Samuel Benensohn and L. Benensohn, trading as Kant-Slip Manufacturing Company

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

SAMUEL BENENSOHN AND L. BENENSOHN, TRADING AS KANT-SLIP MANUFACTURING COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION 0~' SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3963. Complaint, Dec. 7, 1939-Decision, Sept. 18, 1940 Where two Individuals engaged In the manufacture, sale, and distribution of their Kant-Slip Belt Dressing to purchasers in various other states and in the District of Columbia- Represented, through circulars, pamphlets, folders, and other written or printed matter, distributed, or caused to be distributed to prospective purchasers, that their said product was a positive preservative for leather, canvas, and fiber belts, and that use thereof would prolong life of such belts and make and keep them soft and pliable, facts being product in question, which consisted principally of resin and denatured alcohol, would not accomplish such results by use thereof on leather belts, bad solvent action on oils and greases of leather, and tended to remove same, and cause leather to become dry and brittle;

With effect of misleading and deceiving substantial portion of purchasing public into erroneous and mistaken belief that such statements, representations, and claims were true and causing substantial portion of such public, because of such belief, to purchase their said product: Held, That such acts and practices under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair acts and practices in commerce.

Before Mr. John lV. Addison, trial examiner. Mr. Jesse D. Kash for the Commission.

Siegal, Oharlens & Seyfa:rth, of Chicago, Ill., for respondents. Complaint 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 Samuel Benelsohn and L. Benensohn, individuals, trading as Kant-Slip :Manufacturing Co., hereinafter referred 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. Respondents, Samuel Benensohn and L. Benensohn are individuals trading and doing business under>r the name of Kant- Slip Manufacturing Co., with their principal place of business located at 451 East Sixty-third Street, Chicago, Ill. Complaint 31 F. 1'. C. P .AR. 2. In the course and conduct of their aforesaid business, respondents Samuel Benensohn and L. Benensohn are now, and for more than 1 year last past have been engaged in the manufarture, sale, and distribution of a belt dressing known as "Kant-Slip Belt Dressing." Respondents cause their product, when sold by them, to . be transported from their aforesaid place of business in the State of Illinois to the purchasers thereof located in various other States of the United States and in the District of Columbia. Respondents maintain and at all times mentioned herein have maintained a course of trade in said belt dressing in commerce among and between the various States of the United Statef? and in the District of Columbia.

PAR. 3. In the course and conduct of their said business and for the purpose of inducing the purchase of their said belt dressing, said respondents have made and now make, by means of circulars, pamphlets, folders, and other written or printed matter distributed and caused to be distributed to prospective purchasers, many representations and statements concerning the.nature and quality of their said belt dressing and the results that may be expected from the use thereof. Among and typical of such representations and statements made by respondents are the following:

Kant-Slip Dressing is a positive presen·ative I Prolongs the life of leather, canvas and fiber belts making and keeping the belt soft and pliable. Water and oil proof.

P .AR. 4. Through the use of the representations herein above set forth and others similar thereto not specifically herein set out, all of which purport to be descriptive of the preservative and beneficial effects of the use of respondents' product, the respondents have represented and do now represent that their said product is a positive. preservative for leather, canvas, and fiber belts and that its use will prolong the life of leather, canvas, and fiber belts and that it will make and keep belts made of said materials soft and pliable. The aforesaid representations are grossly exaggerated, misleading, and untrue. In truth and in fact, respondents' belt dressing is not a preservative for leather, canvas, or fiber belts. The use of said product will not prolong the life of leather, canvas, or fiber belts, and its use will not make said belts soft or pliable. Said product consists principally of rosin and denatured alcohol, neither of which is a preservative, and in fact the use of said product on leather belts has a solvent action on the oils and gt·eases in the leather and tends to remove them and causes the leather to become dry and brittle. PAR. 5. The use by the respondents of the foregoing false, deceptive, and misleading statements, representations, and claims ":ith respect to KANT-SLIP MANUFACTURING CO. 895 'S£13 F'indings their said product, disseminated as aforesaid, has had, and now has, the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and claims are true and causes, and has caused, a substantial portion of the purchasing public, because of such erroneous and mi,staken belief, to purchase respondents' product..

