Consumer Law Library

Moss, Thomas R

Volume 26 · 26 F.T.C. 1058

Citation
26 F.T.C. 1058
Docket
3332
Complaint
1938-02-10
Decision
1938-04-09
Document type
final order
Case type
consumer protection
Statutes
FTC Act (section 5)
Industry
novelty merchandise sales
Outcome
cease and desist
Relief
cease_and_desist; compliance_reporting
Commission counsel
Henry C. Lank and N7·. P. C. Kolinski
Respondent counsel
lllr. C. P. JJf os8~ of Dyersburg, Tenn
Source
Original volume PDF
Original PDF
This decision as a PDF

deceptive advertising

Cite this decision

Moss, Thomas R, 26 F.T.C. 1058 (1938). Consumer Law Library, https://consumerlawlibrary.org/decisions/v026-0101

Report an error in this record (decision id v026-0101)

Order status: unknown. 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 MATTER OF THOMAS R. 1\IOSS, INDIVIDUALLY, AND TRADING AS OKEENA NOVELTY COMPANY AND MANUFACTURERS SALES COMPANY COl\IPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATIO~ OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 33JZ. Complaint, Feb. 10, 1938-Decisiou, Apr. 9, 1£t38 \Vhere an individual engaged in offer and sale of radios, bridge sets, !llisers, dishes, grill sets, and other articles of merchandise to purchasers in the various States and in the Distrif·t of Columbia- ( a) Sold and distributed his products through merchandising plan involving distribution of advertising literature, push cards, order blanks, advertise· ments illustrating his products, and circulars explaining his said plan, under which particular article or articles included, as set forth on cards' explaua· tory legends, were awarded to player successful in selecting by chance, frou; feminine names displayed thereon, particular name revealed, after sale 0 chances, by removal of master seal, at cost to said player of particular chance, as determined by number punched, and card's number price sr.nJe, thereon di$played, and under which operators of said canis were cOilltleusated by receipt of such merchandise; ! With result that purchasing public was thus induced to buy pushes in ]lope 0 f selecting prize-winning name or number ~nd thl'reby obtaining article 0 merchandise of greater value than amount paid, as likewise determined b~ lot or chance, and many persons, attracted by his aforesaid method 110 t element of chance involved in sale of his said merchandise, as above srd forth, were induced to buy and sell same In preference to that offered aiid sold by said competitors, who do not use same or equivalent methods, 311• with further result of supplying means of conducting lotteries in sale of ~~iS merchandise in furnishing such push cards to operators thereof, in violated~ of long standing public policy of common law and criminal statutes 110 that of United States Government, and with effect of unfairly diverting to said individual trade and custom from competitors, including many who ar~ unwilling to adopt and use such or any method involving game or sale 0d chance to win by chance, or other method contrary to public policy, au refrain therefrom, and with capacity and tendency so to divert; and . I ·u1 111 (b) Included word ":\Ianufacturers" in one of trade names employed by ll d carrying on a part of his said business, and also used said word nnd wor "Factories" in such phrases as "Associated Factories" and "Manufncturer·8 and Distributors," in conjunction with or separate from trade name, to d~ scribe his said business, and in soliciting sales of his said products, 8~. displayed said trade name and aforesaid words and phrases on letterbefl, ~~ em·eiopes, catalogs, circulars, and other matter distributed to custonJCl and prospective customers; . 11 Notwithstanding fact that he did not, either independently or in associat~~d with others, make products sold by him, and had never done so, an~ r not own or operate or directly control or have any interest in, nny nHI~i~l factory wherein such products were made, but filled orders received bY d. from factories and mills which he neither owned, operated, nor contro!le ' OKEEXA XOVELTY CO., ETC. 1059 1058 Complaint With effect of misleading and deceiving purehasers by causing them to believe that he actuallv owned and operated, independently or in association with uthers, or dire~tls controlled, factories or mills in which products sold by him were made, or that he himself made same, and, ou account of snell belief, of causing purchasers, certain of whom prefer to buy directly from manufacturer by reason of adYantnges, including price, uniformity and reliability believed to inhere in such purchasing, to buy said products, and of unfairly diverting trade to him from individuals aud concerns who actually manufacture their products, or who sell and distribute same betwEo"en and among various States and in District of Columbia and do not fab;ely represent themselves to be manufacturers or mill overators: lleld, That such acts and practice~;~ were all to the prejudice and injury of the Public and competitors and constituted unfair methods of competition. Mr. Henry C. Lank and N7·. P. C. Kolinski for the Commission. lllr. C. P. JJf os8~ of Dyersburg, Tenn., for respondent. ColiiPLAINT Pursuant to the provisions of an Act of Congress, approved Septe~~er 26, 1914, entitled, "An Act to create a Federal Trade Comlll.Issron, to define its powers and duties, nnd for other purposes," the Federal Trade Commission, having reason to believe that Thomas R. ~foss, .individually, and trading as Okeena Novelty Company, and hIanufacturers Sales Company, hereinafter referred to as respondent, as been and is using unfair methods of competition in commerce, as. "~commerce" is defined in said act, and it appearing to said Comlll.rss~OI~ that a proceeding by it in resped thereof would be in the Puhhc mterest, hereby issues its complaint stating its charges in that respect as follo,vs :

