Consumer Law LibrarySearchBy decadeBy respondentBy topicBy outcomeDataAbout

Perfection Steel Body Co

Volume 24 · 24 F.T.C. 1013

Citation
24 F.T.C. 1013
Docket
2325
Complaint
1935-03-12
Decision
1937-04-12
Document type
final order
Case type
consumer protection
Industry
burial vault manufacturing
Outcome
cease and desist
Relief
cease_and_desist; affirmative_disclosure; compliance_reporting
Commission counsel
E. J. Hornibrook
Respondent counsel
Jfr. Herman L. Weisman
Source
Original volume PDF
Original PDF
This decision as a PDF

deceptive advertisingproduct labeling

Cite this decision

Perfection Steel Body Co, 24 F.T.C. 1013 (1937). Consumer Law Library, https://consumerlawlibrary.org/decisions/v024-0097

Report an error in this record (decision id v024-0097)

Order status: presumptively_terminable_pre_1995. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

Cited by 0 later FTC decisions

Cites

Text (OCR of the scan at left; may contain errors)

IN THE MA 'ITER OF PERFECTION STEEL BODY COMPANY, TRADING AS PERFECTION BURIAL VAULT COMPANY COliiPLAINT, FINDINGS, AND ORDER IN Rl<:GARD TO THE ALLEGED VIOLATION OF SEC. o OJ<' AN ACT OF CONGRESS APl'ROVED SEPT. 26, 1014, AND OF AN ACT OF CONGRESS APPROVED JUNE 16, 1933 1 Docket 2325. Complaint, Mar. 12, 1935-Decision, Apr. 12, 1937 Where a corporation engaged in the manufacture of air-seal type, ferreous metal burial vaults, and in the sale thereof to jobbers and funeral directors and undertakers, in substantial competition with those engaged in the sale and distribution of metal, stone, concrete, cement, and other burial vaults in commerce between and among the various States- (a) Represented, through certificates of warranty and through magazines, booklets, circulars, and other advertising media having wide circulation among its customers and prospective customers in the several States, prior to, but not since, year 1032, that its said vaults were rust-resisting and waterproof and verminproof and had the capacity to resist corrosion, exclude water and other substances and vermin from entrance from the grave into the casket, and that its said vaults afforded perfect protection; and (b) Made use of warranties or gnarantieR, in connection with sale and offer of said vaults, under which, prior to, but not since, the year 1932, it undertook, irrespective of location or conditions in any plot of a cemetery where original vault was buried, and regardless of care or lack of care with which same was originally placed in the grave, to fumh;h a new vault without cost to the purchaser ''upon proof of claim that this nult failed to give protection" • !'acts being th;t, while (1) its said vaults were made by it with great care, by skilled workmen, of specially processed and considerably more costly metals of highest grade and quality obtainable in domestic market, and, by their very nature, exclusive of alr, moisture, vermin, and water until the natural process of ru;:t and corrosion, to which they were resistant, but which they could not prevent, had advanced to stage of producing tiny holes or pits permitting penetration, (2) were equal to standard metal vaults made by responsible a111l reputable members of the industry in question, and were an established part of the funeral supply Industry and a lawful subject for sale, purchase, and transportation In Interstate cnmmerce, and (3), at time of sealing, were capable of sustaining weight o! earth incident to burial and protecting remains from accelerated decay due to entrance of moisture, air, water, and vermin and other deleterious agents for period of years, depending upon underground and climatic conditions in particular locality, and below set forth conjunction of circumstances, n() ferreous metal, burled, bas absolute or predictable rate of corrosion, which Varies with locality, particular underground conditions, and qualities and Chemical content of different soils, all ferreous metal burial vaults wlll rust d! Count 2 o! the complaint alleging viola tlon of the National Industrial Recovery Act BIDissed November 9, 1935. '--- Complaint 24F. T.C.

