The General Tire & Rubber Company

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IN THE ]\'latter OF THE GENERAL TIRE & RUBBER COl\IPANY COMPLAINT, FINDINGS, ANP ORDER IN REGARD TO THE ALtEGED VIOLATION OF SEC. o OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket .wos. Complaint, Oct. "1, 1911-lJPoi.~iun, Nov. 13, 19f2 'Vhere a corporation, engaged ln the manufacture and lutet·state sale and dis· tribution of autornubile tires; in advertising its ''Gt>neral Dual 8"' -aud "General Dual 10'' tires in newspaper;:, periodicals, and tratle journals, nud through radio continuities, circulars, 11oste;·s, pamphlets, sr>ot cards, and other advertising media- ( a) I:ept·esented directly and by implication that said tires were so constructed . that an automobile equipped with either could be brought to a stop quick,cr em all types of road when traveling at a speed of 60 miles an hour in rain than an automobile equipped with any othet· tire trav!'ling 50 miles an hour in dry weather; that they would !)top a car 50 pet·cent quicker than nil other makes or brands of tires, regardless of the kind of road or weather conditions, and without skid, swerve, or tail spin; that they were America's quickest stopping tires; affordrd year-round protection against skidding; and would stop straight every time;

The facts being that they would not accomplish such rf'tiUlts, am! fllld repre· sentations were grossly exaggerated, false, and misleading; and (b) Represented that: said tin's were of "8-ply'' and "10-ply" construct loll• through stamping or moulding on the sitle walls and imJlrlntiug on the ll:t!Jcl~ and wrappers thereof in connectim1 with the size and thp word "Gellrral the phrase "Dual 8'' or "Dual 10," nnd through use of such terms In its advertising;

'The facts being that. tires In question were actually of 4-ply and 6-ply construe: tion, and did not contain 8 or 10 plies, as understood by the public famililti with manufacturers' practice of moulding or stamping size and name 00 "the side walls of tires, together with number Gf plies used in consti'nctioJI thereof; , . With tf'ndency and capacity" to mlsiPad and deceive a suh:;;tnntlnl portion of the · pur~hasing public into the mistaken brlief that !luch 'rf'lH'eRf'ntutions were true, and with !'!"feet of p]H(~ing in the hands of unscrupulous dealers 111euns whereby they might more easily mislead the purchasing pulllic with respect 11 to the actual uumller of plies contained in said tires, and with result that portion of said pulllic was induced to purchase its said tires: · lleld, That such acts and pmctices, untlet· the circumstances set fm"th, wet·e all to the pt·ejudice aud injury of the pulllic and coustitut<>d unfair and deceptive acts and practices in commerce.

Mr. John lV. Carter, Jr., for the Commission. Wise, Roetzel & llfaxson, of Akron, Ohio, for respondent. THE GENERAL . TIRE & RUBBER CO. 693 692 . Complaint Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by Raid act, the Federal Trade Commission, having reason to believe that General Tire & Rubber Co., a ·corporation, hereinafter referred to as respondent, has violated the provisions of said act, and it appearin~ to the Commission that a proceeuing by it in respect thereof would he in the public interest, hereby issues its complaint, stating it~ charges in that respect as follows:

PARAGRAPH 1. Respondent, Generul Tire & Rubher Co., is a corporation, organized. under the laws of the State of Ohio, with its principal Place of business in the city of Akron, Ohio. · PAn. 2. Respond0nt is uow, unJ for more than 1 year last past has been, engaged in the 1r1manufacture, among other prouucts, of automobile tires, and in the sale anJ. distribution thereof, in commerce, llmong and Letween the various States of the United States and the District of Columbia. Respoi1dent has been and is now in substantial eoinpetition with other corporations, partnerships, and individuals likewise engaged. in the interstate sale awl distribution of automobile tires.

Respondent distributes its tires through Jistributors and retail dealers located in the various Stat<'s of the United States and in the District of Columbia; and causes said tires when sold to be trans- Ported from its place of business located in the State of Ohio to the Purchasers thereof at their respective points of location in the various 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 tires in commerce between and among the various States of the United States and in the District of Columbia.

PAn. 3. Among the tires m~ufacturell~ sold, and distributed by respondent, as aforesaid, are two automobile .tires designated "General Dual 8" and "General Dual 10," respectively. In the furtherance of the sale and distribution of these two tires, respondent has been and is nmv" engaged in the practice of falsely representing the character, quality, and performance ability of the aforesaid automobile tires through false, deceptive, ·and misleading statements and representations disseminated by advertisements inserted in newspapers, peri- Odicals, and trade journals, and hy p<lio continuities, circnlnr~, poPters, pamphlets) spot cards, 11nd other advertising media. Complaint 35F.T.C.