PARAGRAPH 1. The respondent is an individual trading under the ~atnes and styles of Okeena Novelty Company and Manufacturers ales Company, with his principal office and place of business located ?n West Court Street, in the city of Dyersburg, Tenn. Respondent ls now, and for some time last past has been, engaged in offering for sa;e and selling radios, bridge sets, mixers, dishes, grill sets, and ot t~r articles of merchandise, to purchasers thereof located in the ;;rrous States of the United States and in the District of Columbia. e causes and has caused said merchandise when sold to be shipped ~r transported from his place of business in the State of Tennessee l~to and through other States of the United States and the District0 • Columbia to purchasers thereof at their respective points of loca-t lon. The · d h f · l L re IS now, an as een or some time ast past, a course f ~ trade and commerce by said respondent in such merchandise ben·Ween. and among t ]1e varwus· S states of t 11e Umte· d S states and m· t h e lstrlct of Columbia. In the course and conduct of his business respondent is in competition with other individuals and with part· FEDERAL TRADE COl\IMISSIO!f DECISIONS1060 Complaint 26F.T.C· nerships and corporations engaged in the sale and distribution of like and similar articles of merchandise, in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of his business, as described in paragraph 1 hereof, respondent, in soliciting the sale of and in selling and distributing his merchandise, has furnished various devices and plans of merchandising which involve the operation of games o:f chance, gift enterprises, or lottery schemes, by which said merchandise is distributed to the ultimate consumers thereof wholly by lot or chance. The method and sales plan adopted and used by respondent was, and is, sebstantially as follows:

Respondent causes and has caused to be distributed to the purchas· ing public, through the United States mails in interstate commerce, certain advertising literature, including, among other things, push cards, order blanks, advertisements containing illustrations of his merchandise, and circulars explaining respondent's plan of selling said merchandise and of allotting it as premiums or prizes to tl~e operators of the push cards. Said push cards bear a number of £emt· nine names, with a blank space opposite each for writing in the name of the customer. Said push cards have a corresponding number of partially perforated discs, on each of which is printed one of the feminine names printed alphabetically elsewhere on the cards. Con· cealed within each disc is a number, which is disclosed when the disc is pushed or separated from the card. The push cards have a master seal, concealed within which is one of the feminine names appearing' elsewhere on the said cards. The push card bears printed legends or instructions,· one of which is as follows: SELECT YOUR FAVORITE GIRL'S NAME AND RECEIVE A MOSS DELUXE CARD TABLE WITH "BUILT-IN" COMBINATION ASHTRAYS and COASTERS 1¢ to 25¢ NO HIGHER Nos. From 1 to 25 PAY WHAT YOU DRAW Nos. Over 25 Pay Only 25¢ Write Players Name on Back Opposite Name Selected OKEENA NOVELTY CO., ETC. 1061 1058 Complaint Sales of respondent's products by means of said push cards are IUade in accordance with the specified legends or instructions. Said articles of merchandise sold and distributed by respondent vary in value, but each of said articles of merchandise is of greater value ~han the cost of a single push from said push cards. The purchas- Ing public is thus induced and persuaded to purchase pushes from said cards in the hope that they may select a prize-winning name or number and thus obtain an article of merchandise of a greater value t~an the amount paid. The various articles of merchandise are thus distributed to the purchasing public wholly by lot or chance, and the amount which the customer pays for a chance is also determined W'?olly by lot or chance. Respondent furnishes his representatives With additional printed instructions or suggestions for using said Push cards. One of said printed instructions bears the fdllowing legend, to wit :