and corrode after burial, irrespective of type of construction, corrosive properties of soil, and other conditions so vary in different sections that, while given metal vault, buried, would resist penetration for more than one hundred years In some sections, such resistance would not exceed more than eight or ten in highly corrosive ~oils, ideal conjunction of conditions, which frequently does not obtain, must exist for air·seal principle to function as intended, and, dne to climatic, geographical, themital, and mineralogical conditions not subject to its control, no prediction could be made by anyone as to the period during which such vaults would con· tinue to protect casket and contents, as above set forth; With capacity to mjslead purchasers of said products, and with capacity and tendency to induce public to }JUrchase and use same· in the erroneous belief that the aforesaid various statements and representations as to resistance of metals involved to rust and corrosion, etc., and as to air· tight and other qualities of said products, and protection afforded, were true, and to divert trade unfairly to it from its said competitors: Held, That such acts and practices, under the circumstances set forth, were to the prejudice of the public and competitors and constituted unfair methods of competition.

Mr. E. J. Hornibrook for the Commission.

Jfr. Herman L. Weisman, of New York City, for respondent. Co11rrLATNT Acting in the public interest and 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 charges that the Perfection Burial Vault Company, a corporation, hereinafter re· £erred to as respondent, has been and is now using unfair methods of competition in commerce, as "commerce" is defined in said act, and in violation of an Act of Congress approved June 16, 1933, known and designated as the "National Industrial Recovery Act", and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, states its charges in that respect as follows:

Oownt 1 PARAGRAPH 1. The respondent, Perfection Burial Vault Company, is a corporation organized and existing under and by virtue of the laws of the State of Ohio, with its factory and principal place of business located in the city of Galion in said State. It is now, and for several years last past, has been engaged in the business of manu· facturing and selling metal grave vaults used to encase a coffin in the burial of the dead, to purchasers thereof, many of whom reside outside the State of Ohio, and when orders are received therefor, PERFECTIOX BURIAL VAULT CO. 1015 1013 Complaint they are filled by respondent by shipping the same from the said (!ity of Galion, State of Ohio, into and through other States of the United States to the respective places of business or residences of such purchasers.

PAR. 2. In the course and conduct of its said business, respondent is in competition with other individuals, copartnerships, and corporations engaged in the sale and transportation of metal, stone, concrete, cement, and other grave vaults between and among various States of the United States.

PAn. 3. Respondent sells and ships said grave vaults, as aforesaid, to jobbers, funeral directors, and undertakers, the last two o£ which sell the same to ultimate purchasers thereof for use in the burial of their dead.

PAn. 4. Respondent issues with each vault for delivery to ultimate purchasers thereof and they are so delivered, a written purported warranty which provides in substance:

Perfection Burial Vault Company Fifty Year (50) Warranty' Certificate No ---- The Perfection Steel Body Company, manufacturer of Perfection Steel Burial Vaults, hereby warrants that:

1. This vault is made of 12 gauge metal, has been constructed by skilled 'IVorkmen, has been tested by being submerged under pressure, and upon careful inspection was found to be free from any defects in material and workman- Ship, and to be waterproof and airtight.

2. When properly closed, it will protect the casket and its contents against entrance of water from external sources for a period of fifty years, and the Underground service and protection to the contents of this vault will not be impaired by rust or corrosion for at least fifty years. 3. Upon proof of claim that this vault within fifty years from the date of Interment failed to give this protection against the effects of rust, or corro- &.lou and the entrance of water from external sources, the manufacturer will replace it without cost to the purchaser.

This agreement is a valid warranty of protection and replacement as applied to vault ------ interred ------ day of ------ 19____ , from the date of said interment as countersigned by the funeral director below. In witness whereof the corporate seal and signature of the President, duly authorized by the Board of Directors are affixed. Countersigned The Perfection Burial Vault Company, :Funeral Director Division of the Perfection Steel Body Company, Galion, Crawford County, Ohio.

