Greater Chambers Co

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

IN THE MATTER OF WILLIAM W. CHAMBERS DOING BUSINESS AS THE GREATER CHAMBERS COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ;'5 OF AN ACT OF CONGRESS APPROVED Sell. 26, 1914 Docket 80.~5. Complaint, Jan. 1J, 1937-Decision, Apr. 3, 1939 Where an individual engaged in operating group of undertaking establh;:hments and in selling and distributing line of ca~kets, vaults, accessories, and facilities usually connected with conduct of funernls and opet·ation of such establishments, to purchasers in commerce among and between various States and in the District of Columbia, in competition with others engaged in sale and distribution of like And similar products in commerce among the various States and in said District; in advertising, th1·ough various circulars, folders, booklets, and ~newspapers and periodicals of national circulation, hh; complete funerals, caskets, vaults, accessories, and facillties- (a) Rerlresented that certain undertaking facilities and merchandise were furnished free, through such statements, among others, as "The many extra services rendered by Chambers are given without charge. • • •," "Complete funl'rals, cars and all, use of our buildings and chapels free," "• • • None of the extra !'ervices offered "' • "' are charged for • * •," etc., facts being he didl not furnish any articles of mer· dJalldisf' or undertaking f:wilitii'S free, but prke thereof was Included in that charged on purchase of ll ca~;;ket or other similar merchandise; {b) Represented that prices charged by him were discounts or reductions from those ordinarily charged, through such statements among others, tts "This $:300.00 service by Chambers tor only $2G::>.OO," aud through representation that he furnished a $300 funeral for $16::i and a $l:i0 fmwral fur .$7::i, and that such prices charged for complete funerals represented saving in discount to purchaser, facts being they did not represent such discount or reduction but his usual and customary prices; and (c) Represented that burial vaults ~;old by him for $SG were of a 'l"value of $150, and were waterproof and airtight and would answer the purpose of a "$5,000.00 mausoleum" because of nature of their construction, facts being said vault was usually sold for sum of $85, was not waterproof aud airtight, and would not answer all the purposes of a mausoleum; With a tendency and capacity to mislead and decei\·e substantial portion of pur· chasing public into erroneous belief that such representations were true, and with result, as direct consequence of such erroneous and mistaken belief induced by his advertising statements and representations, that number of purchasing public bought substantial quantities of his said products and trade was unfairly dinrted to him from others likewise engaged in sale in commerce among the various States of complete funerals, caskets, vaults, accessorie's and fa('Uities and who truthfully ad1·ert1se their products and services:

1322 FEDERAL TRADE COl\11\IISSION DECISIONS Complaint 28 F. T. C. Held, That such acts, representations and practices were to the prejudice and injury of the public and competitors and constituted unfair methods of competition.

Before Mr. John J. Keenan, trial examiner.

Mr. James M. Hammond for the Commission.

Mr. Leonard A. Block and Mr. Luciu.s Q. 0. Lamar, of Washington, D. C., for respondent.

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 William W. Chambers, an individual doing business ~nder the firm name and style of The Greater Chambers Co., hereinafter referred to as the respondent, has been and is using unfair methods in competition in commerce as "commerce" is defined in said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: , PARAGRAPH 1. Respondent, William ,V. Chambers, an individual doing business under the firm name and style of The Greater Chambers Co., is an undertaker operating a group of undertaking establishments. His main office and principal place of business is located at . j 1400 Chapin Street, NJV., Washington, D. C., with branches located at 517 Eleventh Street, S.E., 'Vashington, D. C., and 918 Cleveland Avenue, Hyattsville, in the State of Maryland. He is now, and for many years last past has been, engaged in selling "complete funeralst which include among other things, caskets, vaults, and other facilities usually connected with the operation of a funeral home or undertaking establishment and in shipping said caskets, vaults, and the accessories pertaining thereto, or causing the same to be shipped, when sold from his several places of business to various places located in the District of Columbia, or the State of Maryland, or other States of the United States. There is now, and has been for more than 1 year last past, a constant current of trade and commerce among and between the various States of the United States and in the District of Columbia by the respondent in the aforesaid complete funerals, caskets, vaults, and other funeral accessories or facilities. In the course and conduct of his business the respondent is now, and has been, in substantial competition with other individuals, firms, corporations, and partnerships likewise engaged in the sale of "complete funerals" including, THE GREATER CHAMBERS CO. 1323 1321 Complaint among other things, caskets, vaults, and other facilities usually connected with the operation of a funeral home or undertaking establishment, in commerce, among and between the various States of the United States and in the District of Columbia. PAR. 2. l\Iany members of the, purchasing public have a preference for purchasing merchandise including caskets, vaults, and undertaking facilities from establishments of large size, believing that in so doing they will obtain merchandise of superior quality at better prices than can be obtained elsewhere and that they will be dealing with establishments of recognized leadership in their field. PAR. 3. In the course and conduct of his business as described in paragraph 1 hereof, and for a long time last past, the respondent herem in soliciting the sale of and selling his complete funerals, including caskets, vaults, and other funeral accessories, in commerce as herein set out, makes use in his letterheads, circulars, catalogs, trade literature, and advertising matter of statements, among others, such as the following:

One of the largest undertakers in the world. Forty assistants, twenty-five cars, seven chapels, fourteen parlors.

Said statements serve as representations on the part of the respondent to a substantial portion of the purchasing public that respondent is one of the largest undertakers in the world, and that in purchasing caskets, vaults, and other facilities from him the public will secure the advantages as to price, quality) and service regularly and usually obtained by the public in dealing with establishments of large size. In truth and in :fact respondent is not one o:f the largest undertakers in the world and does not maintain 40 employees of all types, nor 40 employees of the type susceptible of classification as undertakers, assistant undertakers, or assistant funeral directors, or persons engaged in the preparation of the dead for burial,. and does not own, operate, or maintain the number of cars, chapels, or parlors so :represented.

PAn. 4. In the course and conduct of his business as described in paragraph 1 hereof, and for a long time last past, the respondent in soliciting the sale of and selling his complete funerals including caskets, vaults, and other funeral accessories, makes use in his letterheads, circ.ulars, catalogs, trade literature, and advertising matter of statements, among others, such as the following: The many £>xtra sen·ices rendered by Chambers are gh·en without cllfirge. Here are just a few of the unchargl'd-for services that remow much of the funeral reRponsibllity from your shoulders: 200346m--40--vol.2B----S6 1324 FEDERAL TRADE CO::\ll\IISSIOX DECISIONS Complaint !:!SF.T.C. Attending to funeral notices In all local papet·s. Skilled expert to arrange floral displays.

Beautiful Chambers funt>ral chapel at the dispo!'al of the family. Attendance to all funeral details.

Lady attendants to fix hair and atte>nd to dre>ssing of women and children>n. Plastic surgery.

Securing death certificates and burial permits, E>tc. The wooden box is furnished free by CHA:\IBETIS when a vault i;; not purchased.

Complete funerals, cars and all, use of our bulldings and chapels fre>e. The unstinted luxury, comfort' and convenience of its purlors and chapels are free to you! None of the extra services offered by Chambers are charged foryou are allowed every privilege of the Chambers fmwral home without any additional charge.

This $300.00 service by Chamher>o for only $2(n.oo. The same service as all Chambers services goes with a uenutlful ·funeral complete for only $75.00.

How do you feel when you pay $300.00 for something you could have bought for $165.00-$135.00 sa \"ed.

In truth and in fact the aforesaid statements and representations of the respondent that the services, cars, hearses, and other funeral facilities which are furnished in connection with the sale of a casket, are free, or that he renders a $300 service in connection with every funeral or that customers at his establishment will save one-half of the usual price or om•-half of the former price of a fnnerul, or that members of the public will receive a $500 funeral for $2<i5 or a $300. funeral for $165, or through any similar ·comparison of value and cost that the public receives a higher priced funeral service than for which the public pays, are false and misleading. The respondent does not give free services or free extras in connection with the sale of his caskets, vaults, and funeral facilities but charges the full price therefor in the purported charge for the said caskets, facilities, and funeral services. The respondent does not sell his funeral services at half price, half ti{e usual price, or half the old-time price therefor, and does not give a $500 funeral service for $2<i5 or a $300 funeral for $165, bu~ the said prices charged are respondent's usual and customary prices and the usual and customary market values of said caskets, vaults, facilities, and funeral services.

