LEVY, J. K., ET AL. (doing business as Levore Co.

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

IN THE :MATTER OF J. K. LEVY, ALIAS J. K. LEE, AND DAVID LEVY, CO· PARTNERS, TRADING AS LEV ORE COMPANY, AND J. K. LEVY, ALIAS J. K. LEE, INDIVIDUALLY CO~fPLAINT, FINDINGS, AND ORDER IN REGARD TO Tile ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1014 Docket 2607. Complaint, Oct. 31, 1935-Dccision, Aug. 9, 19.17 Where certain Individuals engaged in sale and distrilmtion of radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, and similar commodities, directly to purchasers and through sales distributors or agents for resale direct to consumers on time payments, and also for resale under their so-called "give away" plan, in comp<'tition with those engaged In sale and distribution of such products In commerce among the various States- (a) Sold, under latter plan, to their di:stributor-agcntfl, their aforesaid socalled premium goods, together with push cards or punch boards termed "sales booklets," for disposition to sub-agents and distribution to consum· ing public under a plan by which final purchasers or customers selected from card one of a number of feminine names disvlnyed thereon and paid for chance, subject to certain limitations, In accordance with number and name selected and punched, and recrivell article being dif;posed of, or nothing other than privilege of making selection, for money paid, in accordance with his success or failure in selecting name corresponding to that concealed on card, as revealed after sale of all chances thereon, and under which plan, and after which time, distributor agent or sub· agent was likewise entitled to a radio or some other article of so-called ''free" merchandise, and thereby supplied to and placed in the bands of others the means of conducting lotteries in the sale of their said products as a means of inducing purchase thereof in preference to similar articles olTered and sold by competitors, and in competition with many who are unwilling to adopt and use such nwthods of sale, or any method involving scheme of chance, as contrary to public policy and good morals, not in accordance with business ethics, a detriment to legitimate business, and as gambllng;

(b) ll£>presented to prospective distributor-agents that they could make big money "giving away these wonderful radios," and described their said plan as the "give away" plan, and referred, as above set forth, to the premiums or artldes secured by the holder of the winning name and the distributor-agent or sub-agent as "free" merchandise, facts being those rcc£>ivlng same through such selection paid therefor amount determined, as Indicated, wholly by lot or chance, and they did not give away any mcrchand!Re, but sold same and received value therefor; and (c) llrpresf'ntcd thf'msclves ns manufacturers, through use of words "Successors to Deco Mfg. Company," placed upon their advertisements and advertising matter distributed in interstate commerce, !nets being, not· withstanding their ownership of stock of licensed radio manufacturing LEVORE CO. ET AL. 723 722 Complaint concern and their building of cons and assembling of radios, they did not and had not themselves made any such products; With result that many purchasers of such products, attracted by element of chance involved in their aforesaid sales methods, were thereby Induced to buy same In preference to those of competitors who do not use same or equivalent methods, and with tendency and capacity unfairly, and because of element of chance, to divert to them trade and custom from their said competitors who do not use such or equivalent method, and exclude all competitors who are unwilling to and do not do so, and with further tendency and capacity, through aforesaid manufacturing misrepresentations, to divert trade from and otherwise injure their competitors substantially In commerce:

Held, '!'hat such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. W. lV. Sheppard, trial examiner. Mr. Morton Nesmith for the Commission.

Nash dJ Donnelly, of Chicago, Ill., for respondents . . Complaint 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, having reason to believe that J. K. Levy, alias J. K. Lee, and David Levy, copartners, trading as Levore Company, and J. K. Levy, alias J. K. Lee, individually, hereinafter referred to as respondents, have been and now are using unfair methods of competition in commerce, as "commerce" is defined in ~aid act, and it appearing to the Commission that a proceeding by It in respect thereof would be in the public interest, states its charges in that respect as follows:

