Moles', E. B

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IN THE MATTER .OF E. B. MOLES, DOING BUSINESS AS MALONE & MOLES COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLE·GED VIOLATION OF SEC. 15 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket -9557. Complaint, Aug. 6, .19-91-Dccision, Oct. 1'2, 19-92 Where an individual, engaged in Interstate sale and distribution of a mechanical automobile device designated by him as "Gas-Miser"; by means of advertisements in newspapers and periodicals and other advertising lit~rature, ·' directly and bY. Implication- ( a) Represented that his device would supercharge an automobile engine, was a gus and oil saver which increased the mileage, power, speed, and pep of automobiles, saved upkeep .and provided easier and quicker starting; (b) Represented that the device reduced the thinning-out process In the cylinder oil, eliminated cylinder wash, lengthened the life of the engine, and pro- . Vided a smoother-running car; and (c) Repreo,;;ented that It solved motoring problems, eliminated cnrbon, distributed gas vapors evenly to all cylinders, and eliminated waste; 'rhe facts being it was Incapable of supercharging an automobile engine, or · lengthening the life thereof; did not possess the merits and· quulltles claimed th~refor; afforded no solution of. motoring problems; and ·said various representations wP..re false, erroneous, and misleading; With tendency and capacity of misleading a substantial portion of the. purcbas-.. ing public into the mistaken belief that said device po&.:;essed qualities and· . values which it did not,. thereby Inducing purchase thereof: ·. . .: '·' . lleld, That such acts and practices, under the circumstances Ret forth, were· all v to' the prejudice of the public, and constituted unfair and dec:;eptlve acts and practices In commerce .

.<'\s respects evidence offered in support of vendor-advertiser's representations that his device "Gas-Miser" would supercharge an automobile engine and cons~ituted a gus and oil saver which increased mileage, power, etc., which evl- ' . dence consisted principally of testlmo~y of several members of the public to the effect that they bad received b{metlcial results from use of such device: Said evidence was without substantial probative value where the record contained no definite information with respect to the conditions under Which, or the period of time during which, the device was used, and where there was no indication that purported results were checked on other occasions to verify their accuracy; and was lnsufHcient to overcome evidence showing the false and misleading nature of said representations, based on comprehensive tests of the device made by the National Bureau of Stand- ' ards .and the testimony .of the expert of the Bureau who supervised them. Defore Mr. Arthur F. Thomas and Mr. Lewis 0. Ru,s~ell, trial exll.tniners. · Mr. Joseph 0. Fehr and Mr. John lV. Carter, Jr. for the Comlllission. ' · Complaint 35F. T. 0.

Complaint Pursuant to th~ provi~ions 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 E. B. Moles, individualfy, and trading under the name of Malone & Moles, hereinafter referred to as respondent, has 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, E. B. Moles, is an individual, trading under the name of Malone & Moles, with his office and principal place of business located at 606 Pierce Street, in the city of Sioux City, in the State of Iowa. Respondent is now and for more than 1 year last past has qeen engaged in the sale and distribution of a mechanical device for use on automobiles and trucks, designated as "GAS· _MISER." Respondent causes said product, when sold, to be· shipped from his place of business in the State of Iowa to 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 product among and between the various States of the United States.and in the District of Columbia.

PAR. 2. In the course and conduct of his business, as aforesaid, and 'for the purpose of inducing the purchase of his product, respondent has made many exaggerated·, false, deceptive, and misleading statements and representations concerning the value, efficiacy, and effect. of his device and the results obtained by its use by means of various· advertisements inserted in newspapers, periodicals, and other adver· tising literature distributed and circulated among purchasers and prospective purchasers. Among· and typical of the statemeJ?.tS and representations contained in these adv~rtisements are the following~ Manufacturers and distributors In United States and Foreign Countries of the SUPER-CHARGING GAS:MISER.

INVENTS GAS SAVER FOR AUTOS.