II. Cohen, President.

PAn. 5. Tfie stateme.nts and representations described in the preceding paragraph are false and misleading in that respondent's said ~rave vaults will not remain waterproof and airtight for a period of fifty years; that in many instances said vaults are not waterproof and airtight or either at the time of sale to the ultimate purchasers 1016 FEDERAL TRADE COl\11\IISSION DECISIONS Complaint 24F.T.C.

thereof; that in many instances when closeu as directed it will not protect the casket anu its contents against entrance of water from external sources for a periou of fifty years; that the underground service and protection to the contents of said vaults will often become impaired by rust and corrosion in many soils of the Uniteu States within a period of fifty years; that respondent's saiu vaults are made of metals which will corrode; there is a vast difference in the corrosive properties of soils throughout the United States, in some soils respondent's said vaults will corrode and pit in a period of from three to ten years and in others from ten to twenty years; whether respondent's said vaults or the materials of which they are made will last under burial conditions in any soil for a period of fifty years has never been determined; in many soils respondent's vaults will corrode and pit so as to let water into them; in many soils they will corrode and rust so as to cave-in or collapse; respondent's said vaults when buried underground are not airtight and waterproof and will, and often do, permit air and water to enter therein. Either air or water entering respondent's vault, when buried underground, promote and cause disintegration of the coffin and body encased therein. Water often enters the graves of the dead, the mechanism provided by respondent for sealing their said vaults will not at all times prevent the entra.nce of water into the same. The terms "waterproof" and "airtight" as used by respondent as aforesaid, mean to the ultimate purchaser thereof a watertight, airtight vault, a vault which will not permit water or air to enter the same and which will endure as such under burial conditions. The respondent's said vaults are not waterproof or airtight as the terms are understood by ultimate purchasers thereof. 'Vater or air may seep into or enter the said vaults throu~h the joints, holes, fastenings, or flanges thereof, or through pit holes due to rust or corrosion, or due to collapse or bending of the vaults. One hole the size of a pin appearing in the hood of said vaults will destroy the sealing thereof and permit water, if there is water in the grave, to enter the same. The exhumation of bodies after burial is so rare as to make these certificates of warranty worthless to a vast majority of purchasers of these vaults for the reason that no opportunity is afforded them in which to ascertain whether such vaults are or have been airtight or waterproof, or wlwther same w·ill corrode, pit, or rust. These said purported warranties are not warranties, but are merely sales persuaders under the terms of which respondent will rarely, if ever, be called upon to replace said vaults in instances where the same are entirely defective, not waterproof or airtight. It is false and misleading for respondent to call them warranties or to issue them at all. PERFECTION BURIAL VAULT CO. 1017 1013 Complaint PAR. 6. Each and all of the said false and misleading statements nnd representations used by respondent as set out in paragraph 4 herein have and have had the capacity and tendency to induce the public to purchase and use said respondent's said grave vaults in the belief that they are true, and have and have had the tendency and capacity to divert trade from said competitors of respondent. PAn. 7. The acts and practices of respondent above set forth are all to the prejudice of the public and to respondent's said competitors and constitute unfair methods of competition in interstate commerce Within the intent and meaning 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."

Oownt2 PARAGRAPH 1. Respondent is a corporation organized and existing under and by virtue of the laws of the State of Ohio, with its factory and principal place of business located in the city of Galion, in said State. Respondent is now and for several years last past, has been engaged in the business of manufacturing, selling, and distributing :metal grave vaults, used to encase coffins in the burial of the dead, to purchasers thereof, located at points in the State of Ohio, and at points in various other States of the United States,· and causes said Products when so sold to be transported from its principal place of business in the city of Galion, State of Ohio, to the purchasers thereof in the State of Ohio and to other purchasers thereof in other States of the United States and in the District of Columbia at their respective places of business, and there is now and has been for several years last past a course of trade and commerce by the said respondent in said products in the State of Ohio and between and among the States of the United States and in the District of Columbia.

PAn. 2. As grounds for thi.s paragraph of this complaint, the Federal Trade Commission reiterates, adopts, and relies upon all matters and things set out in paragraphs 2 to 7, inclusive, of count 1 hereof to the same extent as though each and all of the allegations thereof '"ere set out at length and in full in this paragraph. PAn. 3. On November 4, 1933, under and pursuant to the provisions of the National Industrial Recovery Act, the President of the United States made, issued, and approved a Code of Fair Competition for the F'uneral Supply Industry, which became effective on the tenth day thereafter. The respondent herein was a party to and signatory of 1018 FEDERAL TRADE COJ\11\IISSION DECISIONS Findings 24 F. T. C. such Code of Fair Competition, and such Code is now in full force and effect as to this respondent.