PAR. 5. In the course and conduct of his business as described in paragraph 1 hereof and for a lorig time last past the respondent herein in soliciting the sale of and selling his complete funerals including caskets, vaults, and funeral accessories in commerce as herein set out, makes use in his letterheads, circulars, catalogs, trade literature, and advertising matter of statements, among others, such as the following:

THE GREATER CHA::IIBERS CO. 1325 1321 Complaint The $R5.00 steel mult. 'this air-sealed vault is a perfect symbol of securitymade of 12-gauge copper-bearing steel-this vault is water-proof and air-tightvery reasonably priced.

World's finest water-proof, air-tight, guaranteed steel burial vault may be had from Chambers for $85.00.

This steel vault-400 pound>~ of solid steel-always sold for $1i>O.OO until ·Chambers reduced lts price to $85.00.

Answering the pmpose of a $5,000.00 mausoleum-400 pounds of solid steel burial vault, one of the he»t tl.Jut's made-only $85.00. For those who want the best, yuu will find this affords the finest burial vault you cuu obtain iu metal protection.

The aforesaid statements serve as representations on the part of the 1·respondent to purchasers and prospective purchaser~ that his steel -vaults are airsealed, waterproof, and airtight; that the vault which he .sells for $85 is worth $150; that the vault he sells for $85 answers the purpose of a $5,000 mausoleum and is the finest burial vault which can be obtained. In truth and in fact the aforesaid representations are false and misleading, as his burial vaults are not waterproof or airtight, and the. vault which he sells for $85 does not now and has not heretofore sold for $150 and does not answer the purpose of a $5,000 mausoleum, and is not the finest burial vault which can be obtained. PAR. 6. There are among the competitors of the respondent, as set forth in paragraph 1 hereof, other individuals, firms, corporations, or partnerships who do sell complete funerals including vaults, caskets and funeral facilities or accessories in commerce, as herein set out, who do not misrepresent the relative size of their undertaking establishments, the number of their assistants, or the extent of their facilities, or make use of misrepresentations similar to those set forth in paragraphs 2, 3, and 4 hereof, or who do not in any wise misrepresent the character, price, or extent of the commodities, services or facilities sold.

PAR. 7. The acts and practices of the res170ndent in making the representations herein set forth are calculated to mislead and deceive, and have and have had the capacity, tendency and effect of misleading and deceiving, and have misled and deceived, a substantial portion of tha purchasing and consuming public into the erroneous belief that all of said representations are true and into the purchase of the respondent's caskets, vaults, and other facilities in reliance on said representations. By means of the aforesaid false and misleading representations made to the purchasing public as above described, respondent has increased his own sales of said caskets, vaults, and funeral facilities, thereby lessening the market for similar caskets, vaults, and funeral facilities sold by other undertaking establishments who truthfully represent tha 1326 FEDERAL TRADE COl\Il\II;SSION DECISIONS Findings 28F. T. C.

price, nature, quality, or advantage of their products, or the extent of their facilities and their true size and character in the undertaking business.

As the result thereof, trade is unfairly diverted to the respondent from competitors engaged in the sale in the District of Columbia or in commerce as herein set out of similar caskets, vaults, and funeral facilities, who truthfully represent the true nature of their facilities, products and services, the true price thereof, or the true size of their business as undertakers. Further, as the result thereof, substantial injury has been and is being done by respondent to the purchasing public and to competition in commerce among and bet,veen the various States of the United States and in the District of Columbia. PAR. 8. The above and foregoing acts, practices and representations of the respondent have been and are unfair methods of competition within the meaning and intent of Section 5 of an Act of Congress entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." RE~ORT, FINDINGS AS TO THE FACTs, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, under date of January 15, 1937, issued and served its complaint in this proceeding upon the respondent, '\Villiam '\V. Chambers, an individual doing business under the firm name and style of "The Greater Chambers Company," charging said respondent with the use of unfair methods of competition in commerce in violation of said act.