PARAGR.<\PII ·1. The respondent, Levore Company, is a partnership composcc.l of J. K. Levy, alias J. K. Lee, and David Levy, and the principal place of business of said partnership is located at 130 North Wells Street in the city of Chicago, State of Illinois. Said respondent J. K. Levy, alias J. K. Lee, is an individual, with his principal place of business at 130 North Wells Street in the city of Chicago, State of Illinois. Said respondents are now and for several years last past have Leen engaged in the sale and distribution of radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, nnd similar commodities directly to purchasers, and also through sales distributors or agents located at points in the '·arious States of the United States other than the State of Illinois, nnd cause said proc.lucts, when so sold, to be transported from their Principal place of bu:;iness in the city of Chicago, State of Illinois, 724 FEDERAL TRADE COl\Il\IISSION DECISIONS Complaint 25F.T.C.

into and through other States of the United States to purchasers at their respective points of location. In the course and conduct of their business as aforesaid, respondents are now and have been in competition with other individuals, partnerships, and corporations engaged in the sale and distribution of radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, and other similar commodities, in commerce between and among the various States of the United States.

PAR. 2. In the course and conduct of their business as aforesaid, respondents pursued the following methods and practices: (a) Advertised in periodicals having a wide interstate circulation, and by means of circulars and form letters, the following and other similar matters:

GIVE RADIOS AWAY and earn up to $100.00 a week. New money making plan for agents, salesmen, district managers. No experience, Profits Start Immediately.

DEST RADIO-Amnzlng little 7 lb. portable AC & DC radio for lJOml', office, auto, farm, etc. Wonderful tone. Gets pollee calls. $30 value. Llcen~etl by R. C. A. and associated companies. Write at once. We will show yon how to mal•e BIG MONEY giving away these wonderful radios • • • PLAN NO.1 This "give away" plan Is one which lnrolres the distribution of high (!Uality merchandise, many articles lmown through national advertising. It if; a plan that has proved to be very popular with Levore dealers. Yon will ~;l'e a picture of a Levore Sales Card on the back of this letter. On this cord are printed 120 names of girls. As a distributor, yon will employ ogents to <lispo~e ot these cards. For their efforts In disposing of this cord, you will gh·e e11rll agent one ot the gifts of hill or her choice. The twrson selecting the t;nrne name which appears under the srnl al~o rerelves a gift • • • To be more specific, the Best Radios, both Standard and Duol-Wave Modelll, the Log Cabin Radio and the Dohrmeyer Electric Mixer and ·wahl EvershnrP Pencils nrc used In connection with the n-120 Sales Card. Your agent receives their choice of one of these tour gifts. The person selcetlug the lueky uarne also receives the gift of their choice, and In addition five pe0111P receive Wubl Everysharp Pencils. You buy the require,] merchamllf;e from lis at the confidential price shown In the distributor's price list. The <111TerPnce between the cash you receive from your agent tor the sale of the complete rnrd an<l thc cost of tlle merchandise represents your profit which as stated brfore runs from $11.7~ to $15.25 per card, depending upon the gift Item.'! selected. You will note that we have other books, which are dl~posed of lu the s111ne manner as the one described ahove, each card being used In conueetlou with certain gift Item!!. - HOW TO PUT TIIIS PLAN IN Ol'EUATION The more agents you get to work for you the bigger your profits will be. Among your relatives and friends are any number who would gladly work tor one of these free gifts. Everybody wants anotlJer radio, especially the LEVORE CO. ET AL. 725 722 Complaint portable kind, like Dest Radios. Then there is a big demand right now for World-Wide Radios and Automobile Uadios. So many people want them but cannot afford to buy them outright. These people will be tickled to death With an opportunity to get a radio of their choice absolutely free • • • $100 to $150 Wet>kly Ensy to Earn This clock has a retail value of $15.00 and give them away in connection with our l\I-100 Sales Books.

REMEMBER GIFTS ARE GIVEN AWAY That's the important thing to always keep in mind and to Impress upon those whom you employ to work for you. They buy nothing. All they have to do Is to get their friends to pull the names on the card. Everyone has an equal chance to earn the gift of his or her choice. The agent selling the card gets one of the gifts and the winner gets another. You donate these gifts and earn a big profit In the process of doing it. "' "' • this marvelous little radio set that Is keeping our factory humming to supply the demand "' • "' Remember, we are in the business of manufacturing BEST radios, and we will sell them to you at any time Rt the wholesale Jl~"iea • "' "' You cnn purchase any numh<>r of rndios from us at any time at the fnctory whole~nle price of $9.00 each. 'these two high class gnnrnnteed radios are given away In connection with the R-170 sales booklet.

