Trippe Manufacturing Company

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

IN THE 1\:IATI'ER OF TRIPPE 1\:IANUF ACTURING COMPANY AND TRIPPE SALES COl\fP ANY CO:IIPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4037. Complaint, Feb. 20, 1940-Decision, Aug. 14, 1940 Where two corporations engaged in sale and distribution of an electric auxiliary light for use on motor vehicles, through automotive fleet owners, jobbers, and automobile dealers; in describing quality and effectiveness of their said product through circulars, letters, advertisements in newspapers, and other publications ()f general circulation among the prospective purchasers throughout the United States and in the District of Columbia, and through salesmen traveling through the various States and in said District- ( a) Represented that their said light would penetrate and conquer fog, regardless of density thereof, and that fog close to ground was thin and less dense in all cases, and that said light in all cases cut under and stayed under fog blanket, facts being light in question would not penetrate all fog, regardless of density, nor was all fog thin and less dense close to gt·found, and it did not cut through all fog so is to give visibility to driver of motor vehicle to which it was attached;

(b) Represented that said light gave adequate illumination in fog, rain, mist, or snow, regardless of density thereof, and afforded user 1,000 feet of visibility ahead under all conditions, facts being it would not give such illumination in fog, etc., regardless of density, nor provide operator with visibility as above represented under all conditions; and (c) Represented that said light had been purchased and used by the United States Coast Guard, facts being it had not been purchased and used officially I.Jy said establishment, unit or organization; With effect of misleading and deceiving purchasers and prospective purchasers of lights in question, and of causing them erroneously and mistakenly to believe that such statements and representations were true, and, as a result, to purchase substantial quantity of product in question: field, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of public, and constituted unfair and deceptive acts and practices in commerce.

Before Mr. Edward E. Reardon, trial examiner.· .Vr. 0 harles S. 0 om for the Commission.

Mr. Lewis F . .JJ ason, of Chicago, Ill., for respondents. CmrPLAINT Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commission having reason to believe that Trippe Manufacturing Co., a corporation, and Trippe Sales Co., a corporation, hereinafter referred TRIPPE MANUFACTURING CO. ET AL. 755 .754 Complaint to as respondents, have violated the provisions of 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, Trippe Manufacturing Co., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois and has its offices and principal place of business at 564 West Adams Street, Chicago, Ill. The respondent, Trippe Sales Co., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Illinois and has its offices and principal place of business at 600 '\Vest Jackson Boulevard, Chicago, Ill. Both of said respondents have branch offices and places of business at Toronto, Canada, and Halifax, England. Respondents are now and have been for more than 3 years last past, engaged in the business of selling and distributing an electric auxiliary light designed for use on motor vehicles, under the trade name "Trippe Safety Light" and "Trippe Speed Light." The respondents have acted in conjunction and cooperation with each other in carrying out the acts and practices hereinafter alleged. PAR. 2. Respondents sell said product through automotive fleet owners, jobbers, and automobile dealers. Respondents cause said product when sold to be shipped from their aforesaid place of business in the State of Illinois to purchasers located in various States of the United States other than the State of Illinois and in the District of Columbia. Respondents maintain, and at all times mentioned herein have maintained, a course of trade in said product in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of their said business, respondents are in active and substantial competition with other corporations and individuals, and with partnerships and firms engaged in the sale and distribution of electric auxiliary lights, designed for use on automobiles, in commerce between and among the various States of the United States and in the District of Columbia. Among such competitors of respondents there are many who do not misrepresent or make false statements in connection with the sale and distribution of their respective products.

PAR. 4. In the course and conduct of their business as aforesaid, for the purpose of inducing the purchase of said product in said commerce, respondents have made many representations with respect to the quality and effectiveness of their said product by means of circulars, letters, and through advertisements inserted in newspapers and other Complaint 81F.T.O.

publications, all circulated generally among prospective purchasers throughout the United States and in the District of Columbia, and through salesmen who travel through the various States of the United States and in the District of Columbia. Among and typical of said representations so made by the respondents are the following: TRIPPE SAFETY LIGHT CONQUERS FOG.

Fog is a blanket of minute water particles-each a tiny mirror. Ordinary lights in fog are unavaillng But, close to the ground, fog is thin and the razorsharp beam of Trippe Safety Llght cuts under and stays under the fog blanket. Au equate illumination in fog, rain, mist or snow. 1,000 feet of vlsibillty ahead.