The said National Industrial Recovery Act, Sectioi:J. (3), Paragraph (B) , provides:

If the President shall have approwd any such Code, the provisions of such Colle shall be the stnndards of fair competition for such trade or industry, or ;;upervision thereof. Any violation of such st!lndards in <transaction ln or affecting interstate or foreign commerce shall be ueemell an unfair method of competition in commerce within the meaniug of the Federal Trade Commission Act, as amended; but nothing in this title shall be construed to impair the powers of the Federal Trade Commission un:Cler such Act, as amended. In Article IX, under the heading of "Trade Practice'' of said Code, appears the following:

1. The following practices constitute unfair methods of competition and are prohibiteu:

To resort to or Indulge In practices which are prejndicial to the public interest such as l\llsbraudi ug, l\Iisrepresentation In branding, Labeling, Selling, and Advertising.

(W) Nothing in this Code shall limit the efTN't of any acljndirntion by the courts or holdings by <the Federal Trade Commission on complaint, finlling nnd order, that any practice or method is unfnh· pro,·iding that such adjnclication herewith is not Inconsistent of any provision of the Act or of this Code. Notwithstanding the said provisions of said Code of Fair Competition, respondent has continued to and does, use said methods of competition hereinabove alleged and described, and has resorted to or indulged in the practices of misrepresentations in branding, labeling, selling, and advertising its said vaults in the manner hereinabove set forth.

PAR. 4. The above alleged methods, acts and practices of the re· spondent are and have been in violation of the standards of fair coal1· petition as set forth in said Code of Fair Competition for the said Funeral Supply Industry of the United States. Such violation of such standards in the aforesaid transactions in interstate commerce and in other transactions which affect interstate commerce in the manner s<'t forth above are in violation of Section (3) of the National Industrial Recovery Act and they are unfair methods of competition in commerce within the meaning of the Federal Trade Commission Act, ns amended.

REPORT, FINDINGs As TO THE FACTS, AND OnnEn Pursuant to the provisions of an Act of Congress approved Sep· tember 26, 1914, entitled ''An Act to create a Federal Trade Comll1is· PERFECTION BURIAL VAULT CO. 1019 1013 Findings sion, to define its powers and duties, and for other purposes," the Federal Trade Commission on the 12th day of March 1935, issued and served its complaint in this proceeding upon respondent, Perfection Steel Body Company, a corporation, trading as Perfection Burial Vault Company, charging it 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 respondent's answer thereto, a stipulation as to the facts was agreed upon by and between ,V, T. Kelley, Chief Counsel for the Commission, and respondent, by which it was agreed that, subject to the approval of the Federal Trade Commission, the statement of facts so agreed upon should be taken as the facts in this proceeding and in lieu of testilUony in support of the charges stated in the complaint or in opposition thereto. It was further agreed that the said Commission might Proceed upon such statement of facts, including inferences drawn from said stipulated facts, to issue its report, stating its findings as to the facts and conclusion based thereon, and enter its order disposing of the proceeding, without the presentation of argument or the filing of briefs. Said stipulation as to the facts has been duly filed in the office of the Commission and approved by it. Thereafter, the proceeding came. on for final hearing before the Commission on said COJUplaint, the answer thereto, and the statement of facts as agreed Upon in lieu of testimony, briefs, and arguments having been waived, and the Commission having duly considered the ~arne and being fully advised in the 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 Tile FACTS PARAGR.\Pit 1. Hcspondent named above as Perfection Burial Vault ~0:tnpany, is in truth the Perfection Steel Body Company, a corpora- ~on organized and existing under and by virtue of the laws of the l tat.e of Ohio. The lawful trade name of respondent i.s Perfection lur1al Vault Company. Respondent's factory and principal place of business is located in the city of Galion in said State. It is now, ~lld for severn! years last past has been engaged, among ot.her things, ln the business of manufacturing and selling metal grave vaults used to encase coffins in the burial of the dead, to purchasers thereof, many of Whom reside outside of the State of Ohio. When orders are re- ~eived therefor, they are filled by respondent by shipping the vaults Sro:rn the said city of Galion, State of Ohio, into and through other states of the United States to the respective places of business or Findings 24F.T.O.

residences of such purchasers. Respondent calls its said vaults the ''Perfection Steel Burial Vaults." Respondent has built up a very substantial business in this product.