I PAR. 4. Among and typical of such statements and representations disseminated as aforesaid are the following: The new General Dual 8 gives you unequaled QUICK STOPPING ABILITYstops your car quicker at GO in the rain than ordinary tires stop it at 50 in Dry Weather;

General Dual tos the amazing tire that stops quieker than auy other tire antl without skid, swet·ve or tail spin;

America's quickest stopping tires;

This completely new kind of tit·e stops you straight every time-in any weather-and 50% quicker;

Cuts normt;~l stopping distance in half;

Year-round protection against skidding.

PAR. 5. Through the use of the statements and representations here· inabove set forth, and others of similar import and meaning, but no~ specifically set out herein, all of which purport to be descriptive of the quality and performance ability of its aforesaid automobile tires, respondent represents directly and by implication that ~aid tir_es are .so constructed, that an automobile equipped with either the "General Dual 8" or "General DuallO" can be brought to a stop quicker on -~11 types of road when traveling at a speed of 60 miles an hour in r:un than an automobile equipped with any other tire traveling 50 miles an hour in dry weather; that said tires will stop a car 50 percent -quicker than all other makes or brands of tires regardless of the kind. o£ road or weather conditions and without skid, swerve, or tail spin; that said tires are America's quickest stopping tires; that they ,afford _year-round protection against skidding and will stop straight e,·ery time.

PAR. 6. The foregoing statements and representations, and others similar thereto but not specifically set out herein, are grossly exaggerated, false and misleading. Said tires are not so constructed that an automobile equipped with respondent's "General Dual 8" tire or i~S · "General Dual 10" tire, traveling at a speed o£ 60 miles an hour, 1n rain, can be brought to a st~p quicker than a car e·quipped with any other make or brand of. tires, traveling 50 miles an hour in dry · welither. Said tires will not stop a car 50 percent quicker than all other makes or brands o£ tires under all weather conditions and on all types ·Of roads, without skidding, swerving, or tail spin. Said tires are no~ America's quickest stopping tires under all conditions of road an weather. They do no_t afford year-round protection against skidding and they will not stop straight every time~ PAR. 7. There are among the competitors of respondent, as referred to in paragraph 2 hereof, other corporations, partnerships, and i?· dividuals engaged in the sale and distribution of automobile tires 111 THE GE~ERAL TIRE & RUBBER ·CO. 695 '692 Complaint ~commerce who do not engage in the deceptive acts and practices hereinabove set forth.

PAR. 8. In addition to the aforesaid false, dec~ptive, and misleading statements and representations, disseminated by respondent as afore- ·said, respondent is also falsely representing, in the manner and means hereinafter set :forth, the quality, material, and type of construction ·of its aforesaid automobile tires.

Respondent's automobile tire "General Dual 8" is of "4-ply" con- ·struction. R~spondent causes to be stamped or molded on the side Walls thereof the size, the word "General" and; in connection therewith, the phrase "Duals".; but fails to have stamped or molded thereon the actual nuinber of plies use~ in the construction thereof. . Respondent's automobile tire "General Dual 10" is of "6-ply" construction. Respondent causes to be stamped or molded on the side Walls thereof the size, the word "General" and, in connection there- "With, the phrase "Dual10"; but fails to have stamped or molded thereon the actual immber of plies used in the construction thereof. The number of plies used in the construction of an automobile tire, is one of the factors contributing to its strength, durability, and Wearing qualities, and it is also one· of the factors usually taken into :consideration by prospective purchasers in buying automobile tires. Prospective purchasers must rely upon the manufacturer to correctly advise the number of plies used in the construction of an automobile tire. ·Automobile tire manufacturers to meet this responsibility in addition to molding or stamping on the side walls of each tire, the size and name of such tire, have established the custom of also stamping or molding on the side walls of each tire the exact number of plies Use<} in the construction of such tire; such as, for example: ':4-ply," and "6-ply." Purchasers understand and rely upon such stampings and are guided thereby when purchasing tires. · The use of the phrase "Dual 8" and the phrnse "Dual 10" stamped {)r molded on the side walls of the respective tire, as aforesaid, in the absence of any other stamping or molding designating the actual number of plies used in the construction of said tires serve as repre- ·sentations that said automobile tires are of "8-ply" and "10-ply" -construction, respectively.

