National Press Photo Bureau, Inc.

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IN THE MATTER Ot' NATIONAL PRESS PHOTO BUREAU, INC., KAY HART STUDIOS, INC., BOLIVAR STUDIOS, INC., AND SAMUEL F. REESE AND CLAHA L. HEESE COMPLADIT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION 01!' SEC, 11 OF AN ACT OF CONGRESS APPROVED SEPT, 26, 19H Docket 3898. Complaint, Sept. 20, 1939-Decision, June 16, 19.i2 ~Where three corporations and two Individuals, general officers of two of said ('Oncerns and in control Of their activities and policies, the. third having become inactive; engaged In Interstate sale of photographs to members of the purchasing public- In soliciting business under a plan by which their agents, supplied' with a letter from a local newspaper-in consideration of furnishing the paper a glossy print of l)hotographs taken In its community-Introducing the agent as a -photographer of the "National Press Photo Bureau'' (one of corporate names employed), engaged In taking pictures of leading citizens for the paper's files- '( a) Represented that the photograph was desired fot• their files or "photographic morgue'" and for use by newspapers or other publications, and, following approval of proof by the subject, endeavored, with frequent success, to solicit purchase of one or more copies of the photograph selected; and (b) Represented, through use of words "National Press" as part of one of their corporate names and through their aforesaid practices, that they conducted n news or press photographic agency engaged In taking photographs lntendell for release to newspapers and other publications; when In fact they did not conduct such an ngency, had no connection with any newspaper except as above set forth In regard to lettet·s of introduction, but, as aforesaid, were engaged in selling photographs, and their said method was merely a scheme or device to secure sittings and sell photographs to prospective customers; With effect of misleading and deceiving a substantial portion of the purchasing public Into the mistaken belief that such representations were true, thereby causing It to purchase sub~tantlal quantities of photographs because of sucb mistaken belief:

Jield, That such acts and pt•actices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and de· ceptive nets and practices.

Before /1/r. Lewis 0. Russell and Mr. John J. [(eenan, trial exam· iners.

Mr. J okn M. Ru.Yscll for the Commission.