PAR. 2. In the course and conduct of its said business respondent is in substantial competition with other individuals, cop(l.rtnerships, and corporations engaged in the sale and transportation of metal, stone, concrete, cement, and other grave vaults, in commerce between and among various States of the United States. PAR. 3. Respondent sells and ships said grave vaults, c.s aforesaid, to jobbers, funeral dire~tors, and undertakers, the last two of which sell the same to ultimate purchasers thereof for use in the burial of their dead.

PAR. 4. A corpse, either embalmed or not embalmed, is in the process of decay and disintegration at the time of its burial. The process of embalming is the method of injecting certain fluids into the corpse, for the purpose of delaying such decay and disintegration only for 8 temporary period of time, not permanently. The function of a metal burial vault is further to delay such process of decay and disintegra· tion by preventing acceleration of such proc€ss through the entrance of water and other deleterious substances from the grave into the casket.

PAR. 5. The burial vaults manufactured by Perfection Burial Vault Company are made with great care by skilled workmen, of United States Standard 12 gauge metal. They are useful, proper and suitable receptacles for the interment of the dead; and are equal to the standard metal vaults manufactured by the reputable and 1·esponsible members of the metal vault industry. Such metal vaults are an established part of the funeral supply industry and may be lawfully sold, bought, and transported in interstate commerce. PAR. 6. Fen·eous metals called Armco Ingot iron and copper bear· ing steel are used by respondent in the manufacture of its said burial vaults. These metals are specially processed anJ. rolled from the highest grade and quality of metals which can be obtained by re· spondent in the domestic market for the manufacture of its burial vaults. Their cost is considerably higher than the cost of ordinary commercial steel. They are fabricated under the best, modern, scien· tifically controlled steel-making processes which reduce impuriti~S and tend to increase their durability in underground service. Thell manufacturers are of recognized responsibility and integrity an make rigid inspection and tests of each sheet of said metal befo!'~ shipment to the respondent. These metals, by their very nature, W11 0 1exclude air, moisture, vermin, and water until the natural process rust and corrosion, which these metals will resist but can not pre-vent, PERFECTION BURIAL VAULT CO. 1021 1013 Findings has advanced to the stage of producing tiny holes or pits which will permit penetration of said metals.

PAR. 7. There is a vast difference in the corrosive properties of soils found in the cemeteries in the various parts of the United States and also a great difference in the surface and subsurface drainage conditions in various sections of the country. PAn. 8. All burial vaults made of ferrous metals will rust and corrode after burial underground. No ferrous metal, buried underground, has an absolute or predictable rate of corrosion. Such rate '\V'ill vary with the locality, with particular underground conditions, and with the qualities and chemical content of different soils. PAR. 9. There is no material yet known or devised, adaptable for construction into a receptacle useful in the burial of the dead, which '\V'hen placed underground, would not in time deteriorate and cease to resist penetration of air, moisture, water, or vermin. The rate of deterioration would be slow in some soils and more rapid in others, depending upon the climatic conditions of the locality and the chemical and mineral composition and content of the soil in a particular Place.

PAR. 10. The process of deterioration above referred to would affect every type of metal vault irrespective of whether its type of con- ~Struction involved closing upon the so-called air-sealing or divinghell principle, or depended upon mechanical locks or clamps. No ~~inciple of mechanics· or physics, no process of construction and l0lnder of metals, and no method for sealing metal burial vaults are available to enable any manufacturer thereof to warrant or predict t?at such vaults, when placed underground, would endure as airtight, vermin proof and waterproof for any fixed or stated period of time.

PAn. 11. In many sections of the United States, the corrosive properties of the soil and other conditions are such that a United States Standard 12 gauge metal vault placed underground would resist Penetration for a period of more than one hundred years; in some of the more corrosive soils in the United States a similar vault would resist such penetration by corrosion for only fifty years, while in still o~her highly corrosive soils penetration would be accomplished within eight to ten years.