INSTRUCT! OKS: There are 45 mixed numbers In this card, printed from 1 UPwards. Numbers under 25 pay what number calls for. All numbers over 25 Pay only 25t. When card is completely sold, open large seal at top, and ~erson selecting name under seal, and person selling this card, each receive a loss Deluxe Card Table, with 2 Eilt-ln Combination Ash Trays and Coasters. Tables with 4 Bilt·In Combination Ash Travs and Coasters can be bad, if desired, for 50t extra per table. ' TOTAL $10.00 Respondent furnishes or sells various push cards for use in the sale and distribution of his merchandise by means of a game of chance, gift enterprise or lottery scheme. Said push cards are similar a.nd vary in detail, but the above described plan or method is illustrati-ve of the principle involved.

Par. 3. The persons to whom respondent furnishes the said push ~ards use the same in purchasing, selling, and distributmg reriondent's merchandise in accordance with the aforesaid sales plan. respondent thus supplies to and places in the hands of others the means of conducting lotteries in the sale of his merchandise in accordance with the sales plan hereinabove set forth. The use by respondent of said method in the sale of his merchandise, and the ~~le ?f such merchandise by and through the use thereof and by le aid of said method, is a practice of the sort which the commonl aw and · · · l" Crlmmal statutes have long deemed contrary to pubhc Icy and is contrary to an established public policy of thego overnment of the United States.

par. 4. The sale of merchandise to the purchasing public in the ~anner above alleged involves a game of chance or the sale of a c ance to procure an article of merchandise at a price much less than 1062 FEDERAL TRADE COMl\HSSION DECISIONS Complaint 26F. T.C.

the normal retail price thereof. Many persons, firms, and corporations who sell or distribute merchandise in competition with t~H~ respondent, as above alleged, are unwilling to adopt and use said method or any method involving a game of chance or the sale ~f a chance to win something by chance, or any other method that 18 contrary to public policy, and such competitors refrain therefrom. Many persons are attracted by respondent's said method and by the element of chance involved in the sale thereof, in the manner above described, and are thereby induced to buy and sell respondent's merchandise in preference to merchandise offered for sale and sold by said competitors of respondent who do not use the same or an equivalent method. The use of said method by respondent, because of said game of chance, has the tendency and capacity to, and doesn divert trade and custom to respondent from his said competitors who do not use the same or an equivalent method. P .AR. 5. In the course and conduct of his business, as hereinabove described, respondent has included within one of his trade names, Manufacturers Sales Company, under which to carry on a part of his business, the word "Manufacturers." Respondent has also used and is using the word "factories" within the phrase "associated factories," and the word "manufacturers" within the phrase "Inan~­ facturers and distributors," in conjunction with, or separate from, his said trade names, with which to describe his said business. lk sp?ndent .has used continuousl.y. for some time last past, and i~ no~ usmg, said trade name contammg the word "Manufacturers, an has likewise used the words "associated :factories" and "manu· facturers and distributors," in soliciting the sale of and selling his products in commerce as hereinabove described. Respondent has caused his said trade name, Manufacturers Sales Company, and th~ words "associated factories" and "manufacturers and distributorsd to appear on his letterheads, envelopes, catalogs, circulars, an other matter. All of said printed matter has been, and is, distributed in and among the various States to customers and prospective cus· tomers of the respondent. Such statements and designations serve as representations that respondent owns, operates, or controls the factory or mill wherein the products which he sells are manufactured, and that the respondent is associated with others in the manufacture of his said products.