A new invention called the Supercharging GAS-MISER has been thoroughly' tested by Mr. E. B. Moles of 640 Pierce St., Sioux City, Iowa, who reports re-· markable savings in gasoline and oil. It is reported the GAS-MISER not only saves up to 25o/o In gas and oil, but also creates a scientific super-charging ac· tion that increases power and pep. This device Is fully automatic and is easily. installed in any auto or truck In a few minutes. Mr. Moles wants Agents and Dlstrll;JUtors and Is willing to send a free GAS-MISER sample ol'fer to anyone interested. Write him today. · Leading automotive engineers okay GAS-MISER. It Is pooitively DIFFE:R·· ENT from anything ever on the market before • • • but it has been exten- MALONE & MOLES 589· Complaint Sively used, tried and proven to give satisfactory results,· GAS-MISER guar· antees that you must get at least 10% more miles for every gallon of gasolinefrom your auto • • • no mat.ter how old or how new it may be. ·.Increases Power.

Saves Gasoline.

Saves upkeep cost.

GAS-MISER will bring savings in gas costs-In smoother running-more pep-easter starting-quicker pickup.

(1) Better power .and pep. (2) Reducing of cylinder wash, therefore, re-. ductng of thinning-out process in the cylinder oil. (3) Longer life of enginedue to better condition of cylinder oil. ( 4) rroduct will pay for itself in gaso- Utie savings before many months.

At Griffith's Garage-the leading' repair garage in Sioux City-GAS-MISER. '\\>as subpected to exhaustive tests just recently. These proved conclusively that 0.A.S-l\USER gives greater mileage, more power, mo1·e pep and a smoother rlin· lllng car .

. GAS-MISER SOLVES MOTORING PROBLEMS. • SMOOTHER PERFORMING MOTOR. THE GAS-MISER elhninates cylinder· 'Wash and carbon, two of the most harmful agencle~ at work in your motor, Gas V'vapor is at once evenly distributed to all cylinders, with the installation of· ~e Gas-Miser, thus smooth, powerful performance and longer engine life results. nee the Gas-Miser is installed, you will notice the smoother O\)eration of yollt" llj.motor, and will be aware of the extra power and greater speed range of the. llj.motor. · · GAS-MISER ELIMINATES WASTE! THE MAXIMUM energy or power of' ;llsoune utilized in the average motor car in operation is not more than Bo/o. therefore, 92% of this energy is wasted through frlctlon, cooling attachments, . and the exhaust. With the installation of the GAS-MISER a substantial part or this waste is eliminated.

' l? AR. 3. Through the use of the aforesaid statements and represen- . tations circulated and distributed as aforesaid, respondent represents . all.d has represented that the device designated "GAS-MISER" will er-.charge an automobile engine, is a gas a~d oil saver! increases . e nnleage, power, speed,· and pep of automobiles, saves upkeep, pro-. ~ldes easier starting and quicker pick-up, reduces thinning-out process. ln the cylinder oil, eliminates cylinder wash, lengthens. the life of tho e~gine, provides a smoother running car, solves motoring problems,' e~~:rninates carbon, distributes gas vapors evenly to a.ll cylinders, and e .1lllinates waste, and other and similar representations. . l? An. 4. The aforesaid representations, as well as others of similar · lllJ.port or meaning which have not been specifically set out herein, :te exaggerated, false, 11?-misleading, and deceptive. In truth and in. acti respondent's device, designated "GAS-MISER," will not superh c urge an automobile engine. Said device is not a gas and oil saver,_ ·~or does it increase the mileage, power, speed, and pep of automobiles .. ~does not save upkeep, nor does it provide easier starting and quickerlllck-up. Respondent'fl said device will not reduce thinning-out proc- . l500749m-43-vol. 35--40 Findings 35F. T. C.• -ess in the cylinder oil, nor does it eliminate cylinder wash, nor lengthen the life of the engine, or provide a smoother running car. It does not eliminate carbon; eliminate waste, nor distribute gas vapors. evenly to all cylinders, and the representation that respondent's said device solves motoring problems is grossly exaggerated. It does not and cannot fulfill any of the claims made for it in said advertisements. PAR. 5. The use by respondent of the exaggerated false, misleading, and deceptive statements and representations as hereinabove set forth, has had and now has the capacity and tendency to, and does induce a substantial number of the purchasing public to purchase respondent's .said "GAS-MISER" in the erroneous belief that the representations made by respondent are true. .· . PAR. 6. The aforesaid acts and practices of respondent, as herein alleged, ar~ all to the prejudice and injury of the public and constitute unfair and deceptive nets and practices in commerce within the intent and meaning of the Federal Trade Commiilsion Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER ·. Pursuant to "the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on August 6, 1941, issued and subse· quently served its complaint in this proc~eding upon the respondent, , E. n. :Moles, individually, and trading under the name of Maloney~ :Moles, charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of that act. After the filing of respondent's answer, testimony and other evidence in sup· port of the allegations of the complaint were introduced by the . attorney for the Commission, and in opposition thereto by the respo~d· ent, before a trial examiner of the Commission theretofore duly desigd nated by it, and such testimony and other evidence were duly recorde 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, testimony and other evidence~, report of the trial examiner upon the evidence, and brief in support of the complaint (no brlef having been filed by respondent and oral argu· rnent not having been requested); 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 fi,ndings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. For some 2 years immediately preceding June 1~, 1940, the respondent, E. n. Moles, was engaged in the sale and d~strl· .MALONE & MOLES 591 .li87 Findings hution of a mechanical device for use on automobile engines,' the device being designated by him ~s "Gas-Miser." Respondent had ~is office and principal place of business at 606 Pierce Street, Sioux City, Iowa, and for a time did business under the trade name Malone & Moles. All of respondent's business operations were discontinued shortly after June 13, 1940.