PAR. 12. The Perfection Burial Vault is what is known in thetrade as an air-seal vault. It consists of two parts ( 1) a pan (or base) and (2) a hood (dome or top) and operates on the principle of a diving bell. The confined air in the inverted airtight dome is supposed to resist the entrance of water rising from below. The top and sides of the hood are made of one piece of iron. The pan 146756m--39--vol.24----67 Findings 24 F. T. C. is also made of one piece of iron. The entire base resembles an in· verted pan. Small raised portions, or bosses hold the bottom of the casket a fraction of an inch above the top of the pan. The bottom rim or flange of the hood (dome or top) rests on the outside flange of the pan, the width of the metal from the grave floor. This type of vault is not airtight or waterproof until sealed by water to the level of the highest point on the rim of the inverted dome which rests on the flange of the pan. \Vater rising from the bottom in the grave forces the air from the cavity under Bte base through holes at each corner of the pan, into the hood. As the pressure of the outside water increases, the resistance of the compressed air increases, and, in theory the vault is sealed against the further entrance of water to the extent that it will not reach the casket within. The mechanism provided by respondent for sealing said vaults will not at all times prevent the entrance of water into said vaults, with resulting damage to the coffin and body placed therein. In addition, in order for them to remain waterproof for any considerable length of time, they must be buried and remain buried under ideal conditions, which are :

L An airtight hood, 2. A level base, 3. The air space underneath the pan must not be occupied by dirt or other materials that will reduce the amount of air to be forced into the dome, 4. There must be no appreciable change of temperature in the grave from that obtaining when the vault is first buried, 5. There must be no appreciable changes in atmospheric pressure. These said "ideal" conditions do not obtain in a large number of cases of burial where said vaults are used. PAn. 13. Respondent's metal vaults, at the time of their sale, are capable of sustaining and will sustain the weight of earth incident to burial.

PAn. 14. Respondent's metal vaults at the time of their sale are capable of protecting and will protect the remains within the casket from accelerated decay and decomposition due to the entrance fro!11 the grave into the casket of moisture, water, vermin, or other dele· terious agents for a period of years depending upon the underground and climatic conditions in the locality where any such vault is used and the conditions mentioned in paragraph 12 above. PAR. 15. No prediction can be made by anybody as to the period within which respondent's vaults will continue after burial to pro· feet the casket and its contents from accelerated decay and decoJll· position, because climatic, geographic, chemical, and mineralogical PERFECTION BURIAL VAULT CO. 1023 1013 Findings conditions, not subject to respondent's control, determine the duration of such period.

PAR. 16. Instances of disinterments are rare when compared with the total number of burials, but disinterments are not unusual occurrences. Changes in a cemetery, or removal of a section of a cemetery or even of an entire cemetery necessitates disinterments followed by reburial in some other cemetery. Disinterments are often brought about by the wishes of surviving relatives to change to better or differently located burial plots or to some different plot or cemetery Where other members of the same family are buried. Such disinterments are followed by reburial. Irrespective of the actual state of decay and disintegration of the remains within the casket when disinterment of the vault takes place, surviving relatives concerned in the reburial have a proper interest as to whether the conditions of the original vault makes reburial thereof practical or whether such receptacle needs to be replaced.

PAn. 17. At the time when the complaint herein (dated 1\Iarch 12, 1935) was issued and since about 1\:Iay 1, 1932, respondent offered to issue, and from time to time did issue, incident to the sale of its burial vaults, a wanunty, offering under statetl conditions, to furnish a new vault without cost, irrespective of the location of or conditions in any plot or cemetery wl,there the original vault was buried, and regardless of the care or lack of care with which the same was originally placed in the grave; said warranty reciting that: 1. 'this Vault' is made of 12 gauge metal, has been constructed by skilled 'l"l·orkmen, has been tested by being submerg<>d under pressure, and upon careful in~peetion was found to be free from any defects in material all(l Workmanship.

2. Upon 11roof of claim that this Vault fnilerl to gi\'(! proteetion, the lll:luu· facturer will rPplnce it without cost to the plll'('hnser. PAn. 18. Respondent has a legitimate interest in making known to the undertakers and dealers in funeral supplies who purchase its ?urial vaults for resale and to the ultimate purchasers of said vaults, lts willingness, without cost, to furnish a new vault under the conditions stated in such warranty.

