Educators Association, Inc

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IN THE MATI'ER OF EDUCATORS ASSOCIATION, INC., ET AL.

MODIFIED CEASE AND DESIST ORDER Docket 8139. Order, July 23, 19.q1 Modified order, pursuant to provisions of section 5 (1) of Federal Trade Commission Act, in proceeding in question, in which (1) Commission, on March 9, 1939, 28 F. T. C. 1006, made its findings and conclusion, and Issued cease and desist order, and (2) Circuit Court of Appeals for the Second Circuit, on March 24, 1941, in Educators Association, Inc., et al. v. Federal Trade Commission, 118 F. (2d) 562, 32 F. T. C. •1870, Issued its decree modifying paragraph (1) of said order and affirming all other paragraphs thereof, and directed Commission to modify its order accordingly- Requiring respondent corporation, its officers, etc., and various other individuals, individually and trading under trade name and style of Educators Association, their representatives, etc., in connection 'with offer, etc., In commerce, of a students' reference book entitled "The Volume Library," forthwith to cea~ and desist from (1) using the words "Educators Association'' as a corporate or trade name, or otherwise in aforesaid connection, etc., except when qualified as In said order set forth; (2) representing to prospective representatives that they will refund deposits or pay any specific SUIIJ8 of money or salaries to them without adequately and fully disclosing all terms and conditions; and (3) representing or Implying that they or their representatives, etc., are connected In any manner with public schools, etc., or that said or other similar publication Is prescribed as a textbook or required to be used in connection with school work. Modified ORDER TO Cease AND DESIST This proceeding is coming on for further hearing before the Federal Trade Commission, and it appearing on March 9, 1939, the Commission made its findings as to the facts herein and concluded therefrom that the respondents had violated the provisions of section lS of the Fe.deral Trade Commission Act and issued and subsequently served its order to cease and desist; and it further appearing that on March 24, 1941, the United States Circuit Court of Appeals :for the Second Circuit issued its decree modifying paragraph 1 of the afore· said order of the Commission, rmd affirming all other paragraphs of the aforesaid order, and directed the Commission to modify its afore· said order to cease and desist in accordance with the aforesaid decree; Ncm>, therefore, Pursuant to the provisions of subsection (i) of section 5 of the Federal Trade Commission Act, the Commission issues this its modified order to cease and desist in conformity with the said court decree.

It is ordered, That the respondent, Educators Association, Inc., its officers, representatives, agents, and employees, and the respond· ents, Leo L. Tully, Oron E. Richards, and Donald ,V, Henry, individ- EIDUCATORS ASISIOCIATION, INC. Ell' AL. 709 708 Order ually and as officers of Educators Association, Inc., Miss :Marian A. Miller, 1\frs. B. 1\f. Gambert, Mrs. Marie C. Hostler, Mr. J. E. Stronks, Mr. H. Lyle Goldsberry, Mr. J. R. Hostler, Mr. J. P. Tully, Mrs. M. 1V. Lees, Mrs. Bessie Morrell, each individually, and trading under the trade name and style of Educators Association, their representa· tives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distri· bution of a students' reference book entitled "The Volume Library," in commerce, as commerce is defined in the Federal Trade Commission Act, forthwith cease and desist:

1. From using the words "Educators Association" as a corporate or trade name, or otherwise, in connection with the offering for sale or sale of "The Volume Library" or other books distributed for profit: Provided however, That the petitioners may continue to offer for sale and sell said book· or books under the trade-name "Educators Association" so long only as they shall in each instance of the use of said trade-name in spoken, written, or printed form, or by radio broadcast, accompany said trade-name with a statement of equal conspicuousness and in immediate connection and conjunction therewith in the following words, to wit: "Commercial Distributors of The Volume Library": And Provided Further, That in each instance of the use of the corporate name "Educators Association, Inc." in carrying on its said corporate business, whether in spoken, written, or printed form, or by radio broadcast, said corporate name shall be accompanied with a statement of equal conspicuousness and in immediate connec· tion and conjunction therewith in the following words, to wit: "Commercial Publishers of The Volume Library."

2. Representing to prospective representatives that they will refund deposits or pay any specific sums of money or salaries to such representatives until and unless they fully and adequately disclose all of the terms and conditions upon which refunds or payments are actually made.

3. From representing or implying that they or their representatives, agents, or canvassers are connected in any manner with public schools or other educational institutions, or that said Volume Library, or any other and similar publication, is prescribed as a text book or required to be used in connection with school work.

Complaint 33F. T.C.