lllr. Nat O.Ilelman, of New York City, for respondents. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said net, the Federal NATIONAL PRESS PHOTO BUREAU, INC., ET AL. 1389 1388 Complaint Trade Commission, having reason to believe that National Press Photo Bureau, Inc., a corporation, Kay Hart Studios, Inc., a corporation, Bolivar Studios, lnc., a corporation, Samuel F. Reese and Clara L. Reese, individual1ly, and as officers of National Press Photo Bureau, ~nc., a corporation, and Kay Hart Studios, Inc., a corporation, herelllafter referred to as respondents, have violated the provisions of ~aid act, and it appearing to the Commission that a proceeding by it ln respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondents, National Press Photo Bureau, Inc., Ray Hart Studios, Inc., Bolivar Studios, Inc., are corporations, organized, exi~ting, and doing business under and by virtue of the laws of the. State of New York, having their offices and principal places of business at 509 Fifth A nnue, in the city of New York, in said State. Samuel F. Reese, is president, and Clara L. Reese, is secretarytreas~rer, of National Press Photo Buren u, Inc., and Kay Hart Studios, l~1c .., respectively, and are individuals, having their offices and· prin- ~lpal places of business at 50!) Fifth Avenue, in the city of New York, In said "State, and they direct and control the sales activities and Policies of all of said corporate respondents with respect to the acts ~ncl practices herein set forth. All of said respondents act in concert In doing the acts and things hereinafter alleged. PAn. 2. The respondents are now and have been for more than 2 ~ears last past engaged in ·the business of photographing persons, and Ill the sale ami distribution of said photographs. Uesponclents sell said photographs to members of the purchasing public situated in Various States of the United States and in the District of Columbia. an.d cause· the said photographs, when sold by them, to be trans- Por·ted from their aforesaid place of business in the State of New !ork to the purchasers thereof at their respective points of location 1ll Various States of the United States other than the State of New York and in the District of Columbia. Uespondents maintain, and at all times mentioned herein have maintained, a course of trade in commerce in said photographs among and between the various States. of the United States and in the Dish·iet of Columbia. PAR. 3. In the course and conduct of their said business, and for ~he. purpose of securing permission to take said photographs and of· tn~ucing the purchase thereof, respondents have caused false and ~tsleading statements and representations with respect to the iden~ hty, nature, and character of theit· business to be disseminatl'd among Prospl'ctive purchasl'rs of said photographs situated in various States of the United States and in the District of Columbia. Respondents or their agents call on prominent men situated in various States of Complaint 34 F. T. C. the United States and in the District of Columbia, and display business cards bearing the statement, "National Press Photo Bureau, Inc., Purveyors of Photographs to Leading Trade, Financial and Professional Publications," letters of introduction, and letters transmitting proofs and invoices with similar representations therein, to prospects, stating they desire a photograph of such person for the press, that is, for newspapers, magazines, and other periodicals published through- . out the United States, and for publication therein; that National Press Photo Bureau, Inc., is directly or indirectly connected with the leading newspapers of the United States; that National Press Photo Bureau, Inc. represents the local newspapers and has a following throughout the country; that prospects' pictures are wanted by the local. and other newspapers; that respondents are taking pictures of prominent men for use in trade publications, newspapers, and other publications; that they are obtaining said photographs for the files of National Press, which furnishes said photographs to the press and that National Press is likely to get calls for their pictures; and otherwise, directly or by implication, represent that they are representatives of o~ connected with one of the recognized news or photographic news services, desiring to procure photographs of such person for the purpose of publishing the same. · By means of the use of such statements and ·representations disseminated as aforesaid, the respondents or their agents procure permission from .)Such persons to take their photographs. Respondents or their agents cause photographs of such persons to be taken and thereafter request such persons to select and approve one of the negatives, which respondents or their agents represent is to be released to the press. After such selection is made by the prospective purchasers, respondents, or their agents attempt to sell, and sell to such persons quantities of the finished photographs.

PAR. 4. The aforesaid statements anu representations used and disseminated by the respondents in the manner above described are deceptive, false, misleading, and untrue. In truth and in fact none of the respondent corporations is a news or press photographic agency. None of the respondents nor their agents or representatives have any con"' nection, direct or indirect, with any newspaper or other publication. The respondents do not take the photographs of the aforesaid members · of the purchasing public for the purpose of distributing such photographs to newspapers or any other publication or for the press library of any of the corporate respondents, the respondents take such -photographs for the purpose of selling the same to such members of the purchasing public. The said corporate respondents receive very few, NATIONAL PRESS PHOTO BUREAU, !NC.1 ET AL. 1391 1388 Findings if any, calls for any of their said photographs from newspapers or other publications, and none of them has or maintains a press library. Through the use by the respondents of the name National Press Photo Bureau, Inc., respondents represent and imply, that the respondent, National Press Photo Bureau, Inc., was organized by, is a part of, or has some direct and substantial connection with the press of the United States to a Nation-wide extent, when in truth and in fact, said respondent, National Press Photo Bureau, Inc., was not organized by, is not a part of, and has no direct or indirect connection with the press of the United States to a Nation-wide extent, or any other extent, or on any other basis, except that occasional sales are made of photographs to individual publications.