In truth and in fact, said respondent uoes not, either independent!~ or in association with others, make or manufacture the products sol by him, nor has he ever made or manufactured said products, either independently or in association with others. Respondent does not own or operate, or directly and absolutely control, or have a~Y interest in any mill or factory wherein the products sold by biill OKEENA NOVELTY CO., ETC. 1063 1058 Complaint are made or manufactured. Respondent has, at all times referred to herein, filled, and now fills, orders received by him with products lllade or manufactured in factories or mills which he does not own, O)Jera1kl, or control. .. PAR. 6. There is a preference on the part of certain purchasers 01' prospective purchasers located in different States of the United ~states and in the District of Columbia for buying said products and hke or similar products directly from the manufacturer or mill producing the same. There is an impression and belief existing among certain of said purchasers or prospective purchasers of said products tlt~t a saving of the middleman's profit may be obtained, that a more. uniform line of goods may be purchased, and that an advantage is obtained by purchasing goods directly from a manufacturer or a mill operator. Said purchasers or prospective purchasers also believe that 11101 '-'~ reliance can be placed on a manufacturer or mill operator with regard to carrying out of contracts than can be placed upon one not ; lllanufacturer or mill operator, and that dealing with a manuacturer or mill operator is preferable and more advantageous to the rnrchaser than is dealing with one not a manufacturer or mill operafor. The use by the respondent of the words "manufacturers,'' "manuhaet:uers and distributors," and "associated factories," as described tremabove, has a tendency and capacity to mislead and deceive pure H~sers by causing them to believe that the respondent, independently or lll association with others, actually owns and operates, or directly a,~d absolutely controls, the factories or mills in which the products ~~ d by respondent are made or manufactured, or that respondent l!Jn~elf makes or manufactures his products, and to purchase respondent's products on account of such beliefs. The aforesaid repretsentati. ons b y respon d ent h ave a ten d ency and capacity· to, and d o, anclnf1altly. cor poradivertt'IOnstmdew 110 toarerespondentaetna 11 y manufromf acturmgindividuals,· pro dpartnershipsucts h'k-s or 8. 1lh1.lar to the products of respondent, or who sell and distribute like0 ·ult~ilar products, both of which classes sell their respective. prod- S~ sin commerce among and between the various States of the United th ates and in the District of Columbia, and who do not represent elm~elves to be manufacturers or mill operators when they are not 81 lc 1 111 fact.

in~An. 7. The aforesaid acts and practices of respondent are all to the a~c~:~ an;l prejudi~e of the public and. o.f r~spondent's con_1p~titors int nshtute unfair methods of competition m commerce w1tlnn the S ent and m(•aning of Section 5 of an Act of Con,.,.ress approved ept£•mbl'r 26 19 · "'lhi . ' 14, entitled "An Act to create a Federal Trade Com- S~'<Ion, to define its powers and duties, and for other purposes." 26F.T.C· Findings REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on February 10, 1938, issued, and therl\after served, its complaint in this proceeding upon the respond· ent Thomas R. Moss, individually, and trading as Okeena Novelty Company and Manufacturers' Sales Company, charging him w~th _th~ use of unfair methods of competition in commerce in Yiolatwn ° the provisions of said act. After the issuance of said complaint un~ the filing of respondent's answer, the Commission, by order enter~ herein, granted ref'pondenfs request for permission to 'dthdra w satd answer and substitute therefor a substitute answer admitting all the material allegations of the complaint to be true and waiving ~he taking of further evidence and all other intervening procedure, wl~ 1ch substitute answer was duly filed in the office of the CommisslOil· Thereafter this proceeding regularly came on for final hearing before the Commission on the said complaint and the substitute answer, and the Commission, having duly considered the matter and being now fully advised jn the premises, finds that this proceeding is in th~ interest of the public and makes this its findings as to the facts an its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS Paragraph 1. The respondent is an individual trading under th~ rsnames and styles of Okcena Novelty Company and Manufacture d Sales Company, with his principal office and place of business locnte on 'Vest Court,Street, in the city of Dyersburg, Tenn. Respondent js nnw, and for some time last past has been, engaged in offering fo~ sal~ and selling radio~, bridge sets, mixers, dishes, grill sets~ and other~ artJt?les of merchandise, to purchasers thereof located in the vnnou States of the United States and in the District of Columbia. IIe causes and has caused said merchandise when sold to be shipped or transported from his place of business in the State of Tennessee il:to and through the various States of the United States ancl the Distnct of Columbia to purchasers thereof at their respective points of loca· tion. There is now, and has been for some time last past, a course of trade and commerce by said respondent in such merchandise be· twee.n and among the various States of the United States and in the District of Columbia. In the course and conduct of hi:; bnsine~s, re· spondent is in competition with other individuals and with partn.er· ships and corporations engaged in the sale and distribution of like and similar articles of merchandise, in commerce between and am01110 the various States of the United States and in the District Columbia.