1'he BEST ruuio is not a ''fly-by-night" affair-here today and gone tomorrow. We make this radio on a large scale production basis in our own modern Plant. ~Expert radio engineers snpen·ise every phase of its manufacture • • • PLAN NO. 2 Direct to consumers on time payments.

Uespondents sell to their distributors-agents their so-calle<.l prenlinm goods, with which are included what are described as sales boflklets, but which nre in renlity push cards· or punehboards. The agents in turn dispose of these commodities, including the push cards or punehboanls, to subngents. The cards or boards are made up With a certain number of names, usually the names of girls or women, under each of which is concealed a number; such numbers run from 1 to 100 or more, corresponding with the number of names on the card. The customer selects a name which he punches out, thereby disclosing a conceale<.l number, and pays a premium equal to the number disclosed, but in no case more than thirty-five cents. The winning name is concealed on the cnnl nnd the seal is not rchloved from it until the last chance has been sold, an<.l thereupon the holder of the winning name and the distributor-agent are each entitled to a radio or some other article of the "free" merchandise. Persons who received the so-called "free" merchandise paid for the same in an amount determined as indicated, wholly by lot or chance. 720 FEDERAL TRADE COl\11\IISSION DECISIONS Complaint 25F.T.C.

PAR. 3. The respondent Levore Company, in the course and conduct of its business as aforesaid, in its advertising to induce pros pee· tive distributors-agents to dispose of its merchandise, represented to them that they could make big money "giving away these wonderful radios," and their plan as the "give away plan." PAR. 4. The respondent Levore Company, in the course and con· duct of its business as aforesaid, in its advertising caused and still causes the words "Successors to Beco 1\Ifg. Company" to appear upon its advertisements and advertising matter distributed in interstate commerce.

PAR. 5. The aforesaid distributors-agents and sub-agents dispose of the aforesaid "free" merchandise to the purchasing public in accordance with the aforesaid sales plans. Respondents thus supply to and place in the hands of others the means of conducting lotteries in the sale of their products, in accordance with the respondents' sales plans hereinabove set forth, as a means of inducing purchasers thereof to purchase respondents' said products in prefer· ence to similar articles offered for sale and sold by their competitors. PAR. 6. The respondent Levon! Company, in the course and con· duct of its business as aforesaid, in their advertising represented that their agents earn $100 and $150 per week under their sales plan No.1.

In truth and in fact, neither the Beco Manufacturing Company nor the respondent Levore Company, the latter either in its own right or as successor of said Beco Manufacturing Company, are manufacturers, nor does the respondent Levore Company own, oper· ate, or control any factory wherein its products are made, manu· factured or fabricated. Said representation made by the respondent Levore Company in its advertising matter that it is a manufacturer, or successor to the Beco Manufacturing Company, is false and mis· leading, and has the tendency and capacity to mislead and deceive purchasers of respondents' products into the belief that when pur· chasing from the respondent they are dealing with a manufacturer, thereby gaining an advantage aml saving the middleman's profit. In truth and in fact, the respondent Levore Company did and does not give away radios, nor does respondent give away any merchandise free or as a gratuity.

In truth and in fact, the usual and ordinary earnings of respond· ents' agents is not either $100 or $150 per week. . PAR. 7. The use of said methods by respondent, ns described 10 paragraph 2, has the tendency and capacity unfairly, and because of said game of chance and of said free goods, to divert to respond· ents trade and custom from their said competitors who do not use LEVORE CO. ET AL. 727 722 Findings the same or equivalent methods, and to exclude all competitors who are unwilling to and who do not use the same or equivalent method!l. Many of respondents' competitors are unwilling to adopt and use said methods or any method involving a game of chance or the sale of a chance, to win something by chance, because such methods are contrary to public policy or to the criminal statutes of certain of the States of the United States, or because they are of the opinion that such methods are detrimental to the morals of the public, or because of any or all of such reasons.