PAn. 9. The use by respon.dent of the foregoing false, .·misleading, and deceptive statements and representations, disseminated as aforesaid, has the tendency and capacity to mislead and deceive a sub- . stantial portion of the purchasing public .into the erl·oneous and lllistaken belief that such statements and representations are true; ·and the stamping or molding on the side walls of its automobile_ tires the phrase "Dual 8" and the phrase "Duel 10,'.' respectively, without 696 FEDERAL TRADE COMMISS'ION DECISIONS Findings 35F. T. C., also causing to be stamped or molded on the side walls of such tires the exact immber of .plies used in the construction thereof, has the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that that particular automobile tire, as the case may be. is of "8-ply" or "10-ply" construction; and to induce a substantial portion of the purchasing public because of such erroneous and mistaken beliefs to purchase respondent's aforesaid automobile tires "General Dual 8" and "General Dual10," thus unfairly diverting trade to the respondent from its competitors, thereby causing substantial injury to competition in interstate commerce. Respondent thus supplies to and places in the hands of dealers, a means and instrumentality by which said dealers may mislead and deceive the purchasing public with respect to the actual number of plies in said tire. P.AR. 10. The aforesaid acts and practices of said respondent, as herein alleged, are all to the prejudice and injury of the. public and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of tlw Federal Trade Commission Act.

HEPORT, FlNDINOS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federa I Trade Commission Act,. the Federal-Trade Commission on October 7, 1941, issued and subse· quently serveLl its complaint in this proceeding upon respondent, The· Genetal Tire & Rubber Co., chal·ging it with the use of unfair methods of competition and unfair and deceptive acts and practices in coJll· merce in violation of the pr.ovil:tions of that act. On January 26, 19!2, the respondent filell its answer admitting all of the material allegations of fact set forth in the complaint. Thereafter the Coinmission, by order entered herein, grunted respm:ulent's motion for permission to withdraw said answer and to l:iUbstitute therefor an answer admitting all of the material allegations of fact set forth in the complaint and also averring certain additional facts, and tmthorizing the Commission to incorporate in its findings n1~y additional facts so averred and to make such conclusions and issue such order with respect thereto as the Commission deems appropriate, in like manner and to the same Pxtent as if such additional facts had been • originally set forth in the complaint and had been originally char::!ed as constituting unfair and deceptive acts and practices in commerce. Respondent's substitute answer further wai,·ed all hearing and trial of the issues, the .filing of briefs, and the presentation of oral argument before the Commission. Thereafter this proceeding regularly callle THE GENERAL TIRE & RUBBER ·CO. 697 692' Findings on for final hearing before the Commission on the complaint and i;ubstitute answer, and the Commission, having duly considered the Jnatter and being now fully advised in the premises, finds that this proceeding is in the interest of t]le public and makes this its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS P ARAGRAPI-I 1. Respondent, The General Tire. & Rubber Co. ' (referred to in the complaint as General Tire & Rubber Co.), is a corporation organized tmder the laws of the State of Ohio, with its Principal place of business in the city of Akron, Ohio. PAn. 2. For more than 1 year prior to October 1941, respondent , was· engaged in the manufacture, among other products of automobile tires, and in the sale and distribution thereof in commerce among nnd between the ·various States of the United States and in the District of Columbia. Respondent distributed its tires through distributors and rt>tail dealers located in the various Stutes of the Unit~d States and in the District of Colurn_bia, and caused said tires, when Sold, to be tmnsported from its place 9f business located in the State of Ohio to the purchasers thereof at their respective points of location in the various States of the United States and in the District of Co1nmbia. Prior to the re~ent action of the United States Governnlent restricting the sale of tire.s for passenger cars, responoent 11laintained a cour~e of trade in said tires in commerce between and among the various States of the United States and in the District of Columbia. · . PAn. 3. Among the tires manufactured, ·Sold, and distributed by respondent, as aforesaid, were two automobile tires designated "GE>n· eral Dual 8" and "General Dual 10," respectively. In the further- Rnce of the sale and <listribution of those two types of tires, ·respondent ha., misrepresentc<l the character, quality, and performance ability of the nforesaid automobile tires through dect>ptive and misleading ~tatements and representations contained in auvertisements inserted In newspapers, ·pPriodiea ls, and trade journals, and also contained in radio continuities, ci~'Culars, posters, t>amphlets, spot cards, and other advertising media. · . PAR. 4. Among and typical of such statements and representations <lisseminatP<l as aforesaid are the following: The n£>w General Dual 8 gives you unequaled QUICK STOPPING ABILITY- Stops your CIH quieker ut 60 in the rain than ordinary tires stop it ut 50 in Dry Weather.