PAR. 2. During the period of his business operations respondent ~aused his device, when sold, to be transported from his place of business in the State of Iowa to .purchasers thereof located in various other States of the United States ·and in the District of Columbia. llesp~ndent maintained a. course of trade in his device in commerce among and between the various States of the United States and in the District of Columbia.

· PAn. 3. In the course and conduct of his business and for the purpose 'Of inducing the purchase of his product, respondent advertised his Product by means of advertisements inserted in newspapers and Periodicals, and by means of other advertising literature distributed among prospective purchasers. Among and typical of the statelll.ents and representations appearing in these advertisements were · the following: . · Manufacturers and distributors In United States and Foreign Countries of the SUPER-CHARGING GAS-MISER. .

INVENTS GAS SAVER FOR AUTOS.

A new lnvehtion called the Supercharging GAS-MISER ·has been thoroughly tested by Mr. E. B. Moles of 640 Pierce St., Sioux City, Iowa, who reports remark· able saving In gasollne and oli.

It Is reported the GAS-MISER not only saves up to 25% In gas and oil, but also cr<'ates a scientific super-charging action that increases power and pep. This device is tully automatic and Is easily installed In any auto or truck in a few ll':!t~utes. Mr. Moles wants Agents and Distributors and Is willing to s~nd a free GAE.'-1\:liSER sample offer to anyone interested. Write him today I · Leading automotive engineers okay GAS-1\:lLSER. It Is positively DIFFER- · · · ElNT from anything ever on the mat·ket before • • • but It has been eletensively used, tried and proven to give satisfactory results! GAS-MISER illarantees that you must get at least 10% more miles for every gallon of gasoline from your auto • • • no matter how old or how new it may be. · Increases Power.

Saves Gasoline.

Saves upkeep cost. '-- GAS-MISER will bring savings in gas costs-in smoother running-more pepe.a~ier starting-quicker pickup.

(1) Better power and pep. (2) Reducing of cylinder wash, therefore, reduc· 1 ng Of thinning-out process in the cylinder oil. {3) Longer life of engine due to ~etter condition of cyllnder oil. ( 4) Product will pay for Itself In gasoline savngs before many months.

: At Griffith's Garage-the leading repair garage in Sioux City-GAS-MISER "'as SUbjected to exhaustive tests just recently. The~e proved conclusively that 592 FEDERAL TRADE COMMISS'ION DECISIONS Findings 35F. T.O.

GAS-MISER gives greater mileage, more power, more pep and a smoother running car.

GAS-MISER SOLVES MOTORING PROBLEMS. . Sl\IOOTIIER PERFORMING MOTOR. THE GAS-MISER eliminates cylinder wash and carbon, two of the most harmful agencies at work: in your motor. Gas vapor is at once evenly distributed to all cylinders with the lnstallatioD' of the Gas-Miser, thus smooth, powerful performance and longer engine Jlfe· results. Once the Gas-Miser ls installed, you will notice the smoother operation of your motor, and will be aware of the extra power and greater speed range- Qf the motor.

GAS-MISER ELIMINATES WASTE I THE MAXIMUM ene1·gy or power ol gasoline utilized in the average motor car in operation is not more than Bo/o Therefore, 92% of this energy is wasted through friction, cooling attachments,. and .. the exhaust. With the installation of the GAS-MISER, a substantial part Qf this waste is eliminate<l.