PAR. 8. There are, among the competitors of the respondents, many persons, firms, corporations, and associations who sell and distribute radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras and other similar commodities, in interstate commerce. There are also among the competitors of the respondents, many persons, firms, corporations, and associations who manufacture similar commodities and sell the same in interstate commerce, and the sales plan No. 1 employed by respondent, and the use of the Phrase "Successors to Deco Mfg. Company," when the Levore Company is not a manufacturer, has the capacity and tendency to Unfairly divert trade from and otherwise injure and prejudice respondents' competitors in interstate commerce. PAR. 9. The above alleged acts and things done by the respondents are all to the injury and prejudice of the public and of the competitors of respondents in interstate commerce, and constitute unfair n1ethods of competition in interstate 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 Tile FACTS, AND ORDER Pursuant to 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," the Federal Trade Commission on the 31st day of October 1935, issued, and on the 4th day of November 1935, served its complaint upon respondents J. K. Levy, alias J. K. Lee, and David Levy, charging said respondents with the use of unfair metlwcls of competition in Cotnm£'lce in violation of the provisions of said act. After 'the issunnce of saul complaint and the filing of respondents' answer thereto, testimony and other evidence in support of the allegations of said Complaint were introduced by Morton Nesmith, attorney for the ~ommission, before ,V. ,V, Sheppard, an examiner of the Commis- Ston, tht!retofore duly designated by it, and in opposition to the 728 FEDERAL TRADE COl\Il\IISSION DECISIONS Findings 25 F. T. C. allegations of the complaint by John A. Nash, attorney for the respondents; and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter the proceedings regularly came on for final hearing before the Commission on the said complaint, the answer thereto, testimony and other evidence, and briefs in support of the complaint and in opposition thereto; and the Commission having duly considered the same, and being now 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 conclusions drawn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents J. K. Levy, alias J. K. Lee, and David Levy, are co-partners trading as Levore Company, and the principal place of business of this partnership is located at 130 North 'Veils Street, in the city of Chicago, State of Illinois. The respondent J. K. Levy, alias J. K. Lee, is an individual, with his principal place of business at the same address.

The respondents are now, and for several years last past have been, engaged in the sale and distribution of radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, and similar commodities directly to purchasers and also through sales-distributors or agents located. at points in the various States of the United States other than the State of Illinois, and. respondents have caused their products, when so sold, to be transported from their principal place of business in the city of Chicago, State of Illinois, into and through other States of the United States to purchasers at their respective points of location.

In the course and conduct of their business, the respondents are now, and. have been, in comprtition with individuals, partnerships, and corporations engaged. in the sale and. d.istribution of radio receiving sets, fountain pen and. pencil sets, cocktail sets, cameras, and other similar commoditirs in commerce between and among the various States of the United States.

PAR. 2. In the course and operation of their business und for the purpose of ind.ucing the purchase of their products, the respondents advertised in prriod.icals having wide interstate circulation and by means of circulars and form letters, the following and other simihtr statements:

GIVE RADIOS AWAY and earn up to $100.00 a we(•k. New moiH'Y mnkltil~ plan tor agents, salesmen, district managers. No experience, Profits Start Tmmedlately.

LEVORE CO. ET AL. 729 722 Findings BEST RADIO-Amazing little 7 lb. portable AC & DC radio for home, office, auto, farm, etc. Wonderful tone. Gets police calls. $30 value. Licensed hy n. C. A. and associated companies. Write at once. We will show you how to make BIG MONEY giving away these wonderful radios • • •. PLAN NO. 1 This "give away" plan Is one whirh involves the distribution of high quality merchandise, many articles known through national advertising. It Is a plan that has proved to be very popular with Levore dealers. You will see a picture of a Levore Sales Curd on the bnek of this lt>tter. On thl~ curd are printed 120 names of girls. As a distributor, you will employ agents to dispose of these curds. For their efforts In disposing of this card, you will give each agent one of the gifts of Ills or her choice. The per><on selecting the same name which appears under the seal also receives a gift • • • To be more specific, the Dest Radios, both Standard and Duul·Wave 1\Iodels, the Log Cabin Radio and the Dohrmeyer Electric l\Iixer and Wahl Eversharp Pencils are used In connection with the U-120 Sales Card. Your agent receives their choice of one of thp>~e four gifts. The person selecting the lucky name al~o receives the gift of their choice, and in addition five people receive Wahl Eversharp I'E'nclls. You buy the required merchandise from us at the confidential price dlfferPnce between the cash you receive from your agent for the sale of the complete curd and the rost of the merebandli-!e represt-nts your llrotlt which as statl'd before runs from $11.75 to $15.25 per card, depending lli>on the gift items Rl'lected.