PAR. 5. The use by the respondents of the foregoing false, deceptive, and misleading statements and representations with respect to the identity, nature, and character of the business of the corporate respondents 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 such false statements and representations are true, and causes a substantial portion of the purchasing public, because of said erroneous and mistaken belief, to purchase substantial quantities of respondents' photographs. PAR. 6. 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 September 20, A. D., 1939, issued and thereafter served its complaint in this proceeding upon respondents, National Press Photo Bureau, Inc., a corporation; Kay Hart Studios, Inc., a corporation; Bolivar Studios, Inc., a corporation; and Samuel F. Reese and Clara L. Reese, individually, and as officets, of National Press Photo Bureau, Inc., a corporation, and Kay Hart Studios, Inc., a corporation, charging them with t~e use of unfair and deceptive acts and practices in commerce in viofation of the provisions of said act. · After the issuance of the complaint and the filing of respondents' answer, testimony, and other evidence in support of the allegations of the complaint and in opposition thereto were introduced by attorneys for the Commission and for the respondents before duly appointed ttial examiners of the Commission designated by it to serve in this pro- 1392 FEDERAL TRADE COMMISSION DEC[SIONS Findings 34F.T.C.

ceeuing, and said testimony and other evidence were duly recorded and filed in the office of the Commission.

Thereafter the proceeding regularly came on for final hearing before the Commission on the complaint, the answer thereto, the testimony and other evidence, report of the trial examiners and exceptions thereto, briefs in support of and in opposit~on to the complaint, and oral argument by counsel for the Commission and counsel for respondents. 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 .conclusion drawn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents, National Press Photo Bureau, Inc., &nd Kay Hart Studios, Inc., are corporations, organized under the laws of the State of New York, with their offices and principal place of business at 509 Fifth Avenue, in the city and State of New York Respo~ident, Bolivar Studios, Inc., was a corporation organized under the laws of the State of New York, and until some time in t~e, earl! ra~t of ~he year 1939, when it ceased to function, its prin- Cipaf Pf~t~e of b1,1smess was the same as that of the other respondents. L Respond~nts, Samuel F. Reese and Clara L. Reese, are respectively th~'p'rksident and the secretary and treasurer of respondents, National Press Photo Bureau, Inc., and Kay Hart Studios, Inc; they direct and control the activities and policies of these corporations and act in concert with them in doing the acts and things hereinafter mentioned. · PAn. 2. The corporate respondents, National Press Photo Bureau, Inc., and Kay Hart Studios, Inc., are now, and for more than 2 years prior to the issuance of the complaint herein have been, engaged in the business of photographing prominent men and in selling and distributing such photographs.

Respondent, Bolivar Studios, Inc., was similarly engaged until the early part of the year 1939.

Respondents, during the periods mentioned, sold said photographs to members of the purchasing public and caused the same, when sold, to be transported from their place of business in the State of New York to the purchasers thereof located in various States of the United States. During all of the periods herein mentioned respondents maintained a course of trade in said photographs in commerce between and among the various States of the United States. NATIONAL PRESS PHOTO BUREAU, INC., ET AL. 1393 1388 Findings . PAR. 3. Respondents' agents, for the purpose of obtaining permis- Sion to take photographs and of inuucing the purchase thereof, call Upon prominent men throughout the United. States and present a business card bearing the statement "National Press Photo Bureau, Inc., Purveyors of Photographs to Leading Trade, Financial and Professional Publications," and at the same time exhibit a letter of introduction obtained from a local newspaper in consideration of furnishing the paper a glossy print of photographs taken in its community. The following are typical of such letters: ITEM • TRIBUNE OCTOBER 28, 1936 'l'o WHou rr MAY Conn:RN: • This will introduce JUr. Joseph, photographer for the Kay Hart Studios division of the National Press Photo llureau, who has been taking pictures of our leading citizens fot• our vress files. It Is understood that your sitting for this picture does not obligate either you or the Item-Tribune in any way.

'lhe Item-Tribune will very much appreciate ltavlng your photogt·aph made by Mr. Joseph for our files.

Yours cordially, C. H. CAMPBELL, City Editor.

'l'o \V.Hom IT MAY CONCERN :

:B 'this Will il}troduce l\ft'. Delacl'ioux, photogmpher of tbe National Press Photo ureau, who Is making pictures of a numbet· of Wichita Falls citizens. · 'l' It is tmderstood that your sitting for this picture does not obligate you or the hnes Publishing Company in any way.

