transported to, into and through States other than the State of the sellers, or the State of origin of the shipment, to the purchasers located in said other States.

PAR. 4. The respondent during all the times above mentioned is, and has been, in substantial competition in interstate commerce in the sale of its cleaning fluid, above mentioned, with the other individuals, firms, and corporations, referred to above as sellers. PAR. 5. During all the time above mentioned, the respondent, has caused its product, "Afta" or "Afta Spot Remover," to be sold and transported, as above set forth, in containers having labels thereon, which contained statements and representations to the effect, among other things, that by the use of the cleaning fluid, foreign matter referred to as "spot" will be removed from fabrics or other articles and that after its use for that purpose, no "spot" or "ring" will appear or be visible in the place from which the foreign matter referred ~ 0 was removed; and also to the effect that the use of the cleaning fluid in cleaning fabrics or other articles does not injure the material of which they are made or their color.

During all the times since the year 1933, the respondent has also caused verbal statements that its cleaning fluid "Afta" would remo''0 foreign matter from fabrics without injury to their color or to the material of the fabric to be made to the purchasers of the cleaning fu~ ' PAn. 6. Respondent's cleaning fluid, "Aft a" or "Afta Spot Remover' is a mixture that was composed prior to October 20, 1934, principally of zylene and carbontetrachloride and, when on occasion it was ap· AFTA SOLVENTS CORP. 967 962 Conclusion Plied, as it was then composed, to cotton dyed with either of three ~Yes commercially used in the dyeing of fabrics, and known respectively as napthol AS, fast blue salt B, and Victoria blue BX, or rhodamine B, it has caused some of the color or dye of the cloth in each case to be dissolved and to "run." The application of respondent's cleaning fluid to silk cloth also has caused a "spot" or "ring" to appear on the cloth at the place where the respondent's cleaning fluid Was applied.

PAR. 7. The representations, caused by the respondent to appear on the labels on the containers of it,s "Afta" cleaning fluid, to the effect that the cleaning fluid is a "spot remover" implies to the public, purchasers of the cleaning fluid, that, when used for the purpose of re- ~moving a "spot" caused by foreign matter on fabric or the other ar- ~Jcles above mentioned, the foreign matter will be removed and no 'spot" or "ring" will thereupon appear or be visible on the said fabric or other articles at the place from which the foreign matter ~as removed by the application of the cleaning fluid. The representat~ons, made or caused by the respondent to be verbally made at' all hmes since 1933, to purchasers in the sale of its "Afta" cleaning fluid, that the cleaning fluid would remove foreign matter from fabrics and other articles without injury to their color are, and have been, false ~epresentations. All of the aforesaid representations had, and still lave, the capacity and tendency-to, and do, deceive and mislead purchasers, wholesale and retail dealers and members of the public, who llse cleaning fluids to remove foreign matter from fabrics, or other articles, into believing that the said ~epresentations are true and into Pu~chasing respondent's "Afta" cleaning fluid instead of the cleaning fluids of respondent's competitors in reliance upon said belief. As a. result, trade in cleaning fluids was caused thereby to be unfairly ?Jverted to the respondent from its competitors to the substantial lnjury of competition in commerce among and between the various States of the United States.

CONCLUSION The aforesaid acts and practices of the respondent, Afta Solvents Corporation, are to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in comlllerce, within the intent and meaning of Section 5 of an Act of Congress, approved September 26, 1914, entitled "An Act to create a F'ederal Trade Commission, to define its power and duties, and for other purposes."

968 FEDERAL TRADE COl\fl\USSION DECISIONS Order 23 F. 'f.(). ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis· Eion upon the complaint of the Commission, the answer of respondent, testimony and other evidence taken before Charles F. Diggs, Esq., an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, briefs filed herein, and oral arguments by Edward E. Reardon, Esq., counsel for the Commission, and by Harold Sigmund, president of the respondent, acting on Hs behalf, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of an Act of Congress approved September 2G, 1914, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." It is ordered, That the respondent, Afta Solvents Corporation, its officers, representatives, agents, and employees, in connection with the offering for sale and the sale and distribution of its cleaning fluid, "Afta" or "Afta Spot Remover," or any cleaning fluid of the same or substantially of the same composition, and so sold by respondent, whether sold under the name or brand "Afta" or "Afta Spot Re· mover," or under any other name or brand, in interstate commerce or in the District of Columbia, do forthwith cease and desist from: Representing, or causing others to represent directly or indirectly, that said cleaning fluid will remove spots from fabrics or other ar· ticles to which it is applied for the removal of foreign matter and will leave no spot or ring visible in the place from which foreign matter has been removed by the application of the cleaning fluid, or that it will not injure the color of fabrics to which it is applied to remove foreign matter; unless and until such cleaning fluid is so made and composed that the application of it to fabrics and other articles will, in fact, remove foreign matter therefrom without causing spots or rings to appear or to be visible at the place to 'which it is applied, and will not cause any of the color of the fabrics, or other article!! to which it is applied to be dissolved and to "run." It is furtlu'r ordered, That the said respondent, Afta Solv('nts Cor· poration, shall, within 30 days after the date of service upon it of this order, file with the Commission a report in writing setting forth in detail the manner nnd form in which it has complied with and is now complying with the order to cease and desist hereinbefore set forth. CLOPAY CORP. 969 Syllabus