OKEENA NOVELTY CO., ETC. 1065 Findings PAR. 2. In the course and conduct of his business, as described in paragraph 1 hereof, respondent, in soliciting the sale of and in sell- Ing and distributing his merchandise through interstate commerce, ~as furnished various devices and plans of merchandising which Involve the operation of games of chance, gift enterprises or lottery schemes, by which said merchandise is distributed to the ultimate consumers thereof wholly by lot or chance. The method and sales Plan adopted and used by respondent was, and is, substantially as follows:

. Respondent causes and has caused to be distributed to the purchas- Ing public, through the United State§ mails in interstate commerce, certain advertising literature, including, among other things, push cards, order blanks, advertisements containing illustrations of his ln?rchandise, and circulars explaining respondent's plan of selling said merchandise and of allotting it as premiums or prizes to the ?e1:a~ors of the push cards. Said push cards bear a number of emunne names, with a blank space opposite each for writing in the ~<line of the customer. Said push cards have a corresponding numtlel' of partially perforated discs, on each of which is printed. one of 0te feminine names printed alphabetically elsewhere on the canls.,,?ncealed within each disc is a number, which is disclosed when the llls c ls' pushed or separated from the carcl. The push cards have a Inaster seal, concealed within which is one of the feminine names ?Pearing elsewhere on the said cards. The push cards bear printed egends or instructions, one of which is as follows: SELECT YOUR FAVORITE GIRL'S NAME AND RECEIVE A 1\IOSS DELUXE CARD TABLE WITH "BILT-IN" COl\IBINATION ASHTRAYS and COASTERS 1¢ to 25¢ NO HIGHER Nos. From 1 to 25 PAY WHAT YOU DRAW Nos. OYer 25 Pay Only 25¢ Write Players Name on Ba<:k Opposite Name Selected 1066 FEDERAL TRADE COMMISSION DECISION"S Findings 26F.T.0· Sales of respondent's products by means of said push cards a~e made in accordance with the specified legends or instructions. Sa~d 111 articles of merchandise sold and distributed by respondent vary value, but each of said articles of merchandise is of greater Y11Iue than the cost of a single push from said push cards. The purchasi1~g public is thus induced and persuaded to purchase pushes from satd cards in the hope that they may select a prize-winning name or number and thus obtain an article of merchandise of a greater ya}ne than the amount paid. The various articles of merchandise are thus distributed to the purchasing public wholly by lot or chance, and the amount which the customer pays for a chance is also detern1ined wholly by lot or chance. Respondent furnishes his representatiY:s with additional printed instructions or suggestions for using satd push cards. One of ~aid printed instructions bears the following' legend, to wit:

INSTRUCTIONS: There are 45 mixed numbers in this card, printed front"~ upwards. Numbers under 25 pay what numbers call for. All numbers over ~ pay only 25¢. When card is completely sold, open large seal at top, and person!l selecting name under seal, and person selling this card, each receive a Moss Deluxe Card Table, with 2 Bilt-In Combination Ash Trays and Coaster~{ Tables with 4 Bilt-In Combination Ash Trays and Coasters can be llad, 1 desired, for GO¢ extra per table.