The respondent having entered his appearance by his attorneys, Leonard A. Block and Lucius Q. C. Lamar, filed his answer herein. The Commission is represented by James M:. Hammond. Thereafter, hearings were had and evidence was thereupon introduced in support of the allegations of the complaint and on behalf of respondent before John J. Keenan, a trial examiner of the Federal Trade Commission, theretofore duly appointed. During the taking of testimony respondent entered into a stipulation of facts, which stipulation was incorporated in the record.

Thereafter this proceeding came on for final hearing before the Commission on the said complaint, answer, evidence and stipulation, and the Commission, having duly considered the matter 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.

THE GREATER CHAMBERS CO. 1327 1321 Findings FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, ·william ,V. Chambers, an individual, doing business under the firm name and style of The Greater Chambers Co., is an undertaker operating a group of undertaking establishments, with his main office and principal place of business at 1400 Chapin Street, N,V., Washington, D. C., and with branch offices located at 517 Eleventh Street, SE., 'Vashington, D. C., and 918 Cleveland Avenue, Hyattsville, Md.

PAR. 2. The respondent is now, and for more than ten years last past has been, engaged in the business of selling and distributing a line of caskets, vaults, accessories and facilities usually connected with the conduct of funerals and operation of a funeral home or undertaking ~establishment, to purchasers thereof in commerce among and between various States of the United States and in the District of Columbia, ~ausing his products when sold, to be shipped from his place of business in the State of l\Iaryland to purchasers in States of the United States other than the State of l\Iaryland and from his establishments in the District of Columbia to purchasers in said District of Columbia and other States. Respondent maintains, and during the times mentioned herein has maintained, a course of trade in caskets, vaults, accessories and facilities connected with complete funerals so sold and distributed by him in competition with other individuals, partnerships and corporations engaged in the sale and distribution of like or similar products in commerce among and between the. various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of his said business, respondent in the sale of his caskets, vaults, accessories, and facilities connected with complete funerals, and in inducing the public to purchase said vaults, caskets, accessories and facilities, has, by means of various advertising circulars, folders, booklets, advertisements inserted in newspapers and magazines of national circulation throughout the United States, made statements and representations concerning the price, character and nature of said complete funerals, caskets, vaults, accessories and facilities, among which are the following: The many extra services rendered by Chambers are given without charge. Here are just a few of the uncharged-for sen·ices that remo\'e much of the funeral responsibility from your shoulders: Attending to funeral notices in all local papers; skilled expert to arrange floral display; beautiful Chaml>ers funeral -chaJ)('l at the disposal o:t the family; attendance to all funeral details; lady attendants to fix hair and attend to dressing of women and children; plastic surgery; securing death certificates and burial permits. The wooden l>ox is fumished free by CIIAl\lllERS when a vault is not purchased.

Findings 28 L', T. C. Complete funerals, cars and all, use of our buildings and chapels free. The unstinted luxury, comfort and convenience of its parlors and chapelsare free to you! None of the extra services offered by Chambers are charged fer-you are allowed every privilege of the Chambers funeml home without any· additional charge.

This $ri00.00 service by Chambers for only $265.00. The same service as all Chambers services goes with a beautiful funernl com· plete for only $i5.00.

How do you feel when you pay $300.00 for something you could have bought for $165.{)()-$135.00 saved.

Here is that $165.00 funeral I claim old-time undertakers sell for $300.00. The $85.00 steel vault. This air-sealed vault is a perfect Rrmhol of secmltymade of 12-gauge copper-bearing steel-this vault is water-proof and airtight~ very reasonably priced.

World's finest water-proof, airtight, guaranteed steel burial vault may be lwd from Chambers for $8;3.00.

This steel vault-400 pounds of solid steel-always sold for $130.00 until Chambers reduced its price to $83.00.