Yon will note that wP have otlu-r book!'!, which are dlspoi'!Pd of in the same lllanner as the one described above, each card being nied in connection with <-'t'rtaln gift items.

HOW TO PUT TIIIS PLAN IN OPERATION The more ngrnts you grt to work for you the blggPr your profits will he. Among your rrlntlves null frienus are any nmuh<>r who would gladly work for one of these free gifts. Everybody wants nnothPr raulo, especially the port- Ubie kind, like llt>!!t Rudiol'l. ThPu tht-re is a big dl•manu right now for Worlu- \Viue Hndios and Automobile Radios. So many people want tlwm but cannot Ul'f'ord to buy them Ollt·rfght. 'flw~e 11e0ple Will be tlekiPd to death with an (•l•IJortunity to get a radio of tlwlr choice absolutely tree • • •. $100 to $150 WE'ekly Easy to Earn This clock has a retail value of $15.00 and give them away In connection with <lur l\I-100 Sales Books.

RE~fE:\Iller GIFTS ARE GIVEN AWAY That's the important thing to always keep in mind and to impress UliOn those "·hom you employ to wo1·k for you. 'l'hPy buy nothing. All they ha,·e to do lt; to get their friends to pull the names on the card. Everyone has an equal Chance to earn the gift of his or her choice. The agent selling the card gets one of the girts and the winner gets another. You donate these gifts and E'arn n big profit In the process of doing it.

• • • this mnn·eloni'! little radio set that is kee}llng our factory humming to supply the demand • • • Remember, we are In the business of manu- Findings 25F. T. C.

facturing BEST radios, and we will sell them to you at any time at the wholesale price • • • You can purchase any number of radios from us at any time at the factory wholesale price of $9.00 each. These two high class guaranteed radios are given away In connection with the R-170 sales booklet.

The BEST radio is not a "fly-by-night" affair-here today and goue tomorrow. We make this radio on a large scale production basis In our own modern plant. Expert radio engineers super•ise every phase of its manufacture • • •.

Direct to consumers on time payments.

Respondents sell to their distributors-agents their so-called premium goods, with which are included what are described as sales booklets, but which are in reality push cards or punchboards. The agents in turn dispose of these commodities, including the push cards or punchboards, to sub-agents. The cards or boards are made up of a certain number of names, usually the names of girls or women, under each of which is a concealed number; such numbers run from 1 to 100 or more, corresponding with the number of names on the card. The customer selects a name which he punches out, thereby disclosing a concealed number, and pays a premium or price equal to the number disclosed in cents, but in no case more than thirty-fhe cents. The winning name is concealed on the card and the seal i~ not removed from it until the last chance has been sold, and thereupon the holder of the winning name and the distributor-agent or the sub-agent are each entitled to a radio or some other article of the "free" merchandise. Persons who receive the so-called "free" merchandise paid for the same an amount determined as indicated wholly by lot or chance; the respondents, therefore, do not gh·e away any merchandise but sell the same and receive value therefor. PAR. 3. The respondents, J. K. Levy, alias J. K. Lee, nnd D~tvid Levy, in the course and conduct of their business and in their advertising, to induce prospective distributors-agents to dispose of their merchandise, represente<l to them that they could make big money "giving away these wonderful radios" and their plan as the Hgh·e away plan." The distributors-agents and sub-agents dispose of this "free" merchandise described in respondents' ad,·ertising to the purchasing public in accordance with the respondents' sales plans as herein outlined, namely, 1 and 2. The respondents supply to and place in the hands of others the means of conducting lott.merit>s in the sale of their products, and in accordance with respontlents' sales plans hereinbefore described as a means of inducing purchasers thereof to purchase respondents' products in preference to similar articles offered for sale and sold by competitors of respondent. A substantial part of respondents' business in the sale of their mer- LEVORE CO, ET AL. 731 722 Findings chandise is effectuated by the use of the push, pull, or punch card system.