TOTAL $10.00 Respondent furnishes or sells various push cards for nse in th~ sale and distribution of his merchandise by means of a gatne l~ chance, gift enterprise or lottery scheme. Said push cards are sitn~ lar, varying only in detail, and the above described plan or nwtho is illustrative of the principle involved. PAn. 3. The persons to whom respondent furnishes the said push cards use the same in purchasing, selling, and distributing respondent's merchandise in accordance with the aforesaid sales plan. Re· spondent thus supplies to and places in the hands of others the means of conducting lotteries in the sale of his merchandise in accordance with the sales plan hereinabove set forth. The use by respondel;t of said method in the sale of his merchandise, and the sale of Sll~ ~ merchandise by and through the use thereof and by the aid ~£ :a~ 1method, is a practice of the sort which the common law and crtll11na statutes have long deemed contrary to public policy and is contt:aji to an established public policy of the Government of the Untte States.

PAn. 4. The sale of merchandise to the purchasing public in the manner above found involves a game of chance or the sale of a chan1ce10to procure an article of merchandise at a price much less than t OKEENA NOVELTY CO., ETC. 1067 1058 Findings normal retail price thereof. Many persons, firms, and corporations Who sell or distribute merchandise in competition with the respondent, as above found, are unwilling to adopt and use said method or a 1~Y method involving a game of chance or the sale of a chance to wn1 something by chance, or any other method that is contrary to Public policy, and such competitors refrain therefrom. :Many persons are attracted by-respondent's said method and by the element of chance involved in the sale thereof, in the manner above found, ~nd are thereby induced to buy and sell respondent's merchandise ln preference to merchandise offered for sale and sold by said competitors of respondent who do not use the same or an equivalent method. The use of said method by respondent, because of said game of chance, has the tendency and capacity to, and does, unfairly divert trade and custom to respondent from his said competitors who do not use the same or an equivalent method.

PAR, 5. In the course and conduct of his business, as hereinabove described, respondent has included within one of his trade names, ~anufacturers' Sales Company, under which to carry on a part of his business, the word "}Ianufacturers'." Respondent has also used nnd is using the word "factories" within the phrase "associated factories," and the word "manufacturers" within the phrase "manufactu~·ers and distributors," in conjunction with, or separate from, his sald trade names, with which to describe his said business. Respond· en~ has used continuously for some time last past, and is now using, Said trade name containing(J' the word "1\lanufacturers'," and has ~ikewise used, and is now uslng, the words "associated. factories" and ~anufacturers and distributors," in soliciting the sale of and selling hrs products in commerce as hereinabove found. Respondent has caused his said trade name, Manufacturers' Sales Company, and the Words "associated factories" and. "manufacturers and distributors" to appear on his letterheads, envelopes, catalogs, circulars, and other matter. All of said printed matter has been, and is, distributed in and among the various States of the United States to customers and Pro:pective customers of the respondent. Such statements and designations serve as representations that respondent owns, operates, or controls the factory or mill wherein the products which he sells are ~anufactured, and that the respondent is associated with others in t le manufacture of his said products.

~n truth and in fact, said respondent does not, either independently ~r 1ll_ association with others, make or manufacture the products sold . Y hrm, nor has he ever made or manufactured said products, either lndependently or in association with others. Respondent does not own or operate, or d.directly and absolutely control, or have any inter- Conclusion 26F. T.C.

est in any mill or factory wherein the products sold by him are made or manufactured. Respondent has, at all times found herein, filled, and now fills, orders received by him with products made or manufactured in factories or mills which he does not own, operate, or control.