Answering the purpose of a $5,000.00 mausoleum-400 pounds of ~olid steel burial vault, one of the best that's made-only $85.00. For those who want the bl'st, you will find this affords the finest burial vault you can obtain in metal protection. PAR. 4. By means of the foregoing and other and similar statements and representations which purport to be descriptive of respondent's complete funerals, undertaking facilities, caskets, vaults, and other similar merchandise, the respondent represents that certain undertaking facilities and merchandise are furnished free, that the respondent fnrnishes a $500 funeral for $265, a $300 funeral for $1G5 and a regular $150 funeral for $75, and that the prices charged by the respondent for complete funerals represent a saving and discount to the purchaser. By this means also the respondent represents that the burial vaults sold by him for $S5 are of a value of $150 and are waterproof and airtight and will serve the purposes of a mausoleum because of the nature of their construction.

In truth and in fact, the respondent does not furnish any articles of merchandise or undertaking facilities free, but the price thereof is included in the price charged on the purchase of a casket or other similar merchandise. The respondent does not furnish a $500 funeral for $265, a $300 funeral for $165 or a regular $150 funeral for $75, but in truth the prices charged by the respondent are the usual and customary prices generally charged for such complete funerals. The ·prices so charged by the respondent are not a discount or reduction from the prices ordinarily charged by the respondent, but represent respondent's usual and customary prices. The steel burial vault sold by respondent is not of a value of $150, but is a vault which is usually and customarily sold for the sum of THE GREATER CHA:IIIBERS CO. 1329 1321 Order $85'; said vault is not waterproof and airtight and will not answer all the purposes of a mausoleum.

PAR. 5. Each and all of the misleading and untrue statements and representations made by respondent in offering for sale and selling his complete funerals, caskets, vaults, accessories and facilities were~ and are, calculated to and had and now have a tendency anr. capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that said representations are t111e. Further, as a direct consequence of such mistaken and Prroneous belief induced by the advertising, statements and representations of respondent, as aforesnid, a number of the purchasing public have purchased a substantial quantity of said products with the result that trade has been unfairly diverted from other corporations, individuals, firms and partnerships likewise engaged in the sale in commerce among and between the various states of the United States of complete funerals, caskets, vaults, accessories and facilities, who truthfully advertise their products and services. PAR. 6. The Commission further finds that the charges alleged in paragraph 3 of the complaint herein have not been sustained. CONCLUSION The aforesaid acts, representations and practices of the respondent, William ,V. Chnmbers, an individual, doing business under the firm name and style o£ The Greater Chambers Co., have been and are to the prejudice and injury o£ the public and of respondent's competitors, and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, testimony and other evidence taken before John J. Keenan, an examiner of the Commission theretofore duly designated by it in support of the allegations of said complaint and in opposition thereto, and the briefs filed herein by James M. Haminond, counsel for the Commission, and by Leonard A. Block, counsel for the respondent, and the Commission having made its findings as to the facts and conclusion, that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, 'Villiam ,V. Chambers, indh·idually and doing business under the name The Greater Cham- 1330 FEDERAL TRADE COl\Il\IISSION DECISIONS Order 28F.T.C.

hers Co., or under any other trade name, his agents, employees, and representatives, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of caskets, vaults, or other undertaking facilities in commerce as com· merce is defined in the Federal Trade Commission Act, do forthwith cease and ~lesist from :

1. Representing as the customary or regular prices or values "'for funerals, caskets, vaults or other and similar merchandise, prices and values which are in fact fictitious and greatly in excess of the prices at which said funerals, caskets, vaults or similar merchandise are regularly and customarily offered for sale and sold in the normal and usual course of business.

2. Representing that the price at which funerals, caskets, vaults or other and similar merchandise are offered for sale is a saving or d.discount to the purchaser when in fact said price is the usual and customary price at which the respondent sells said funerals, caskets, vaults or similar merchandise in the normal and usual course o:f business.

3. Using the term "free" or any other term of similar import or meaning to designate or describe articles of merchandise or under· taking facilities regularly included in a combination offer with caskets or other similar articles of merchandise. 4. Representing that the vaults or any other articles of merchan· d.ise of similar design and construction sold by the respondent are waterproof or airtight or will answer the purposes of a mausoleum when such is not the fact.

It is further ordered, That the charges set out in paragraph 3 of the complaint be, and the same hereby are, dismissed. It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner .:md form in which he has complied with this order.

IDAHO CANDY CO. 1331 Syllabus