STETSON SHOE CO., INC., THE (doing business as M. N. Arnold Shoe Co.

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

IN THE :M:A'ITER OF THE STETSON SHOE COMPANY, INC., TRADING AS M. N. ARNOLD SHOE COMPANY CO!IIPLA.INT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 01<' AN ACT OF CO:-l"GRESS APPROVED SEPT. 26, 1914 Docket 1050. Complaint, Mar. 6, 1940-Deci,~ion, Feb. 27, 19-1l Where a corporation engaged in manufacture of shoes and in interstate sale and distribution thereof- Falsely represented that certain of its shoes were made from the hide of an alligator, through use, in catalogs and price lists, of legend "Alligator Calf," for shoes of which there is marked preference on part of substantial portion of purchasing public over those made from other leather, when in fact products in question were not thus made, but were composed of other leather so embossell as to simulate that of alligator; With effect of misleading and deceiving a substantial portion of purchasing public into the enoneous and mistaken belief that its said products were made of certain designated kinds of materials when such was not the fact, and thereby of inducing such public to purchase substantial quantity of its said products:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted' unfair and deceptive acts and practices in commerce.

Mr. B. G. Wilson for the Commission.

H a1"!'ington, II uxl-ey & Smith, of Youngstown, Ohio, for respondent.

Complaint Pursuant to the provisions of the Federal Trade Commission Act and by the virtue of the authority vested h1 it by said act, the Federal Trade Commission, having reason to believe that the Stetson Shoe Co., Inc., a corporation trading as M. N. Arnold Shoe Co., hereinafter referred to as respondent, has violated the provisions of the 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 compfaint, stating its charges in th3.t respect as follows: PARAGRAPH 1. Respondent, The Stetson Shoe Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Massachusetts with its oflice and principttl place of business at South ·w E:'ymouth, Mass. The respondent trades under the style and name of 1\I. N. Arnold Shoe Co. The respondent is now and has been for more than 1 year lust past engaged in the Findings 32F.T.O.

manufacture, sale, and distribution of shoes. Respondent causes and has caused its said products, when sold, to be shipped or transpotted from its place of business in the State of Massachusetts to the purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said shoes :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 its business and for the purpose of inducing the purchase of its sairl products, the respondent has made false and misleading representations with I'espect to the materials of which certain of its shoes are made, such representations being made by means of catalogs and price lists distributed among prospective purchasers and by other means. Among and typical of such false representations is the legend "Alligator Calf" which the respondent uses to designate and describe certain of its shoes. Through the use of such legend the respondent represents that such shoes are made from the hide of an alligator. In truth and in fact such shoes are not made from the hide of an alligator but are made from a leather material other than the hide of an alligator which has been embossed in such manner that it simulates alligator leather.

PAR. 3. There is a marked preference on the part of a substantial portion of the purchasing public for shoes made from the hide. of an alligator' over shoes made from other leather materials. PAn. 4. The use by the respondent of the acts and practices herein set forth has had, and now has, the capacity and. tendency to; and does, mislead and deceive a substantial portion of the purchasing public into the erroneous a';ld mistaken belief that respondent's products are made of certain designated kinds of materials, when such is not the fact. As a result of such erroneous and mistaken belief, the purchasing public has been induced to, and has, purchased a substantial quantity of respondent's products. PAR. 5. 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 the Gth day of 1\farch 19-tO, issued and subsequently served its complaint in this proceeding upon said M. N. ARNOLD SHOE CO. 773 771 Findings respondent, The Stetson Shoe Co., Inc., a corporation, trading as M. N. Arnold Shoe Co., charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of the said act. On March 26, 1940, the respondent filed its answer in this proceeding. Thereafter, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts signed and executed by Harrington, Huxley & Smith, counsel for the respondent, and ,V. T. Kelley, chief counsel for the Federal Trade Commission, 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 stated in the complaint, or in opposition thereto, and that the 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 enter its order disposing of the proceeding without the presentation of argument or the filing of briefs. Thereafter, this proceeding regularly came on for final l1hearing before the Commission on said complaint, answer, and stipulation, said stipulation having been approved, accepted, and filed, 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 THE FACTS PARAGRAPH. 1. Respondent, The Stetson Shoe Co., Inc., is a corpora· tion organized, existing, and doing business under and by virtue of the laws of the State of Massachusetts with its office and principal place of business at South 'Veymouth, Mass. The respondent trades under the style and name of l\1. N. Arnold Shoe Co. The respondent is now and has been for mort~ than 1 year last past engaged in the manufacture, sale, and distribution of shoes. Respondent causes and has caused its said products, when sold, to be shipped or transported from its place of business in the State of :Massachusetts to the purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said shoes in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the cour~ and conduct of its business and for the purpose of inducing the purcha;;;e of its said products, the respondent has made Order 32F.T. C.

false and misleading representations with respect to the materials of which certain of its shoes are made, such representations being made by means of catalogs and price lists distributed among prospective purchasers and by other m~ans.

Among and typical of such false representations is the legend "Alligator Calf'' which the respondent uses to designate and describe certain of its shoes. Through the use of such legend the respondent reprecents that such shoes are made from the hide of an alligator. In truth· and in fact such shoes are not made from the hide of an alligator but are made from a leather material other than the hide of an alligator which has been embossed in such manner that it simulates alligator leather.

PAR. 3. There is a marked preference on the part of a substantial portion of the purchasing public for shoes made from the hide of an alligator over shoes made from other leather materials. PAR. 4. The use by respondent of the acts and practices herein set forth has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous .and mistaken belief that respondent's products are made of certain designated kinds of materials, when such is not the fact. As a result of such erroneous and mistaken belief, the purchasing public has been induced to purchase, and has purchased, a substantial quantity of respondent's products. CONCLUSION The aforesaid acts and practices of the respondent, 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 the c.complaint of the Commission, the answer of the respondent, and a stipulation as to the facts entered into between Harrington, Huxley & Smith, counsel for the respondent herein and 1V. T. Kelley, chief counsel for the. Commission, which provides, among other things, that without further evidence or other intervening procedure the Commission may issue and serve upon the respondent 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 respondent has violated the provisions of the Federal Trade Commission Act.

M. N. ARNOLD SHOE CO. 775 771 Order It is ordered, That the respondent, The Stetson Shoe Company, Inc., a corporation, trading as M, N. Arnold Shoe Co., or trading under any other name, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of its shoes in commerce, as "commerce" is defined in th3 Federal Trade Commission Act, do forthwith cease and desist from :

1. Using the word "amgator," or any other word of similar import or meaning, to designate or describe shoes not made from the hide of an alligator, or otherwise representing that shoes made from other leathers or materials, are made from alligator hide: Provided, however, That said word "alligator" may be used to describe the finish of shoes which are made from other materials and which are finished or embossed to resemble alligator leather, when said word is immediately accompanied by another word or words clearly indicating that said designation refers only to the pattern embossed on such materials. 2. Representing that the materials or leathers of which respondent's ffioes are made are other than the actual materials or leathers used in such shoes.

It is further ordel'ed, That the respondent shall, within 60 days after service upon it oi this order, file with the Commission a report in writing, setting forth in detail the manner and form in which it has complied with this order.

Complaint 32F.T.C.