Such warranty is of value to the recipients thereof, any one of \\·hom may some time after original burial find it necessary to nnange for reburial, after disinterment, in some other plot or eemetery.

PAn. 19. Respondent has made and issued said certificates of warranty in good faith and is, and at all times has been, financially able, ready, and willing to comply fully with, and perform the full terms of, its certificates of warranty.

Findings 24F.T.O.

PAn. 20. Prior to 1932, but not since that year, including the period since the filing of the complaint herein, respondent did represent in certificates of warranty, substantially different from the certificate above referred to, and in magazines, booklets, circulars, and other advertising media, having a wide interstate circulation among its customers and prospective customers residing in the several States of the United States, in connection with the sale and promotion of the sale of its said burial vaults, in substance, that its said vaults were rust-resisting, waterproof and verminproof and had the capacity to resist corrosion, exclude water and other substances, and vermin from entrance from the grave into the casket.

Respondent, in 1932, and prior to the issuance of the complaint herein, dated March 12, 1935, has voluntarily abandoned, and in the usual course of business ceased to use, and it does not now make, issue, or use, the above representations or statements, or any of them, either in certificates of warranty or in any advertising media or in any .other manner.

PAR. 21. Respondent's use of representations to the effect that its burial vaults would, under all underground conditions, remain waterproof, rust-resisting and verminproof, had the capacity to mislead the purchasers of said vaults. Decause of the great variation in the corrosive properties of soils in different sections of the country and in the subterranean water-level'conditions and the surface drainage conditions, and also because of the conditions set forth in paragraph 12 hereof, any universal representation as to ~he endurance qualities of said vaults in underground service is inaccurate and misleading.

PAR. 22. The following statements and representations made by the respondent, its agents, employees and representatives, in connection with the offering for sale or selling in interstate commerce the types of ferrous metal burial vaults, above described, in certificates of warranty and in advertising, to the effect that: 1. The metal of which respondent's vaults are made is able, for a stated period of fifty years, or for any fixed or stated period of time, to resist rust and corrosion or the effects thereof when placed underground ;

2. The said vaults will remain airtight, verminproof, or waterproof for any fixed or stated period of time after being placed underground;

3. Or any other representation of like import; 4. And the use of certificates of warranty such as described in paragraph 20 hereof in aid of the sale of said vaults, PERFECTION BURIAL VAULT CO. 1025 1013 Order are untrue, deceptive, and misleading, and have and have had the capacity and tendency to induce the public to purchase and use respondent's vaults under the erroneous belief that said statements and representations are true and have and have had the tendency and capacity to unfairly divert trade to respondent from its competitors. CONCLUSION The aforesaid acts and practices of the respondent under the conditions described in the foregoing findings, are to the prejudice of the public and of respondent's competitors. They are unfair ltlethods of competition in commerce and constitute violations 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 This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of respondent, and the stipulated facts filed herein, and the Commission having made its findings as to the facts and its conclusion that said respondent has ~iolated 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 respondent, Perfection Steel Body Company, a corporation, trading as Perfection Burial Vault Company, its officers, representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of ferrous metal burial vaults in interstate commerce or in the District of Columbia, forthwith cease and desist from :

. 1. The use of representations in certificates of warranty or guaranty In advertising, or in any other manner, to the effect that: (a) The metal of which respondent's vaults are made is able for a stated period of 50 years, or for any fixed or stated period of time, to resist rust and corrosion, or the effects thereof, when placed underground.

(b) The said vaults will remain airtight, verminproof, or waterproof for any fixed or stated period of 50 years, or for any fixed or stated period of time, after being placed underground.

{c) Or any other representation, of like import. Order 24F.T.C.

2. And from using certificates of "lVarranty" or "Guaranty" in connection with the sale, or offering for sale of such vaults, unless it clearly appears therein that such certificates refer to the care, skill, mechanism, and materials used in the construction of said vaults, and to tests made to determine whether they leak, and not to their durability as to remaining airtight, verminproof, or waterproof when used for burial purposes.

It is further ordered, That respondent shall, within 60 days after service upon it of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which it has complied with this order.

BEVERLY PRODUCTS CO. 1027 Syllabus

← 24 F.T.C. 1003 · 24 F.T.C. 1027 →