Gallant trading Co

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IN THE MA'ITER OF ISAAC S. DRILL, HEitMAN A. G.\..LLANT, AND SIMON D. DRILL, TIL\DING AS GALLANT TIL\DING COMPANY CO:!IlPLAINT, FINDINGS, AND ORDim IN REGARD TO Tile ALLEGED VIOLATION 01<' SEC. l'i 01•' AN AC'.r OF CONGRESS APPROVED SEPT. 26, 1914 Duc~cet ..pso. Complaint, July 6, 19~!2-DecisiOJI, Apr. 2, 194.! Where three lndi>i!luals, engage!l O;j partners iu interstate sale and distribution ot various urtl<'les of merchandise, including clothiug, shoes, blaukPts, matter('ses, and tarpaulins; by means of parupblets, drculars, letters, other printed material, and new~vapet· ndvertisernl•uts, directly ot· by lmpllcatlon- (a) Represented that come ot thpir Army III-Top ~hoe.~ were ab:-<olutely perfect; that their mattrel'<SPS were new and pet·fect Army mattresses .which bad been manufactured to Government specifications but, for t::ome unknown l'euson, had been rejected by the Goveriuneut; that their tarpaulins were all pl~rfect; and that their blankets were .Army hlankets; 'lhe facts bl~ing that said ::;hoes show£>d sfgus of WPur; mnttt'I'S!';N; in qtwstlon hnd been renovated and repaired after huviu)::' lwPn gllllWPII l>y mfeP., and wpre not Army mattrrssps or mn nufactui'Pd to GovPI'mnent ~Jli'Ciflcatlons, o1· rPji!Cted by th£> GonorumPut; not oil of thl'lr torpaulius Wl're perfect; and some of their blankets were not Army blnnkets; and (b) llPpre!lented falsely that they d£>alt ln Army goods exclusively, that all of their merchandise was purchu:o~ed ft·om the Goveruwt>ut, and t.hat no otller dealers had such goods to offer to the public; WJtb eQ'ect ot mlf'lt>ndlng and deceiving u substautinl portion of the purchasing publlc wlth r<'!:pect to the nature, quality, und value of said merchandh;e, thereby tuduclng Its pnrchnse th<'reof:

Jleld., That such acts ond practlrP!I, under the drcumstancPs spt forth, were all to the prejudice ot the public, and cou~tltuted untulr and dect>ptlve acts and practices In commerce, Before Mr. Miles J. Fu.mas, trial examiner. Jlr. fl. P. BelUn{Jf'1' fort he Commission. Mr. David I. Lippert, of Los Angl'les, Calif., for Isaac S. Drill and Simon D. Drill.

Mr. 0 harles that kin.,, of Los Angelt>s, Calif., for Ill'rman A. Gallant. CmtPLAINT Pursuant to th~ pro\'if::ions of tht> Fe<1<>ral Trade Commission Act, 9nd by ¥virtue of tht> authority nst<'d in it Ly said net, the Federal Trade Commission having reason to believe that l!'nac S. Drill, Herman A. Gallant, and Simon D. Brill, copnrt1wrs, trading as Gallant Trading Co., hereinnftl'r reft>rrt>d to ns the re!-:pon<lcnts, have violated the provisions of said act, and it appearing to the Commission GALLANT 'TRADING CO. 471 470 Complaint that a proceeding by It m respect thereof would be in the public iiJterest, hereby i~sues its complaint in that r!:'spect as follows: PARAGR.\.1'11 1. The respondents, Isaacs. Drill, Herman A. Gallant, and Simon D. Ih·ill are copartners, trading as Gallant Trading Co., with their principal place of business located at 1111 South Hill Street, Los Ang!:'les, Calif., and a branch or warehouse storage room located at 1G19 South Vermont Street, Los Angeles, Calif. r.~R. 2. Uespondents are now, and for some time last past have· been, engaged in the business of selling and distributing general merchandise, including clothing, shoes, blankets, mattresses, tarpaulins, and other commodities.

Respondents maintain, and at all times mentioned herein have· maintained, a course of trade in their said products in commerce bct\wen and among the various Stutes of the United States and in the· District of Columbia. · PAR. 3. In the eomse ami conduct of their aforesaid business respondents have falsely rt>presented that their said products are new and perfect, having been purcha~;e1l from the Government and are to be found only at the store of respondents, the largest exclusive retail army gootl:; ~store iu the. country, ~uch false represmtations being made by the use of statements ai)pearing in pamphlets, circularsr letters, ad\'ertisements published in newspapers, and other printed and written material. Among and typical o£ said false, misleading, and deceptive statements and representations, are the following: U. S. Alt:\IY l\IAHCIIING SHOES NEW It you cuu wear a Size 5 to 61/:: (a ft•w Size 7) you cnn get a bmnd new pair or Army nuu·chlng shoes, Jlt>l'f!·c·t In e\"eJ'Y l'<'spect, tor l<>ss than halt what thp. GovPI'lllll<'llt Is Jill Yin~;

Alll\lt' NEW KAPOK M.\TTimSSF:S Altl\IY T.\llPAULI:-.IS Weigh fiom 14 to :10 oz. E\'PI'Y ~;lze. All pt>rtt~·t. Some new. Altl\IY HI-TOP SHOES New Ouk solt•:'I-L'Ilhher lwt>ls-ubsolutely pertt>Ct. ~·1m WES'r'S LAU.n!<:ST EXCLUSIVE AHl\lt' GOODS DEALEHS GALLANT Tn.Aning CO.