The Trippe beam CUTS UNDEB fog to give vislblllty. Using just your dim headlights and Trippe Safety Light you can drive 60 mlles an hour at night with ample visibility of at least 1,000 feet ahead. 1,000 feet between you and oanger.

Some well known commercial users of Trippe Safety Llght-U. S. Coast Guard.

Many other statements of similar import and meaning but not herein set out are likewise used by said respondents. All of said statements purport to be descriptive of respondents' product and its effectiveness when used. In the manner aforesaid, respondents directly and indirectly represent that the light rays from said Trippe Safety Light will penetrate and conquer fog regardless of its density; that fog is thin and less dense close to the ground and that the light rays from the Trippe Safety Light will cut under and stay under the fog blanket thereby giving greater visibility; that said Trippe Safety Light will provide adequate illumination in fog, rain, mist, or snow regardless of density, and to the extent of 1,000 feet ahead; that a person using said light will have 1,000 feet distance of visibility between the user and danger; that said Trippe Safety Light has been officially purchased or used by the United States Coast Guard.

PAR. 5. In truth and in fact, said statements and representation are false and misleading in that Trippe Safety Light will not penetrate fog, regardless of its density, nor is fog close to the ground thin and less dense; Trippe Safety Light does not cut under and stay under the fog blanket; Trippe Safety Light does not give adequate illumination in fog, rain, mist, or snow regardless of density, nor does it afford the user thereof, 1,000 feet of visibility ahead under all conditions; said Trippe Safety Light has not been officially purchased or used by the United States Coast Guard.

PAR. 6. The aforesaid acts and practices of the respondents in connection with the offering for sale, sale, and distribution of said product ha\'C had, and now ha\'c, the capacity and tendency to, and TRIPPE MANUFACTURING CO. ET AL. 757 754 Findings do, mislead and deceive purchasers of said product into the erroneous and mistaken belief that the aforesaid false, misleading, and deceptive representations and implications are true and tend to cause a substantial number of the purchasing public, because of said erroneous and mistaken belief, to purchase a substantial number of respondent's said product, and thus unfairly to divert trade to the respondents from their competitors in said commerce, as described in paragraph 3 hereof, who do not make any misrepresentations or false statements in the manufacture, sale, and distribution of their respective products. In consequence thereof, injury has been, and is now being done by respondents to competition in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 7. The aforesaid acts and practices of the respondents as herein alleged are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on the 20th day of February 1940, issued, and subsequently served, its complaint in this proceeding charging respondents Trippe Manufacturing Co., a corporation, and Trippe Sales Co., a corporation, with the use of unfair and deceptive acts and practices in commerce, in violation of the provisions of said act. On March 11, 1940, the respondents filed their answer in this proceeding. Thereafter, at a, hea,ring in this matter in Chicago, Ill., on April 10, 1940, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts read into the record, subject to the approval of the Commission, may be taken as the facts in this proceeding and in lieu of testimony in support of the charges of the complaint, or in opposition thereto, and that said Commission may proceed upon said statement of facts to make its report, stating its findings as to the facts and its conclusion based thereon, and disposing of the proceeding. Thereafter, the Commission having approved said stipulation, this proceeding regularly came on for final hearing before the Commission on said complaint, the answer thereto, and said stipulation as to the facts, 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 conclusion drawn therefrom. 758 FEDERAL TRADE Commlssion DECISIONS . Findings 31F. T. C.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Trippe Manufacturing Co., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Illinois and has its office and principal place of business at 564 "\Vest Adams Street, Chicago, Ill. The respondent, Trippe Sales Co., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Illinois and has its office and principal place of business at 600 ·west Jackson Boulevard, Chicago, Ill.

Both of said respondents have branch offices and places of business in Toronto, Canada, and Halifax, England.

Respondents are now, and have been for more than 3 years last past, engaged in the business of selling and distributing an electric auxiliary light, designed for use on motor vehicles, under the trade names "Trippe Safety Light" and "Trippe Speed Light." The respondents have acted in conjunction and cooperation with each other in carryinll out the acts and practices hereinafter set forth. PAR. 2. Respondents sell said product through automotive fleet owners, jobbers, and automobile dealers. Respondents cause said product, when sold, to be shipped from their aforesaid places of business in the State of Illinois to purchasers located in various States of the United States other than the State of Illinois and in the District of Columbia.