PAR. 6. The aforesaid acts and practices of the respondent:; as herein alleged 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 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 December 7, 1939, issued and on December 8, 1939, served its complaint in thi~ proceeding upon respondents Samuel Benensohn and L. Benensohn, individuals, trading and doing business under the name of Kant-Slip Manufacturing Co., charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of the said act. The respondent, Samuel Benensohn, on December 26, 1939, filed his answer in this proceeding. No answer was filed on behalf of L. Benensohn. Thereafter it was stipulated and agreed betwpen Irvin J. Siegel, counsel for the rpspondents, and S. Brogdyne Teu, II, trial attorney for the Commission, that a statement of facts read into the record at a hearing held in Chicago, Ill., June 7, 1940, might be taken as the facts in this proceeding in lieu of testimony in support of the charges of the complaint or in opposition thereto. Thereafter this proceeding regularly came on for final hearing before the Commission on said complaint, answer, and stipulation, 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 its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO Tile FACTS PARAGRAPH 1. Uespondents Samuel Betwnsolm and L. Benensohn are individuals trading and doing business under the name of Kant- Slip Manufacturing Co., with their principal place of business located at 451 East Sixty-third Street, Chicago, Ill. PAR. 2. In the course and conduct of their aforesaid business re4 spondents are now and for more than 1 year last past have been engaged in the manufacture, sale, and distribution of a belt dressing Findings 31 F.1'. C. known as "Kant-Slip Belt Dressing." Respondents cause their product when sold by them to be transported from their aforesaid place of business in the State of Illinois to the purchasers thereof 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 belt dressing 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 their said business and for the purpose of inducing the purchase of their said belt dressing, said. respondents have made and now make, by means of circulars, pamphlets, folders, and other written or printed matter, J.istributed and. caused to be distributed to prospective purchasers, many representations and statements concerning the nature and quality of their said belt dressing and the results that may be expected from the use thereof. Among and typical of such representations and statements so made by respondents are the following: 1 Kant-Slip Dressing is a positive preservative! Prolongs the life of leather, canvas and fiber belts making and keeping the belt soft and pliable. Water and oil proof.

PAR. 4. Through the use of the representations hereinabove set forth and others similar thereto not specifically herein set out, all of which purport to be descriptive of the preservative and beneficial effects of the use of respondents' product, the respondents have represented, and do now represent, that their said product is a positive preservative for leather, canvas, and fiber belts and that its use will prolong the life of leather, canvas, and fiber belts and that it will make and keep belts made of said materials soft and pliable. The aforesaid representations are not true. Respondents' belt dressing is not a preservative for leather, canvas, or fiber belts. The use of said product will not prolong the life of leather, canvas, or fiber belts, and its use will not make said belts soft or pliable. Said product consists principally of resin and denatured alcohol, neither of which is a preservative, and in fact the use of said product on leather belts has a solvent action on the oils and greases in the leather and tends to remove them and cause the leather to become dry and brittle.

PAR. 5. The use by the respondents of the foregoing statements, representations, and claims with respect to their said product, has had, and now has, the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and KANT-SLIP MANUFACTURING CO. 897 8!)3 . Order claims are true and causes, and has caused, a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' product.

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 Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon th~ complaint of the Commission, answer of respondent Samuel Benensolm, and a stipulation as to the facts entered into between counsel for the Commission and counsel for the respondents, said stipulation having been approved by the Commission, and the Commission having made its findings as to the facts and its conclusion that the respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, Samuel Benensohn and L. Benensohn, individuals trading as Kant-Slip :Manufacturing Co., or trading under any other name or names, their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of their product designated "Kant-Slip Belt Dressing," or any other product composed of substantially similar ingredients, whether sold under the same name or any other name, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Representing that said belt dressing will preserve, or prolong the life of, leather, canvas, or fiber belts, or that said belt dressing will make such belts soft or pliable.

It is 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.

Syllabus 31F. T.C.