Elevt>nth & llill St. i>l'ORpect 2tl:-i8 ALL-WOOL DLo\NKI:.:TS NEW 100o/o wool. Gn•y. Weight 4 lbs. Size 6G x 84. An unusually lat·ge and tt>avy nrmr enwrgf'ncy hlankf't.

PI.;HIIAl'S TJmSI~ AND lJU!'JHnJmS 01!' OTIJJ.m GO\'F:HNMF.N'T PUH- CII.\SED JTEl\IH, TO Ile FOUND O~LY IIEilE, WILL IIELP YOU SOLYE YOUH G ~l<vl' l'HOBU;:\IS.

472 FEDERAL TRADE Commissioi DECISIONS Complaint 36F.T.C.

PROBABL~ THE LARGEST EXCLUSlV~ RETAIL A~M~ GOODS STORE IN THE UNITED STATES.

KAPOK MATTRESSES GOV't. rejects; but for what reason we don't know, as the mattresses appear perfect to us.

PAR. 4. D:y means of the aforesaid statements and rep~esentations and others of similar import and meaning not specifically set out herein, the respondents have represented, directly or by implication, that their Army marching shoes are brand new and perfect in every respect; that their Army Hi-Top shoes are absolutely perfect; that their mattresses are new Army mattresses, are perfect, and for some unknown reason have been rejected by the Government; that their tarpaulins are all perfect, some of which are new; that respondents ure exclusive Army goods dealers; that their blankets are Army blankets; that their merchandise is all purchased from the Government and no dealers, other than respondents, have such goods to sell to the public.

PAR. 5. Such statements and representations are false, misleading, and deceptive. In truth and in fact respondents' Army marching shoes nre neither new nor perfect, but are old obsolete shoes manufactured approximately 20 years ago. Respondents' Army Hi-Top shoes are not absolutely perfect, but show sigll.s of wear. Respondents, mattresses are not Army mattresses; they are not new; they are not perfect but have been renovated and repaired, after having been gnawed by mice; they have not been rejected by the Government. Hespondents' tarpaulins are not nil perfect, and none of them are 11ew, Respondents are not exclusive Army goods dealers, but purchase substantial quantities of merchandise from sources other than Government agencies. Respondents' blankets are not Army blankets. Respondents' merchandise is not all purchased from the Government und many goods similar thereto and of the same type as respondents' goods can be bought by the public from dealers other than respondents.

J>An. G. The use by the respondents of the foregoing false, deceptive, and misleading statements and advertisements as herein set forth have had and now have the tendency and capacity to and do mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements, representations, and advertisements are true and because of said erroneous and mistaken belief a substantial number of the purchasing public has purchased and is purchasing respond(•nts' said products. PAR. 7. The aforesaid acts and practices of the respondents, as herein alleged, are all to the prejudice and injury of the public and consti- GALLANT TRADING CO. 473 470 Findings tute 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 July 6, 1942, issued and subsequently served its complaint in this proceeuing upon the respondents1 Isaac S. Drill, Herman A. Gallant, and Simon D. Drill, copartners, trading as Gallant Trading Co., charging them with the use of unfair and deceptive acts and practices in comrneree in violation of the provisions of that act. After the filing of respondents' answers to the complaint, a hearing was held before a trial examiner of the Commission theretofore duly d~signated by it, at which hearing a stipulation us to the facts was entered into between the attorney for the Commission and the attorney for respondents and dictated into the record. This stipulation provided that the facts therein set forth should be taken as the facts in the proceeding, and in lieu of testimony in support of the allegations of the complaint or in opposition thereto. Thereafter, the proceeding n•gularly came on for final hearing before the Commission on the complaint, answers, stipulation as to the facts (such stipulation having been accepted and approved by the Commission), and brief in support of the complaint (no brief having been filed by respondents and oral argument not having been requested); and the Commission, having duly considered the matter and being now fully atlvise<l in the premises, finds that this proceeding is in the intHPSt of the public and makes this its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. The respomlents, Isaac S. Brill, Herman A. Gallant, and Simon D. Drill, are individuals, who for a period of time imme~ diately preceding February 27, 1942, were copartners, trading as Galplant Trading Co., with their principal place of business located at 1111 South Hill Street, Los Angeles, Calif. Respon<lents were engaged in the business of selling and distributing various articles of merchandise, including, among others, clothing, shoes, blankets, mattresses, and tarpaulins.