General Dual los the nmazlng tire that stops quicker than any other tire and Without skid, swerve. o:r tau soln.

698 FEDERAL TRADE COMMISS'ION DECISIONS Findings 35 F. T. cr. America's quickest stopping tires.

This completely new kind of tire stops you straight every time-..:in any weather-and 50% quicker.

Cuts normal stovplng distance in half. .

Year-round pwtection against skidding. • Respondent's answer states that the aforesaid statements and representations were not disseminated subsequent to a date which was prior to the date of the issuance of the complaint. The date referred to by respondent was, however, according to the record herein, subsequent to the date upon which the investigation was instituted. · · PAR. 5. Through the use of the statements and representations here- · inabove set forth, and others of similar import and meaning not specifically set out herein, all of which purported to be descriptive of the quality and performance ability of its aforesaid automobile tires, respondent represented, directly and by implication, that s:nd tires were so constructed that an automobile equipped with eitl1er tho "General Dual 8" or "General Dual 10" could be brought to a stop quicker on all types of road when traveling at a speed of 60 miles all hour in rain than an automobile equipped with any other tire traveling 50 miles an hour in dry w~other; that said tires would stop a car 50 percent quicker than all other makes or brands o:f tires, regardless of the kind of road or weather conditions, and without skid, swer-ve, ' or tail spin; that said tires were America's quickest stopping tires; and that they afforded year-round protection against skidding and would stop straight every time. · · PAR. 6. The foregoing statements and representations, and others simi~ar thereto but not specifically set out herein, were grossly exuggerated, false, and misleading. Said tires were not so constructed that an automobile equipped with respondent's "General Dual 8'' tire or its ''General DuallO" tire, traveling n.t a speed of 60 miles an hour, in rain, could be brought to a stop quicker than a ~ar equipped. with any other make or brand of tires traveling 50 miles an hour in dry weather. Said tires would not stop a car 50 percent quicker than all other makes or brands of tires under all weather conditions and 011 all types of roads, without skidding, swerving, or tail spin. Said tires were not America's quickest stopping tires under all conditions · of road and weather.. They did not afford year-round protection· against skidding and they would not stop straigl~t every time. PAn, 7. In addition to the statements and representations dissetn· inated by respondent as aforesaid, respondent also represented, in tbtf manner and means hereinafter set forth, the quality and type o£ construction of its aforesaid automobile tires. · THE GENERAL TIRE & RUBBER CO. 699· 692 Findings Respondent's automobile tire ''General Dual 8" is of "4-ply" construction. Respondent caused to be stamped or molded on the side Walls and imprinted on the labels and wrappers thereof the size, the Word "General," and, in connection therewith, the phrase "Dual 8 ;'~ but priqr to November 11, 1941, respondent failed to have stamped or molded thereon, or imprinted or stamped on wrappers or labels thereof, the actual number of plies used in the construction thereof. Respondent's automobile tire "General Dual 10" is of "6-ply" construction. Respondent caused to be stamped or molded on the. side Walls and imprinted on the labels and wrappers thereof the size, the Word "General," and, i.n connection therewith, the phrase "Dual 10"; but prior to November 11, 1941, respondent failed to have stamped or Inolded thereon, or imprinted or stamped on wrappers or labels thereof, the actual number of plies used in the construction thereof. Subsequent to November 1941, and until respondent was prohibited by the United States Government from manufacturing passenger car tires, respondent's "Dull 8" and "Dual 10" tires were stamped with the actual number of plies used in .the construction thereof, and the Wrappers and labels thereof also revealed the actual ply construction. Respondent's answer admits that while it has not engaged in any na~ional advertising of its "Dual 8" and "Dual 10" automobile tires for approximately 1 year last past, prior to that time, in some instances, its national advertisements contained statements re\·eating the fact that such tires were of four and six ply construction, respectively, and in other advertisements no mention was made of the ply construction, although the names "Dnal 8" and "Dual 10" were Used by respondent in its general advertising literature as descriptive trade names for the tires involved in this proceeding. . The number of plies used in the construction of an automobile tire is one of the factors contributing to its strength, durability, and Wearing qualities, and it is als·o one· of the factors usually taken into considera.tion by prospective purchasers in buying automobile tires. Prospective purchasers must rely upon the manufacturer to correctly advise the number of plies used in the construction of an automo- ?ile tire. Automobile tire manufacturers, to meet this responsibility, In