PAR. 6. There is a preference on the part of certain purchasers and prospective purchasers located in the various States of the United States and in the District of Columbia for buying said products and like or similar products directly from the manufacturer or mill producing the same. There is an impression and belief existing among certain of said purchasers and prospective purchasers of said products that a saving of the middleman's profit may be obtained, that a mo~e uniform line of goods may be purchased, and that an advantage 1S obtained by purchasing goods directly from a manufacturer or mill operator. Said purchasers and prospective purchasers also believe that more reliance can be placed on a manufacturer or mill operator with regard to carrying out of contracts than can be placed upon one not a manufacturer or mill operator, and that dealing with {1. manufacturer or mill operator is preferable and more advantageous to the purchaser than is dealing with one not a manufacturer or mill ,, operator. The use by the respondent of the words "manufacturers, "manufacturers and distributors," and "associated factories," as found hereinabove, has a tendency and capacity to mislead and deceive, nnd has misled and deceived, purchasers by causing them to believe that the respondent, independently or in association with others, actually owns and operates, or directly and absolutely controls, the factories or mills in which, the products sold by respondent are made or man:lfactured, or that respondent himself makes or manufactures 1119 products, and to purchase respondent's products on account of such beliefs. The aforesaid representations by respondent have a tendency and capacity to, and do, unfairly divert trade to respondent from individuals, partnerships, and corporations who are actually manufacturing products like or similar to the products of respondent, or who sell and distribute like or similar products, both of which classes sell their respective products in commerce between and among the various States of the United States and in the District of Columbia, and who do not represent themselves to be manufacturers or mill operators when they are not such in fact.

CONCLUSION The aforesaid acts and practices of respondent, Thomas R. l\foss, individually and trading as Okeena Novelty Company, and l\Ianufacturers' Sales Company, are all to the injury and prejudice of the OKEE~ A NOVELTY CO., ETC. 1069 1058 Order PUblic and of respondent's competitors and constitute unfair methods of competition in commerce within the intent and meaning of the F'ederal Trade Commission Act.

ORDER TO CEASE'E AND DESIST .T~is proceeding having been heard by the Federal Trade Comlll.Ission upon the complaint of the Commission and the substitute answer of respondent admitting all the material allegations of the coll:\plaint to be true and waiving the taking of further evidence and ~ll ~ther intervening procedure, and the Commission having made its ~dings as to the :facts and its conclusion that said respondent has l'Iolated the provisions of the Federal Trade Commission Act. It i<J ordered, That the respondent, Thomas R. Moss, individually, ~ld trading as Okeena Novelty Company and Manufacturers' Sales .. OJnpany, or trading under any other name, his agents, representatives, and employees, in connection with the offering for sale, sale, and distribution of radios, bridge sets, mixers, dishes, grill sets, an~ other article of merchandise, in interstate commerce or i.n e District of Columbia, do forthwith cease and desist from: 1. Supplying to or placing in the hands of others, push or pull c~r~'ls, pnnchboards or other lottery devices, for the purpose of en- ~ hng such persons to dispose of or sell such or simihr products by e use thereof· 2· Mailing, shipping or transporting to his agents or to distributors ~r to members of the public, push or pull cards, punchboards or other 8°;:ery d~vi~es so prepared or printed as to enable said persons to e or d1stnbute such or similar products by the use thereof; tl 3· Selling or otherwise disposing of such or similar products by 1 : llse of push or pull cards, punchboards or other lottery devices; . · Representing, throuO'h the use of the word "manufacturers" in1 ~~s trade names or in nny other printed matter, or through the use . t.he Word "factories" or throu()'h the use of any words or terms ofSl:tnll . t:> • ar Import and meaning, or through any other means or devices0 t>r. ~ any manner, that said respondent is the manufacturer of the 10 0 nets sold by him, unless and until respondent actually owns and Perates . l' . OI c 1rect1y and absolutely controls, a manufacturmg plant ,.1·• 1ere1. , · l' . n salc products are manufactured by him. It. z8 further ordered, That, within 60 days from the date of the 8trv1ce of tl · d · ·C . . us or er upon s::ud respondent. he shall file with the a::~lSSI~n a r.eport in writing setting forth in detail the manner orm m wluch this order has been complied with. 16045lm-39-vol.26--'iO 1070 FEDERAL TRADE COMMISSION DECISIOXS Syllabus 26F. T.C.

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