PAR. 3. In the course and conduct of their business as aforesaid, for the purpose of inducing the purchase of said product in said commerce, respondents have made many representations with respect to the quality and effectiveness of their said product, by means of circulars, letters, and through advertisements inserted in newspapers and other publications, all circulated generally among prospective purchasers throughout the United States and in the District of Columbia, and through salesmen who travel through the various States of the United States and in the District of Columbia. Among and typical of said representations so made by the respondents are the following:

TRIPPE SAFETY LIGHT CO:"!QUERS FOG.

Fog is a blanket of minute water particles-each a tiny mirror. Ordinary lights in fog are unavailing BUT, close to the ground, fog Is thin and the razorsharp bt'am of Trippe Saft-ty Light cuts under and stays under the fog blanket.

Adl'qnate illumination In fog, rain, mh;t or snow. 1,000 feet of v15Jibllity ahead.

The Tripve bt-am CUTS UNDER fog to gh·e visibility. TRIPPE MANUFACTURING CO, ET AL. 759 754 Ordet• Using just your dim headlights and Trippe Safety Light rou can drive 60 miles au hour at night with ample visibility of at least 1,000 feet ahead. 1,000 feet between you and danger.

Some well-known commercial users of Trippe Safety Light-U. S. Coast Guard, PAR. 4. Through the aforesaid statements, and many others of similar import and meaning not set out herein, all of which purport to be descriptive of respondents' said light and its effectiveness in use, respondents represent that said light will penetrate all fog, regardless of its density; that all fog is thin and less dense close to the ground, and that said light cuts through all fog and gi,·es visibility to the driver of the motor vehicle to which said light is attached; that said light gives adequate illumination for visibility in fog, rain, mist, or snow, regaruless of density, and affords the operator of the motor vehicle to which said light is attached 1,000 feet of visibility ahead under all conditions; and that said light has been purchased and used by the United States Coast Guard. In truth and in fact, respondents' said light will not penetrate all fog, regardless of density; all fog is not thin and less dense close to the ground, and said light does not cut through all fog so as to give visibility to the driver of the motor nhiele to which it is attacheu; said light will not give adequate illumination for visibility in fog, rain, mist, or snow, regardless of density; ~aid light will not provide the operator of the motor whicle to which it is attached with visibility for a thousand feet ahead under all conditions; and said light has not been purchased and used by the United States Coast Guard officially.

PAR. 5. The use by the respondents of the statements and representations hereinabove set out is false, misleading, and deceptive, and has the tendency and capacity to, and does, mislead and deceive purchasers and prospective purchasers of said lights, and to cause them eq·oneously and mistakenly to believe that said statements and represelHations are true, and as a result thereof to purchase substantial quantities of said lights.

CONCLUSION The aforesaid acts and practices of the respondents, as herein found, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Felleral Trade Commission Act. ORDER TO CE.\SE AND DESIST This proceetling having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of respondent!'!, !!!lo:nam-41-vol. 31-51 760 FEDERAL 'I'TRADE COMMISSION DEClSIOXS Ot·det· 31 F. T. C. and a stipulation as to the :facts entered into between the respondents herein and "\V. T. Kelley, Chief Counsel for the Commission, which provides, among other things, that without :further hearing or other intervening procedure, the Commission may issue and serve upon the respondents herein findings as to the :facts and conclusion based thereon, and an order disposing of the proceeding, and the Commission having made its findings as to the :facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act.

It i-~ ordered, That the respondents, Trippe Manufacturing Co., a corporation, and Trippe Sales Co., a corporation, their officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of their electric auxiliary light designed for use on motor vehicles, now sold under the trade names "Trippe Safety Light" and "Trippe Speed Light," or any other light of similar construction and power, in commerce, as "commerce" is defined. in the Federal Trade Commission Act, do :forthwith cease and desist from representing: 1. That said light will penetrate and conquer fog, regardless of its density; or that :fog close to the ground is thin and less dense in all cases; or that said light cuts under and stays under the fog blanket in all cases.

2. That said light gives adequate illumination in fog, rain, mist, or snow, regardless of the density thereof; or that it affords the user thereof 1,000 feet of visibility ahead under all conditions. 3. That said light has been purchased or used by the United States Coast Guard officially, or by any other agency of the United States Government.

It iB further ordered, That the respondents shall, within 60 days after service upon them 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 this order.

STROMBERG IGNITION CO. 761 Syllabus