addition to molding or stamping on the side walls of each tire the size and name of such tires, have established the custom of also stumping or molding on the side walls of each tire the· exact number of plies used in the construction of such tire; sue h as, for example, ''4-p]y" and "6-ply." Purchasers understand and rely upon such stampings and are guided thereby when purchasing tires. , · The Commission finds that the use of the phrase "Dual 8" and the Phrase "Dual 10" stamped or molded on the side walls of the re- Couclusiun 3rif.T.C· spective tires and imprinted pr stamped on the labels or wrappers thereof, in the absence of any other stamping, imprinting, or molclin~ actually designating the number of plies used in the construction uf said tires, constituted a representation to ultimate purchasers that. said automobile tires were of "8-ply" and "10-ply" construction, respectively, when as a matter of fact such automobile tires were of 4-ply and 6-ply construction, respectively. Similarly, the Commission finds that the use· of the phrases "Dual 8" and "Dual 10'' as descriptive names for its tires in advertising literature distributed by the. respondent in which no statement was made that said tires were of 4-ply and 6-ply construction, respectively, constituted a representation to ultimate purchasers that such tires were of 8-ply and 10-ply construction. Respondent's use of the ter~ns "Dual 8" and "Dual 10" to designate, describe, and refer to certain of its passenger automobile tires, without an accompanying disclosure as to the actual ply construction, placed in the hands of unscrupulous dealer:s the means and instrumentality by which such dealers might more easily mislead the purchasing public with respect to the ar;tual number of plies in said tires. . PAR. 8. The use by the respondent of the misleading and deceptive statements and representations set out in paragraph four and disseminated.as aforesaid had the tendency and capacity to mislead a.nd deceive a substantial portion of the purchasirig public into the erron· eous and mistaken belief that such statements and representations were true and that said automobile tires had the quality and per· formance ability ns represented by respondent; and the stamping or molding on the side walls of said automobile tires and the imprintinf( or stamping on the labels and wrappers thereof of the phrases "Dual 8" an~ "Dual 10," and the use by respondent of tl.wse phrases in its advertising literature, without clearly revealing in .connection therewith the actual ply construction of the particular tire therein referred to, had the tendency and capacity to mislead and deceive it portion of the purchasing public into the erroneous and ·mistaken belief that that particular automobile tire, as the case may be, wns of "8-ply" or "10-ply" construction. As a result of such mistaken and erroneous beliefs which were induced by the respondent's nets and practices herein detailed, a portion of the purchasing public hns been induced to purchase respondent's passenger automobile tires. 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 \ Tile GENERAL TIRE & RUBBER CO. 701 692 Order and deceptive acts and practices in commerce within the intent and Ineauing of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- ~ion upon the complaint of the Commission and the answer of respondent, in which answer respondent admits all the material allegations of £act set forth in the complaint and states that it waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, The General Tire & Rubber Co., a corporation, and its officers, representatives, agents, and em- Ployees, directly or through any corporate or other J.evice, in connection ~ith the offering for sale, sale or distribution of its atitomobile1 tires In commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing, directly or indirectly, that an automobile equipped "With respondent's ''.General Dual 8" or "General Dual 10" tires can be brought to a stop quicker when traveling in rain at a speed of .60 miles an hour than an automobile equipped with any other make or brand of tires traveling in dry weather at 50 miles an hour; that said automobile tires will stop a car 50 percent quicker than all other lllakes or brands of tires. without skid, swerve, or tail spin; or·that said tires are America's quickest stopping tires, regardless of road or weather conditions, that they afford year-round protection against skidding, or that they will stop straight every time; and from making any other representations respecting the quality or performance ability of said automobile tires which are not in fact true. 2. Using the phrase "Dual 8" or "Dual 10" in any manner to de- ~cribe or refer to respondent's said tires without clearly disclosing, ln connection with such use,. the actual num,ber of plies used in the Construction of the particular automobile tire referred to. 3. Representing, directly or through implication, that any of respondent's automobile "tires contain more plies than is actually the fact ' ltis fwrther ordered, That the respondent s]lall, within GO days after service upon it of 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.

• ~09749m--43--vol.35----47 Complaint &iF. T.C.