, PAR, 4. Through the use of these statements and others of a sim~I~r­ nature, respondent represented, directly or by implication, that h~s· device would supercharge an automobile engine, was a gas and oil saver, increased the mileage, power, speed, and pep of automobileSr saved upkeep, provided easier starting and quicker pickup, reduced the thinning-out process in the cylinder oil, eliminated cylinder wash, . lengthened the life of the engine, provided a smoother running carr solved motoring problems, eliminated carbon, distributed gas vapors evenly to all cylinders, and eliminated waste. PAR. 5. At the instance of the Commission, comprehensive tests of respondent's device were made by the National Bureau of Stand· ards. The report of the Bureau describing these tests in detail and setting forth the conclusions reached by the Bureau is in eviden~e,. and the Bureau's expert who supervised the tests also testified 1n person during the hearings. On the basis of this evidence, the Co~· mission finds that the device did not possess the merits and qualities claimed by respondent. It was incapable of supercharging an aut?· mobile engine and its use resulted in no saving of gasoline or. oil .. It did not increase the mileage, power, speed, or pep of aut<,>mobiles. It did not save upkeep, nor provide easier starting, or quicker picks~· The device did not reduce the thinning-out process in the cylinder.oil . nor did it eliminate cylinder wash. It was incapable of lengthening the life of the engine, nor did its use result in a smoother running car. It did not eliminate carbon or waste, nor did it distribute gas vapors evenly to the cylinders. It afforded no solution of motoring problems. The evidence oftered by respondent consisted principally of the· testimony of several members of the public to the effect that they had used respondent's device on their automobiles and had received beneficial results from such use. The record, however, contains po definite information with respect to the conditions under which the· · MALONE & MOLES 593 587 Order ·device was used or the period of time during which it was used, nor is there any indication that the purported results were checked on other occasions to verify their accuracy.· At best the evidence is of an uncertain and unscientific nature. The Commission is of the ()pinion that it is without substantial probative value and that it. is insufficient to overcome the evidence introduced at the instance of the .Commission.

P A:R. 6, The Commission therefore finds that the representations Jnade by respondent with respect to hi~ device, as set forth above, Were erroneous and misleading.

PAR. 7. The Commission further finds that the use by respondent 1:lf these erroneous and misleading representations had the tendency and capacity to mislead and deceive a substantial portion of the pur. chasing public into the erroneous and mistaken belie£ that respondent's device possessed qualities and values which it did not in fact Possess, and the tendency and capacity to cause such portion of the Public to purchase substantial quantities of respondent's device as a result of the erroneous and mistaken belief so engendered. CONCLUSION The acts and practices of the respondent as herein found 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. . ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- , sion upon the complaint of the Commission, the· answer of respondent, testimony, and other evidence in support of and in opposition to the allegations of the complaint taken before a trial examiner of the Commission theretofore duly designated by it, report of the trial ex-. Rtniner upon the evidence, and brief in support of the complaint (no brief having been filed by respondent and oral argu~Ilent not having been requested), and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the pro- \'isions of the Federal Trade Commission Act. It is ordered, That the respondent, E. B. Moles, individually, and trading under the name Malone & Moles, or trading under any other .name, and his agents, representatives, and employees, directly or th~ough any corporate or other device, in connection with the offering for sale, sale, and distribution in commerce, as "commerce" is defined Order 35F. T. C.

in the Federal Trade Commission Act, of respondent's mecha~ical device designated "Gas~l\Iiser," or any other device of substantially similar construction, whether sold under the same name or under any other name, do forthwith cease and desist from representing: ·1. That said device will supercharge an automobile engine, or in· crease the power, speed, or pep of an automobile., 2. That said device increases mileage, saves upkeep, or saves gaso~ line or oil. · 3. That said device provides easier starting or quicker pickup. 4. That said device reduces the thinning-out process in the cylinder oil, or eliminates cylinder wash. ' 5. That said device lengthens. the life of an automobile engine, or provides a smoother running car.

6. That said device eliminates carbon or waste. 7. That said device distributes gas vapors evenly to all cylin~er8 of an automobile engine. · 8. That said device solves motoring problems. It is further ordered, That the respondent shall, within 60 days after service upon· him of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with this order.

GRAND RAPIDS FACTORY SHOW ROOMS, INC., ET AL. 5!)5 Syllabus