PAR. 4. In the course and conduct of their business the respondents, J. K. Levy and David Levy, advertise and represent that the Levore Company is a manufacturer through the use of the words "Successors to Beco 1\lfg. Company," which is placed upon Levore Company advertisements and advertising matter distributed in interstate commerce. The, Beco l\Ifg. Company is a trade name for The Best Company and was the predecessor of the Levore Company. Respondents J. K. Levy and David Levy, trading as the Levore Company, own the stock of the Le,Vahl l\Ifg. Company, which was a licensed radio manufacturing concern, and licensed by the R.C.A. Company. They build coils and also assemble radios, but do not, and have not, manufactured any radios themselves. PAR. 5. The respondents, J. K. Levy and David Levy, in disposing of their radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, and other products in accordance with the sales plan No. 1, hereinabove described; which involves the use of the aforesaid push or punch cards, conduct lotteries or games of chance in the disposition of their merchandise. Many purchasers of these products are attracted by the element of chance involved in the respondents' sales method before described and are thereby induced to purchase respondents' products in preference to the same or similar products or merchandise of respondents' competitors who do not usc the same or equivalent methods.

PAn. G. The use of the sales plan No.1 by the respondents, namely, by the push and pull card method, has the tendency and capacity unfairly and because of the element of chance to divert to respond- £>nts trade and custom from their said competitors who do not use the same or equivalent methods, and exclude all competitors who are linwilling to and who do not use the same or equivalent methods. Many of respondents' competitors are unwilling to adopt and use these methods of sale or any method involving a scheme of chance because such methods are contrary to public policy and good morals, do not comply with business ethics, are a detriment to legitimate business, and constitute gambling. In truth and in fact, the respondents, J. K. Levy and David Levy, trading as the Levore Company, are not manufacturers and do not own or control or operate a factory wherein their radios, fountain pen and pencil sets, cocktail sets, cameras, m1d similar merchandise are manufactured or fabricated, nl} of which has the further capacity and tendency to divert trade !rom and otherwise injure respondents' competitors substantially in Interstate commerce.

Order 2::1 F. T. C'. CONCLUSION The aforesaid acts and practices of the respondents, J. K. Levy, alias J. K. Lee, and David Levy, are to the prejudice of the public; and the respondents' competitors, and constitute unfair methods of competition in commerce, within the intent and meaning of Section 5 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."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of respondents, testimony and other evidence taken before "\V. W. Sheppard, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, and briefs filed herein by Morton Nesmith, counsel for the Commission, and by John A. Nash, counsel for the respondents, and the Commission having made its findings us to the facts and its conclusion that said respondents have violated the provisions of an Act of Congress approved September 26, l!H4, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", It is ordered, That the respondents, J. K. Levy, alias J. K. Lee, and David Levy, individually or trading as Levore Company or under any other trade name, their servants, representatives, and employees in connection with the offering for sale, sale, and distribution in interstate commerce or in the District of Columbia of radio receiving sets, fountain pen and pencil sets, cocktail sets, can1eras, and similar commodities, do forthwith cease and desist: 1. From supplying to or placing in the hands of others punch cards, pull cards or push cards for the purpose of enabling such persons to dispose of or sell by the use thereof, said or similar products. 2. From mailing, shipping or transporting to their afl'ents or distributors or to members of the public, punch, push or ;un cards so prepared or printed as to enable said persons by the use thereof to sell or distribute said or similar products. 3. From selling or otherwise disposing of radio receiving sets, fountain pen and pencil sets, cocktail sets camerns and similar commodities by the use of punch, push or ~ull cards.' . 4 .. ~rom in any manner selling or otherwise disposing of ra.djo rece1vmg sets, fountain pen and pencil sets, cocktail sets, cameras, LEVORE CO. ET AL. 733 722 . Order and similar commodities by the use of devices depending upon lot or chance.

5. From directly or indirectly representing that they are manufacturers unless. and until they own, operate or control a factory wherein their products are made or manufactured; or 6. From representing in any manner that their radio receiving sets, fountain pen and pencil sets, cocktail sets, cameras, and similar commodities are free or given away, when such is not the fact. It is further ordered, That the respondents shall within 60 days after the service upon them of a copy of this order file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease nnd desist hereinabove set forth.

Syllabus 25F.T.C.