PAR. 2. Re!"pon<knts cn.ns£'<1 their nwrchandise, wl}('n soltl, to he transported from their place of business in the State of California to purchasers th£'reof locn.tnl in various other States of the Unite<l States. RN;pondents maintained a course of trade in their mer- <"handise in commerce among and between various States of the United States.

528713-43-vol. 36-33 474 FEDERAL TRADE C01.:[.M:ISSION DECISIONS Findings ?6F.T.O.

PAR. 3. In the course and conduct of their business and for the purpose of inducing the purchase of their merchandise, respondents distributed and caused to be distributed among prospective purchasers certain advertising material in the form .of pamphlets, circulars, and letters, as well as other printed material. Respondents also advertised their merchandise in newspapers having a general interstate circulation. Among and typical of the statements and representations contained in respondents' advertisements were the following: ARMY HI-TOP SHOES New Oak soles-rubber ·heels-absolutely perfect. AIU\1Y NEW KAPOK MATTRESSES KAPOK MATTRESSES GOV't. rejects; but for what reason we don't know, as the mattresses appear perfect to us. · ARMY TARPAULINS Weight from 14 to 30 oz. Every size. All perfect. ALL-WOOL BLANKETS NEW 100o/o wool. Gray. Weight 4 lbs. Size G6 x 84. An unusually large and heavy army emergency blanket.

Tile WEST'S LARGEST EXCLUSIVE ARMY GOODS DEALERS GALLANT TRADING CO.

Eleventh & Hill St. Prospect 2!J!:"i8 PROBABLY Tile LARGEST EXCLUSIVE RETAIL ARMY GOODS STORE IN THE UNITED STATES PERHAPS THESE AND HUNDREDS OF OTHER GOVERNMENT PUR- CHASED ITEMS, TO BE FOUND ONLY HERE, WILL HELP YOU SOLVE YOUR GIFT PROBLEMS.

PAR. 4. Through the usc of these statements and representations and others of a similar nature, respondents represented, directly or by implication, that some of their Army Hi-Top shoes were absolutely p('rfect; that their mattresses were new an<l perfect Army mattresses which had been manufactured to Government specifications but which for some unknown reason had been rejected by the Government; that their tarpaulins were all perfect; that their blankets were Army blankets; that respondents dealt in Army goods exclusively and that all of their merchandise was purchased from the Government; and that no dealers other than respondents had such goods to offer to the public. r AR. 5. The Commission finds that these statements and representations were misleading and deceptive. Hespondents' Army Hi-Top shoes were not absolutely perfect lmt showed signs of wear. The mattresses were not Army mattresses, nor were they new or perfect; they GALLANT TRADING CO. 475 470 Order were mattresses which had been renovated and repaired after having been gnawed by mice. They had not been manufactured to Government specifications, and did not constitute merchandise which had been rejected by th<.> Government. All of the tarpaulins were not perfect. Some of the blankets were not Army blankets. Respondents did not deal in Army goods exclusively, nor was all of their merchandise obtained from the Government. Merchandise of the same type and character as that sold by respondents could be obtained by the public from numerous other dealers.

· PAR. 6. The Commission finds further that the use by the respondents of these deceptive and misleading representations had the tendency and capacity to and did mislead and deceive a substantial portion of the purchasing public with respect to the nature, quality, and value of respondents' merchandise, and .as a result of the erroneous and mistaken belief engendered by such representations, such portion of the public was induced to purchase respondents' merchandise. CONCLUSION · The acts and practices of the respondents 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 Federa}. Trade Commission Act.

Order '1'0 CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answers of respondents, stipulation as to the facts, and brief in support of the complaint (no brief having been filed by respondents and oral argument not having been requested); and the Commission having made its findings .as to the facts and its conclusion that the respondents have violated the provisions of the Federal Trade Commission Act. It ls ordered, That the respondents, Isaacs. Brill, Herman A. Galplant, and Simon D. Brill, individually, and trading us Gallant Trading Co., or trading under any other name, and their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of respondents' merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from : 1. Uepresenting, directly or by implication, that respondents' shoes are perfect, when such is not the fact.

2. Uepresenting, directly or .by implication, that respondents' mattresses are Army mattresses, or are new or perfect, when such is not the fact. · Order 36F.T.C.

3. Representing, directly or by implication, that rer;pondents' mattresses were manufactured to Government specifications but have been rejected by the Government for some unknown reason, when such is not the fact.

4. Representing, directly or by implication, that respondents' tar~ paulins are perfect, when such is not the fact. · 5. Representing, directly or by implication, that respondents' blankets are Army blankets, when such is not the fact. 6. Representing, directly or by implication, that respondents deal in Army goods exclusively, or that all of their merchandise is obtained from the Government.

7. Misrepresenting in any manner, or by any means, the condition or origin of respondents' merchandise.

8. Representing, directly or by implication, that merchandise of the same t~·pe and character as respondents' merchandi::-;e is not available to the public from other dealers.

It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a 1eport in writing setting forth in detail the manner and form in which they have complied with this order.

GRABOSKY BROTHERS 477 Complaint