It is our intention to use the prints we will be furnished by the Bureau for our files, for use as the occasion may arise. We Will nppr('ciate yom sitting for Mr. Delacrioux. l TIMES PUBLlSHI!\'"G COMPANY • . 1'he ag~nt represents that the photograph is desired for the files or Photographic "morgue" of one of the respondents and for use by ltewspupors or other publications. The person so contacted frequently sit for their photographs, the negatives of which, after they ~e taken by respondents' agents, are forwarded to respondents in t ew York, where they are developed and proofs are printed and .ransmitted to the agent, who delivers them to the respective sub- ~~cts, with the request in each case that one be approved for use by le press. After the selection has been made by the subject, the· agent solicits him to purchase one or more copies of the photograph Selected, and in many cases such solicitation is successful. PAR. 4. Respondents, by their acts and practices as set forth m Paragraph 3 ·hereof, and by use of the words "National Press" as 4GOG06"'-42-vol. M--88 Order 34F.T.C.

part of one of their corporate names, represent that they conduct a news or press photographic agency, engaged in the taking of photo· graphs intended for release to newspapers or other publications, which representations are false and misleading. Respondents, in truth and, in fact, are not engaged in conducting a news or press photo· graphic agency, nor have they any connection with any newspaper except, as hereinbefore stated, in regard to letters of introduction but, on the contrary, respondents are engaged in the business of selling photographs, and their method of doing business is merely a scheme or device for the purpose of securing sittings and selling photographs to prospective cust~mers.

PAR. 5. The use by respondents of the foregoing false, deceptive, and misleading statements and representatiqns has the capacity and tendency to mislead and deceive, and has mislead and deceived, a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations are true, and has caused a substantial portion of the purchasing public, because of such mistaken and erroneous belief, to purchase substantial quan· tities of respondents' photographs.

CONCLUSION The aforesaid acts and practices of the respondents are to the prejudice and injury of the public, and constitute unfair and deceptive acts and practices within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Fe<leral Trade Com· mission upon the complaint of the Commission, the answer of re- ~pondents, the testimony, and other evidence in support of and in opposition to the allegations of the complaint taken before duly appointed trial examiners of the Commission designated by it to serve in this proceeding, the report of the trial examiners thereon and exceptions thereto, briefs in support of and in opposition to the allega· tions of the complaint, and oral argument of counsel. And the Com• mission having made its findings as to the facts and its conclusion that respondents have violated the provisions of the Federal Trade 'Commission Act:

It is ordered, That respondents, National Press Photo Bureau, Inc., a corporation; Kay Hart Studios, Inc., a corporation, and Bolivar Studios, Inc., a corporation-their officers, directors, representatives, NATIONAL PRESS PHOTO BUREAU, INC., ET AL. 1395 ]388 Order agents, and employees; and respondents, Samuel F. Reese and Clara L. Reese, individually, and as officers of corporate respondents, National Press Photo Bureau, Inc., and Kay Hart Studios, Inc., jointly or severally, directly or through any corporate or other device, in conliection with the solicitation of permission to make photographs, or the offering for sale, sale, ,and distribution of photographs, in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Using the words "National Press," or any other word or words of similar import or meaning, in the corporate name of respondent, National Press Photo Bureau, Inc., or as a part of any other trade or corporate name, to designate or describe a business which is principally for the purpose of making and selling photographs to the individuals photographed.

2. Representing or implying in any manner to a prospective customer, that respondents, or either of them, are news or press photog-· raphers, or that they conduct a news or press photographic agency; or that any photograph taken by them is for press or publicity purposes, unless such photograph is actually for immediate press or publicity use.

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-s~tting forth in detail the. manner and form:in which they have complied with this order.

Complaint 3-l F.'£". C.